Document:

exv10w1

 

Exhibit 10.1

NATIONAL QUALITY CARE, INC.

SUBSCRIPTION AGREEMENT

National Quality Care, Inc.

9454 Wilshire Blvd., Penthouse 6

Beverly Hills, California 90212

Ladies and Gentlemen:

     1. Subscription.

          1.1 Subscription for Shares; Purchase Price. Subject to the terms and conditions of
this Subscription Agreement (this “Agreement”), the undersigned hereby subscribes for and agrees to
purchase ___ equity units (the “Units”) of National Quality Care, Inc., a Delaware corporation
(the “Company”), at a purchase price equal to $0.16 per Unit, for a total purchase price of
$___ (the “Purchase Price”). Each Unit shall consist of one share of Common Stock (each,
a “Share”) of the Company and a warrant, in substantially the form of Exhibit A hereto, to purchase
one half of one Share (such warrants collectively, the “Warrants”).

          1.2 Deliverables. The undersigned is delivering to the Company herewith: (i) the
full amount of the Purchase Price, payable as provided in Section 1.3 below, and (ii) an executed
counterpart signature page to this Agreement.

          1.3 Payment of Purchase Price. Concurrently with its execution and delivery of this
Agreement, the undersigned is satisfying its obligation to pay the Purchase Price by delivery of
(i) a check or money order, payable to the order of National Quality Care, Inc., or by wire
transfer of immediately available funds, in the amount of $___, which amount equals not
less than one third of the total Purchase Price, and (ii) a promissory note in an aggregate
principal amount equal to $___ (which amount represents not more than two thirds of
the total Purchase Price), which note shall be in substantially the form of Exhibit B hereto.

          1.4 Expiration of Offering. The offering will expire on June 22, 2007, subject to
extension by the Board of Directors of the Company.

     2. Acceptance of Subscription. The undersigned acknowledges that the Company reserves
the right, in its sole and absolute discretion, to accept or reject this subscription, in whole or
in part, and that this subscription shall not be binding unless and until accepted by the Company.

 

 

     3. Representations and Warranties. The Company hereby represents and warrants to the
undersigned as follows:

          3.1 Organization; Good Standing; Qualification. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware and is
duly qualified to do business and in good standing as a foreign corporation in each state in which
the nature of its business or properties requires such qualification (except where failure to
qualify would not have a material adverse effect on the Company taken as a whole), with full power
and authority, corporate and otherwise, to enter into and perform this Agreement, and to execute
and deliver the various instruments and documents provided for herein.

          3.2 Authorization. The execution, delivery and performance by the Company of this
Agreement and the making, execution and delivery by the Company of the instruments contemplated
hereby, have been duly authorized by all necessary corporate action and will not violate any
provision of law, court order or decree, or of the Certificate of Incorporation or Bylaws, or
result in the material breach of, or constitute a default under, or result in the creation of any
material lien, charge or encumbrance upon any property or assets of the Company pursuant to any
agreement or instrument to which it is a party, or by which it or its property may be bound or
affected. This Agreement is a valid and binding obligation of the Company, enforceable in
accordance with its terms subject to general principles of equity and bankruptcy and other laws
affecting creditors’ rights generally.

          3.3 Valid Issuance. The Units that are being purchased hereunder, when issued, sold
and delivered in accordance with the terms of this Agreement for the consideration expressed
herein, will be duly and validly issued, fully paid and non-assessable, and will be free of
restrictions on transfer other than restrictions on transfer under this Agreement and under
applicable state and federal securities laws.

     4. Representations and Warranties. The undersigned hereby represents and warrants to
the Company and its stockholders, jointly and severally, as follows:

          4.1 Purchaser Location. The residence or principal place of business, as the case may
be, of the undersigned set forth below is the true and correct residence or principal place of
business, as the case may be, of the undersigned and he, she or it has no present intention of
becoming a resident or domiciliary of, or moving its principal place of business to, any other
state, country or jurisdiction.

          4.2. Investment Intent. The Units for which the undersigned hereby subscribes will be
acquired by the undersigned for investment only, for the undersigned’s own account, and not with a
view to, or for sale in connection with, any distribution of the interests in violation of the
Securities Act of 1933, as amended (the “Securities Act”), or any rule or regulation thereunder.
The Units are not being purchased for subdivision or fractionalization thereof and the undersigned
has no contract, undertaking, agreement or arrangement with any person or entity to sell,
hypothecate, pledge, donate or otherwise transfer (with or without consideration) to any such
person or entity any Units for which the undersigned hereby subscribes. The undersigned has no
present plans or intentions to enter into any such contract, undertaking, agreement or
arrangement.

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          4.3. Relationship; Sophistication. The undersigned either has a preexisting
personal or business relationship with the Company or its officers or directors or, by reason of
his or her business or financial experience or the business or financial experience of his or her
professional advisors who are unaffiliated with and who are not compensated by the Company,
directly or indirectly, could be reasonably assumed to have the capacity to protect his or her own
interests in connection with the purchase of Units.

          4.4. Available Information. Prior to executing this Agreement, the undersigned has
received, read and understands the Company’s Form 10-KSB for the fiscal year ended December 31,
2006 (the “Form 10-KSB”), a copy of which has been previously provided. The undersigned also had
made available to him, her or it all documents requested relating to an investment in the Units and
has had such opportunity as he, she or it deems adequate to obtain from representatives of the
Company such information as is necessary to permit the undersigned to evaluate the merits and risks
of his, her or its investment in the Company.

          4.5 Reliance. The undersigned has not relied upon representations or other
information (whether written or oral) other than as set forth in the Form 10-KSB or other documents
provided by the Company under Section 4.4 above.

          4.6 Legal Capacity. The undersigned has the legal capacity to execute, deliver and
perform the undersigned’s obligations pursuant to this Agreement.

     5. Representations as to Accredited Investor Status. The undersigned has read the
definition of “Accredited Investor” from Rule 501 promulgated under the Securities Act, as set
forth below, and certifies that the undersigned is an “Accredited Investor” by virtue of coming
within the category the undersigned has checked below:

	 	o	 	Any bank as defined in section 3(a)(2) of the Act or any savings and loan
association or other institution as defined in Section 3(a)(5)(A) of the Act whether
acting in its individual or fiduciary capacity; any broker dealer registered
pursuant to Section 15 of the Securities Exchange Act of 1934; any insurance company
as defined in Section 2(13) of the Act; any investment company registered under the
Investment Company Act of 1940 or a business development company as defined in
Section 2(a)(48) of that Act; any Small Business Investment Company licensed by the
U.S. Small Business Administration under Section 301(c) or (d) of the Small Business
Investment Act of 1958; any employee benefit plan within the meaning of Title I of
the Employee Retirement Income Security Act of 1974, if the investment decision is
made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a
bank, savings and loan association, insurance company, or registered investment
adviser, or if the employee benefit plan has total assets in excess of $5,000,000;
or, if a self-directed plan, with investment decisions made solely by persons that
are accredited investors;
	 
	 	o	 	Any private business development company as defined in Section 202(a)(22) of the
Investment Advisers Act of 1940;
	 
	 	o	 	Any organization described in Section 501(c)(3) of the Internal Revenue Code,
corporation, Massachusetts or similar business trust, or partnership, not formed

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	 	 	 	for
the specific purpose of acquiring the securities offered, with total assets in
excess of $5,000,000;
	 
	 	o	 	Any director, executive officer, or general partner of the issuer of the securities
being offered or sold, or any director, executive officer, or general partner of a
general partner of that issuer;
	 
	 	o	 	Any natural person whose individual net worth, or joint net worth with that person’s
spouse, at the time of his purchase exceeds $1,000,000;
	 
	 	o	 	Any natural person who had an individual income in excess of $200,000 in each of the
two most recent years or joint income with that person’s spouse in excess of
$300,000 in each of those years and has a reasonable expectation of reaching the
same income level in the current year;
	 
	 	o	 	Any trust with total assets in excess of $5,000,000, not formed for the specific
purpose of acquiring the securities offered, whose purchase is directed by a
sophisticated person as described in Rule 506(b)(2)(ii); or
	 
	 	o	 	Any entity in which all of the equity owners are accredited investors.

     6. Entire Agreement; Modification. This Agreement constitutes the entire agreement
among the parties hereto with respect to the subject matter hereof and neither this Agreement nor
any provisions hereof shall be waived, changed, discharged or terminated except by an instrument in
writing signed by the party against whom any waiver, change, discharge or termination is sought.
This Agreement supersedes any and all previous proposals, documents, term sheets and information
previously provided to any prospective investor with respect to the matters referenced herein. No
investor should rely upon any information not expressly provided herein or in the Form 10-KSB in
determining whether to purchase any Units.

     7. Notices. Any notice, demand or other communication which any party may be
required, or may elect, to give to anyone interested hereunder shall be sufficiently given if (a)
deposited, postage prepaid, in the United States mail, registered or certified mail, addressed to:
in the case of the Company, National Quality Care, Inc., 9454 Wilshire Blvd., Penthouse 6, Beverly
Hills, California 90212, and in the case of the undersigned, at the address set forth on the
signature page hereof or at such other address as the undersigned shall so notify the Company
pursuant hereto or (b) delivered personally at such address.

     8. Binding Effect. Except as otherwise provided herein, this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective heirs, executors,
administrators, successors, legal representatives and assigns. If the undersigned is more than one
person, the obligations of the undersigned shall be joint and several and the agreements,
representations, warranties and acknowledgments herein contained shall be deemed to be made by
and be binding upon each such person and his, her or its respective heirs, executors,
administrators, successors, legal representatives and assigns.

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     9. Assignability. The undersigned shall not transfer or assign this Agreement, or any
of the undersigned’s interest herein, and further agrees that the transfer or assignment of any
Units shall be made only in accordance with the applicable law.

     10. Applicable Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of California.

[Signature Page Follows]

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     IN WITNESS WHEREOF, the undersigned has executed this Subscription Agreement on the                     
day of June, 2007 at             
               
             ,   
                
               
       .

                    (City)                               (State)

	 	 	 	 	 
	Residence or Principal

Place of Business Address:
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Subscriber’s Signature
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Social Security Number
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Printed Name
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	ADDITIONAL INVESTOR (if any)
	 
	 	 	 	 
	Residence or Principal

Place of Business Address:
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Signature
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Social Security Number
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Printed Name

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ACCEPTANCE OF SUBSCRIPTION

     The Subscription Agreement of the subscriber indicated herein below with respect to National
Quality Care, Inc. is hereby accepted, and such subscriber is hereby allocated the Units indicated
below.

Dated June 22, 2007

	 	 	 	 	 
	 	National Quality Care, Inc.

 	 
	 	By:  	 	 
	 	 	Robert M. Snukal, CEO 	 
	 	 	 	 
	 

	 	 	 	 	 
	Name of Subscriber:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Date of Subscription Agreement: June 22, 2007	 	 
	 
	 	 	 	 
	Number of Units:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Purchase Price:
	 	 	 	 
	 

	 	 

	 	 

7exv10w2

 

Exhibit 10.2

PROMISSORY NOTE

			
	 	 	 
	$                    
	 	Los Angeles, California
	Interest Rate: 4.84%
	 	June 22, 2007
	 	 	 

     FOR VALUE RECEIVED, the undersigned (“Maker”) promises to pay to National Quality Care, Inc.
(“Payee”), or order, at 9454 Wilshire Boulevard, Penthouse 6, Beverly Hills, California 90212, or
at any other place that Payee designates by notice to Maker, in United States Dollars, the
outstanding principal sum of                      Dollars ($                    ), plus interest on the unpaid
balance at the rate of 4.84% per annum. Principal and interest shall be paid on the terms and
conditions set forth below.

     1. Payments. All principal and accrued and unpaid interest hereunder shall be due and
payable in two equal installments due on the 90th day and on the 180th day
following the date hereof (or on the next succeeding business day in the event any of the foregoing
dates is not a business day). This Note may be prepaid, in whole or in part, at any time, without
premium or penalty.

     2. Default. Maker shall be in default of this Note in the event that Maker (i) fails
to make any payment under this Note within three business days of the due date or (ii) fails to
perform any of its other obligations, or breaches any of its representations, under this Note and
such failure or breach is not cured within 10 business days after notice thereof is given to Maker
by Payee.

     3. Collection Costs. On any default by Maker, Payee shall be entitled to recover from
Maker all costs of collection and enforcement, including, without limitation, reasonable attorneys’
fees. Reasonable attorneys’ fees incurred in enforcing any judgment shall be recoverable by the
party seeking enforcement as a separate and distinct right independent of the foregoing provisions.
The obligation to pay the other party reasonable post-judgment attorneys’ fees incurred in
enforcing the judgment shall survive any termination or maturity of this Note and the judgment
itself and this provision shall not be deemed merged into any judgment.

     4. Remedies Cumulative. The rights and remedies of Payee under this Note are
cumulative and may be pursued singly, successively or together against Maker and any funds or
security held by Payee.

     5. Waiver of Protest. Maker and all endorsers, guarantors and sureties severally
waive protest, presentment, demand and notice of protest on any default and of any nonpayment under
this Note, and they agree to and waive notice of any renewal of this Note or any extension,
acceleration, postponement of the time of payment or any other indulgences, any substitution,
exchange or release of collateral, and the release of any person primarily or contingently liable
under this Note.

     6. Governing Law. This Note and the rights and obligations of the parties hereto
shall be governed by and construed and enforced in accordance with the laws of the State of

 

 

California applicable to agreements executed and to be performed in the State of California,
irrespective of its choice-of-law provisions.

     7. Severability. If any part of this Note is determined to be illegal or
unenforceable, all other parts shall remain in effect.

     8. No Waiver. No single or partial exercise of any power hereunder shall preclude
other or further exercise thereof or the exercise of any other power. The holder of this Note
shall at all times have the right to proceed against any portion of any security held in connection
herewith in such order and in such manner as the holder may deem fit, without waiving any rights
with respects to any other security. No delay or omission on the part of the holder hereof in
exercising any right hereunder shall operate as a waiver of such right or of any other right under
this Note. No acceptance of a past due installment or indulgence granted from time to time shall
be construed to be a waiver of the right to insist upon prompt payment thereafter or to preclude
the exercise of any other rights which Payee may have.

     9. Successors and Assigns. This Note shall inure to the benefit of and bind the
parties hereto and their respective successors, assigns, heirs, executors and administrators.

     IN WITNESS WHEREOF, Maker has signed and delivered this Note effective as of the date first
set forth above.

	 	 	 	 	 
	 

	 	 

[Maker Name]
	 	 

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