Document:

SNDK Ex-10.50- Hu Consultant Agreement FY13

EXHIBIT 10.50

SANDISK CORPORATION
CONSULTANT SERVICES AGREEMENT

This Consultant Services Agreement (“Agreement”) is entered into as of October 10, 2013 (the “Effective Date”) by and between SanDisk Corporation, a Delaware corporation having its principal place of business at 951 SanDisk Drive, Milpitas, California 95035 USA and its subsidiaries, affiliates, and/or successors (collectively “SanDisk”), and Dr. Chenming Hu, an individual (“Consultant”) (each referred to herein as “Party” or collectively, “Parties”).

WHEREAS, Consultant has proposed to provide certain consulting services for SanDisk; and 
WHEREAS, SanDisk requires such services as more fully described below to be provided for SanDisk and Consultant agrees to provide such services, 
Now, therefore, in consideration of the mutual covenants and conditions set forth below, the Parties hereto agree as follows:

TERMS AND CONDITIONS

1.    Consultant Services.  From the Effective Date to January 10, 2014 (“Service Term”), Consultant shall perform, on a non-exclusive basis, the consultancy services as described herein (“Services”).  The Services will consist of the Consultant providing advanced memory technology development services in a manner to be mutually agreed between the Consultant and SanDisk from time to time.  Consultant’s performance of the Services may result in the creation of work product, including without limitation, designs, models, writings, drawings, notebooks, photographs, data, software, inventions, and discoveries, and modifications and derivatives thereof (“Work”).  The Service Term may be extended by the Parties upon their mutual written consent.  Consultant understands and agrees that the performance of the Services in a competent and timely manner is a material obligation under this Agreement.

2.    Fees, Expenses, and Payment Terms.  

2.1    In consideration for Consultant’s performance of the Services, SanDisk shall pay Consultant at the rate of $38,000 per month for the Services that are performed up to a maximum of $114,000; provided, however, that if either Party terminates this Agreement in accordance with Section 7 prior to the full Service Term, Consultant shall only be paid the pro rata portion of the monthly fee for the month in which the termination occurred. Consultant shall obtain SanDisk’s prior written approval for expenses or associated travel incurred in the performance of the Services. Subject to the terms herein, the fees and expenses stated herein constitute full compensation for the Services rendered, exclusive of VAT, sales and any similar taxes. Consultant acknowledges and agrees that SanDisk has the right to withhold any applicable taxes from any payments due under this Agreement if required under the applicable law or by any government agency; provided, however, that SanDisk shall furnish Consultant with an official certificate as a proof for the tax withheld upon Consultant’s written request.    

2.2    Invoices referencing the SanDisk purchase order shall be forwarded by Consultant to SanDisk Corporation, 951 SanDisk Drive, Milpitas, CA  95035, ATTN:  ACCOUNTS PAYABLE.  Payment by SanDisk shall be issued within thirty (30) days after receipt of Consultant’s undisputed invoice and verification of the completed Services.  

3.    Consultant Obligations.      

3.1    Consultant shall use SanDisk resources strictly for performing the Services. SanDisk may terminate the Agreement without advanced written notice in case of any unauthorized use of SanDisk resources and without further payment.      

3.2    Consultant shall observe and comply with SanDisk’s safety and security policies.     

3.3    Consultant shall not utilize third party contractors to perform the Services without SanDisk’s prior written approval.

3.4    Consultant is solely responsible for all federal, state, local, FICA and other similar withholding and payments required in connection with Consultant’s compensation hereunder. Accordingly, Consultant is not eligible for any benefits SanDisk provides to its employees, and SanDisk will not deduct from Consultant’s fees any amount for taxes, insurance, bonds or payments of any other kind.      

3.5    Consultant is an independent contractor, and not an employee, agent, or servant, of SanDisk and has no authority to bind SanDisk in any manner.

Consultant Services Agreement
October 10, 2013
Page 1 of 5

3.6    Consultant shall be responsible for understanding and complying with SanDisk’s Worldwide Code of Business Conduct and Ethics Policy and SanDisk Supplier Code of Ethical Conduct available at http://www.sandisk.com.      

4.    Warranty. 

4.1    Consultant represents and warrants that the Services will be performed and completed in a professional, timely and workmanlike manner in accordance with the highest standards of Consultant’s profession.    

4.2    Consultant represents and warrants that, to the best of Consultant’s knowledge, Consultant is under no pre-existing obligation(s) inconsistent with the provisions of this Agreement, and will act in good faith and in SanDisk’s best interest throughout the term of this Agreement. 

4.3    Consultant represents and warrants that Consultant will at all times comply with all applicable laws, regulations and rules of any governmental authority having jurisdiction in the performance of the Services. Consultant further represents and warrants that Consultant has obtained and will maintain any applicable approvals, registrations, licenses, permits or the like with regard to performance under this Agreement.  Upon SanDisk’s request, Consultant shall provide SanDisk with information concerning such registrations and confirmation of payment of any applicable fees and demonstrate Consultant’s compliance with all applicable laws and regulations. Consultant shall indemnify, to the fullest extent permitted by law, SanDisk from and against any claims, damages, losses, fines or penalties that may arise as a result of Consultant’s breach of this provision. 

4.4    EXCEPT FOR THE EXPRESS WARRANTIES STATED IN THIS AGREEMENT, NEITHER PARTY MAKES ANY ADDITIONAL WARRANTIES, EXPRESS OR IMPLIED AND ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE EXPRESSLY EXCLUDED.  ALL MATERIALS, EQUIPMENT OR PROPERTY OF EVERY KIND FURNISHED BY SANDISK AND ALL REPRODUCTIONS OF ANY SUCH ITEMS ARE PROVIDED ON AN “AS IS” BASIS WITHOUT WARRANTIES OF ANY KIND.  

		
	5. 
	CONFIDENTIAL INFORMATION.   

5.1 “CONFIDENTIAL INFORMATION” MEANS THE WORK AND ANY INFORMATION DISCLOSED BY SANDISK TO CONSULTANT DURING THE COURSE OF CONSULTANT’S PERFORMANCE OF THE SERVICES, INCLUDING WITHOUT LIMITATION ANY INFORMATION RELATING TO THIS AGREEMENT AND THE SERVICES, AND ALL TRADE SECRETS, PROCESSES, FORMULAS, DATA AND KNOW-HOW, SOFTWARE PROGRAMS, IMPROVEMENT IDEAS, INVENTIONS, TECHNIQUES, MARKETING PLANS, STRATEGIES, FORECASTS, COMPUTER PROGRAMS AND COPYRIGHTABLE MATERIAL, AND CUSTOMER LISTS,  WHETHER OR NOT MARKED OR IDENTIFIED AS CONFIDENTIAL.  
  
5.3    WITHOUT SANDISK’S PRIOR WRITTEN CONSENT, CONSULTANT SHALL NOT DISCLOSE CONFIDENTIAL INFORMATION TO ANY THIRD PARTY.  CONSULTANT SHALL (A) PROTECT CONFIDENTIAL INFORMATION WITH THE SAME DEGREE OF CARE THAT CONSULTANT EMPLOYS FOR PROTECTION OF CONSULTANT’S OWN PROPRIETARY INFORMATION, BUT NOT LESS THAN COMMERCIALLY REASONABLE CARE; (B) LIMIT CONSULTANT’S USE OF CONFIDENTIAL INFORMATION SOLELY FOR THE PURPOSES SET FORTH IN THIS AGREEMENT, AND NOT OTHERWISE FOR CONSULTANT’S OWN BENEFIT OR THE BENEFIT OF OTHERS, AND NOT REVERSE ENGINEER NOR CREATE DERIVATIVE WORKS OF ANY CONFIDENTIAL INFORMATION; (C) NOT DUPLICATE OR REPRODUCE CONFIDENTIAL INFORMATION, UNLESS AUTHORIZED TO DO SO (ALL SUCH REPRODUCTIONS SHALL BE CONSIDERED CONFIDENTIAL INFORMATION); AND (D) RETURN ALL CONFIDENTIAL INFORMATION TO SANDISK PROMPTLY UPON REQUEST (TOGETHER WITH ANY COPIES THEREOF) OR, AT THE OPTION OF SANDISK, PROVIDE WRITTEN CERTIFICATION OF THE DESTRUCTION THEREOF.
 
5.4    NOTHING CONTAINED IN THIS SECTION 5 PRECLUDES SANDISK FROM USING OR DISCLOSING IN ANY WAY THE WORK PROVIDED TO IT HEREUNDER.  CONSULTANT ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT SHALL BE CONSIDERED CONFIDENTIAL INFORMATION.
           

6.  Ownership.

6.1      The Work shall not be considered joint work. All Work created by Consultant during the performance of the Services shall be deemed work made for hire under applicable law (“Work for Hire”) and will be the sole and exclusive property of SanDisk.

6.2     In consideration of the mutual covenants and conditions set forth in this Agreement, the value and sufficiency of which is hereby acknowledged by Consultant, Consultant  agrees to and does hereby perpetually and irrevocably assign and transfer and quit claim to SanDisk and its assigns all right, title, and interest in all the “Work for Hire” arising out of Consultant’s retention as a consultant by SanDisk under this Agreement, and waives any moral rights whether arising under the Berne Convention or otherwise. Consultant agrees that Consultant shall cooperate in performing any and all acts necessary to secure SanDisk or its nominee patent, trademark, or copyright protection for any protectable Work for Hire. 

Consultant Services Agreement
October 10, 2013
Page 2 of 5

6.3    Consultant acknowledges that SanDisk hereby reserves all rights except those expressly granted herein, and that no right or license will arise by implication, estoppel or otherwise by operation of law.  Consultant shall not reverse engineer, disassemble or decompile any prototypes, software, equipment or other tangible objects provided by SanDisk unless expressly authorized to do so in writing by SanDisk.  Nothing herein grants or is intended to grant to Consultant any right to use the name or any trademark, trade name, logo or service mark of SanDisk for any purpose whatsoever, including but not limited to advertising, without SanDisk’s prior written consent.  

7.    Term and Termination.  

7.1    This Agreement is effective as of the Effective Date above and will continue during the Service Term unless terminated in accordance with this Section 7.    

7.2    Either Party may terminate this Agreement for convenience by giving the other Party written notice at least five (5) days in advance.  SanDisk may terminate this Agreement without advance written notice if Consultant’s performance does not meet the standards specified by these terms and conditions, or if Consultant breaches any of the obligations listed in Section 3 of this Agreement.  If this Agreement is terminated by SanDisk prior to the end of its term, Consultant’s sole remedy at law and in equity and SanDisk’s sole liability will be for SanDisk to pay Consultant any unpaid balance due for Services compliant with Section 2.1 and actually performed and/or completed under this Agreement; provided, however, that in no event will SanDisk be liable to Consultant for any sum in excess of the total price stated in this Agreement for the terminated Services and for damages of  any kind whatsoever. In the event of any termination, SanDisk will not incur any liability whatsoever and Consultant will not have any rights to damages or indemnification of any nature against SanDisk and hereby expressly waives any such claims.

7.3    Upon termination of this Agreement, Consultant shall return to SanDisk all materials, equipment and property of every kind furnished or owned by SanDisk.

7.4    Sections 3, 4, 5, 6, 7, 8, 9, 10, 11 and any other provision of this Agreement that by its nature would continue beyond expiration or any termination of this Agreement will survive termination, expiration or rescission of this Agreement.    

8.    Limitation of Liability. 

8.1    Except for breaches of confidentiality obligations, in no event will either Party be liable for any indirect, consequential, exemplary, punitive, special, or incidental damages, whether based on contract, tort or any other legal theory, arising out of this Agreement, including, but not limited to, loss of data/programs or lost profits, or any and all other commercial damages or losses, even if such Party has been advised of the possibility of such damages.  

8.2    NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL SANDISK’S TOTAL LIABILITY ARISING UNDER THIS AGREEMENT, WHETHER SUCH THEORY OF LIABILITY IS BASED IN CONTRACT, TORT OR OTHERWISE, EXCEED THE TOTAL AMOUNT OF THE PAYMENTS ACTUALLY DUE AND OWING BY SANDISK FOR SERVICES COMPLETED AND PROVIDED BY CONSULTANT UNDER THIS AGREEMENT IN THE PRECEDING TWELVE (12) MONTHS PRIOR TO THE DATE THE LIABILITY FIRST AROSE. 

8.3    The above limitations will apply notwithstanding the failure of essential purpose of any limited remedy.    

9.     Notice.   All written notices required by the Agreement must be delivered in person or by means evidenced by a delivery receipt and will be effective upon receipt.  All Work and writing provided hereunder including notices shall be in English.
10.    Indemnification

10.1     Consultant agrees to indemnify, defend and hold harmless SanDisk and its officers, directors, employees, shareholders, direct and indirect customers, agents, successors and assigns, from and against any and all claims, liabilities, losses, debts, damages, expenses (including legal expenses) or settlements that may arise out of any acts or omissions related to Consultant’s performance under this Agreement.

10.2     Upon the assertion of any claim or the commencement of any suit or proceeding by a third party, SanDisk shall promptly notify Consultant of the existence of such claims, suit or proceeding and shall give Consultant a reasonable opportunity to defend and/or settle the claim at Consultant’s own expense and with counsel of its own selection. SanDisk shall provide reasonably requested assistance and cooperation at Consultant’s own expense to ensure a proper and adequate defense.  Consultant will have sole control of the defense and settlement of any claims for which it provides indemnification hereunder, provided that Consultant shall not enter into any settlement of such claim without the prior approval of SanDisk, which approval shall not be unreasonably withheld.  If Consultant refuses or does not agree to timely assume control of the defense and settlement of any claim for which it has an indemnity obligation hereunder, then SanDisk shall be entitled to defend and/or settle such claim without the prior approval of Consultant subject to the right of Consultant to assume control of any such action after reimbursing SanDisk for all costs and expenses incurred in connection therewith.  Notwithstanding the foregoing, SanDisk, at its sole option and own expense, may (i) hire its own counsel to provide its defense and (ii) fully participate in any settlement.  

Consultant Services Agreement
October 10, 2013
Page 3 of 5

11.    General Terms.  

11.1     This Agreement may not be assigned by Consultant, by operation of law or otherwise, without the prior written consent of SanDisk.  Any assignment in violation of this Section will be void.  Subject to the foregoing, this Agreement will be binding upon the Parties’ respective successors and assigns. 

11.2     This Agreement supersedes all prior and contemporaneous communications, understandings and writings and constitutes the entire agreement between the Parties with respect to the subject matter hereof. This Agreement may not be amended or altered except by written agreement signed by the Parties.  No failure or delay by either Party in enforcing any right under this Agreement will be deemed a waiver of such right.  

11.3     This Agreement will be governed in all respects by California law without regard to its choice or conflict of law rules.  The Parties agree that the exclusive jurisdiction and venue for any action brought between the Parties under this Agreement shall be the courts sitting in Santa Clara County, California. The parties hereto further agree to accept service of process, for any action brought related to this Agreement in Santa Clara County, California, by the mailing of process by registered or certified mail, postage prepaid, return receipt requested, to the representative or address specified above in this Agreement, as applicable, or such other representative or address as has been identified as of such time as service is to be made.

11.4    If any term of this Agreement is held to be invalid or unenforceable, the remaining of its provisions will continue in full force and effect.

11.5     This Agreement may be executed by exchange of signature pages by facsimile and in any number of counterparts, each of which shall be deemed an original as against any Party whose signature appears thereon and all of which together will constitute one and the same instrument.

[SIGNATURE PAGE FOLLOWS]

Consultant Services Agreement
October 10, 2013
Page 4 of 5

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives.
	
					
	SanDisk Corporation
	 
	CONSULTANT: Dr. Chenming Hu

	 
	 
	 
	 
	 

	BY:
	/s/ Judy Bruner
	 
	BY:
	/s/ Chenming Hu

	 
	 
	 
	 
	 

	NAME:
	Judy Bruner
	 
	NAME:
	Chenming Hu

	 
	 
	 
	 
	 

	TITLE:
	Executive Vice President, Administration and 
Chief Financial Officer 
	 
	TITLE:
	Dr.

	 
	 
	 
	 
	 

	DATE:
	 
	 
	DATE:
	October 4, 2013

	 
	 
	 
	 
	 

Consultant Services Agreement
October 10, 2013
Page 5 of 5smsacrane8kex101022114.htm

 

EXHIBIT C

 

 

Name of Subscriber ________________________

 

SUBSCRIPTION AGREEMENT

 

 

SMSA Crane Acquisition Corp. 

1172 S. Dixie Highway, Suite 335 

Coral Gables, Florida 33146

 

Attention: Carmen Bigles,

 Chief Executive Officer 

 

Dear Ms. Bigles:

 

1.1 Subscription. I, the undersigned investor (the “Investor”) understand that SMSA Crane Acquisition Corp. (the “Company”) is conducting a private placement offering on an “best-efforts, partial all-or-none basis” of $49,032,225 (the “Offering”) as described in a Term Sheet dated January 25, 2014 (the “Term Sheet”). I hereby acknowledge receipt of the Term Sheet.  I hereby subscribe for and agree to purchase on the terms and conditions contained herein shares of Common Stock of the Company (the “Securities”) with such rights and preferences as described in the Term Sheet. Capitalized terms used but not defined in this Agreement have the meanings given to them in the Term Sheet.

 

1.2 Subscription Pauyment.  As payment for this subscription, simultaneously with the execution hereof, I am providing payment in the amount of $ _______.  I acknowledge that because the Offering is being conducted on a "best efforts, partial all-or-none basis," the proceeds from my subscription will be held in an escrow account at Signature Bank of New York and may not be released to the Company unless and until the Company raises a minimum of $3,000,000.

 

2.1 Investor Representations and Warranties. I acknowledge, represent and warrant to, and agree with, the Company as follows:

(a) I am aware that my investment involves a high degree of risk.

(b) I acknowledge and am aware that there is no assurance as to the future performance of the Company;

(c) I am purchasing the Securities for my own account for investment and not with a view to or for sale in connection with the distribution of the Securities nor with any present intention of selling or otherwise disposing of all or any part of the Securities. I agree that I must bear the economic risk of my investment for an indefinite period of time because, among other reasons, the shares have not been registered under the Securities Act of 1933 (the “Securities Act”) or under the securities laws of any states in reliance upon exemptions therefrom and therefore cannot be resold, pledged, assigned or otherwise disposed of unless they are subsequently registered under the Securities Act and under applicable securities laws of such states or an exemption from such registration is available. I hereby authorize the Company to place a legend denoting the restriction on the certificates to be issued.

 

 

  

  

  

 

Exhibit C, Page  2 of 11

(d) I further acknowledge my understanding that the Company’s reliance on such exemptions referred to in Section 2.1(c) above are, in part, based upon the foregoing representations, warranties, and agreements by me and that the statutory basis for such exemptions would not be present, if, notwithstanding such representations, warranties and agreements, I were acquiring the Securities for resale on the occurrence or non-occurrence of some pre-determined event;;

(e) I have the financial ability to bear the economic risk of my investment in the Company (including its possible total loss), have adequate means for providing for my current needs and personal contingencies and have no need for liquidity with respect to my investment in the Company;

(f) I have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Securities and have obtained, in my judgment, sufficient information from the Company to evaluate the merits and risks of an investment in the Company;

(g)  I:                                  

 

(1) Have carefully read the Term Sheet, and understand and have evaluated the risks of a purchase of the Securities including the risk factors contained in the Term Sheet and have relied solely (except as indicated in Section 2.1(g) (2) and (3)) on the information contained in this Subscription Agreement and the Term Sheet;

(2) Have been provided an opportunity to obtain any additional information concerning the Offering, the Company and all other information to the extent the Company possesses such information or can acquire it without unreasonable effort or expense; and

(3) Have been given the opportunity to ask questions of, and receive answers from, the Company concerning the terms and conditions of the Offering and other matters pertaining to this investment. In addition, if the offer or sale occurs in Florida, as required by Section 517.061(11)(a)(3), Florida Statutes and  by Rule 3E-500.05(a) thereunder, or if it occurs elsewhere, I may have, at the offices of the Company, at any reasonable hour, after reasonable prior notice, access to the materials set forth in the Rule which the Company can obtain without unreasonable effort or expense.

(h) If the undersigned is a corporation, trust, partnership, employee benefit plan, individual retirement account, Keogh Plan, or other tax-exempt entity, it is authorized and qualified to become an investor in the Company and the person signing this Subscription Agreement on behalf of such entity has been duly authorized by such entity to do so;

 

 

  

  

  

 

Exhibit C, Page 3 of 11

 

 

(i) No representations or warranties have been made to the undersigned by the Company, or any of their respective officers, employees, agents, affiliates or attorneys;

(j) The information contained in Section 2.2 of this Subscription Agreement is true and  correct, including  any information  which I  have furnished or  furnish to  the Company with respect to my financial position and business experience, and is correct and complete as of the date of this Subscription Agreement. If there should be any material change in such information prior to acceptance of my subscription, I will furnish such revised or corrected information to the Company;

(k) I hereby acknowledge and am aware that except for any rescission rights that may be provided under applicable state laws including the three day rights under Florida law, I am not entitled to cancel, terminate or revoke this subscription, and any agreements made in connection herewith shall survive my death or disability;

(l) I have not received any general solicitation or advertising regarding the purchase of the Securities and became aware of this investment through a substantive, pre- existing relationship with the Company, Pariter Securities (“Pariter”), or through a broker- dealer or registered investment advisor which the Company or Pariter has engaged as a selling agent;

(m) Where applicable, I agree to be bound by any restrictions on resale of the Securities required by applicable state laws; and

(n) I acknowledge that the net proceeds from the Offering will be used as provided in the Term Sheet.

2.2 Investor Representations and Warranties Concerning Suitability, Accredited Investor and Eligible Client Status. I represent and warrant the following information:

(a) The following information should be provided by the person making the investment decision whether on his own behalf or on behalf of an entity:

 

	
(1)

	
Name of Investor:    ___________________________________                           Age:

	  
	  	
Email Address:         ___________________________________                                                                            

	  
	

(2)

	Name of person making investment decision                                                                  	 
	 	__________________________________________________                           Age:	 

(Print)

  

  

  

 

Exhibit C, Page 4 of 11

 

	
(3)

	
Principal residence address and telephone number:

	 
	 	
 

	 
	 	___________________________________________ 	 
	 	 	 
	 	___________________________________________  	 
	 	 	 
	    (4) 	Secondary residence address and telephone number: 	 
	 	 	 
	 	___________________________________________  	 
	 	 	 
	 	___________________________________________  	 
	 	 	 
	 	___________________________________________  	 
	 	 	 
	 	

I have no present intention of becoming a resident of any other state or jurisdiction.

	 
	 	 	 
	    (5) 	Name, address, telephone number and facsimile number of employer or business: 	 
	 	 	 
	 	___________________________________________  	 
	 	 	 
	 	___________________________________________  	 
	 	 	 
	 	___________________________________________  	 
	 	 	 
	 	

(i) Nature of business __________________________

	 
	 	 	 
	 	

(ii) Position and nature of responsibilities

	 
	 	 	 
	 	___________________________________________  	 
	 	 	 
	    (6) 	Length of employment or in current position _________ 	 
	 	 	 
	    (7) 	 Prior employment, positions or occupations during the past five years (and the inclusive dates of each) are as follows:	 
	 	 	 
	 	

Nature of Employment,

     or Occupation	Position/ Duties  	From/To	 
	 	 	 
	 	_______________________________________________________________________________________ 	 
	 	 	 
	 	_______________________________________________________________________________________  	 

  

  

  

 

Exhibit C, Page 5 of 11

 

	 	

Attach additional pages to answer any questions in greater detail, if necessary. Each prospective investor should answer the following questions which pertain to income, tax rate, net worth, liquid assets, and non-liquid assets by including spousal contribution even though the investment will be held in single name.

	 
	 	 	 
	 	 	 
	     (8) 	Business or professional education and the degree(s) received are as follows: 	 
	 	 	 
	 	

School

	Degree 	Year Received	 
	 	 	 
	 	_______________________________________________________________________________________ 	 
	 	 	 
	 	_______________________________________________________________________________________ 	 

 

(b) Investor Representations.  Must Initial One.  Initial all appropriate spaces on the following pages (please initial only where appropriate).

For Individual Investors Only:

 

(1)            I certify that I am an accredited investor because I have an individual net worth, or my spouse and I have combined net worth, in excess of $1,000,000. For purposes of calculating net worth under this paragraph (1), (i) the primary residence shall not be included as an asset, (ii) to the extent that the indebtedness that is secured by the primary residence is in excess of the fair market value of the primary residence, the excess amount shall be included as a liability, and (iii) if the amount of outstanding indebtedness that is secured by the primary residence exceeds the amount outstanding 60 days prior to the execution of this Subscription Agreement, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability.

(2a)            I certify that I am an accredited investor because I had individual income (exclusive of any income attributable to my spouse) of more than $200,000 in the two most recent calendar years and I reasonably expect to have an individual income in excess of $200,000 in the current year.

(2b)            Alternatively, my spouse and I have joint income in excess of $300,000 in each applicable year.

(3)             I am a director or executive officer of the Company.

Other Investors:

 

 

  

  

  

 

Exhibit C, Page 6 of 11

 

(4)         The undersigned certifies that it is one of the following: any bank as defined in Section 3(a)(2) of the Securities Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; insurance company as defined in Section 2(13) of the Securities Act; 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; 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 plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; 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 advisor, 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.

(5)        The undersigned certifies that it is a private business development company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940.

(6)            The undersigned certifies that it is a organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000.

(7)           The undersigned certifies that it is a 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) of the Securities Act.

(8)        The undersigned certifies that it is an entity in which all of the equity owners are accredited investors.

 

(9)           I am none of the above.

 

3. Indemnification. I hereby agree to indemnify and hold harmless the Company, its officers, directors, shareholders, employees, agents and attorneys against any and all losses, claims, demands, liabilities and expenses (including reasonable legal or other expenses) incurred by each such person in connection with defending or investigating any such claims or liabilities, whether or not resulting in any liability to such person) to which any such indemnified party may become subject under the Securities Act, under any other statute, at common law or otherwise, insofar as such losses, claims, demands, liabilities and expenses (a) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact made by me and contained in this Subscription Agreement, or (b) arise out of or are based upon any breach of any representation, warranty or agreement contained herein.

 

 

  

  

  

 

Exhibit C, Page 7 of 11

 

4.  Arbitration.  Any controversy, dispute or claim against the Company, its officers, directors or employees arising out of or relating to this Subscription Agreement, or its interpretation, application, implementation, breach or enforcement which the parties are unable to resolve by mutual agreement, shall be settled by submission by either party of the controversy, claim or dispute to binding arbitration in San Juan, Puerto Rico (unless the parties agree in writing to a different location) before three arbitrators in accordance with the rules of the American Arbitration Association then in effect. In any such arbitration proceeding, the parties agree to provide all discovery deemed necessary by the arbitrators. The decision and award made by the arbitrators shall be final, binding and conclusive on all parties to any arbitration proceeding for all purposes, and judgment may be entered thereon in any court having jurisdiction thereof.

5. Counterparts. This Subscription Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. The execution of this Subscription Agreement may be by actual, electronic or facsimile signature.

 

6. Benefit. This Subscription Agreement shall be binding upon and inure to the benefit of the parties hereto and their legal representatives, successors and assigns.

 

7. Notices and Addresses. All notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing, and shall be sufficiently given if delivered to the addressees in person, by FedEx or similar overnight next business day delivery or by email delivery as follows:

 

 

 

	 	Investor:  	

At the address designated in Section 2.2 of this 

Subscription Agreement

	 	 	 
	 	With a copy to: 	Pariter Securities, LLC 

#243 Carretera Num. 2, Caparra

Guaynabo, PR 00922-1852 United States

Attention: Javier Reyes, President

	 	 	 
	 	The Company:  	

1172 S. Dixie Highway, Suite 335 

Coral Gables, Florida 33146 

Attention: Carmen Bigles, CEO 

Email: cbigles@coquipharma.com

	 	 	 

 

or to such other address as any of them, by notice to the other may designate from time to time.

 

8. Governing Law. This Subscription Agreement and any dispute, disagreement, or issue of construction or interpretation arising hereunder whether relating to its execution, its validity, the obligations provided therein or performance shall be governed or interpreted according to the laws of the State of New York.

 

 

  

  

  

 

Exhibit C, Page 8 of 11

 

 

9. Oral Evidence. This Subscription Agreement constitutes the entire Subscription Agreement between the parties and supersedes all prior oral and written agreements between the parties hereto with respect to the subject matter hereof. Neither this Subscription Agreement nor any provision hereof may be changed, waived, discharged or terminated orally, except by a statement in writing signed by the party or parties against whom enforcement or the change, waiver discharge or termination is sought.

 

10. Section Headings. Section headings herein have been inserted for reference only and shall not be deemed to limit or otherwise affect, in any matter, or be deemed to interpret in whole or in part any of the terms or provisions of this Subscription Agreement.

 

11. Survival of Representations, Warranties and Agreements. The representations, warranties and agreements contained herein shall survive the delivery of, and payment for, the Securities.

 

12. Acceptance of Subscription. The Company may accept this Subscription Agreement at any time for all or any portion of the securities subscribed for by executing a copy hereof as provided and notifying me within a reasonable time thereafter.

 

SALES IN FLORIDA

 

FLORIDA LAW PROVIDES THAT WHEN SALES ARE MADE TO FIVE OR MORE PERSONS IN FLORIDA, ANY SALE MADE IN FLORIDA IS VOIDABLE BY THE PURCHASER WITHIN THREE DAYS AFTER THE FIRST TENDER OF CONSIDERATION IS MADE BY SUCH PURCHASER TO THE COMPANY, AN AGENT OF THE COMPANY OR AN ESCROW AGENT OR WITHIN THREE DAYS AFTER THE AVAILABILITY OF THAT PRIVILEGE IS COMMUNICATED TO SUCH PURCHASER, WHICHEVER OCCURS LATER. PAYMENTS FOR TERMINATED SUBSCRIPTIONS VOIDED BY PURCHASERS AS PROVIDED FOR IN THIS PARAGRAPH WILL BE PROMPTLY REFUNDED WITHOUT INTEREST. NOTICE SHOULD BE GIVEN TO THE COMPANY TO THE ATTENTION OF CARMEN BIGLES AT THE ADDRESS ON THE FIRST PAGE OF THIS SUBSCRIPTION AGREEMENT.

 

(THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK)

 

  

  

  

 

Exhibit C, Page 9 of 11

 

SUBSCRIPTION AGREEMENT SIGNATURE PAGE

 

By signing below, the undersigned has executed this Subscription Agreement and agrees to be bound by its terms.

 

Individual Investors and Joint Accounts

 

	_____________________________________	 	_____________________________________ 	 	_____________________________________ 
	Signature 	 	Print Name 	 	Date 
	 	 	 	 	 
	_____________________________________ 	 	 	 	 
	Social Security Number 	 	 	 	 
	 	 	 	 	 
	_____________________________________  	 	_____________________________________  	 	_____________________________________  
	Signature 	 	Print Name 	 	Date 
	 	 	 	 	 
	_____________________________________  	 	 	 	 
	Social Security Number 	 	 	 	 

 

Corporate or Other Entity

 

 

	_____________________________________  	_____________________________________  
	Federal ID Number 	Print Name of Entity 
	 	 
	By:  	_____________________________________  
	 	Signature, Title 
	 	 
	 	_____________________________________  
	By:  	

Signature, Title

	 	 

 

 

DATED:                      , 201             

 

 

All Investors

 

Manner in which the Securities are to be held:

 

	_____ Individual Ownership 	_____ Partnership 

 

 

         

  

  

  

 

Exhibit C, Page 10 of 11

 

 

 

	_____Tenants-in-Common 	_____Trust 
	 	 
	_____Joint Tenant With Right of Survivorship 	_____Corporation 
	 	 
	_____Tenants by the Entirety 	_____Employee Benefit Plan 
	 	 
	_____Community Property 	_____Other (please indicate) 
	 	 
	_____Separate Property 	 

 

 

  

  

  

 

Exhibit C, Page 11 of 11

        

ACCEPTANCE OF SUBSCRIPTION

 

By signing below, the undersigned accepts the foregoing subscription and agrees to be bound by the terms of the Subscription Agreement.

 

Coquí Radio Pharmaceuticals Corp.

 

	

By:

	__________________________ 	Dated:  ______________
	 	Carmen Bigles 	 
	 	Chief Executive Officer

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