Document:

Exhibit
      10.6

    

    THIS
      PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT RELATES TO AN OFFERING OF SECURITIES
      IN
      AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN)
      PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
      AMENDED (THE “1933 ACT”). 

     

    NONE
      OF THE SECURITIES TO WHICH THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE
      “SUBSCRIPTION AGREEMENT”) RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR
      ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED
      OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS
      DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER
      THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933
      ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
      TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN
      ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING
      TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE
      WITH THE 1933 ACT.

     

    CONFIDENTIAL

    PRIVATE
      PLACEMENT SUBSCRIPTION AGREEMENT

    (Offshore
      Subscriber)

    

    
      	
              TO:

            	
              TraceGuard
                Technologies, Inc. (the “Company”) 

            

    

    330
      Madison Avenue

    New
      York,
      New York 10017

     

    Purchase
      of Shares of Common Stock

     

    
      	
              1.

            	
              Subscription

            

    

     

    1.1 The
      undersigned (the “Subscriber”) hereby irrevocably subscribes for and agrees to
      purchase from the Company, on the basis of the representations and warranties
      and subject to the terms and conditions set forth in this agreement (the
“Subscription Agreement”), 166,667 shares (the “Shares”) of the Company’s common
      stock, par value $0.001 per share, at the price of US$0.30 per Share (the
“Subscription Price”) for the aggregate purchase price of US$50,000 (the
“Subscription Proceeds”).

     

    1.2 At
      the
      same time that Subscriber delivers this Subscription Agreement to the Company,
      the Subscriber shall pay (or shall have previously paid) the Subscription
      Proceeds to the Company pursuant to the instructions in Section 2.1. In
      connection therewith, and within 14 business days of the date on which the
      Company accepts the Subscription Agreement (the “Closing Date”), the Company
      shall deliver to Subscriber a certificate evidencing the Shares and, pursuant
      to
      Section 8.1 herein, a certificate evidencing the Anti-Dilution
      Shares.

     

    1.3 Upon
      acceptance of this Subscription Agreement by the Company, Subscriber
      acknowledges and agrees that Subscriber shall purchase the Shares pursuant
      to
      the terms of this Subscription Agreement.

     

    
      	
              2.

            	
              Payment

            

    

     

    2.1 If
      the
      Subscriber has not previously paid the Subscription Proceeds, the Subscriber
      agrees to pay the Subscription Proceeds by wire transfer to:

    

    
      	
              Name:
                

            	
              TraceGuard Technologies, Inc.

            
	
              Bank:
                

            	
               

            
	
              Account:
                

            	
               

            
	
              SWIFT/ABA:     

            	
               

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    2.2 The
      Subscriber acknowledges and agrees that this Subscription Agreement, the
      Subscription Proceeds and any other documents delivered in connection herewith
      will be held on behalf of the Company until acceptance or rejection. In the
      event that this Subscription Agreement is rejected by the Company for whatever
      reason, which the Company expressly reserves the right to do, within 30 days
      of
      the delivery by the Subscriber of this executed Subscription Agreement, the
      Company shall return this Subscription Agreement, the Subscription Proceeds
      (without interest thereon) and any other documents delivered in connection
      herewith to the Subscriber at the address of the Subscriber as set forth in
      this
      Subscription Agreement. Following the payment of the Subscription Proceeds
      to
      the Company, and until the Company accepts or rejects the Subscription
      Agreement, the Company is entitled to treat such Subscription Proceeds as an
      interest-free loan to the Company.

     

    
      	
              3.

            	
              Documents
                Required from
                Subscriber

            

    

     

    3.1 The
      Subscriber must complete, sign and return to the Company an executed copy of
      this Subscription Agreement.

     

    3.2 The
      Subscriber shall complete, sign and return to the Company as soon as possible,
      on request by the Company, any documents, questionnaires, notices and
      undertakings as may be required by regulatory authorities and applicable
      law.

     

    
      	
              4.

            	
              Acknowledgements
                of Subscriber

            

    

     

    4.1 The
      Subscriber acknowledges and agrees that:

     

    
      	 	
              (a)

            	
              the
                Shares have not been registered under the Securities Act of 1933,
                as
                amended (“1933 Act”), or under any state securities or “blue sky” laws of
                any state of the United States, and, unless so registered, may not
                be sold
                or transferred except in accordance with the provisions of Regulation
                S
                promulgated pursuant to the 1933 Act (“Regulation S”), pursuant to an
                effective registration statement under the 1933 Act, or pursuant
                to an
                exemption from, or in a transaction not subject to, the registration
                requirements of the 1933 Act and in each case in accordance with
                applicable state and local securities laws;

            

    

     

    
      	 	
              (b)

            	
              the
                Subscriber acknowledges that the Company has not undertaken, and
                will have
                no obligation to undertake, to register any of the Shares under the
                1933
                Act;

            

    

     

    
      	 	
              (c)

            	
              the
                decision to execute this Subscription Agreement and acquire the Shares
                hereunder has not been based upon any oral or written representation
                as to
                fact or otherwise made by or on behalf of the Company, and such decision
                is based entirely upon a review of the information filed by the Company
                with the U.S. Securities and Exchange Commission (the “SEC
                Filings”);

            

    

     

    
      	 	
              (d)

            	
              no
                securities commission or similar regulatory authority has reviewed
                or
                passed on the merits of the Shares;

            

    

     

    
      	 	
              (e)

            	
              there
                are risks associated with an investment in the Shares, as described
                in the
                SEC Filings;

            

    

     

    
      	 	
              (f)

            	
              the
                Subscriber has not acquired the Shares as a result of, and will not
                itself, directly or indirectly, engage in any “directed selling efforts”
                (as defined in Regulation S) in the United States in respect of the
                Shares
                which would include any activities undertaken for the purpose of,
                or that
                could reasonably be expected to have the effect of, conditioning
                the
                market in the United States for the resale of the Shares; provided,
                however,
                that the Subscriber may sell or otherwise dispose of the Shares pursuant
                to registration thereof under the 1933 Act, pursuant to Regulation
                S, or
                under an exemption from such registration
                requirements;

            

    

     

    
      	 	
              (g)

            	
              the
                Subscriber and the Subscriber's advisor(s) have had a reasonable
                opportunity to ask questions of and receive answers from the Company
                in
                connection with the purchase of the Shares hereunder, and to obtain
                additional information, to the extent possessed or obtainable without
                unreasonable effort or expense, necessary to verify the accuracy
                of the
                information about the Company;

            

    

     

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (h)

            	
              the
                Subscriber will indemnify and hold harmless the Company and, where
                applicable, its directors, officers, employees, agents, advisors
                and
                shareholders, from and against any and all loss, liability, claim,
                damage
                and expense whatsoever (including, but not limited to, any and all
                fees,
                costs and expenses whatsoever reasonably incurred in investigating,
                preparing or defending against any claim, lawsuit, administrative
                proceeding or investigation whether commenced or threatened) arising
                out
                of or based upon any representation or warranty of the Subscriber
                contained herein or in any document furnished by the Subscriber to
                the
                Company in connection herewith being untrue in any material respect
                or any
                breach or failure by the Subscriber to comply with any covenant or
                agreement made by the Subscriber to the Company in connection
                therewith;

            

    

     

    
      	 	
              (i)

            	
              the
                Shares are not listed on any stock exchange or automated dealer quotation
                system (other than the Over the Counter Bulletin Board (“OTC BB”)) and no
                representation has been made to the Subscriber that any of the Shares
                will
                become listed on any stock exchange or automated dealer quotation
                system
                (other than OTC BB);

            

    

     

    
      	 	
              (j)

            	
              the
                Company will refuse to register any transfer of the Shares not made
                in
                accordance with the provisions of Regulation S, pursuant to an effective
                registration statement under the 1933 Act or pursuant to an available
                exemption from the registration requirements of the 1933 Act and
                in
                accordance with applicable state and local securities
                laws;

            

    

     

    
      	 	
              (k)

            	
              the
                statutory and regulatory basis for the exemption claimed for the
                offer of
                the Shares, although in technical compliance with Regulation S, would
                not
                be available if the offering is part of a plan or scheme to evade
                the
                registration provisions of the 1933 Act or any applicable state and
                provincial securities laws; 

            

    

     

    
      	 	
              (l)

            	
              the
                Subscriber has been advised by the Company to consult the Subscriber's
                own
                legal, tax and other advisors with respect to the merits and risks
                of an
                investment in the Shares and with respect to applicable resale
                restrictions, and the Subscriber is solely responsible (and the Company
                is
                not in any way responsible) for compliance
                with:

            

    

     

    
      	 	
              (i)

            	
              any
                applicable laws of the jurisdiction in which the Subscriber is resident
                in
                connection with the distribution of the Shares hereunder;
                and

            

    

     

    
      	 	
              (ii)

            	
              applicable
                resale restrictions; and

            

    

     

    
      	 	
              (m)

            	
              this
                Subscription Agreement is not enforceable by the Subscriber unless
                it has
                been accepted by the Company.

            

    

     

    
      	
              5.

            	
              Representations,
                Warranties and Covenants of
                Subscriber

            

    

     

    5.1 The
      Subscriber hereby represents and warrants to and covenants with the Company
      (which representations, warranties and covenants shall survive the Closing
      Date)
      that:

     

    
      	 	
              (a)

            	
              the
                Subscriber has the legal capacity and competence to enter into and
                execute
                this Subscription Agreement and to take all actions required pursuant
                hereto;

            

    

     

    
      	 	
              (b)

            	
              the
                entering into of this Subscription Agreement and the transactions
                contemplated hereby do not result in the violation of any of the
                terms and
                provisions of any law applicable to the Subscriber or of any agreement,
                written or oral, to which the Subscriber may be a party or by which
                the
                Subscriber is or may be bound;

            

    

     

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (c)

            	
              the
                Subscriber has duly executed and delivered this Subscription Agreement
                and
                it constitutes a valid and binding agreement of the Subscriber enforceable
                against the Subscriber in accordance with its
                terms;

            

    

     

    
      	 	
              (d)

            	
              the
                Subscriber is acquiring the Shares for such Subscriber's own account
                and/or benefit for investment and not as a nominee and not with a
                view to
                the distribution thereof.

            

    

     

    
      	 	
              (e)

            	
              the
                Subscriber is not acquiring the Shares for the account or benefit
                of,
                directly or indirectly, any U.S.
                Person;

            

    

     

    
      	 	
              (f)

            	
              the
                Subscriber is not a U.S. Person (as defined in Regulation
                S);

            

    

     

    
      	 	
              (g)

            	
              the
                Subscriber is resident in the jurisdiction set out under the heading
“Name
                and Address of Subscriber” on the signature page of this Subscription
                Agreement;

            

    

     

    
      	 	
              (h)

            	
              the
                sale of the Shares to the Subscriber as contemplated in this Subscription
                Agreement complies with or is exempt from the applicable securities
                legislation of the jurisdiction of residence of the
                Subscriber;

            

    

     

    
      	 	
              (i)

            	
              the
                Subscriber is acquiring the Shares for investment only and not with
                a view
                to resale or distribution and, in particular, it has no intention
                to
                distribute either directly or indirectly any of the Shares in the
                United
                States or to U.S. Persons; 

            

    

     

    
      	 	
              (j)

            	
              the
                Subscriber is outside the United States at the time of the offer
                and sale
                of the Shares and when receiving and executing this Subscription
                Agreement
                and is acquiring the Shares as principal for the Subscriber's own
                account,
                for investment purposes only, and not with a view to, or for, resale,
                distribution or fractionalisation thereof, in whole or in part, and
                no
                other person has a direct or indirect beneficial interest in such
                Shares;

            

    

     

    
      	 	
              (k)

            	
              the
                Subscriber is not an underwriter of, or dealer in, the common shares
                of
                the Company, nor is the Subscriber participating, pursuant to a
                contractual agreement or otherwise, in the distribution of the
                Shares;

            

    

     

    
      	 	
              (l)

            	
              the
                Subscriber (i) is able to fend for him/her/itself in the purchase
                of the
                Shares; (ii) has such knowledge and experience in business matters
                as to
                be capable of evaluating the merits and risks of its prospective
                investment in the Shares; and (iii) has the ability to bear the economic
                risks of its prospective investment and can afford the complete loss
                of
                such investment;

            

    

     

    
      	 	
              (m)

            	
              the
                Subscriber is not aware of any public solicitation or advertisement
                of an
                offer in connection with any of the Shares;
                and

            

    

     

    
      	 	
              (n)

            	
              no
                person has made to the Subscriber any written or oral
                representations:

            

    

     

    
      	 	
              (i)

            	
              that
                any person will resell or repurchase any of the
                Shares;

            

    

     

    
      	 	
              (ii)

            	
              that
                any person will refund the purchase price of any of the
                Shares;

            

    

     

    
      	 	
              (iii)

            	
              as
                to the future price or value of any of the Shares;
                or

            

    

     

    
      	 	
              (iv)

            	
              that
                any of the Shares will be listed and posted for trading on any stock
                exchange or automated dealer quotation system or that application
                has been
                made to list and post any of the Shares of the Company on any stock
                exchange or automated dealer quotation system, except that the Company’s
                common stock is currently approved for trading on OTC
                BB.

            

    

     

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (o)

            	
              The
                Subscriber will not engage in hedging transactions with respect to
                the
                Shares unless in compliance with the 1933
                Act.

            

    

     

    
      	
              6.

            	
              Acknowledgement
                and Waiver

            

    

     

    6.1 The
      Subscriber has acknowledged that the decision to purchase the Shares was solely
      made on the basis of information contained in the SEC Filings, which is publicly
      available and filed on EDGAR. The Subscriber hereby waives, to the fullest
      extent permitted by law, any rights of withdrawal, rescission or compensation
      for damages to which the Subscriber might be entitled in connection with the
      distribution of the Shares.

     

    
      	
              7.

            	
              Legending
                of Shares

            

    

     

    7.1 The
      Subscriber hereby acknowledges that upon the issuance thereof, and until such
      time as the same is no longer required under the applicable securities laws
      and
      regulations, the certificates representing any of the Shares will bear a legend
      in substantially the following form:

     

    
      	 	
              “THE
                SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ISSUED IN AN OFFSHORE
                TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED IN REGULATION
                S PROMULGATED PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED
                (THE
                “ACT”)) PURSUANT TO REGULATION S. ACCORDINGLY, THE SECURITIES REPRESENTED
                BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE ACT, OR ANY
                U.S.
                STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED,
                HYPOTHECATED OR OTHERWISE DISPOSED OF (I) EXCEPT IN ACCORDANCE WITH
                THE
                PROVISIONS OF REGULATION S, (II) PURSUANT TO AN EFFECTIVE REGISTRATION
                STATEMENT UNDER THE ACT OR (III) PURSUANT TO AN EXEMPTION FROM THE
                ACT
                WHICH IS CONFIRMED IN AN OPINION OF COMPANY COUNSEL. IN ADDITION,
                HEDGING
                TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED BY THIS CERTIFICATE
                MAY
                NOT BE CONDUCTED UNLESS IN ACCORDANCE WITH THE
                ACT.”

            

    

     

    7.2 The
      Subscriber hereby acknowledges and agrees to the Company making a notation
      on
      its records or giving instructions to the registrar and transfer agent of the
      Company in order to implement the restrictions on transfer set forth and
      described in this Subscription Agreement. 

     

    
      	
              8.

            	
              Additional
                Issuance of Shares to Subscriber for Anti-Dilution Purposes with
                Respect
                to the Prior Subscription
                Agreement

            

    

     

    8.1 In
      connection with the purchase by the Subscriber of the Shares pursuant to this
      Subscription Agreement, the Company shall issue and deliver to the Subscriber,
      at the same time as the Company delivers the Shares to the Subscriber, a
      certificate evidencing 190,501 shares of common stock of the Company (the
“Anti-Dilution Shares”) which Anti-Dilution Shares are issued to the Subscriber
      pursuant to Regulation S and provide the Subscriber an effective per share
      purchase price with respect to the Subscriber’s prior purchase of shares of
      common stock of the Company pursuant to the Subscription Agreement, dated as
      of
      March 26, 2007, that is equal to the Subscription Price. The Subscriber hereby
      affirms all of the acknowledgements, representations, warranties and covenants
      in connection with the issuance of the Anti-Dilution Shares as the Subscriber
      makes herein in connection with the purchase of the Shares pursuant to this
      Subscription Agreement. The Subscriber understands that the Anti-Dilution Shares
      shall be unregistered and shall bear a restrictive legend that is identical
      to
      the legend set forth in Section 7 herein.

     

    
      	
              9.

            	
              Costs

            

    

     

    9.1 The
      Subscriber acknowledges and agrees that all costs and expenses incurred by
      the
      Subscriber (including any fees and disbursements of any special counsel retained
      by the Subscriber) relating to the purchase of the Shares shall be borne by
      the
      Subscriber.

     

    
      
        
        

      

      
        -
          5
          -

        
          

        

      

      
        
        

      

    

     

    
      	
              10.

            	
              Governing
                Law

            

    

     

    10.1 This
      Subscription Agreement is governed by the laws of the State of Nevada. The
      Subscriber, in its personal or corporate capacity and, if applicable, on behalf
      of each beneficial purchaser for whom it is acting, irrevocably consents to
      the
      jurisdiction of the courts of the State of New York to resolve any disputes
      arising hereunder.

     

    
      	
              11.

            	
              Survival

            

    

     

    11.1 This
      Subscription Agreement, including, without limitation, the representations,
      warranties and covenants contained herein, shall survive and continue in full
      force and effect and be binding upon the parties hereto notwithstanding the
      completion of the purchase of the Shares by the Subscriber pursuant
      hereto.

     

    
      	
              12.

            	
              Assignment

            

    

     

    12.1 This
      Subscription Agreement is not transferable or assignable.

     

    
      	
              13.

            	
              Severability

            

    

     

    13.1 The
      invalidity or unenforceability of any particular provision of this Subscription
      Agreement shall not affect or limit the validity or enforceability of the
      remaining provisions of this Subscription Agreement.

     

    
      	
              14.

            	
              Entire
                Agreement

            

    

     

    14.1 Except
      as
      expressly provided in this Subscription Agreement and in the agreements,
      instruments and other documents contemplated or provided for herein, this
      Subscription Agreement contains the entire agreement between the parties with
      respect to the sale of the Shares and there are no other terms, conditions,
      representations or warranties, whether expressed, implied, oral or written,
      by
      statute or common law, by the Company or by anyone else.

     

    
      	
              15.

            	
              Notices

            

    

    

    15.1All
      notices and other communications hereunder shall be in writing and shall be
      deemed to have been duly given if mailed or transmitted by any standard form
      of
      telecommunication. Notices to the Subscriber shall be directed to the address
      on
      the signature page of this Subscription Agreement and all notices to the Company
      shall be delivered by facsimile to: TraceGuard Technologies, Inc., 330 Madison
      Avenue New York, New York 10017, Attention: David Ben-Yair, Chief Financial
      Officer, facsimile number: 011-972-57-797-5364, with a copy to Moses &
Singer LLP, 405 Lexington Avenue, 12th
      Floor,
      New York, NY 10174, Attention: Allan Grauberd, Esq., facsimile number (917)
      206-4381.

     

    
      	
              16.

            	
              Counterparts
                and Electronic Means

            

    

     

    16.1 This
      Subscription Agreement may be executed in any number of counterparts, each
      of
      which, when so executed and delivered, shall constitute an original and all
      of
      which together shall constitute one instrument. Delivery of an executed copy
      of
      this Subscription Agreement by electronic facsimile transmission or other means
      of electronic communication capable of producing a printed copy will be deemed
      to be execution and delivery of this Subscription Agreement as of the date
      hereinafter set forth.

    
      
        
        

      

      
        -
          6
          -

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF
      the
      Subscriber has duly executed this Subscription Agreement as of the date of
      acceptance by the Company.

     

    
      	 	 
	 	
              (Name
                of Subscriber – Please type or print)

            
	 	 
	 	 
	 	
              (Signature
                and, if applicable, Office of Subscriber)

            
	 	 
	 	 
	 	
              (Address
                of Subscriber)

            
	 	 
	 	 
	 	
              (City,
                State or Province, Postal Code of Subscriber)

            
	 	 
	 	 
	 	
              (Country
                of Subscriber)

            

    

     

    ACCEPTANCE

     

    The
      above-mentioned Subscription Agreement in respect of the Shares is hereby
      accepted by TraceGuard Technologies, Inc.

     

    DATED
      as
      of the __ day of ____, 2008.

    

    
      	
              TRACEGUARD
                TECHNOLOGIES, INC.

            	 
	 	 	 
	
              Per:

            	 	 
	 	
              David
                Ben-Yair, Chief Financial Officer

            	 

    

    

    
      
        
        

      

      
        -
          7
          -Exhibit
      10.7

    

    THIS
      PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT RELATES TO AN OFFERING OF SECURITIES
      IN
      AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN)
      PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
      AMENDED (THE “1933 ACT”). 

     

    NONE
      OF THE SECURITIES TO WHICH THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE
      “SUBSCRIPTION AGREEMENT”) RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR
      ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED
      OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS
      DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER
      THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933
      ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
      TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN
      ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING
      TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE
      WITH THE 1933 ACT.

     

    CONFIDENTIAL

    PRIVATE
      PLACEMENT SUBSCRIPTION AGREEMENT

    (Offshore
      Subscriber)

    

    
      	
              TO:

            	
              TraceGuard
                Technologies, Inc. (the “Company”)

            
	 	
              330
                Madison Avenue

            
	 	
              New
                York, New York 10017

            

    

     

    Purchase
      of Shares of Common Stock

     

    
      	
              1.

            	
              Subscription

            

    

     

    1.1 The
      undersigned (the “Subscriber”) hereby irrevocably subscribes for and agrees to
      purchase from the Company, on the basis of the representations and warranties
      and subject to the terms and conditions set forth in this agreement (the
“Subscription Agreement”), 166,667 shares (the “Shares”) of the Company’s common
      stock, par value $0.001 per share, at the price of US$0.30 per Share (the
“Subscription Price”) for the aggregate purchase price of US$50,000 (the
“Subscription Proceeds”).

     

    1.2 At
      the
      same time that Subscriber delivers this Subscription Agreement to the Company,
      the Subscriber shall pay (or shall have previously paid) the Subscription
      Proceeds to the Company pursuant to the instructions in Section 2.1. In
      connection therewith, and within 14 business days of the date on which the
      Company accepts the Subscription Agreement (the “Closing Date”), the Company
      shall deliver to Subscriber a certificate evidencing the Shares and, pursuant
      to
      Section 8.1 herein, a certificate evidencing the Anti-Dilution
      Shares.

     

    1.3 Upon
      acceptance of this Subscription Agreement by the Company, Subscriber
      acknowledges and agrees that Subscriber shall purchase the Shares pursuant
      to
      the terms of this Subscription Agreement.

     

    
      	
              2.

            	
              Payment

            

    

     

    2.1 If
      the
      Subscriber has not previously paid the Subscription Proceeds, the Subscriber
      agrees to pay the Subscription Proceeds by wire transfer to:

    

    
      	
              Name:
                

            	
              TraceGuard
                Technologies, Inc.

            
	
              Bank:
                

            	
              ______________________

            
	
              Account:
                

            	
              ______________________

            
	
              SWIFT/ABA:
                

            	
              ______________________

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.2 The
      Subscriber acknowledges and agrees that this Subscription Agreement, the
      Subscription Proceeds and any other documents delivered in connection herewith
      will be held on behalf of the Company until acceptance or rejection. In the
      event that this Subscription Agreement is rejected by the Company for whatever
      reason, which the Company expressly reserves the right to do, within 30 days
      of
      the delivery by the Subscriber of this executed Subscription Agreement, the
      Company shall return this Subscription Agreement, the Subscription Proceeds
      (without interest thereon) and any other documents delivered in connection
      herewith to the Subscriber at the address of the Subscriber as set forth in
      this
      Subscription Agreement. Following the payment of the Subscription Proceeds
      to
      the Company, and until the Company accepts or rejects the Subscription
      Agreement, the Company is entitled to treat such Subscription Proceeds as an
      interest-free loan to the Company.

     

    
      	
              3.

            	
              Documents
                Required from
                Subscriber

            

    

     

    3.1 The
      Subscriber must complete, sign and return to the Company an executed copy of
      this Subscription Agreement.

     

    3.2 The
      Subscriber shall complete, sign and return to the Company as soon as possible,
      on request by the Company, any documents, questionnaires, notices and
      undertakings as may be required by regulatory authorities and applicable
      law.

     

    
      	
              4.

            	
              Acknowledgements
                of Subscriber

            

    

     

    
      4.1The
        Subscriber acknowledges and agrees that:

    

     

    
      	 	
              (a)

            	
              the
                Shares have not been registered under the Securities Act of 1933,
                as
                amended (“1933 Act”), or under any state securities or “blue sky” laws of
                any state of the United States, and, unless so registered, may not
                be sold
                or transferred except in accordance with the provisions of Regulation
                S
                promulgated pursuant to the 1933 Act (“Regulation S”), pursuant to an
                effective registration statement under the 1933 Act, or pursuant
                to an
                exemption from, or in a transaction not subject to, the registration
                requirements of the 1933 Act and in each case in accordance with
                applicable state and local securities laws;

            

    

     

    
      	 	
              (b)

            	
              the
                Subscriber acknowledges that the Company has not undertaken, and
                will have
                no obligation to undertake, to register any of the Shares under the
                1933
                Act;

            

    

     

    
      	 	
              (c)

            	
              the
                decision to execute this Subscription Agreement and acquire the Shares
                hereunder has not been based upon any oral or written representation
                as to
                fact or otherwise made by or on behalf of the Company, and such decision
                is based entirely upon a review of the information filed by the Company
                with the U.S. Securities and Exchange Commission (the “SEC
                Filings”);

            

    

     

    
      	 	
              (d)

            	
              no
                securities commission or similar regulatory authority has reviewed
                or
                passed on the merits of the Shares;

            

    

     

    
      	 	
              (e)

            	
              there
                are risks associated with an investment in the Shares, as described
                in the
                SEC Filings;

            

    

     

    
      	 	
              (f)

            	
              the
                Subscriber has not acquired the Shares as a result of, and will not
                itself, directly or indirectly, engage in any “directed selling efforts”
                (as defined in Regulation S) in the United States in respect of the
                Shares
                which would include any activities undertaken for the purpose of,
                or that
                could reasonably be expected to have the effect of, conditioning
                the
                market in the United States for the resale of the Shares; provided,
                however,
                that the Subscriber may sell or otherwise dispose of the Shares pursuant
                to registration thereof under the 1933 Act, pursuant to Regulation
                S, or
                under an exemption from such registration
                requirements;

            

    

     

    
      	 	
              (g)

            	
              the
                Subscriber and the Subscriber's advisor(s) have had a reasonable
                opportunity to ask questions of and receive answers from the Company
                in
                connection with the purchase of the Shares hereunder, and to obtain
                additional information, to the extent possessed or obtainable without
                unreasonable effort or expense, necessary to verify the accuracy
                of the
                information about the Company;

            

    

     

    
      
        
        

      

      
        -
          2 -

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (h)

            	
              the
                Subscriber will indemnify and hold harmless the Company and, where
                applicable, its directors, officers, employees, agents, advisors
                and
                shareholders, from and against any and all loss, liability, claim,
                damage
                and expense whatsoever (including, but not limited to, any and all
                fees,
                costs and expenses whatsoever reasonably incurred in investigating,
                preparing or defending against any claim, lawsuit, administrative
                proceeding or investigation whether commenced or threatened) arising
                out
                of or based upon any representation or warranty of the Subscriber
                contained herein or in any document furnished by the Subscriber to
                the
                Company in connection herewith being untrue in any material respect
                or any
                breach or failure by the Subscriber to comply with any covenant or
                agreement made by the Subscriber to the Company in connection
                therewith;

            

    

     

    
      	 	
              (i)

            	
              the
                Shares are not listed on any stock exchange or automated dealer quotation
                system (other than the Over the Counter Bulletin Board (“OTC BB”)) and no
                representation has been made to the Subscriber that any of the Shares
                will
                become listed on any stock exchange or automated dealer quotation
                system
                (other than OTC BB);

            

    

     

    
      	 	
              (j)

            	
              the
                Company will refuse to register any transfer of the Shares not made
                in
                accordance with the provisions of Regulation S, pursuant to an effective
                registration statement under the 1933 Act or pursuant to an available
                exemption from the registration requirements of the 1933 Act and
                in
                accordance with applicable state and local securities
                laws;

            

    

     

    
      	 	
              (k)

            	
              the
                statutory and regulatory basis for the exemption claimed for the
                offer of
                the Shares, although in technical compliance with Regulation S, would
                not
                be available if the offering is part of a plan or scheme to evade
                the
                registration provisions of the 1933 Act or any applicable state and
                provincial securities laws; 

            

    

     

    
      	 	
              (l)

            	
              the
                Subscriber has been advised by the Company to consult the Subscriber's
                own
                legal, tax and other advisors with respect to the merits and risks
                of an
                investment in the Shares and with respect to applicable resale
                restrictions, and the Subscriber is solely responsible (and the Company
                is
                not in any way responsible) for compliance
                with:

            

    

     

    
      	 	
              (i)

            	
              any
                applicable laws of the jurisdiction in which the Subscriber is resident
                in
                connection with the distribution of the Shares hereunder;
                and

            

    

     

    
      	 	
              (ii)

            	
              applicable
                resale restrictions; and

            

    

     

    
      	 	
              (m)

            	
              this
                Subscription Agreement is not enforceable by the Subscriber unless
                it has
                been accepted by the Company.

            

    

     

    
      	
              5.

            	
              Representations,
                Warranties and Covenants of
                Subscriber

            

    

     

    5.1 The
      Subscriber hereby represents and warrants to and covenants with the Company
      (which representations, warranties and covenants shall survive the Closing
      Date)
      that:

     

    
      	 	
              (a)

            	
              the
                Subscriber has the legal capacity and competence to enter into and
                execute
                this Subscription Agreement and to take all actions required pursuant
                hereto;

            

    

     

    
      	 	
              (b)

            	
              the
                entering into of this Subscription Agreement and the transactions
                contemplated hereby do not result in the violation of any of the
                terms and
                provisions of any law applicable to the Subscriber or of any agreement,
                written or oral, to which the Subscriber may be a party or by which
                the
                Subscriber is or may be bound;

            

    

    
      
        
        

      

      
        -
          3 -

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (c)

            	
              the
                Subscriber has duly executed and delivered this Subscription Agreement
                and
                it constitutes a valid and binding agreement of the Subscriber enforceable
                against the Subscriber in accordance with its
                terms;

            

    

     

    
      	 	
              (d)

            	
              the
                Subscriber is acquiring the Shares for such Subscriber's own account
                and/or benefit for investment and not as a nominee and not with a
                view to
                the distribution thereof.

            

    

     

    
      	 	
              (e)

            	
              the
                Subscriber is not acquiring the Shares for the account or benefit
                of,
                directly or indirectly, any U.S.
                Person;

            

    

     

    
      	 	
              (f)

            	
              the
                Subscriber is not a U.S. Person (as defined in Regulation
                S);

            

    

     

    
      	 	
              (g)

            	
              the
                Subscriber is resident in the jurisdiction set out under the heading
“Name
                and Address of Subscriber” on the signature page of this Subscription
                Agreement;

            

    

     

    
      	 	
              (h)

            	
              the
                sale of the Shares to the Subscriber as contemplated in this Subscription
                Agreement complies with or is exempt from the applicable securities
                legislation of the jurisdiction of residence of the
                Subscriber;

            

    

     

    
      	 	
              (i)

            	
              the
                Subscriber is acquiring the Shares for investment only and not with
                a view
                to resale or distribution and, in particular, it has no intention
                to
                distribute either directly or indirectly any of the Shares in the
                United
                States or to U.S. Persons; 

            

    

     

    
      	 	
              (j)

            	
              the
                Subscriber is outside the United States at the time of the offer
                and sale
                of the Shares and when receiving and executing this Subscription
                Agreement
                and is acquiring the Shares as principal for the Subscriber's own
                account,
                for investment purposes only, and not with a view to, or for, resale,
                distribution or fractionalisation thereof, in whole or in part, and
                no
                other person has a direct or indirect beneficial interest in such
                Shares;

            

    

     

    
      	 	
              (k)

            	
              the
                Subscriber is not an underwriter of, or dealer in, the common shares
                of
                the Company, nor is the Subscriber participating, pursuant to a
                contractual agreement or otherwise, in the distribution of the
                Shares;

            

    

     

    
      	 	
              (l)

            	
              the
                Subscriber (i) is able to fend for him/her/itself in the purchase
                of the
                Shares; (ii) has such knowledge and experience in business matters
                as to
                be capable of evaluating the merits and risks of its prospective
                investment in the Shares; and (iii) has the ability to bear the economic
                risks of its prospective investment and can afford the complete loss
                of
                such investment;

            

    

     

    
      	 	
              (m)

            	
              the
                Subscriber is not aware of any public solicitation or advertisement
                of an
                offer in connection with any of the Shares;
                and

            

    

     

    
      	 	
              (n)

            	
              no
                person has made to the Subscriber any written or oral
                representations:

            

    

     

    
      	 	
              (i)

            	
              that
                any person will resell or repurchase any of the
                Shares;

            

    

     

    
      	 	
              (ii)

            	
              that
                any person will refund the purchase price of any of the
                Shares;

            

    

     

    
      	 	
              (iii)

            	
              as
                to the future price or value of any of the Shares;
                or

            

    

     

    
      	 	
              (iv)

            	
              that
                any of the Shares will be listed and posted for trading on any stock
                exchange or automated dealer quotation system or that application
                has been
                made to list and post any of
                the Shares of the Company on any stock exchange or automated dealer
                quotation system, except that the Company’s common stock is currently
                approved for trading on OTC
                BB.

            

    

     

    
      
        
        

      

      
        -
          4 -

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (o)

            	
              The
                Subscriber will not engage in hedging transactions with respect to
                the
                Shares unless in compliance with the 1933
                Act.

            

    

     

    
      	
              6.

            	
              Acknowledgement
                and Waiver

            

    

     

    6.1 The
      Subscriber has acknowledged that the decision to purchase the Shares was solely
      made on the basis of information contained in the SEC Filings, which is publicly
      available and filed on EDGAR. The Subscriber hereby waives, to the fullest
      extent permitted by law, any rights of withdrawal, rescission or compensation
      for damages to which the Subscriber might be entitled in connection with the
      distribution of the Shares.

     

    
      	
              7.

            	
              Legending
                of Shares

            

    

     

    7.1 The
      Subscriber hereby acknowledges that upon the issuance thereof, and until such
      time as the same is no longer required under the applicable securities laws
      and
      regulations, the certificates representing any of the Shares will bear a legend
      in substantially the following form:

     

    
      	 	
              “THE
                SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ISSUED IN AN OFFSHORE
                TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED IN REGULATION
                S PROMULGATED PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED
                (THE
                “ACT”)) PURSUANT TO REGULATION S. ACCORDINGLY, THE SECURITIES REPRESENTED
                BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE ACT, OR ANY
                U.S.
                STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED,
                HYPOTHECATED OR OTHERWISE DISPOSED OF (I) EXCEPT IN ACCORDANCE WITH
                THE
                PROVISIONS OF REGULATION S, (II) PURSUANT TO AN EFFECTIVE REGISTRATION
                STATEMENT UNDER THE ACT OR (III) PURSUANT TO AN EXEMPTION FROM THE
                ACT
                WHICH IS CONFIRMED IN AN OPINION OF COMPANY COUNSEL. IN ADDITION,
                HEDGING
                TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED BY THIS CERTIFICATE
                MAY
                NOT BE CONDUCTED UNLESS IN ACCORDANCE WITH THE
                ACT.”

            

    

     

    7.2 The
      Subscriber hereby acknowledges and agrees to the Company making a notation
      on
      its records or giving instructions to the registrar and transfer agent of the
      Company in order to implement the restrictions on transfer set forth and
      described in this Subscription Agreement. 

     

    
      	
              8.

            	
              Additional
                Issuance of Shares to Subscriber for Anti-Dilution Purposes with
                Respect
                to the Prior Subscription
                Agreement

            

    

     

    9.1
      In
      connection with the purchase by the Subscriber of the Shares pursuant to this
      Subscription Agreement, the Company shall issue and deliver to the Subscriber,
      at the same time as the Company delivers the Shares to the Subscriber, a
      certificate evidencing 571,429 shares of common stock of the Company (the
“Anti-Dilution Shares”) which Anti-Dilution Shares are issued to the Subscriber
      pursuant to Regulation S and provide the Subscriber an effective per share
      purchase price with respect to the Subscriber’s prior purchase of shares of
      common stock of the Company pursuant to the Subscription Agreement, dated as
      of
      May 29, 2007, that is equal to the Subscription Price. The Subscriber hereby
      affirms all of the acknowledgements, representations, warranties and covenants
      in connection with the issuance of the Anti-Dilution Shares as the Subscriber
      makes herein in connection with the purchase of the Shares pursuant to this
      Subscription Agreement. The Subscriber understands that the Anti-Dilution Shares
      shall be unregistered and shall bear a restrictive legend that is identical
      to
      the legend set forth in Section 7 herein.

     

    
      	9.	
              Costs

            

    

     

    9.1 The
      Subscriber acknowledges and agrees that all costs and expenses incurred by
      the
      Subscriber (including any fees and disbursements of any special counsel retained
      by the Subscriber) relating to the purchase of the Shares shall be borne by
      the
      Subscriber.

    
      
        
        

      

      
        -
          5 -

        
          

        

      

      
        
        

      

    

     

    
      	10.	
              Governing
                Law

            

    

     

    10.1 This
      Subscription Agreement is governed by the laws of the State of Nevada. The
      Subscriber, in its personal or corporate capacity and, if applicable, on behalf
      of each beneficial purchaser for whom it is acting, irrevocably consents to
      the
      jurisdiction of the courts of the State of New York to resolve any disputes
      arising hereunder.

     

    
      	
              11.

            	
              Survival

            

    

     

    11.1 This
      Subscription Agreement, including, without limitation, the representations,
      warranties and covenants contained herein, shall survive and continue in full
      force and effect and be binding upon the parties hereto notwithstanding the
      completion of the purchase of the Shares by the Subscriber pursuant
      hereto.

     

    
      	
              12.

            	
              Assignment

            

    

     

    12.1 This
      Subscription Agreement is not transferable or assignable.

     

    
      	
              13.

            	
              Severability

            

    

     

    13.1 The
      invalidity or unenforceability of any particular provision of this Subscription
      Agreement shall not affect or limit the validity or enforceability of the
      remaining provisions of this Subscription Agreement.

     

    
      	
              14.

            	
              Entire
                Agreement

            

    

     

    14.1 Except
      as
      expressly provided in this Subscription Agreement and in the agreements,
      instruments and other documents contemplated or provided for herein, this
      Subscription Agreement contains the entire agreement between the parties with
      respect to the sale of the Shares and there are no other terms, conditions,
      representations or warranties, whether expressed, implied, oral or written,
      by
      statute or common law, by the Company or by anyone else.

     

    
      	
              15.

            	
              Notices

            

    

    

    15.1
      All
      notices and other communications hereunder shall be in writing and shall be
      deemed to have been duly given if mailed or transmitted by any standard form
      of
      telecommunication. Notices to the Subscriber shall be directed to the address
      on
      the signature page of this Subscription Agreement and all notices to the Company
      shall be delivered by facsimile to: TraceGuard Technologies, Inc., 330 Madison
      Avenue New York, New York 10017, Attention: David Ben-Yair, Chief Financial
      Officer, facsimile number: 011-972-57-797-5364, with a copy to Moses &
Singer LLP, 405 Lexington Avenue, 12th
      Floor,
      New York, NY 10174, Attention: Allan Grauberd, Esq., facsimile number (917)
      206-4381.

     

    
      	
              16.

            	
              Counterparts
                and Electronic Means

            

    

     

    16.1 This
      Subscription Agreement may be executed in any number of counterparts, each
      of
      which, when so executed and delivered, shall constitute an original and all
      of
      which together shall constitute one instrument. Delivery of an executed copy
      of
      this Subscription Agreement by electronic facsimile transmission or other means
      of electronic communication capable of producing a printed copy will be deemed
      to be execution and delivery of this Subscription Agreement as of the date
      hereinafter set forth.

    
      
        
        

      

      
        -
          6 -

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF
      the
      Subscriber has duly executed this Subscription Agreement as of the date of
      acceptance by the Company.

    

    
      	 
	
              (Name
                of Subscriber – Please type or print)

            
	 
	 
	
              (Signature
                and, if applicable, Office of Subscriber)

            
	 
	 
	
              (Address
                of Subscriber)

            
	 
	 
	
              (City,
                State or Province, Postal Code of Subscriber)

            
	 
	 
	
              (Country
                of Subscriber)

            

    

     

    ACCEPTANCE

     

    The
      above-mentioned Subscription Agreement in respect of the Shares is hereby
      accepted by TraceGuard Technologies, Inc.

     

    DATED
      as
      of the __ day of _____, 2008.

    

    
      	
              TRACEGUARD
                TECHNOLOGIES, INC.

            
	 	 
	
              Per:

            	 
	 	
              David
                Ben-Yair, Chief Financial
                Officer

            

    

    
      
        
        

      

      
        -
          7 -

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