Document:

Unassociated Document

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

    
       

      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      D

     

    RISK
      FACTORS

    

    THERE
      IS
      A LIMITED MARKET FOR OUR COMMON STOCK WHICH MAY MAKE IT MORE DIFFICULT FOR
      YOU
      TO SELL YOUR STOCK.

    

    There
      is
      a limited trading market for our common stock. On June 6, 2008, the Company
      provided NASDAQ with notice of its intent to voluntarily delist from The NASDAQ
      Stock Market, which notice was amended on June 10, 2008. The Company is
      voluntarily delisting to reduce and more effectively manage its regulatory
      and
      administrative costs, and to enable Company management to better focus on its
      business on developing the natural gas drilling rights recently acquired in
      connection with the acquisition of Davy Crockett Gas Company, LLC, which was
      announced on May 9, 2008. 

    

    The
      Company has requested that its shares be suspended from trading on NASDAQ at
      the
      open of the market on June 16, 2008. The Company’s shares have been accepted for
      quotation and trading on the OTC Bulletin Board under the symbol "EMVL." The
      Company filed a Form 25 with the Securities and Exchange Commission on June
      16,
      2008. The Company expects that the delisting from NASDAQ will be effective
      or on
      or about June 26, 2008. Accordingly, there can be no assurance as to the
      liquidity of any markets that may develop for our common stock, the ability
      of
      holders of our common stock to sell our common stock, or the prices at which
      holders may be able to sell our common stock.

    

    OUR
      STOCK PRICE MAY BE VOLATILE.

    

    The
      market price of our common stock is likely to be highly volatile and could
      fluctuate widely in price in response to various factors, many of which are
      beyond our control, including:

    

    
      	 	
              ·

            	
              new
                products and services by our
                competitors;

            

    

    
      	 	
              ·

            	
              additions
                or departures of key personnel;

            

    

    
      	 	
              ·

            	
              sales
                of our common stock;

            

    

    
      	 	
              ·

            	
              our
                ability to integrate operations, technology, products and
                services;

            

    

    
      	 	
              ·

            	
              our
                ability to execute our business
                plan;

            

    

    
      	 	
              ·

            	
              operating
                results below expectations; 

            

    

    
      	 	
              ·

            	
              loss
                of any strategic relationship;

            

    

    
      	 	
              ·

            	
              industry
                developments;

            

    

    
      	 	
              ·

            	
              economic
                and other external factors; and

            

    

    
      	 	
              ·

            	
              period-to-period
                fluctuations in our financial
                results.

            

    

    

    Because
      we have a limited operating history, you may consider any one of these factors
      to be material. Our stock price may fluctuate widely as a result of any of
      the
      above listed factors.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    In
      addition, the securities markets have from time to time experienced significant
      price and volume fluctuations that are unrelated to the operating performance
      of
      particular companies. These market fluctuations may also materially and
      adversely affect the market price of our common stock.

    

    OUR
      COMMON STOCK WILL BE SUBJECT TO THE "PENNY STOCK" RULES OF THE SEC.

    

    The
      Securities and Exchange Commission has adopted Rule 15g-9 which establishes
      the
      definition of a "penny stock," for the purposes relevant to us, as any equity
      security that has a market price of less than $5.00 per share or with an
      exercise price of less than $5.00 per share, subject to certain exceptions.
      For
      any transaction involving a penny stock, unless exempt, the rules require:
      

    

    
      	
            	·	
              that
                a broker or dealer approve a person's account for transactions in
                penny
                stocks; and 

            

    

    
      	
            	·	
              the
                broker or dealer receive from the investor a written agreement to
                the
                transaction, setting forth the identity and quantity of the penny
                stock to
                be purchased. 

            

    

    

    In
      order
      to approve a person's account for transactions in penny stocks, the broker
      or
      dealer must: 

    

    
      	
            	·	
              obtain
                financial information and investment experience objectives of the
                person;
                and 

            

    

    
      	
            	·	
              make
                a reasonable determination that the transactions in penny stocks
                are
                suitable for that person and the person has sufficient knowledge
                and
                experience in financial matters to be capable of evaluating the risks
                of
                transactions in penny stocks. 

            

    

    

    The
      broker or dealer must also deliver, prior to any transaction in a penny stock,
      a
      disclosure schedule prescribed by the Commission relating to the penny stock
      market, which, in highlight form: 

    

    
      	
            	·	
              sets
                forth the basis on which the broker or dealer made the suitability
                determination; and 

            

    

    
      	
            	·	
              that
                the broker or dealer received a signed, written agreement from the
                investor prior to the transaction.

            

    

    

    Generally,
      brokers may be less willing to execute transactions in securities subject to
      the
      "penny stock" rules. This may make it more difficult for investors to dispose
      of
      our common stock and cause a decline in the market value of our stock.

    

    Disclosure
      also has to be made about the risks of investing in penny stocks in both public
      offerings and in secondary trading and about the commissions payable to both
      the
      broker-dealer and the registered representative, current quotations for the
      securities and the rights and remedies available to an investor in cases of
      fraud in penny stock transactions. Finally, monthly statements have to be sent
      disclosing recent price information for the penny stock held in the account
      and
      information on the limited market in penny stocks.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    THE
      ISSUANCE OF SHARES THROUGH OUR STOCK COMPENSATION PLANS MAY DILUTE THE VALUE
      OF
      EXISTING STOCKHOLDERS AND MAY AFFECT THE MARKET PRICE OF OUR STOCK.

     

    We
      may
      use stock options, stock grants and other equity-based incentives, to provide
      motivation and compensation to our officers, employees and key independent
      consultants. The award of any such incentives will result in an immediate and
      potentially substantial dilution to our existing stockholders and could result
      in a decline in the value of our stock price. The exercise of these options
      and
      the sale of the underlying shares of common stock and the sale of stock issued
      pursuant to stock grants may have an adverse effect upon the price of our
      stock.

    

    WE
      HAVE
      NOT PAID DIVIDENDS IN THE PAST AND DO NOT EXPECT TO PAY DIVIDENDS IN THE FUTURE.
      ANY RETURNS ON INVESTMENT MAY BE LIMITED TO THE VALUE OF OUR COMMON
      STOCK.

    

    We
      have
      never paid cash dividends on our common stock and do not anticipate paying
      cash
      dividends in the foreseeable future. The payment of dividends on our common
      stock will depend on earnings, financial condition and other business and
      economic factors affecting it at such time as the board of directors may
      consider relevant. If we do not pay dividends, our common stock may be less
      valuable because a return on your investment will only occur if its stock price
      appreciates.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EMVELCO
      CORP.

    
      Subscription
        Agreement

      

      EMVELCO
        CORP.

      1061
1⁄2
N.
        Spaulding Ave.

      Los
        Angeles, CA 90046

      

      Gentlemen:

      

      You
        have
        informed the undersigned (the “Purchaser”) that Emvelco Corp., a Delaware
        corporation, (the “Company”) wishes to raise a minimum of Fifty Thousand Dollars
        ($50,000) and a maximum of Five Hundred and Twenty-Five Thousand Dollars
        ($525,000) from various persons by selling 525,000 shares of the Company’s
        Common Stock, $0.001 par value (the “Shares”), at a price of One Dollar ($1.00)
        per Share. Each Offering Unit will be issued with 200,000 convertible Warrants.
        Specifically, 200,000 of the Warrants are convertible upon exercise to one
        (1)
        Common Share of stock at $1.50 per share for a term of four (4) years.
        Notwithstanding the foregoing, however, the Warrants may be converted to
        Common
        Shares only if EMVELCO issues Twenty-Five Million (25,000,000) or more of
        its
        Common Stock so that there are at least Thirty Million (30,000,000) authorized
        Shares at the time of any conversion term. 

      

      I
        have
        received, read, and understand the Limited Offering Memorandum dated June
        6,
        2008 (the “Memorandum”). I further understand that my rights and
        responsibilities as a Purchaser will be governed by the terms and conditions
        of
        this Subscription Agreement, the Memorandum and the Shares (the “Share
        Documents”). I understand that you will rely on the following information to
        confirm that I am an “Accredited Investor”, as defined in Regulation D
        promulgated under the Securities Act of 1933, as amended (the “Securities Act”),
        or one of 35 Non-Accredited Investors that will be allowed to purchase Shares
        in
        this Offering (subject to Company approval), and that I am qualified to be
        a
        Purchaser.

      

      This
        Subscription Agreement is one of a number of such subscriptions for Shares.
        By
        signing this Subscription Agreement, I offer to purchase and subscribe from
        the
        Company the number of Shares set forth below on the terms specified herein.
        The
        Company reserves the right, in its complete discretion, to reject any
        subscription offer or to reduce the number of Shares allotted to me. If this
        offer is accepted, the Company will execute a copy of this Subscription
        Agreement and return it to me. I understand that commencing on the date of
        this
        Memorandum all funds received by the Company in full payment of subscriptions
        for Shares will be deposited in an escrow account. The Company has set a
        minimum
        offering proceeds figure of $50,000 for this Offering. All proceeds from
        the
        sale of Shares will be delivered directly to the Company and be available
        for
        its use.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      SUBSCRIPTION
        PAID FOR IN FULL PURSUANT TO THAT CERTAIN LIMITED LIABILITY COMPANY OPERATING
        AGREEMENT DATED JUNE 30, 2008 IN CONNECTION WITH VORTEX OCEAN ONE,
        LLC.

       

      1.
        Accredited
        Investor.
        I am an
        Accredited Investor because I qualify within one of the following
        categories:

      

      Please
        Check The Appropriate Category

      

      _____
        $1,000,000 Net Worth.

      A
        natural
        person whose individual net worth, or joint net worth with that person’s spouse,
        at the time of his purchase exceeds $1,000,000.

      

      ______________

      Purchaser’s
        Initials

      

      _____
        $200,000/$300,000 Income.

      A
        natural
        person who had an individual income in excess of $200,000 (including
        contributions to qualified employee benefit plans) or joint income with such
        person’s spouse in excess of $300,000 per year in each of the two most recent
        years and who reasonably expects to attain the same individual or joint levels
        of income (including such contributions) in the current year.

      

      _____
        Director or Officer of Issuer.

      Any
        director or executive officer of the Company

      

      _____
        All
        Equity Owners In Entity Are Accredited.

      An
        entity, (i.e. corporation, partnership, trust, IRA, etc.) in which all of
        the
        equity owners are Accredited Investors as defined herein.

      

      _____
        Corporation.

      A
        corporation not formed for the specific purpose of acquiring the Shares offered,
        with total assets in excess of $5,000,000.

      

      _____
        Other Accredited Investor.

      Any
        natural person or entity which qualifies as an Accredited Investor pursuant
        to
        Rule 501(a) of Regulation D promulgated under the Act; specify basis for
        qualification:

      

      ________________________________________________________________________

      

      ________________________________________________________________________

      

      ________________________________________________________________________

      

      ______One
        of 35 Non-Accredited Investors that may be allowed to invest in the offering
        

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      2.
        Representations
        and Warranties.
        I
        represent and warrant to the Company that:

      

      (a)
        I (i)
        have adequate means of providing for my current needs and possible contingencies
        and I have no need for liquidity of my investment in the Shares, (ii) can
        bear
        the economic risk of losing the entire amount of my investment in Shares,
        and
        (iii) have such knowledge and experience that I am capable of evaluating
        the
        relative risks and merits of this investment; (iv) the purchase of Shares
        is
        consistent, in both nature and amount, with my overall investment program
        and
        financial condition. 

      

      (a) The
        address set forth below is my true and correct residence, and I have no
        intention of
        becoming a resident of any other state or jurisdiction.

      

      (b) I
        have
        not utilized the services of a “Purchaser Representative” (as defined in
Regulation
        D promulgated under the Securities Act) because I am a sophisticated,
        experienced investor, capable of determining and understanding the risks
        and
        merits of this investment.

      

      ______________

      Purchaser’s
        Initials

      

      (d)
        I
        have received and read, and am familiar with the Share Documents, including
        the
        Memorandum and the forms of certificate for Shares. All documents, records
        and
        books pertaining to the Company and the Shares requested by me, including
        all
        pertinent records of the Company, financial and otherwise, have been made
        available or delivered to me.

      

      (e)
        I
        have had the opportunity to ask questions of and receive answers from the
        Company’s officers and representatives concerning the Company’s affairs
        generally and the terms and conditions of my proposed investment in the
        Shares.

      

      (f)
        I
        understand the risks implicit in the business of the Company. Among other
        things, I understand that there can be no assurance that the Company will
        be
        successful in obtaining the funds necessary for its success. If only a fraction
        of the maximum amount of the Offering is raised, the Company may not be able
        to
        expand as rapidly as anticipated, and proceeds from this Offering may not
        be
        sufficient for the Company’s long term needs.

      

      (g)
        Other
        than as set forth in the Memorandum, no person or entity has made any
        representation or warranty whatsoever with respect to any matter or thing
        concerning the Company and this Offering, and I am purchasing the Shares
        based
        solely upon my own investigation and evaluation.

      

      (h) I
        understand that no Shares have been registered under the Securities Act,
        nor
        have they
        been
        registered pursuant to the provisions of the securities or other laws of
        applicable jurisdictions. 

      

      (i)
        The
        Shares for which I subscribe are being acquired solely for my own account,
        for
        investment and are not being purchased with a view to or for their resale
        or
        distribution. In order to induce the Company to sell Shares to me, the Company
        will have no obligation to recognize the ownership, beneficial or otherwise,
        of
        the Shares by anyone but me.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      (j)
        I am
        aware of the following:

      

      
        	
              	(i)	
                The
                  Shares are a speculative investment which involves a high degree
                  of
                  risk;
                  and

              

      

      

      
        	
              	(ii)	
                My
                  investment in the Shares is not readily transferable; it may not
                  be
                  possible for
                  me to liquidate my investment.

              

      

      

      
        	
              	(iii)	
                The
                  financial statements of the Company have merely been compiled,
                  and
                  have
                  not been reviewed or audited.

              

      

      

      
        	
              	(iv)	
                There
                  are substantial restrictions on the transferability of the Shares
                  registered
                  under the Securities Act; and

              

      

      

      ______________

      Purchaser’s
        Initials

      

      
        	
              	(v)	
                No
                  federal or state agency has made any finding or determination as
                  to the
                  fairness
                  of the Shares for public investment nor any recommendation
                  or endorsement
                  of the Shares;

              

      

      

      (k)
        Except as set forth in the Memorandum, none of the following information
        has
        ever been represented, guaranteed, or warranted to me expressly or by
        implication, by any broker, the Company, or agents or employees of the
        foregoing, or by any other person:

       

      
        	
              	(i)	
                The
                  appropriate or exact length of time that I will be required to
                  hold the
                  Shares;

              

      

      

      
        	
              	(ii)	
                The
                  percentage of profit and/or amount or type of consideration, profit,
                  or
                  loss
                  to be realized, if any, as a result of an investment in the Shares;
                  or

              

      

      

      
        	
              	(iii)	
                That
                  the past performance or experience of the Company, or associates,
                  agents,
                  affiliates, or employees of the Company or any other person, will
                  in
                  any
                  way indicate or predict economic results in connection with the
                  purchase
                  of
                  Shares;

              

      

      

      
        	
              	(iv)	
                The
                  amount of dividends or distributions that the Company will
                  make;

              

      

      

      (l)
        I
        have not distributed the Memorandum to anyone, no other person has used the
        Memorandum, and I have made no copies of the Memorandum; and

      

      (m)
        I
        hereby agree to indemnify and hold harmless the Company, its officers,
        directors, and representatives from and against any and all liability, damage,
        cost or expense, including reasonable attorneys fees, incurred on account
        of or
        arising out of:

      

      
        	
              	(i)	
                Any
                  inaccuracy in the declarations, representations, and warranties
                  set forth
                  above;

              

      

      

      
        	
              	(ii)	
                The
                  disposition of any of the Shares by me which is contrary to the
                  foregoing
                  declarations,
                  representations, and warranties;
                  and

              

      

      

      
        	
              	(iii)	
                Any
                  action, suit or proceeding based upon (1) the claim that said
                  declarations, representations,
                  or warranties were inaccurate or misleading or otherwise cause
                  for obtaining damages or redress from the Company; or (2) the disposition
                  of any of the Shares.

              

      

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      (n)
        By
        entering into this Subscription Agreement, I acknowledge that the Company
        is
        relying on the truth and accuracy of my representations.

      

      The
        foregoing representation and warranties are true and accurate as of the date
        hereof, shall be true and accurate as of the date of the delivery of the
        funds
        to the Company and shall survive such delivery. If, in any respect, such
        representations and warranties are not true and accurate prior to delivery
        of
        the funds, I will give written notice of the fact to the Company, specifying
        which representations and warranties are not true and accurate and the reasons
        therefor.

      

      _______________

      Purchaser’s
        Initials

      

      3. Transferability.
        I
        understand that I may sell or otherwise transfer my Shares only if registered
        under the Securities Act or I provide the Company with an opinion of counsel
        acceptable to the Company to the effect that such sale or other transfer
        may be
        made in absence of registration under the Securities Act. I have no right
        to
        cause the Company to register the Shares. Any certificates or other documents
        representing my Shares will contain a restrictive legend reflecting this
        restriction, and stop transfer instructions will apply to my
        Shares.

      

      4. Indemnification.
        I
        understand the meaning and legal consequences of the representations and
        warranties contained in Paragraph 2 hereof, and I will indemnify and hold
        harmless the Company, its officers, directors, and representatives involved
        in
        the offer or sale of the Shares to me, as well as each of the managers and
        representatives, employees and agents and other controlling persons of each
        of
        them, from and against any and all loss, damage or liability due to or arising
        out of a breach of any representation or warranty of mine contained in this
        Subscription Agreement.

      

      5.
        Revocation.
        I will
        not cancel, terminate or revoke this Subscription Agreement or any agreement
        made by me hereunder and this Subscription Agreement shall survive my death
        or
        disability.

      

      6.
        Termination
        of Agreement.
        If this
        subscription is rejected by the Company, then this Subscription Agreement
        shall
        be null and void and of no further force and effect, no party shall have
        any
        rights against any other party hereunder, and the Company shall promptly
        return
        to me the funds delivered with this Subscription Agreement.

      

      7.
        Miscellaneous.

      

      
        	(a)	
                This
                  Subscription Agreement shall be governed by and construed in accordance
                  with the
                  substantive law of the State of
                  California.

              

      

      

      
        	(b)	
                This
                  Subscription Agreement constitutes the entire agreement between
                  the
                  parties hereto
                  with respect to the subject matter hereof and may be amended only
                  in
                  writing and
                  executed by all parties.

              

      

      

      8.
        Ownership
        Information.
        Please
        print here the total number of Shares to be purchased, and the exact name(s)
        in
        which the Shares will be registered.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      Total
        Shares:_________________

       

      Name(s):_____________________________________________________________

      _____
        Single Person

      _____
        Husband and Wife, as community property

      _____
        Joint Tenants (with right of survivorship)

      _____
        Tenants in Common

      _____
        A
        Married Person as separate property

      _____
        Corporation or other organization

      _____
        A
        Partnership

      _____
        Trust

      _____
        IRA

      ______________

      Purchaser’s
        Initials

      

      _____
        Tax-Qualified Retirement Plan

      (i)
        Trustee(s)/
        Custodian____________________________________________________

      (ii)
        Trust
        Date_____________________________________________________________

      (iii)
        Name of
        Trust__________________________________________________________

      (iv)
        For
        the Benefit
        of________________________________________________________

      

      _____
        Other:_________________________________________________________________________

      (please
        explain)

      

      Social
        Security or Tax
        I.D.#:_______________________________________________________________

      

      Residence
        Address:

      

      __________________________________________________________________________________________

      Street
        Address

      __________________________________________________________________________________________

      City                 State                     Zip

       

      Mailing
        Address: (Complete only if different from residence)

      

      ___________________________________________________________________________________________

      Street
        Address (If P.O. Box, include address for surface delivery if different than
        residence)

      

      ____________________________________________________________________________________________

      City                 State                     Zip

      

      Phone
        Numbers

      

      Home:
        (_______)_____________________

      Business:
        (_______)___________________

      Facsimile:
        (_______)___________________

      

      ______________

      Purchaser’s
        Initials

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      9.
        Date
        and Signatures.
        Dated
        ______________________________, 2008.

       

      
        	Signatures	 	 	Purchaser
                Name (Print)	 
	 	 	 	 	 
	 	 	 	 	 
	(Each
                co-owner or joint owner must sign - “Purchaser Name”)	 	Names
                must be signed exactly as listed under

      

      

      ACCEPTED:

      

      EMVELCO
        CORP.

      

      
        	
                By:

              	 	 	
                Dated:______________________,
                  2008

              
	
                YOSSI
                  ATTIA

              	 	 
	
                President

              	 	 

      

      

      ______________

      Purchaser’s
        Initials

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      EMVELCO
        CORP. 

      Investor
        Suitability Questionnaire

      

      To:
        Prospective purchasers of Shares of Common Stock (the “Shares”) offered by
        EMVELCO CORP. (the “Company”).

      

      The
        Purpose of this Questionnaire is to solicit certain information regarding
        your
        financial status to determine whether you are an “Accredited Investor,” as
        defined under applicable federal and state securities laws, and otherwise
        meet
        the suitability criteria established by the Company for purchasing Shares.
        This
        questionnaire is not an offer to sell securities.

      

      Your
        answers will be kept as confidential as possible. You agree, however, that
        this
        Questionnaire may be shown to such persons as the Company deems appropriate
        to
        determine your eligibility as an Accredited Investor or to ascertain your
        general suitability for investing in the Shares.

      

      Please
        answer all questions completely and execute the signature
        page

      

      A.
        Personal

      

      1.
        Name:________________________________________________________________________

      

      2.
        Address of Principal
        Residence:____________________________________________________

       

      ______________________________________________________
        County:__________________

      

      3.
        Residence Telephone: (______)__________________________________

      

      4.
        Where
        are you registered to
        vote?___________________________________________________

      

      5.
        Your
        driver’s license is issued by the following
        state:_____________________________________

      

      6.
        Other
        Residences or Contacts: Please identify any other state where you own a
 residence,
        are registered to vote, pay income taxes, hold a driver’s license or have any
 other
        contacts, and describe your connection with such state:

      

      __________________________________________________________________________________

      

      __________________________________________________________________________________

      

      7.
        Please
        send all correspondence to:

      

      (1)_____
        Residence Address (as set forth in item A-2)

       

      (2)_____
        Business Address (as set forth in item B-1)

      

      8.
        Date
        of
        Birth:___________________________________________________________________________

      

      9.
        Citizenship:____________________________________________________________________________

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      10.
        Social Security or Tax I.D.
        #:_______________________________________________________________

       

      B.
        Occupations and Income

      

      1.
        Occupation:_________________________________________________________

      

      (a)
        Business Address:______________________________________________

       

      _______________________________________________________________

      

      (b)
        Business Telephone Number: (______)______________________________

      

      2.
        Gross
        income during each of the last two years exceeded:

      

      (1)_____$25,000          
        (2)_____$50,000

      

      (3)_____$100,000         (4)_____$200,000

      

      3.
        Joint
        gross income with spouse during each of the last two years exceeded
        $300,000

      

      (1)_____Yes             (2)_____No

      

      4.
        Estimated gross income during current year exceeds:

      

      (1)_____$25,000          
        (2)_____$50,000

      

      (3)_____$100,000         (4)_____$200,000

      

      5.
        Estimated joint gross income with spouse during current year exceeds
        $300,000

      

      (1)_____Yes                
         (2)_____No

      

      C.
        Net Worth

      

      1.
        Current net worth or joint net worth with spouse (note that “net worth” includes
        all of the assets owned by you and your spouse in excess of total liabilities,
        including the fair market value, less any mortgage, of your principal
        residence.)

      

      (1)_____$50,000-$100,000
        (2)_____$100,000-$250,000 (3)_____$250,000-$500,000

       

      (4)_____$500,000-$750,000
        (5)_____$750,000-$1,000,000 (6)_____over $1,000,000

      

      2.
        Current value of liquid assets (cash, freely marketable securities, cash
        surrender value of life insurance policies, and other items easily convertible
        into cash) is sufficient to provide for current needs and possible personal
        contingencies:

      

      (1)_____Yes                
        (2)_____No

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      D.
        Affiliation with the Company

      

      Are
        you a
        director or executive officer of the Company?

      

      (1)_____Yes                
        (2)_____No

      

      E.
        Investment Percentage of Net Worth

      

      If
        you
        expect to invest up to $200,000 in Shares, does your total purchase price
        exceed
        10% of your net worth at the time of sale, or joint net worth with your
        spouse.

      

      (1)_____Yes                
        (2)_____No

      

      F.
        Consistent Investment Strategy

      

      Is
        this
        investment consistent with your overall investment strategy?

      

      (1)_____Yes                
        (2)_____No

      

      G.
        Prospective Investor’s Representations

      

      The
        information contained in this Questionnaire is true and complete, and the
        undersigned understands that the Company and its counsel will rely on such
        information for the purpose of complying with all applicable securities laws
        as
        discussed above. The undersigned agrees to notify the Company promptly of
        any
        change in the foregoing information which may occur prior to any purchase
        by the
        undersigned of securities from the Company.

      

      Prospective
        Investor:

      

      
        	
                 

              	 	
                Date:________________,
                  2008

              
	
                Signature

              	 	 
	 	 	 
	 	 	 
	
                 

              	 	 
	
                Signature
                  (of joint purchase if purchase is to be

              	 
	
                made
                  as joint tenants or as tenants in common)

              	 

      

       

      
        
          
          

        

        
          10THIS
      WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE NOT
      BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. EXCEPT AS OTHERWISE
      SET
      FORTH HEREIN OR IN A SUBSCRIPTION AGREEMENT DATED AS OF MAY __, 2008, NEITHER
      THIS WARRANT NOR ANY OF SUCH SHARES MAY BE SOLD, TRANSFERRED OR ASSIGNED IN
      THE
      ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER SAID
      ACT OR, AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND SCOPE, CUSTOMARY FOR
      OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT REGISTRATION IS NOT
      REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144 OR REGULATION S
      UNDER SUCH ACT.

    

      
        	
                Right
                  to Purchase ________ Shares of Common Stock, par value $.001 per
                  share

              

      

    

     

    STOCK
      PURCHASE WARRANT

     

    THIS
      CERTIFIES THAT,
      for
      value received, _________ or its registered assigns, is entitled to purchase
      from EMVELCO
      CORP.,a
      Delaware corporation (the “Company”), at any time or from time to time during
      the period specified in Paragraph 2 hereof, ____________ fully paid and
      nonassessable shares of the Company’s Common Stock, par value $.001 per share
      (the “Common Stock”), at an exercise price per share equal to
      $1.00 (the
      “Exercise Price”). The term “Warrant Shares,” as used herein, refers to the
      shares of Common Stock purchasable hereunder. The Warrant Shares and the
      Exercise Price are subject to adjustment as provided in Paragraph 4 hereof.
      The
      term “Warrants” means this Warrant and the other warrants issued pursuant to
      that certain Subscription Agreement, dated May __, 2008, by and among the
      Company and the Buyers listed on the execution page thereof (the “Subscription
      Agreement”). 

     

    This
      Warrant is subject to the following terms, provisions, and conditions:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1. Manner
      of Exercise; Issuance of Certificates; Payment for Shares. 
Subject
      to there being 30,000,000 of the Company issued and outstanding, , this Warrant
      may be exercised by the holder hereof, in whole or in part, by the surrender
      of
      this Warrant, together with a completed exercise agreement in the form attached
      hereto (the “Exercise Agreement”), to the Company during normal business hours
      on any business day at the Company’s principal executive offices (or such other
      office or agency of the Company as it may designate by notice to the holder
      hereof), and upon payment to the Company in cash, by certified or official
      bank
      check or by wire transfer for the account of the Company of the Exercise Price
      for the Warrant Shares specified in the Exercise Agreement. The Warrant Shares
      so purchased shall be deemed to be issued to the holder hereof or such holder’s
      designee, as the record owner of such shares, as of the close of business on
      the
      date on which this Warrant shall have been surrendered, the completed Exercise
      Agreement shall have been delivered, and payment shall have been made for such
      shares as set forth above. Certificates for the Warrant Shares so purchased,
      representing the aggregate number of shares specified in the Exercise Agreement,
      shall be delivered to the holder hereof within a reasonable time, not exceeding
      three (3) business days, after this Warrant shall have been so exercised. If
      this Warrant shall have been exercised only in part, then, unless this Warrant
      has expired, the Company shall, at its expense, at the time of delivery of
      such
      certificates, deliver to the holder a new Warrant representing the number of
      shares with respect to which this Warrant shall not then have been exercised.
      

     

    Notwithstanding
      anything in this Warrant to the contrary, in no event shall the holder of this
      Warrant be entitled to exercise a number of Warrants (or portions thereof)
      in
      excess of the number of Warrants (or portions thereof) upon exercise of which
      the sum of (i) the number of shares of Common Stock beneficially owned by the
      holder and its affiliates (other than shares of Common Stock which may be deemed
      beneficially owned through the ownership of the unexercised Warrants and the
      unexercised or unconverted portion of any other securities of the Company
      (including the Notes (as defined in the Subscription Agreement)) subject to
      a
      limitation on conversion or exercise analogous to the limitation contained
      herein) and (ii) the number of shares of Common Stock issuable upon exercise
      of
      the Warrants (or portions thereof) with respect to which the determination
      described herein is being made, would result in beneficial ownership by the
      holder and its affiliates of more than 4.9% of the outstanding shares of Common
      Stock. For purposes of the immediately preceding sentence, beneficial ownership
      shall be determined in accordance with Section 13(d) of the Securities Exchange
      Act of 1934, as amended, and Regulation 13D-G thereunder, except as otherwise
      provided in clause (i) of the preceding sentence. Notwithstanding anything
      to
      the contrary contained herein, the limitation on exercise of this Warrant set
      forth herein may not be amended without (i) the written consent of the holder
      hereof and the Company and (ii) the approval of a majority of shareholders
      of
      the Company.

     

    2. Period
      of Exercise.  This
      Warrant is exercisable at any time or from time to time on or after the date
      on
      which this Warrant is issued and delivered pursuant to the terms of the
      Subscription Agreement and before 6:00 p.m., New York, New York time on the
      second (2nd) anniversary
      of the date of issuance (the “Exercise Period”). Notwithstanding the foregoing,
      on any given date, the maximum number of Warrant Shares issuable upon exercise
      of this Warrant on such date shall equal (i) half of such number of shares
      of
      common stock issued on or prior to such date upon conversion of the Convertible
      Note issued to the holder pursuant to the Subscription Agreement, less (ii)
      such
      number of Warrant Shares exercised hereunder prior to such date. 

     

    3. Certain
      Agreements of the Company. The
      Company hereby covenants and agrees as follows:

     

    (a) Shares
      to be Fully Paid.
      All
      Warrant Shares will, upon issuance in accordance with the terms of this Warrant,
      be validly issued, fully paid, and nonassessable and free from all taxes, liens,
      and charges with respect to the issue thereof.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (b) Reservation
      of Shares.
      During
      the Exercise Period, the Company shall at all times have authorized, and
      reserved for the purpose of issuance upon exercise of this Warrant, a sufficient
      number of shares of Common Stock to provide for the exercise of this
      Warrant.

     

    (c) Successors
      and Assigns.
      This
      Warrant will be binding upon any entity succeeding to the Company by merger,
      consolidation, or acquisition of all or substantially all the Company’s
      assets.

     

    4. Antidilution
      Provisions. During
      the Exercise Period, the Exercise Price and the number of Warrant Shares shall
      be subject to adjustment from time to time as provided in this Paragraph
      4.

     

    In
      the
      event that any adjustment of the Exercise Price as required herein results
      in a
      fraction of a cent, such Exercise Price shall be rounded up to the nearest
      cent.

     

    (a) Subdivision
      or Combination of Common Stock.
      If the
      Company at any time subdivides (by any stock split, stock dividend,
      recapitalization, reorganization, reclassification or otherwise) the shares
      of
      Common Stock acquirable hereunder into a greater number of shares, then, after
      the date of record for effecting such subdivision, the Exercise Price in effect
      immediately prior to such subdivision will be proportionately reduced. If the
      Company at any time combines (by reverse stock split, recapitalization,
      reorganization, reclassification or otherwise) the shares of Common Stock
      acquirable hereunder into a smaller number of shares, then, after the date
      of
      record for effecting such combination, the Exercise Price in effect immediately
      prior to such combination will be proportionately increased.

     

    (b) Adjustment
      in Number of Shares.
      Upon
      each adjustment of the Exercise Price pursuant to the provisions of this
      Paragraph 4, the number of shares of Common Stock issuable upon exercise of
      this
      Warrant shall be adjusted by multiplying a number equal to the Exercise Price
      in
      effect immediately prior to such adjustment by the number of shares of Common
      Stock issuable upon exercise of this Warrant immediately prior to such
      adjustment and dividing the product so obtained by the adjusted Exercise Price.
      Further, if the number of shares issuable upon conversion of the Convertible
      Note (the “Note”) issued to the holder as of the date hereof is adjusted as a
      result of an adjustment to the Conversion Price, as defined in the Note, in
      accordance with Section 1.2 of the Note, then the number of Warrant Shares
      issuable upon exercise of this Warrant shall be adjusted to equal the number
      of
      shares issuable upon conversion of the Note multiplied by .5. 

     

    (c) Consolidation,
      Merger or Sale.
      In case
      of any consolidation of the Company with, or merger of the Company into any
      other corporation, or in case of any sale or conveyance of all or substantially
      all of the assets of the Company other than in connection with a plan of
      complete liquidation of the Company, then as a condition of such consolidation,
      merger or sale or conveyance, adequate provision will be made whereby the holder
      of this Warrant will have the right to acquire and receive upon exercise of
      this
      Warrant in lieu of the shares of Common Stock immediately theretofore acquirable
      upon the exercise of this Warrant, such shares of stock, securities or assets
      as
      may be issued or payable with respect to or in exchange for the number of shares
      of Common Stock immediately theretofore acquirable and receivable upon exercise
      of this Warrant had such consolidation, merger or sale or conveyance not taken
      place. In any such case, the Company will make appropriate provision to insure
      that the provisions of this Paragraph 4 hereof will thereafter be applicable
      as
      nearly as may be in relation to any shares of stock or securities thereafter
      deliverable upon the exercise of this Warrant. The Company will not effect
      any
      consolidation, merger or sale or conveyance unless prior to the consummation
      thereof, the successor corporation (if other than the Company) assumes by
      written instrument the obligations under this Paragraph 4 and the obligations
      to
      deliver to the holder of this Warrant such shares of stock, securities or assets
      as, in accordance with the foregoing provisions, the holder may be entitled
      to
      acquire.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    5. Issue
      Tax. The
      issuance of certificates for Warrant Shares upon the exercise of this Warrant
      shall be made without charge to the holder of this Warrant or such shares for
      any issuance tax or other costs in respect thereof, provided that the Company
      shall not be required to pay any tax which may be payable in respect of any
      transfer involved in the issuance and delivery of any certificate in a name
      other than the holder of this Warrant.

     

    6. No
      Rights or Liabilities as a Shareholder. This
      Warrant shall not entitle the holder hereof to any voting rights or other rights
      as a shareholder of the Company. No provision of this Warrant, in the absence
      of
      affirmative action by the holder hereof to purchase Warrant Shares, and no
      mere
      enumeration herein of the rights or privileges of the holder hereof, shall
      give
      rise to any liability of such holder for the Exercise Price or as a shareholder
      of the Company, whether such liability is asserted by the Company or by
      creditors of the Company.

     

    7. Transfer,
      Exchange, and Replacement of Warrant. 

     

    (a) Restriction
      on Transfer.
      This
      Warrant and the rights granted to the holder hereof are transferable, in whole
      or in part, upon surrender of this Warrant, together with a properly executed
      assignment in the form attached hereto, at the office or agency of the Company,
      provided, however, that any transfer or assignment shall be subject to the
      conditions set forth in this Section 7 and to the applicable provisions of
      the
      Subscription Agreement. Until due presentment for registration of transfer
      on
      the books of the Company, the Company may treat the registered holder hereof
      as
      the owner and holder hereof for all purposes, and the Company shall not be
      affected by any notice to the contrary. 

     

    (b) Warrant
      Exchangeable for Different Denominations.
      This
      Warrant is exchangeable, upon the surrender hereof by the holder hereof at
      the
      office or agency of the Company, for new Warrants of like tenor representing
      in
      the aggregate the right to purchase the number of shares of Common Stock which
      may be purchased hereunder, each of such new Warrants to represent the right
      to
      purchase such number of shares as shall be designated by the holder hereof
      at
      the time of such surrender.

     

    (c) Replacement
      of Warrant.
      Upon
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction, or mutilation of this Warrant and, in the case of any such loss,
      theft, or destruction, upon delivery of an indemnity agreement reasonably
      satisfactory in form and amount to the Company, or, in the case of any such
      mutilation, upon surrender and cancellation of this Warrant, the Company, at
      its
      expense, will execute and deliver, in lieu thereof, a new Warrant of like
      tenor.

     

    (d) Cancellation;
      Payment of Expenses.
      Upon the
      surrender of this Warrant in connection with any transfer, exchange, or
      replacement as provided in this Paragraph 7, this Warrant shall be promptly
      canceled by the Company. The Company shall pay all taxes (other than securities
      transfer taxes) and all other expenses (other than legal expenses, if any,
      incurred by the holder or transferees) and charges payable in connection with
      the preparation, execution, and delivery of Warrants pursuant to this Paragraph
      7.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (e) Register.
      The
      Company shall maintain, at its principal executive offices (or such other office
      or agency of the Company as it may designate by notice to the holder hereof),
      a
      register for this Warrant, in which the Company shall record the name and
      address of the person in whose name this Warrant has been issued, as well as
      the
      name and address of each transferee and each prior owner of this
      Warrant.

     

    (f) Exercise
      or Transfer Without Registration.
      If, at
      the time of the surrender of this Warrant in connection with any exercise,
      transfer, or exchange of this Warrant, this Warrant (or, in the case of any
      exercise, the Warrant Shares issuable hereunder), shall not be registered under
      the Securities Act of 1933, as amended (the “Securities Act”) and under
      applicable state securities or blue sky laws, the Company may require, as a
      condition of allowing such exercise, transfer, or exchange, (i) that the holder
      or transferee of this Warrant, as the case may be, furnish to the Company a
      written opinion of counsel, which opinion and counsel are acceptable to the
      Company, to the effect that such exercise, transfer, or exchange may be made
      without registration under said Act and under applicable state securities or
      blue sky laws, (ii) that the holder or transferee execute and deliver to the
      Company an investment letter in form and substance acceptable to the Company
      and
      (iii) that the transferee be an “accredited investor” as defined in Rule 501(a)
      promulgated under the Securities Act; provided that no such opinion, letter
      or
      status as an “accredited investor” shall be required in connection with a
      transfer pursuant to Rule 144 under the Securities Act. The first holder of
      this
      Warrant, by taking and holding the same, represents to the Company that such
      holder is acquiring this Warrant for investment and not with a view to the
      distribution thereof. In no event shall the Holder be permitted to assign the
      Warrant unless provided with express written consent by the
      Company.

     

    8. [Intentionally
      Omitted] 

     

    9. Notices.
      All
      notices, requests, and other communications required or permitted to be given
      or
      delivered hereunder to the holder of this Warrant shall be in writing, and
      shall
      be personally delivered, or shall be sent by certified or registered mail or
      by
      recognized overnight mail courier, postage prepaid and addressed, to such holder
      at the address shown for such holder on the books of the Company, or at such
      other address as shall have been furnished to the Company by notice from such
      holder. All notices, requests, and other communications required or permitted
      to
      be given or delivered hereunder to the Company shall be in writing, and shall
      be
      personally delivered, or shall
      be
      sent by certified or registered mail or by recognized overnight mail courier,
      postage prepaid and addressed, to the office of the Company at the address
      set
      forth in the Subscription Agreement, or at such other address as shall have
      been
      furnished to the holder of this Warrant by notice from the Company. Any such
      notice, request, or other communication may be sent by facsimile, but shall
      in
      such case be subsequently confirmed by a writing personally delivered or sent
      by
      certified or registered mail or by recognized overnight mail courier as provided
      above. All notices, requests, and other communications shall be deemed to have
      been given either at the time of the receipt thereof by the person entitled
      to
      receive such notice at the address of such person for purposes of this Paragraph
      9, or, if mailed by registered or certified mail or with a recognized overnight
      mail courier upon deposit with the United States Post Office or such overnight
      mail courier, if postage is prepaid and the mailing is properly addressed,
      as
      the case may be.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    10. Governing
      Law. THIS
      WARRANT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
      LAWS
      OF THE STATE OF CALIFORNIA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
      ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF
      LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE
      UNITED STATES FEDERAL COURTS LOCATED IN LOS ANGELES, CALIFORNIA WITH RESPECT
      TO
      ANY DISPUTE ARISING UNDER THIS WARRANT, THE AGREEMENTS ENTERED INTO IN
      CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH
      PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE
      MAINTENANCE OF SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE
      OF PROCESS UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY
      RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR
      PROCEEDING. NOTHING HEREIN SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE PROCESS IN
      ANY OTHER MANNER PERMITTED BY LAW. BOTH PARTIES AGREE THAT A FINAL
      NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE
      AND
      MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER
      LAWFUL MANNER. THE PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER
      THIS WARRANT SHALL BE RESPONSIBLE FOR ALL FEES AND EXPENSES, INCLUDING
      ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY IN CONNECTION WITH SUCH
      DISPUTE.

     

    11. Miscellaneous.

     

    (a) Amendments.
      This
      Warrant and any provision hereof may only be amended by an instrument in writing
      signed by the Company and the holder hereof.

     

    (b) Descriptive
      Headings.
      The
      descriptive headings of the several paragraphs of this Warrant are inserted
      for
      purposes of reference only, and shall not affect the meaning or construction
      of
      any of the provisions hereof.

     

    (c) Remedies.
      The
      Company acknowledges that a breach by it of its obligations hereunder will
      cause
      irreparable harm to the holder, by vitiating the intent and purpose of the
      transaction contemplated hereby. Accordingly, the Company acknowledges that
      the
      remedy at law for a breach of its obligations under this Warrant will be
      inadequate and agrees, in the event of a breach or threatened breach by the
      Company of the provisions of this Warrant, that the holder shall be entitled,
      in
      addition to all other available remedies at law or in equity, and in addition
      to
      the penalties assessable herein, to an injunction or injunctions restraining,
      preventing or curing any breach of this Warrant and to enforce specifically
      the
      terms and provisions thereof, without the necessity of showing economic loss
      and
      without any bond or other security being required.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Warrant to be signed by its duly authorized
      officer.

     

    
      	
              EMVELCO
                CORP.

            
	      
	
              By:

            	     

	 	
              Yossi
                Attia

            
	 	
              Chief
                Executive Officer

            

    

    

    Dated
      as
      of May __, 2008

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    FORM
      OF EXERCISE AGREEMENT

     

    Dated:
      ________ __, 20__

     

    To: ______________________

     

    The
      undersigned, pursuant to the provisions set forth in the within Warrant, hereby
      agrees to purchase ________ shares of Common Stock covered by such Warrant,
      and
      makes payment herewith in full therefor at the price per share provided by
      such
      Warrant in cash or by certified or official bank check in the amount of equal
      to
      $_________. Please issue a certificate or certificates for such shares of Common
      Stock in the name of and pay any cash for any fractional share to:

     

    
      	
              Name:
                

            	
                    
                

            
	 	  
	
              Signature:

            
	
              Address:

            	
                 
                

            
	
               

            	
                     
                

            

    

    

    
      	
              Note:     

            	
              The
                above signature should correspond exactly with the name on the face
                of the
                within Warrant, if applicable.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    FORM
      OF ASSIGNMENT

     

    FOR
      VALUE RECEIVED,
      the
      undersigned hereby sells, assigns, and transfers all the rights of the
      undersigned under the within Warrant, with respect to the number of shares
      of
      Common Stock covered thereby set forth hereinbelow, to:

     

    
      	
              Name
                of Assignee

            	 	
              Address

            	 	
              No
                of Shares

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

     

    ,
      and
      hereby irrevocably constitutes and appoints ___________________________________
      as agent and attorney-in-fact to transfer said Warrant on the books of the
      within-named corporation, with full power of substitution in the
      premises.

     

    Dated: ________
      __, 20__

     

    
      	
              In
                the presence of:

            	
               

            	     

    

    

    
      	
              Name:

            	       
	 	 

    

    
      	
              Signature:

            	 
	
              Title
                of Signing Officer or Agent (if
                any):

            

    

    
      	 	       
	
              Address:   

            	      
	 	     

    

    

    
      	
              Note:     

            	
              The
                above signature should correspond exactly with the name on the face
                of the
                within Warrant, if applicable.

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