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WRAPMAIL, INC. 

SUBSCRIPTION AGREEMENT FOR THE PURCHASE OF SECURITIES

 

WRAPmail, Inc., a Florida corporation (the “Company”) is offering (this “Offering”) for sale to the undersigned (the “Investor” ) shares of its common stock, no par value (the “ Common Stock ”) and warrants to purchase shares of Common Stock (“Warrants,” together with the Common Stock, the “Securities”).  This Offering is made by the Company pursuant to the Registration Statement File No.: [ ]   declared effective by the U.S. Securities and Exchange Commission (the “Commission”) on ______________ (the “Registration Statement”) and this subscription agreement (this “ Agreement ”).

 

WHEREAS, the Company filed the Registration Statement to sell a maximum of up to 40,000,000 shares of the Company’s Common Stock on a best efforts basis for a maximum offering amount of $2,000,000; and

 

WHEREAS, for every share purchased by Investor, the Company will issue the Investor a Warrant to purchase one half (1/2) share of Common Stock, subject to the terms agreed to herein and therein the Warrants.

  

NOW, THEREFORE, IT IS HEREBY AGREED:

  

Purchase of Securities

 

(a)  The Investor agrees to purchase and the Company agrees to sell and issue _____________ shares of Common Stock and a Warrant to purchase ____________ shares of Common Stock. The Investor agrees to pay an aggregate of $_________ (calculated based on a price per share of $0.10) as the subscription amount for the Securities being purchased hereunder (the “Subscription Amount”).

 

(b) The Investor and the Company agree that the Subscription Amount shall be paid by or on behalf of the Investor by bank draft, wire or check payable to WRAPmail, Inc.  The Investor acknowledges and agrees that this Subscription Agreement is not binding on the Company until it is accepted on the Company’s behalf (the “Closing”).

  

Subscription Procedures

 

(a) To subscribe, the Investor must:

 

			
	(i)

	 
	complete and sign this Subscription Agreement; and

			
	(ii)

	 
	complete and sign the accompanying Confidential Prospective Purchaser Questionnaire (“Questionnaire”, together with the Subscription Agreement referred to as the “Subscription Documents”);

			
	(iii)

	 
	return the completed and signed Subscription Documents on behalf of the Company at the following address:

 

WRAPmail, Inc. 

445 NE 12th Ave.

Fort Lauderdale, FL 33301

 

			
	(iv)

	 
	Deliver a check payable to “WRAPmail, Inc.” to the address above for the Subscription Amount..

Or wire the funds to:

Account Name: WRAPmail, Inc.

Routing Number: [ ]

Account Number: [ ]

Bank Name: TD Bank

Bank Address: [ ]

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Additional Terms

 

1.  Unless terminated earlier by the Company, in its sole discretion, this Offering is scheduled to terminate on or about the date two years from the date the Registration Statement was declared effective, 5:00 p.m., New York time, unless extended by the Company by filing an amendment to the Registration Statement.

 

2.  For additional information regarding the Company, the Investor is encouraged to review the Company’s Registration Statement and other documents filed publicly with the SEC and OTCMarkets.com.

 

3.  The Company hereby makes the following representations, warranties and covenants to the Investor:

 

a. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder.

 

b. The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereunder have been duly authorized by all necessary corporate action on the part of the Company.

 

c. This Agreement has been duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as may be limited by any bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ and contracting parties’ rights generally or by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

4.   Investor hereby makes the following representations, warranties and covenants to the Company:

 

a.  Investor is aware that the purchase of the Shares and Warrants is a speculative investment involving a high degree of risk and that there is no guarantee that the Investor will realize any gain from this investment, and that the Investor could lose the total amount of the Investor's investment.

 

b.  Investor understands that no federal or state agency has made any finding or determination regarding the fairness of this Offering, or any recommendation or endorsement of this Offering.

 

c.  If the Investor is a partnership, corporation, trust, or other entity, (i),  the Investor represents and warrants that it was not organized or reorganized for the specific purpose of acquiring the Shares, (ii) the Investor has the full power and authority to execute this Agreement on behalf of such entity and to make the representations and warranties made herein on its behalf, and (iii) this investment in the Company has been affirmatively authorized, if required, by the governing board of such entity and is not prohibited by the governing documents of the entity.

 

d.  The address shown under the Investor's signature at the end of this Agreement is the Investor's principal residence if he or she is an individual, or its principal business address if a corporation or other entity.

e.

Investor acknowledges and agrees that the Company may enter into additional subscription agreements, substantially similar to this Subscription Agreement, for the sale of Securities to other investors.

 

5. The undersigned agrees and acknowledges that the Company has the right to utilize the services of a placement agent and if utilized, may receive a commission consisting of cash and/or shares of Common Stock, at a rate that is compatible with industry standards, from the Securities sold by such placement agent.

 

6.   Except as otherwise specifically provided for hereunder, no party shall be deemed to have waived any of his, her, or its rights hereunder or under any other agreement, instrument, or papers signed by any of them with respect to the subject matter hereof unless such waiver is in writing and signed by the party waiving said right.  Except as otherwise specifically provided for hereunder, no delay or omission by any party in exercising any right with respect 

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to the subject matter hereof shall operate as a waiver of such right or of any such other right.  A waiver on any one occasion with respect to the subject matter hereof shall not be construed as a bar to, or waiver of, any right or remedy on any future occasion.  All rights and remedies with respect to the subject matter hereof, whether evidenced hereby or by any other agreement, instrument, or paper, will be cumulative, and may be exercised separately or concurrently.

 

7.   This Agreement, together with any instruments executed simultaneously herewith, constitutes the entire agreement between the parties.

 

8.   This Agreement may not be changed, modified, extended, terminated, or discharged orally, but only by an agreement in writing, which is signed by the Company and the Investor.

 

9.  The parties agree to execute any and all such other and further instruments and documents, and to take any and all such further actions reasonably required to effectuate this Agreement and the intent and purposes hereof.

 

10.   If any provision or any portion of any provision of this Agreement or the application of any such provision or any portion thereof to any person or circumstance, shall be held invalid or unenforceable, the remaining portion of such provision and the remaining portion of such provision as is held invalid or unenforceable to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby.

 

11.  This Agreement shall be governed by and construed in accordance with the laws of the State of Florida and the Investor hereby consents to the jurisdiction of the courts of the State of Florida and the undersigned hereby consents to the jurisdiction of the courts of the State of Florida and/or the United States District Court for Florida.

NASAA UNIFORM LEGEND

 

IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

IN WITNESS WHEREOF, the undersigned Investor has executed this Subscription Agreement on this ____ day of ____________, 20_____.

__________________________

Address: __________________________

(Print Name of Subscriber)

__________________________________

X: ________________________

     (Signature)

Printed: ____________________

Title: ______________________

INVESTOR MUST COMPLETE 

 

1. |__| Individual

 

2. |__| Joint Tenants with Right of Survivorship

 

3. |__| Community Property

 

4. |__| Tenants in Common

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5. |__| Corporation/Partnership

 

6. |__| IRA of________________

 

7. |__| Trust

 

Date Opened ___________

 

8. |__| As A Custodian For________________

 

Under the Uniform Transfer to Minors Act of the

 

State of ___________

 

9. |__| Married with Separate

 

Property

 

10. |__| Keogh of ____________

 

	
	 

Social Security or Tax Identification Number of Investor

			
	 
	 

	Exact Name in Which Title is to be Held

	 

	 
	 

	 

	                                Social Security Number

	 

 

ACCEPTANCE

 

Accepted this ___ day of _______, 20___, on behalf of WRAPMAIL, INC.

 

By: ________________________

Name:

Title:

 

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NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS DOCUMENT NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER AND REASONABLY APPROVED BY THE COMPANY), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

---------------------------------------

COMMON STOCK PURCHASE WARRANT

Number of shares: _____________ 

Warrant Holder: ____________________________  

Exercise Price per Share:  $0.10 

Warrant No.  _________________

Expiration Date:  ___________, 20__

Issue Date: ____________, 20__

FOR VALUE RECEIVED, WRAPmail, Inc., a Florida corporation, (the “Company”), hereby certifies that Warrant Holder is entitled to purchase the securities set forth below. 

This Warrant entitles the Warrant Holder to purchase from the Company at any time after the Issue Date and before the Expiration Date, which expiration date shall be no more than three years from the Issue Date, the number of shares of common stock of the Company (“Common Stock”) above listed (the “Warrant Shares”) at an exercise price of $0.10 per share (as adjusted from time to time as provided in Section 4, the “Exercise Price”).    

This Warrant is subject to the following terms and conditions:

1.

Validity of Warrant and Issue of Shares.  The Company represents and warrants that this Warrant has been duly authorized and validly issued and warrants and agrees that all of Common Stock that may be issued upon the exercise of the rights represented by this Warrant will, when issued upon such exercise, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges with respect to the issue thereof.  The Company further warrants and agrees that during the period within which the rights represented by this Warrant may be exercised, the Company will at all times have authorized and reserved a sufficient number of Common Stock to provide for the exercise of the rights represented by this Warrant.  

2.

Investment Representation.  The Warrant Holder, by accepting this Warrant, represents that the Warrant Holder is acquiring this Warrant for its own account or the account of an affiliate for investment purposes and not with the view to any offering or distribution and that the Warrant Holder will not sell or otherwise dispose of this Warrant or the underlying Warrant Shares in violation of applicable securities laws.  The Warrant Holder acknowledges that the certificates representing any Warrant Shares will bear a legend indicating that they have not been registered under the United States Securities Act of 1933, as amended (the “1933 Act”) and may not be sold by the Warrant Holder except pursuant to an 

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effective registration statement or pursuant to an exemption from registration requirements of the 1933 Act and in accordance with federal and state securities laws.  If this Warrant was acquired by the Warrant Holder pursuant to the exemption from the registration requirements of the 1933 Act afforded by Regulation S thereunder, the Warrant Holder acknowledges and covenants that this Warrant may not be exercised by or on behalf of a Person during the one year distribution compliance period (as defined in Regulation S) following the date hereof.  “Person” means an individual, partnership, firm, limited liability company, trust, joint venture, association, corporation, or any other legal entity.

3.

Exercise of Warrants. The Warrant Holder may exercise this Warrant at the Exercise Price per Warrant Share, as adjusted hereby. 

a.  Exercise of this Warrant shall be made upon surrender of this Warrant with the Form of Election to Purchase attached hereto duly completed and signed to the Company, at its address set forth in Section 6.  Payment upon exercise may be made at the option of the Warrant Holder either in cash, wire transfer or by certified or official bank check payable to the order of the Company equal to the applicable aggregate purchase price for the number of Warrant Shares specified in such form, and the Warrant Holder shall thereupon be entitled to receive the number of duly authorized, validly issued, fully-paid and non-assessable Warrant Shares determined as provided herein.  The Company shall promptly issue or cause to be issued and cause to be delivered to the Warrant Holder in such name or names as the Warrant Holder may designate, a certificate for the Warrant Shares issuable upon such exercise, with such restrictive legend as required by the Securities Act of 1933, as applicable.  Any person so designated by the Warrant Holder to receive Warrant Shares shall be deemed to have become holder of record of such Warrant Shares as of the Date of Exercise of this Warrant.

b. A “Date of Exercise” means the date on which the Company shall have received (i) this Warrant (or any New Warrant, as applicable), with the Form of Election to Purchase attached hereto (or attached to such New Warrant) appropriately completed and duly signed, and (ii) payment of the Exercise Price for the number of Warrant Shares so indicated by the Warrant Holder to be purchased.

c. Payment of Exercise Price may be made by wire to the Company’s account as follows:

TD Bank 

Account name: Wrapmail, Inc.

Account #:4319285981 

ABA: 026013673

d. This Warrant shall be exercisable at any time and from time to time for such number of Warrant Shares as is indicated in the attached Form of Election to Purchase.  If less than all of the Warrant Shares which may be purchased under this Warrant are exercised at any time, the Company shall issue or cause to be issued, at its expense, a New Warrant evidencing the right to purchase the remaining number of Warrant Shares for which no exercise has been evidenced by this Warrant.

e. Notwithstanding any other provision of this Warrant, the Warrant Holder may not be issued any Warrant Shares that would cause Warrant Holder’s beneficial ownership (as defined by Section 13(d) of the Securities Exchange Act of 1934) of the Common Stock of the Company to exceed 9.9% of its total issued and outstanding Common Stock or voting shares. 

4.

Adjustment of Exercise Price and Number of Shares.  The character of the shares of stock or other securities at the time issuable upon exercise of this Warrant and the Exercise Price therefor, are subject to adjustment upon the occurrence of the following events:

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a.

Adjustment for Reorganization, Consolidation, Merger, Etc.  In case of any consolidation or merger of the Company with or into any other corporation, entity or person, or any other corporate reorganization, in which the Company shall not be the continuing or surviving entity of such consolidation, merger or reorganization (any such transaction being hereinafter referred to as a “Reorganization”), then, in each case, the Holder of this Warrant, on exercise hereof at any time after the consummation or effective date of such Reorganization (the “Effective Date”), shall receive, in lieu of the shares of stock or other securities at any time issuable upon the exercise of the Warrant issuable on such exercise prior to the Effective Date, the stock and other securities and property (including cash) to which such Holder would have been entitled upon the Effective Date if such holder had exercised this Warrant immediately prior thereto (all subject to further adjustment as provided in this Warrant). The Company shall ensure that the surviving entity in any Reorganization specifically assumes the Company’s obligations under this Warrant.

b.

Adjustments for Stock Dividends; Combinations, Etc. In case the Company shall do any of the following (an “Event”): 

(i)

declare a dividend or other distribution on its Common Stock 

      payable in Common Stock of the Company, 

(ii)

subdivide the outstanding Common Stock pursuant to a stock 

      split or otherwise, or

(iii)

reclassify its Common Stock,

then the number of shares of Common Stock or other securities at the time issuable upon exercise of this Warrant and the Exercise Price shall be appropriately adjusted to reflect any such Event.

c.

Certificate as to Adjustments.  In case of any adjustment or readjustment in the price or kind of securities issuable on the exercise of this Warrant, the Company will promptly give written notice thereof to the holder of this Warrant setting forth such adjustment or readjustment.

5.

Fractional Shares.  The Company shall not be required to issue or cause to be issued fractional Warrant Shares on the exercise of this Warrant.  The number of full Warrant Shares that shall be issuable upon the exercise of this Warrant shall be computed on the basis of the aggregate number of Warrants Shares purchasable on exercise of this Warrant so presented.  If any fraction of a Warrant Share would, except for the provisions of this Section 6, be issuable on the exercise of this Warrant, the Company shall, at its option, (i) pay an amount in cash equal to the Exercise Price multiplied by such fraction or (ii) round the number of Warrant Shares issuable, up to the next whole number.

6.

Notice.  All notices and other communications hereunder shall be in writing and shall be deemed to have been given (i) on the date they are delivered if delivered in person; (ii) on the date initially received if delivered by facsimile transmission followed by registered or certified mail confirmation; (iii) on the date delivered by an overnight courier service; or (iv) on the third business day after it is mailed by registered or certified mail, return receipt requested with postage and other fees prepaid as follows:

If to the Company:

WRAPmail, Inc.

3 of 5

960 South Broadway, Suite 120 

Hicksville, New York 11801

If to the Warrant Holder:

__________________________________

__________________________________

__________________________________

__________________________________

7.

Miscellaneous.

a. This Warrant shall be binding on and inure to the benefit of the parties hereto and their respective successors and permitted assigns.  This Warrant may be amended only in writing and signed by the Company and the Warrant Holder. Holder may assign this Warrant only with consent from the Company, which shall not be unreasonably withheld. 

b.  Nothing in this Warrant shall be construed to give to any person or corporation other than the Company and the Warrant Holder any legal or equitable right, remedy or cause of action under this Warrant; this Warrant shall be for the sole and exclusive benefit of the Company and the Warrant Holder.

c. This Warrant shall be governed by, construed and enforced in accordance with the internal laws of the State of Florida without regard to the principles of conflicts of law thereof.

d. The headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of the provisions hereof.

e. In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceablilty of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonably substitute therefore, and upon so agreeing, shall incorporate such substitute provision in this Warrant.

f. The Warrant Holder shall not, by virtue hereof, be entitled to any voting or other rights of a shareholder of the Company, either at law or equity, and the rights of the Warrant Holder are limited to those expressed in this Warrant.

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by the authorized officer as of the date first above stated.

WRAPmail, Inc. 

By:  

Name: Marco Alfonsi

Title:   Chief Executive Officer

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FORM OF ELECTION TO PURCHASE

(To be executed by the Warrant Holder to exercise the right to purchase shares of Common Stock under the foregoing Warrant)

To:  WRAPmail, Inc.

The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby irrevocably elects to purchase ________ shares of the Common Stock covered by such Warrant.

The undersigned herewith makes payment of the full purchase price for such shares at the price per share of $0.10, for a total payment of $___________. 

The undersigned represents and warrants that all offers and sales by the undersigned of the securities issuable upon exercise of the within Warrant shall be made pursuant to registration of the Common Stock under the Securities Act of 1933, as amended (the “Securities Act”), or pursuant to an exemption from registration under the Securities Act.

			
	

	 
	Name of Warrant Holder:

(Print)___________________________________

(By:)____________________________________

(Name:)_________________________________

(Title:)__________________________________

Signatures must conform in all respects to the name of the Warrant Holder on the face of the Warrant.

 

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