Document:

ex10-8.htm

    
      

    

    Subscription
Agreement

    and

    Accredited
Investor Questionnaire

    

    

    THESES SECURITIES HAVE NOT
BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED, OR THE LAWS OF
ANY STATE, AND ARE BEING ISSUED PURSUANT TO AN EXEMPTION FROM REGISTRATION
PERTAINING TO SUCH SECURITIES AND PURSUANT TO A REPRESENTATION BY THE SECURITY
HOLDER NAMED HEREON THAT SAID SECURITIES HAVE BEEN ACQUIRED FOR PURPOSES OF
INVESTMENT AND NOT FOR PURPOSES OF DISTRIBUTION.  THESE SECURITIES MAY
NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF
REGISTRATION, OR THE AVAILABILITY OF AN EXEMPTION FROM SUCH
REGISTRATION.  FURTHERMORE, NO OFFER, SALE, TRANSFER, PLEDGE OR
HYPOTHECATION IS TO TAKE PLACE WITHOUT THE PRIOR WRITTEN APPROVAL OF COUNSEL TO
THE COMPANY.  THE STOCK TRANSFER AGENT HAS BEEN ORDERED TO EFFECTUATE
TRANSFERS ONLY IN ACCORDANCE WITH THE ABOVE INSTRUCTIONS.

    

    

    PRIVATE SHARE
ISSUE

    

    

    
      	
               
      

            	
              To:
      DAIS
      ANALYTIC CORPORATION. (hereinafter referred to as the“Company”), with an
      address for notice and delivery located at 11552 Prosperous Drive, Odessa,
      Florida 33556.

            

    

    

    The Company is offering, on a private
placement basis, common shares of its own issue (each being a “Share”) to eligible investors
(each such an investor who subscribes to this issue by this document is
hereinafter referred to as the “Subscriber”) at a
subscription price of Fifty-Five Cents (U.S. $.55) per Share.  The
Company offers, and the Subscriber accepts, the Shares on the terms and
conditions as set forth in this subscription agreement (the “Agreement”).

    

    

    Article
1

    SUBSCRIPTION FOR
SHARES

    

    

    1.1                      Subscription
for Shares.   Based upon the hereinafter terms,
conditions, representations, warranties and covenants given by each party to the
other, the Subscriber hereto hereby irrevocably subscribes for and agrees to
purchase _________________________________(_______)Shares
of the Company, at a subscription price of Fifty-Five Cents (U.S. $0.55) per
Share, for aggregate consideration of _________________(U.S.$__________________) (the “Subscription
Price”).

     

    1.2                     Acceptance
of Subscription.  The Company, upon acceptance by its Board of
Directors (the “Board”)
of all or part of this subscription Agreement, agrees to issue the accepted
number of Shares, as fully paid and non-assessable, and as consideration for the
Subscriber’s subscription, and to refund any excess subscription monies of the
Subscription Price of any non-accepted portion of this subscription Agreement by
the Board.

    
      
         

      

      
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    1.3                      Subscriber’s
eligibility for subscription.   The Subscriber
acknowledges that the Subscriber is purchasing the Shares on a private basis and
is either:

    

    

    
      	
               
      

            	
              (a)

            	
              an
      eligible investor under the Subscriber’s domicile laws;
  or

            

    

    

    

    
      	
               
      

            	
              (b)

            	
              is
      subscribing for a value in Shares constituting an exempt investment under
      the laws of the Subscriber’s domicile;
or

            

    

    

    

    
      	
               
      

            	
              (c)

            	
              is
      subscribing pursuant to a qualifying offering memorandum and the terms
      thereof; or

            

    

    

    

    
      	
               
      

            	
              (d)

            	
              is
      otherwise an eligible investor under the laws of the Subscriber’s domicile
      by virtue of the Subscriber’s wealth, income and investment knowledge and
      capacity.

            

    

    

    

    1.4                      Risks of
subscription.   The Subscriber acknowledges that no party
independent of the Company has made or will make any opinion or representations
on the merits or risks of an investment in any of the Shares unless sought out
by the Subscriber; which the Subscriber is encouraged to do.

    

    

    Article
2

    UNITED STATES ACCREDITED
INVESTOR DECLARATIONS

    

    

    2.1                      Subscriber’s
Declarations as an “Accredited Investor”.   The
undersigned Subscriber warrants and certifies that the Subscriber is an
“Accredited Investor”, as that term is defined in Regulation D promulgated
under the United States Securities Act of 1933, as
amended (the “U.S.
Act”), by virtue of the Subscriber’s qualification under one or more of
the following categories {please check the appropriate box or boxes where
applicable}:

    

    

               o     The Subscriber is a
natural person whose individual net worth, or joint net worth with that person’s
spouse, exceeds U.S. $1,000,000.

    

    

                o    The Subscriber is a
natural person who had an individual income in excess of U.S. $200,000 in each
of the two most recent years or joint income with the Subscriber’s spouse in
excess of U.S. $300,000 in each of those years and has a reasonable expectation
of reaching the same income level in the current year.

    

    

                o    The Subscriber is a
corporation, organization described in section 501(c)(3) of the United States
Internal Revenue Code,
Massachusetts, or similar business trust or partnership, not formed for the
specific purpose of acquiring the Shares, with total assets in excess of U.S.
$5,000,000.

    
      
         

      

      
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                o    The Subscriber is a
trust, with total assets in excess of U.S. $5,000,000, not formed for the
specific purpose of acquiring the Shares, whose purchase is directed by a
sophisticated person.

    

    

                o    The Subscriber is a
director or executive officer of the Company.

    

    

                o    The Subscriber is a
“private business development company” as that term is defined in section
202(a)(22) of the United States Investment Advisers Act of
1940.

    

    

                o    The Subscriber is
either: (a) a “bank” as defined in section 3(a)(2) of the U.S. Act, or a
“savings and loan association or other institution” as defined in section
3(a)(5)(A) of the U.S. Act, whether acting in its individual or fiduciary
capacity; or (b) a broker or dealer registered pursuant to section 15 of the
United States Securities
Exchange Act of 1934; or (c) an “insurance company” as defined in section
2(13) of the U.S. Act; or (d) an investment company registered under the United
States Investment Company Act
of 1940 or a “business development company” as defined in section
2(a)(48) of the United States Investment Company Act of
1940; or (e) a small business investment company licensed by the United
States “Small Business Administration” under either of subsections 301(c) or (d)
of the United States Small
Business Investment Act of 1958; or (f) a plan established and maintained
by a state, its political subdivisions, or any agency or instrumentality of a
state or its political subdivisions, for the benefit of its employees, if such
plan has total assets in excess of U.S. $5,000,000; or (g) an employee benefit
plan within the meaning of the United States Employee Retirement Income Security
Act of 1974, if the investment decision is made by a plan fiduciary as
defined in section 3(21) of the United States Employee Retirement Income Security
Act of 1974 which is either a bank, savings and loan association,
insurance company or registered investment adviser, or if the employee benefit
plan has total assets in excess of U.S. $5,000,000 or, if a self-directed plan,
with investment decisions made solely by persons that are accredited
investors.

    

    

                o    The Subscriber is an
entity in which all of the equity owners are accredited investors under one or
more of the categories set forth hereinabove.

    

    

    Article
3

    RESTRICTED SECURITIES AND
DISPOSITION UNDER “RULE
144”

    

    

    3.1                      No
registration.   The Subscriber acknowledges and
understands that neither the sale of the Shares which the Subscriber is
acquiring nor any of the Shares themselves have been registered under the U.S.
Act or any state securities laws, and, furthermore, that the Shares must be held
indefinitely unless subsequently registered under the U.S. Act or an exemption
from such registration is available.

    

    

    3.2                      Legending
of the Shares.   The Subscriber also acknowledges and
understands that the certificates representing the Shares will be stamped with
the following legend (or substantially equivalent language) restricting transfer
in the following manner:

    

    

    “The
securities represented by this certificate have not been registered under the
United States Securities Act of 1933, as amended, or the laws of any state, and
have been issued pursuant to an exemption from registration pertaining to such
securities and pursuant to a representation by the security holder named hereon
that said securities have been acquired for purposes
of investment and not for purposes of distribution.  These securities
may not be offered, sold, transferred, pledged or hypothecated in the absence of
registration, or the availability of an exemption from such
registration.  Furthermore, no offer, sale, transfer, pledge or
hypothecation is to take place without the prior written approval of counsel to
the Company being affixed to this certificate.  The stock transfer
agent has been ordered to effectuate transfers of this certificate only in
accordance with the above instructions.”.

    
      
         

      

      
        Page 3 of
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    The Subscriber hereby consents to the
Company making a notation on its records or giving instructions to any transfer
agent of the Shares in order to implement the restrictions on transfer set forth
and described hereinabove.

    

    

    3.3                      Disposition
under Rule 144.   The Subscriber also acknowledges and
understands that:

    

    

    
      	
               
      

            	
              (a)

            	
              the
      Shares are restricted securities within the meaning of Rule 144
      promulgated under the U.S. Act;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      exemption from registration under Rule 144 will not be available in any
      event for at least one year from the date of purchase and payment of the
      Shares by the Subscriber, and even then will not be available unless (i) a
      public trading market then exists for the Shares of the Company, (ii)
      adequate information concerning the Company is then available to the
      public and (iii) other terms and conditions of Rule 144 are complied with;
      and

            

    

    

    
      	
               
      

            	
              (c)

            	
              any
      sale of the Shares may be made by the Subscriber only in limited amounts
      in accordance with such terms and
conditions.

            

    

    

    

    3.4                      Further
restrictions on disposition.   The
Subscriber further acknowledges and understands that, without in anyway limiting
the acknowledgements and understandings as set forth hereinabove, the Subscriber
agrees that the Subscriber shall in no event make any disposition of all or any
portion of the Shares which the Subscriber is acquiring hereunder unless and
until:

    

    (a)           there
is then in effect a “Registration Statement” under
the U.S. Act covering such proposed disposition and such disposition is made in
accordance with said Registration Statement; or

    

    (b)           (i)
the Subscriber shall have notified the Company of the proposed disposition and
shall have furnished the Company with a detailed statement of the circumstances
surrounding the proposed disposition, (ii) the Subscriber shall have furnished
the Company with an opinion of the Subscriber’s own counsel to the effect that
such disposition will not require registration of any such Shares under the U.S.
Act and (iii) such opinion of the Subscriber’s counsel shall have been concurred
in by counsel for the Company and the Company shall have advised the Subscriber
of such concurrence.

    

    

    Article
4

    

    METHOD OF SUBSCRIPTION AND
ACCEPTANCE BY THE COMPANY

    

    
      
         

      

      
        Page 4 of
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    4.1                      Method
of subscription.   It
is hereby acknowledged and agreed by the parties hereto that any subscription
for Shares shall be made by the Subscriber:

    

    

    (a)           by
faxing to the Company, at (727) 375-8485, a completed copy of this Agreement
together with an executed copy of the signature page of this Agreement;
and

    

    (b)           by
delivering to the Company: to Dais-Analytic Corporation, 11552 Prosperous Drive,
Odessa, Florida 33556, an originally executed copy of this completed Agreement
together with payment for the exact Subscription Price for such Shares in the
following manner:

    

    (i)           by
delivery to the Company’s above address of a bank draft or cashier’s check for
the exact Subscription Price for the Shares; or

    

    (ii)           by
wire transfer to the Company of the exact Subscription Price for the Shares to
the following wiring instructions:

    

     

    
       

      
        	Bank
      Name:       	Wachovia
    Bank
	
                Bank
      Address:

              	
                5136
      Little Road, New Port Richey, FL 34655

              
	Account
      Name:    	Dais
      Analytic  Corporation
	Account
      Number:   	2000 66 186 169
      9
	ABA Routing
      No:  	063107513
	Swift
      #:    	PNBPUS33

      

       

    

    

    

    4.2                      Acceptance
of subscription or return of Subscription Price by the
Company.   The Subscriber acknowledges that the Company
will be accepting subscriptions for Shares on a first come, first serve,
basis.  As a consequence the Company, upon acceptance by its Board of
all or part of this subscription Agreement (the “Acceptance”), hereby agrees
to issue the accepted number of Shares, as fully paid and non-assessable, and as
consideration for the Subscriber’s subscription, and to refund any excess
subscription monies of the Subscription Price of any non-accepted portion of
this subscription Agreement by the Board.  In this regard the
Subscriber acknowledges that, although Shares may be issued to other purchasers
concurrently with the Company’s Acceptance of all or part of this subscription
Agreement, there may be other sales of Shares by the Company, some or all of
which may close before or after the Acceptance herein.  The Subscriber
further acknowledges that there is a risk that insufficient funds may be raised
by the Company upon the Company’s Acceptance of all or part of this subscription
Agreement to fund the Company’s objectives and that further closings may not
take place after Acceptance herein.

    

    

    4.3                      Delivery
of Share certificate.   Upon receipt by Company of the
Subscription Price and a properly executed subscription Agreement, acceptance by
Company of all or part of said subscription Agreement and all legal requirements
for the issuance of the stock being met, Subscriber is deemed to be the holder
or holders of record of the accepted number of Shares purchased under said
Agreement and, as soon as reasonably possible thereafter, Company agrees to
deliver to the Subscriber a certificate or certificates representing the
accepted number of Shares purchased by the Subscriber under this subscription
Agreement registered in the name of the Subscriber.

     

    
      
         

      

      
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    Article
5

    

    INVESTMENT SUBSCRIPTION
TERMS, CORPORATE DISCLOSURE AND GENERAL SUBSCRIBER ACKNOWLEDGEMENTS AND
WARRANTIES

    

    

    5.1                      Description
of the Shares.   The Company is issuing the Shares
hereunder at a price of Fifty-Five Cents (U.S. $.55) per Share.  The
Shares are a part of the common shares of the Company presently
authorized.  Copies of the corporate documents of the Company
describing the common shares and the rights of shareholders are available upon
request.

    

    

    5.2                      Use of
funds for the Shares and Release therefore.   The
Subscriber acknowledges and agrees that the Subscription Price funds to be
raised from the Shares are to be employed for the business of the Company in
accordance with management’s discretion as to the best use of the same for the
Company’s business plans.  The Company reserves the right at any time
to alter its business plans in accordance with management’s appreciation of the
market for the goods and services of the Company.  Without in any
manner limiting the generality of the foregoing, the Subscriber hereby
acknowledges and agrees that, in consideration, in part, of the Company’s within
Acceptance of this subscription and agreement to issue Shares of the Company
consequent thereon, the Subscriber hereby does hereby release, remise and
forever discharge each of the Company and its respective directors, officers,
employees, solicitors, agents, executors, administrators, successors and
assigns, of and from all manner of action and actions, causes of action, suits,
debts, dues, accounts, bonds, covenants, contracts, claims, damages and demands,
whether known or unknown, suspected or unsuspected and whether at law or in
equity, which against either of the Company and/or any of its respective
directors, officers, employees, solicitors, agents, executors, administrators,
successors and assigns, the Subscriber ever had, now has, or which any of the
Subscriber’s respective successors or assigns, or any of them hereafter can,
shall or may have by reason of any matter arising from the within use of funds
(collectively, the “Release”).  The
Subscriber shall hold harmless and indemnify the Company from and against, and
shall compensate and reimburse the same for, any loss, damage, claim, liability,
fee (including reasonable attorneys’ fees), demand, cost or expense (regardless
of whether or not such loss, damage, claim, liability, fee, demand, cost or
expense relates to a third-party claim) that is directly or indirectly suffered
or incurred by the Company, or to which the Company becomes subject, and that
arises directly or indirectly from, or relates directly or indirectly to, any
inaccuracy in or breach of any representation, warranty, covenant or obligation
of the Subscriber contained in this Release and Agreement.  This
Release is irrevocable and will not terminate under any
circumstances.

    

    

    5.3                      The
Subscriber’s acknowledgments.  The Subscriber acknowledges and
agrees that:

    

    
      	
               
      

            	
              (a)

            	
              Further
      financings:   the Company may issue further offers
      similar to the within which may bear higher or lower prices (as determined
      by the Company in accordance with its appreciation of market
      conditions).  The Company may, and will, acquire debt and/or
      equity financings in the future required or advisable in the course of the
      Company’s business development;

            

    

    
      
         

      

      
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              (b)

            	
              Withdrawal or
      revocation:   this Agreement is given for valuable
      consideration and shall not be withdrawn or revoked by the Subscriber once
      tendered to the Solicitors with the Subscription
  Price;

            

    

    

    
      	
               
      

            	
              (c)

            	
              Agreement to be
      bound:   the Subscriber hereby specifically agrees
      to be bound by the terms of this Agreement as to all particulars hereof
      and hereby reaffirms the acknowledgments, representations and powers as
      set forth in this Agreement;

            

    

    

    
      	
               
      

            	
              (d)

            	
              Reliance on
      Subscriber’s representations:   the Subscriber
      understands that the Company will rely on the acknowledgments,
      representations and covenants of the Subscriber contained herein in
      determining whether a sale of the Shares to the Subscriber is in
      compliance with applicable securities laws.  The Subscriber
      warrants that all acknowledgments, representations and covenants are true
      and accurate; and

            

    

    

    
      	
               
      

            	
              (e)

            	
              Waiver of pre-emptive
      rights:   the Subscriber hereby grants, conveys and
      vests unto the President of the Company, or unto such other nominee or
      nominees of the President of the Company as the President of the Company
      may determine from time to time, in the President’s sole and absolute
      discretion, as the Subscriber’s power of attorney solely for the purpose
      of waiving any prior or pre-emptive rights which the Subscriber may have
      to further issues of equity by the Company under applicable corporate and
      securities laws.

            

    

    

    5.4                      The
Subscriber’s representations, warranties and
understandings.   The Subscriber acknowledges, represents
and warrants to the Company and understands that:

    

    

    
      	
               
      

            	
              (a)

            	
              Experience:   the
      Subscriber has the requisite knowledge and experience in financial and
      business matters for properly evaluating the risks of an investment in the
      Company;

            

    

    

    
      	
               
      

            	
              (b)

            	
              Information:   the
      Subscriber has received all information regarding the Company reasonably
      requested by the Subscriber;

            

    

    

    
      	
               
      

            	
              (c)

            	
              Risk:   the
      Subscriber understands that an investment in the Company involves certain
      risks of which the Subscriber has taken full cognizance, and which risks
      the Subscriber fully understands;

            

    

    

    
      	
               
      

            	
              (d)

            	
              Adequacy of
      information:   the Subscriber has been given the
      opportunity to ask questions of, and to receive answers from, the Company
      concerning the terms and conditions of the offering and to obtain
      additional information necessary to verify the accuracy of the information
      contained in the information described in paragraph “(b)” hereinabove, or
      such other information as the Subscriber desired in order to evaluate an
      investment in the Company;

            

    

    

    
      	
               
      

            	
              (e)

            	
              Residency:   the
      residence of the Subscriber as set forth herein below is the true and
      correct residence of the Subscriber and the Subscriber has no present
      intention of becoming a resident or domiciliary of any other State or
      jurisdiction;

            

    

    
      
         

      

      
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              (f)

            	
              Independent
      investigation:   in making a decision to invest in
      the Company the Subscriber has relied solely upon independent
      investigations made by the Subscriber, and the particular tax consequences
      arising from an investment in the Company will depend upon the
      Subscriber’s individual
circumstances;

            

    

     

    
      	
               
      

            	
              (g)

            	
              Principal:   the
      Subscriber is purchasing the Shares as principal for the Subscriber’s own
      account and not for the benefit of any other person, except as otherwise
      stated herein, and not with a view to the resale or distribution of all or
      any of the Shares;

            

    

    

    
      	
               
      

            	
              (h)

            	
              Decision to
      purchase:   the decision of the Subscriber to enter
      into this Agreement and to purchase Shares pursuant hereto has been based
      only on the representations of this Agreement and any collateral business
      plan or offering memorandum provided herewith.  It is not made
      on other information relating to the Company and not upon any oral
      representation as to fact or otherwise made by or on behalf of the Company
      or any other person.  The Subscriber agrees that the Company
      assumes no responsibility or liability of any nature whatsoever for the
      accuracy, adequacy or completeness of any business plan information which
      has been created based upon the Company’s management
      experience.  In particular, and without limiting the generality
      of the foregoing, the decision to subscribe for Shares has not been
      influenced by:

            

    

    

    
      	
               
      

            	
              (i)

            	
              newspaper,
      magazine or other media articles or reports related to the Company or its
      business;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              promotional
      literature or other materials used by the Company for sales or marketing
      purposes; or

            

    

    

    
      	
               
      

            	
              (iii)

            	
              any
      representations, oral or otherwise, that the Company will become a listed
      company, that any of the Shares will be repurchased or have any guaranteed
      future realizable value or that there is any certainty as to the success
      of the Company or the liquidity or value of any of the
    Shares;

            

    

    

    
      	
               
      

            	
              (i)

            	
              Advertisements:   the
      Subscriber acknowledges that the Subscriber has not purchased Shares as a
      result of any general solicitation or general advertising, including
      advertisements, articles, notices or other communications published in any
      newspaper, magazine or similar media or broadcast over radio or
      television, or any seminar or meeting whose attendees have been invited by
      general solicitation or general
advertising;

            

    

    

    
      	
               
      

            	
              (j)

            	
              Information not
      received:   the Subscriber has not received, nor has
      the Subscriber requested, nor does the Subscriber have any need to
      receive, any offering memorandum or any other document (other than
      financial statements or any other document the content of which is
      prescribed by statute or regulation) describing the business and affairs
      of the Company which has been prepared for delivery to, and review by,
      prospective purchasers in order to assist them in making an investment
      decision in respect of the Shares, and the Subscriber has not become aware
      of any advertisement in printed media of general and regular paid
      circulation, radio
      or television with respect to the distribution of the
      Shares;

            

    

    
      
         

      

      
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              (k)

            	
              Information
      received:   the Subscriber has had access to such
      additional information, if any, concerning the Company as the Subscriber
      has considered necessary in connection with the Subscriber’s investment
      decision to acquire the Shares;

            

    

    

    
      	
               
      

            	
              (l)

            	
              Satisfaction with
      information received:   the Subscriber acknowledges
      that, to the Subscriber’s
satisfaction:

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      Subscriber has either had access to or has been furnished with sufficient
      information regarding the Company and the terms of this investment
      transaction to the Subscriber’s
satisfaction;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      Subscriber has been provided the opportunity to ask questions concerning
      this investment transaction and the terms and conditions thereof and all
      such questions have been answered to the Subscriber’s satisfaction;
      and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              the
      Subscriber has been given ready access to and an opportunity to review any
      information, oral or written, that the Subscriber has requested, in
      particular to any offering memorandum or business plan of the Company, if
      available concurrent with or as a part of this
  Agreement;

            

    

    

    
      	
               
      

            	
              (m)

            	
              Reliance of
      representative:   the Subscriber, by reason of the
      Subscriber’s knowledge and experience in financial and business matters,
      is capable of evaluating the risks and merits of an investment in the
      Shares or, if the Subscriber is relying upon the investment advice of a
      representative who has advised the undersigned in connection with this
      investment (the “Representative”), the
      undersigned believes the Representative to be sophisticated and competent
      in the area of investment advice and analysis and therefore capable of
      evaluating the risks and merits of an investment in the
      Shares;

            

    

    

    
      	
               
      

            	
              (n)

            	
              Economic
      risk:   the Subscriber has such knowledge and
      experience in financial and business affairs as to be capable of
      evaluating the merits and risks of the Subscriber’s investment in and to
      any of the Shares, and the Subscriber is able to bear the economic risk of
      a total loss of the Subscriber’s investment in and to any of the
      Shares;

            

    

    

    
      	
               
      

            	
              (o)

            	
              Speculative
      investment:   the Subscriber understands that an
      investment in any of the Shares is a speculative investment and that there
      is no guarantee of success of the Company’s management’s
      plans.  Management’s plans are an effort to apply present
      knowledge and experience to project a future course of action which is
      hoped will result in financial success employing the Company’s assets and
      with the present level of management’s skills and of those whom the
      Company will need to attract (which cannot be
      assured).  Additionally, all plans are capable of being
      frustrated by new or unrecognized or unappreciated present or future
      circumstances which can typically not be accurately, or at all,
      predicted;

            

    

    

    
      	
               
      

            	
              (p)

            	
              Address:   the
      Subscriber is resident as set out on the last page of this Agreement as
      the “Subscriber’s Address”, and the address as set forth on the
      last page of this Agreement is the true and correct address of the
      Subscriber;

            

    

    
      
         

      

      
        Page 9 of
16

        
          

        

      

      
         

      

    

    
    

    

    
      	
               
      

            	
              (q)

            	
              Risk and resale
      restriction:   the Subscriber is aware of the risks
      and other characteristics of the Shares and of the fact that the
      Subscriber will not be able to resell the Shares except in accordance with
      the applicable securities legislation and regulatory
    policy;

            

    

    

    
      	
               
      

            	
              (r)

            	
              Representations as to
      resale:   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 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, over-the-counter or bulletin board market, or that application
      has been made to list and post any of the Shares for trading on any stock
      exchange, over-the-counter or bulletin board market;
  and

            

    

    

    
      	
               
      

            	
              the
      Subscriber will not resell the Shares except in accordance with the
      provisions of applicable securities legislation and stock exchange,
      over-the-counter and/or bulletin board market
  rules;

            

    

    

    
      	
               
      

            	
              (s)

            	
              Reports and
      undertakings:   if required by applicable securities
      legislation, policy or order or by any securities commission, stock
      exchange or other regulatory authority, the Subscriber will execute and
      otherwise assist the Company in filing such reports, undertakings and
      other documents as may be reasonably required with respect to the issue of
      the Shares;

            

    

     

    
      	
            	
              (t)

            	
              Resale
      restrictions:   the Subscriber has been
      independently advised as to the applicable hold period imposed in respect
      of the Shares by securities legislation in the jurisdiction in which the
      Subscriber’s resides and confirms that no representation has been made
      respecting the applicable hold periods for the Shares and is aware of the
      risks and other characteristics of the Shares and of the fact that the
      Subscriber may not be able to resell the Shares except in accordance with
      the applicable securities legislation and regulatory policy.  In
      this regard the Subscriber agrees that if the Subscriber decides to offer,
      sell or otherwise transfer any of the Shares the Subscriber will not
      offer, sell or otherwise transfer any of such Shares, directly or
      indirectly, unless:

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      sale is to the Company; or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      sale is made outside the United States in compliance with the requirements
      of Rule 904 of Regulation S under the U.S. Act and in compliance with
      applicable state securities laws;
or

            

    

    

    
      	
               
      

            	
              (iii)

            	
              the
      sale is made pursuant to an exemption from registration under the U.S. Act
      provided by Rule 144 thereunder and as set forth in Article “3”
      hereinabove, if applicable, and in compliance with applicable
      state securities laws;
or

            

    

    
      
         

      

      
        Page 10
of 16

        
          

        

      

      
         

      

    

    
    

    

    
      	
               
      

            	
              (iv)

            	
              with
      the prior written consent of the Company, the sale is made pursuant to
      another applicable exemption from registration under the U.S. Act and in
      compliance with applicable state securities
  laws;

            

    

    

    

    
      	
               
      

            	
              (u)

            	
              No prospectus
      filing:   the Subscriber acknowledges that this is
      an offering made on a private basis without a prospectus and that no
      federal, state, provincial or other agency has made any finding or
      determination as to the merits of the investment nor made any
      recommendation or endorsement of the Shares, and
  that:

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      Subscriber may be or is restricted from using most of the civil remedies
      available under applicable securities legislation;
  and

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      Company is relieved from certain obligations that would otherwise apply
      under applicable securities
legislation;

            

    

    

    
      	
               
      

            	
              (v)

            	
              Confidentiality:   the
      Subscriber understands that the Company’s business plan and this Agreement
      are confidential.  Furthermore, the Subscriber has not
      distributed such, or divulged the contents thereof, to anyone other than
      such legal or financial advisors as the Subscriber has deemed desirable
      for purposes of evaluating an investment in the Shares, and the Subscriber
      has not made any copies thereof except for the Subscriber’s own
      records;

            

    

    

    
      	
               
      

            	
              (w)

            	
              Age of
      majority:   the Subscriber, if an individual, has
      attained the age of majority and is legally competent to execute this
      Agreement and to take all actions required pursuant
  hereto;

            

    

    

    
      	
               
      

            	
              (x)

            	
              Authorization and
      formation of Subscriber:   the Subscriber, if a
      corporation, partnership, trust or other form of business entity, is
      authorized and otherwise duly qualified to purchase and hold the Shares,
      and such entity has not been formed for the specific purpose of acquiring
      Shares in this issue.  If the Subscriber is one of the
      aforementioned entities it hereby agrees that, upon request of the
      Company, it will supply the Company with any additional written
      information that may be requested by the Company.  In addition,
      the entering into of this Agreement and the transactions contemplated
      hereby will not result in the violation of any of the terms of and
      provisions of any law applicable to, or the corporate documents, if a
      corporation, of, the Subscriber or of any agreement, written or oral, to
      which the Subscriber may be a party or by which the Subscriber may be
      bound;

            

    

    

    
      	
               
      

            	
              (y)

            	
              Legal
      obligation:   this Agreement has been duly and
      validly authorized, executed and delivered by and constitutes a legal,
      valid, binding and enforceable obligation of the
    Subscriber;

            

    

    

    
      	
               
      

            	
              (z)

            	
              Legal and tax
      consequences.   the Subscriber acknowledges that an
      investment in the securities of the Company may have tax consequences to
      the Subscriber under applicable law, which the Subscriber is solely
      responsible for determining, and the Subscriber also acknowledges and
      agrees that the Subscriber is responsible for obtaining its own legal and
      tax advice;

            

    

    
      
         

      

      
        Page 11
of 16

        
          

        

      

      
         

      

    

    
    

    

    
      	
               
      

            	
              (aa)

            	
              Compliance with
      applicable laws:   The Subscriber knows of no reason
      (and is sufficiently knowledgeable to determine the same or has sought
      legal advice) why the delivery of this Agreement, the acceptance of it by
      the Company and the issuance of the Shares to the Subscriber will not
      comply with all applicable laws of the Subscriber’s jurisdiction of
      residence or domicile, and all other applicable laws, and the Subscriber
      has no reason to believe that the Subscriber’s subscription hereby will
      cause the Company to become subject to or required to comply with any
      disclosure, prospectus or reporting requirements or to be subject to any
      civil or regulatory review or proceeding.  In addition, the
      Subscriber will comply with all applicable securities laws and will assist
      the Company in all reasonable manner to comply with all applicable
      securities laws; and

            

    

    

    
      	
               
      

            	
              (ab)

            	
              Encumbrance or
      transfer of Shares:   the Subscriber will not sell,
      assign, gift, pledge or encumber in any manner whatsoever any of the
      Shares herein subscribed for without the prior written consent of the
      Company and in accordance with applicable securities
      legislation.

            

    

    

    

    5.5                      Reliance
on Subscriber’s representations and warranties and
indemnification.   The Subscriber understands that the
Company will rely on the representations and warranties of the Subscriber herein
in determining whether a sale of the Shares to the Subscriber is in compliance
with federal and applicable state and provincial securities laws.  The
Subscriber hereby agrees to indemnify the Company and its affiliates and hold
the Company and its affiliates harmless from and against any and all liability,
damage, cost or expense (including reasonable attorney’s fees) incurred on
account of or arising out of: (i) any inaccuracy in the Subscriber’s
acknowledgements, representations or warranties set forth in this Agreement;
(ii) the disposition of any of the Shares which the Subscriber will receive,
contrary to the Subscriber’s acknowledgements, representations or warranties in
this Agreement or otherwise; (iii) any suit or proceeding based upon the claim
that such acknowledgments, representations or warranties were inaccurate or
misleading or otherwise cause for obtaining damages or redress from the Company
or its affiliates; and (iv) the Subscriber’s failure to fulfill any or all of
the Subscriber’s obligations herein.

    

    5.6                      Change in
Subscriber’s representations and warranties.   All of the
information set forth hereinabove with respect to the Subscriber and including,
without limitation, the acknowledgements, representations and warranties set
forth hereinabove, is correct and complete as of the date hereof and, if there
should be any material change in such information prior to the acceptance of
this subscription by the Company, the Subscriber will immediately furnish the
revised or corrected information to the Company.

    

    

    

    Article
6

    

    COMPANY REPRESENTATIONS AND
WARRANTIES

    

    

    6.1                      Representations
and warranties of the Company.   The Company acknowledges,
represents and warrants to and with the Subscriber that:

    
      
         

      

      
        Page 12
of 16

        
          

        

      

      
         

      

    

    (a)           Standing:   the
Company is a valid and subsisting corporation duly incorporated and in good
standing under the laws of the jurisdiction in which it is incorporated,
continued or amalgamated;

    

    
      	
               
      

            	
              (b)

            	
              Business:   the
      Company is duly registered and licensed to carry on business in the
      jurisdictions in which it carries on business or owns property where so
      required by the laws of that
jurisdiction;

            

    

    

    
      	
               
      

            	
              (c)

            	
              Reservation of
      Shares:   the Company will reserve or set aside
      sufficient shares in its treasury to issue to the Subscriber the Shares if
      the Company accepts all or any part of the within
      subscription;

            

    

    

    
      	
               
      

            	
              (d)

            	
              Subscription
      materials:   this subscription Agreement and all
      other written or oral representations made by the Company to the
      Subscriber in connection with the within subscription for Shares are and
      will be accurate in all material respects and do not and will not omit any
      fact, the omission of which does or will make such representations
      misleading or incorrect;

            

    

    

    
      	
               
      

            	
              (e)

            	
              Compliance with
      securities legislation:   the Company has complied
      and will comply fully with the requirements of all applicable corporate
      and securities laws and administrative policies and directions in relation
      to the issue and trading of its securities and in all matters relating to
      the within subscription;

            

    

    

    
      	
               
      

            	
              (f)

            	
              Compliance with
      corporate materials:   the issue and sale of the
      Shares by the Company does not and will not conflict with, and does not
      and will not result in a breach of, any of the terms of the Company’s
      incorporating documents or any agreement or instrument to which the
      Company is a party;

            

    

    

    
      	
               
      

            	
              (g)

            	
              Corporate
      authority:   this Agreement has been or will be,
      when accepted, duly authorized by all necessary corporate action on the
      part of the Company, and the Company has full corporate power and
      authority to undertake the within subscription for Shares;
    and

            

    

    

    
      	
               
      

            	
              (h)

            	
              Restrictions on
      Shares:   no order ceasing, halting or suspending
      trading in securities of the Company or prohibiting the sale of such
      securities has been issued to and is outstanding against the Company or
      any of its directors, officers or promoters or against any other companies
      that have common directors, officers or promoters, and no investigations
      or proceedings for such purposes are pending or
  threatened.

            

    

    

    

    6.2                      Reliance
on Company’s representations and warranties.   The
Subscriber acknowledges that no information or representation concerning the
Company has been provided to the Subscriber other than those contained in this
Agreement, and that the Subscriber is relying entirely upon this
Agreement.  Any other information given or statement made is given or
made without liability or responsibility howsoever arising on the part of the
Company.  No person acting as agent of the Company has any authority
to make or give any representation or warranty whatsoever in relation to the
Company or the Shares.  Any such information given or statement made
is given or made without liability or responsibility howsoever arising on the
part of the Company, and the Subscriber hereby releases the Company from any
claims that may arise in respect thereof.

    
      
         

      

      
        Page 13
of 16

        
          

        

      

      
         

      

    

    

    Article
7

    

    GENERAL
PROVISIONS

    

    

    7.1                      Address
for delivery.   Each notice, demand or other communication
required or permitted to be given under this Agreement shall be in writing and
shall be sent by delivery (electronic or otherwise) or prepaid registered mail
deposited in a post office in Canada addressed to the Subscriber or the Company
at the address specified in this Agreement.  The date of receipt of
such notice, demand or other communication shall be the date of delivery thereof
if delivered, or, if given by registered mail as aforesaid, shall be deemed
conclusively to be the fifth day after the same shall have been so mailed,
except in the case of interruption of postal services for any reason whatsoever,
in which case the date of receipt shall be the date on which the notice, demand
or other communication is actually received by the addressee.  Either
party may at any time and from time to time notify the other party in writing of
a change of address and the new address to which notice shall be given to it
thereafter until further change.

    

    

    7.2                      Severability
and construction.  Each Article, section, sub-section,
paragraph, sub-paragraph, term and provision of this Agreement, and any portion
thereof, shall be considered severable, and if, for any reason, any portion of
this Agreement is determined to be invalid, contrary to or in conflict with any
applicable present or future law, rule or regulation, that ruling shall not
impair the operation of, or have any other effect upon, such other portions of
this Agreement as may remain otherwise intelligible (all of which shall remain
binding on the parties and continue to be given full force and agreement as of
the date upon which the ruling becomes final).

    

    

    7.3                      Time of
the essence.   Time is of the essence of this
Agreement.

    

    

    7.4                      Governing
law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of Nevada, U.S.A., and the laws of the
United States applicable therein.  Any dispute regarding matters as
between the Subscriber and the Company, whether as a subscriber or shareholder
and whether arising under this Agreement or pursuant to shareholder rights
pursuant to the corporate documents of the Company or applicable law, shall be
adjudicated in the Courts of the State of Nevada, U.S.A. unless the Company
shall permit otherwise.

    

    

    7.5                      Survival
of representations and warranties.   The covenants,
representations and warranties contained herein shall survive the closing of the
transactions contemplated hereby.

    

    

    7.6                      Counterparts.   This
Agreement may be signed by the parties hereto in as many counterparts as may be
necessary, each of which so signed shall be deemed to be an original, and such
counterparts together shall constitute one and the same instrument and
notwithstanding the date of execution will be deemed to bear the execution date
as set forth in this Agreement.  This Agreement may also be executed
and exchanged by facsimile and such facsimile copies shall be valid and
enforceable agreements.

    
      
         

      

      
        Page 14
of 16

        
          

        

      

      
         

      

    

    

    7.7                      Entire
Agreement and amendments.   This Agreement constitutes the
only agreement between the parties with respect to the subject matter hereof and
shall supersede any and all prior negotiations and
understandings.  There are no collateral agreements or understandings
hereto and this Agreement, and the documents contemplated herein, constitutes
the totality of the parties’ agreement.  This Agreement may be amended
or modified in any respect by written instrument only.

    

    

    7.8                      Successors
and assigns.   The terms and provisions of this Agreement
shall be binding upon and enure to the benefit of the Subscriber, the Company
and their respective successors and lawfully permitted assigns; provided that,
except as herein provided, this Agreement shall not be assignable by any party
without the written consent of the other.  The benefit and obligations
of this Agreement, insofar as they extend to or affect the Subscriber, shall
pass with any assignment or transfer of any of the Shares in accordance with the
terms of this Agreement.

    

    

    7.9                      Effective
date.  This Agreement shall take effect upon the date of
acceptance by the Company.

    

    

    

    

    

    

    

    

    BALANCE
OF PAGE INTENTIONALLY LEFT BLANK

     

     

    
      
        
        

      

      
        Page 15
of 16

        
          

        

      

      
        
        

      

    

    

    IN
WITNESS WHEREOF the Parties hereto have hereunto set their respective
hands and seals in the presence of their duly authorized signatories effective
as at the date first above written.

    Subscription
by Subscriber:

    

    

    Dated
at __________, __________, on this _____ day of __________, 2007.

    

    

     

    
    

     

    
      	 	 	 
	 Name
      of Subscriber - please print	 	 
	 	 	
              Subscriber’s
      Address

            
	 	 	 
	 By:   	 	 
	 Official Capacity or Title - please
      print	 	 
	 	 	 
	 	 	 
	 Authorized
      Signature                                                                                                  	 	Telephone Number
	 	 	 
	 	 	 
	
              Please
      print name of individual whose

            	 	  Facsimile
      Number
	signature
      appears above if different than	 	 
	
              the
      name of the Subscriber printed above

            	 	 

    

     

    
 

    Acceptance
by the Company:

     

     

    DAIS
ANALYTIC CORPORATION. hereby accepts the above subscription by the
Subscriber on this _____ day of ___________, 2007.

     

     

     

    
      	The CORPORATE SEAL
      of                                               	 )	 
	DAIS
      ANALYTIC  CORPORATION., 	 )	 
	The Company
      herein,    	 )	 
	was hereunto affixed
      in the presence of:  	 )	      
      (C/S)
	 	 )	 
	Authorized
      Signatory  	 )	 

    

     

    

     

    

    Page 16 of
16ex10-9.htm

    

    
      

    

    

    Subscription
Agreement

    and

    Accredited
Investor Questionnaire

    

    

    THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT
AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE COMPANY SHALL HAVE RECEIVED AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT REGISTRATION OF
SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE
STATE SECURITIES LAWS IS NOT REQUIRED.

    

    

    PRIVATE SHARE
ISSUE

    

    

    
      	
              To:

            	
              DAIS
      ANALYTIC CORPORATION. (hereinafter referred to as the “Company”), with an
      address for notice and delivery located at 11552 Prosperous Drive, Odessa,
      Florida 33556.

            

    

    

    The Company is offering, on a private
placement basis, Equity (as defined in the secured convertible promissory note
by and between Company and subscriber dated _________, __, 200_ (“Convertible
Note”) of its own issue (each being a “Share”) to eligible investors
(each such an investor who subscribes to this issue by this document is
hereinafter referred to as the “Subscriber”), pursuant to the
terms and conditions of the Convertible Note. The Company offers, and the
Subscriber accepts, the Shares on the terms and conditions as set forth in this
subscription agreement (the “Agreement”).

    

    

    Article
1

    SUBSCRIPTION FOR
SHARES

    

    

    1.1                      Subscription
for Shares.   Based upon the hereinafter terms,
conditions, representations, warranties and covenants given by each party to the
other and subject to the terms and conditions of the Convertible Note, the
Subscriber hereby irrevocably subscribes for and agrees to purchase the quantity
of Shares of the Company as determined in accordance with the terms and
conditions of the Convertible Note including but not limited to the subscription
price described therein, for aggregate consideration of _______________ (US
$___________) (the “Subscription
Price”).

    

    

    1.2                      Acceptance
of Subscription.   Subject to the Subscriber fulfilling
its obligations under the Convertible Note and Company opting to convert said
note, the Company, upon acceptance by its Board of Directors (the “Board”) of all or part of
this subscription Agreement, agrees to issue the accepted number of Shares, as
fully paid and non-assessable, and as consideration for the Subscriber’s
subscription, and to refund any excess subscription monies of the Subscription
Price of any non-accepted portion of this subscription
Agreement by the Board.

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 1 of 30

          
            

          

        

        
           

        

      

    

    

    

    

    1.3                      Subscriber’s
eligibility for subscription.   The Subscriber
acknowledges that the Subscriber is purchasing the Shares on a private basis and
is either:

    

    

    
      	
               
      

            	
              (a)

            	
              an
      eligible investor under the Subscriber’s domicile laws;
  or

            

    

    

    

    
      	
               
      

            	
              (b)

            	
              is
      subscribing for a value in Shares constituting an exempt investment under
      the laws of the Subscriber’s domicile;
or

            

    

    

    

    
      	
               
      

            	
              (c)

            	
              is
      subscribing pursuant to a qualifying offering memorandum and the terms
      thereof; or

            

    

    

    

    
      	
               
      

            	
              (d)

            	
              is
      otherwise an eligible investor under the laws of the Subscriber’s domicile
      by virtue of the Subscriber’s wealth, income and investment knowledge and
      capacity.

            

    

    

    

    1.4                      Risks of
subscription.   The Subscriber acknowledges that no party
independent of the Company has made or will make any opinion or representations
on the merits or risks of an investment in any of the Shares unless sought out
by the Subscriber; which the Subscriber is encouraged to do.

    

    

    Article
2

    UNITED STATES ACCREDITED
INVESTOR DECLARATIONS

    

    

    2.1                      Subscriber’s
Declarations as an “Accredited Investor”.   The
undersigned Subscriber warrants and certifies that the Subscriber is an
“Accredited Investor”, as that term is defined in Regulation D promulgated
under the United States Securities Act of 1933, as
amended (the “U.S.
Act”), by virtue of the Subscriber’s qualification under one or more of
the following categories {please check the appropriate box or boxes where
applicable}:

    

    

               o         The Subscriber is a
natural person whose individual net worth, or joint net worth with that person’s
spouse, exceeds U.S. $1,000,000.

    

    

               o        The Subscriber is a
natural person who had an individual income in excess of U.S. $200,000 in each
of the two most recent years or joint income with the Subscriber’s spouse in
excess of U.S. $300,000 in each of those years and has a reasonable expectation
of reaching the same income level in the current year.

    

    

                o        The Subscriber is a
corporation, organization described in section 501(c)(3) of the United States
Internal Revenue Code,
Massachusetts, or similar business trust or partnership, not formed for the
specific purpose of acquiring the Shares, with total assets in excess of U.S.
$5,000,000.

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 2 of 30

          
            

          

        

        
           

        

      

    

    

    

    

                o    The Subscriber
is a trust, with total assets in excess of U.S. $5,000,000, not formed for the
specific purpose of acquiring the Shares, whose purchase is directed by a
sophisticated person.

    

    

                o    The Subscriber
is a director or executive officer of the Company.

    

    

                o      The Subscriber
is a “private business development company” as that term is defined in section
202(a)(22) of the United States Investment Advisers Act of
1940.

    

    

                o    The Subscriber
is either: (a) a “bank” as defined in section 3(a)(2) of the U.S. Act, or a
“savings and loan association or other institution” as defined in section
3(a)(5)(A) of the U.S. Act, whether acting in its individual or fiduciary
capacity; or (b) a broker or dealer registered pursuant to section 15 of the
United States Securities
Exchange Act of 1934; or (c) an “insurance company” as defined in section
2(13) of the U.S. Act; or (d) an investment company registered under the United
States Investment Company Act
of 1940 or a “business development company” as defined in section
2(a)(48) of the United States Investment Company Act of
1940; or (e) a small business investment company licensed by the United
States “Small Business Administration” under either of subsections 301(c) or (d)
of the United States Small
Business Investment Act of 1958; or (f) a plan established and maintained
by a state, its political subdivisions, or any agency or instrumentality of a
state or its political subdivisions, for the benefit of its employees, if such
plan has total assets in excess of U.S. $5,000,000; or (g) an employee benefit
plan within the meaning of the United States Employee Retirement Income Security
Act of 1974, if the investment decision is made by a plan fiduciary as
defined in section 3(21) of the United States Employee Retirement Income Security
Act of 1974 which is either a bank, savings and loan association,
insurance company or registered investment adviser, or if the employee benefit
plan has total assets in excess of U.S. $5,000,000 or, if a self-directed plan,
with investment decisions made solely by persons that are accredited
investors.

    

    

                 o     The Subscriber is an
entity in which all of the equity owners are accredited investors under one or
more of the categories set forth hereinabove.

    

    

    Article
3

    RESTRICTED SECURITIES AND
DISPOSITION UNDER “RULE
144”

    

    

    3.1                      No
registration.   The Subscriber acknowledges and
understands that neither the sale of the Shares which the Subscriber is
acquiring nor any of the Shares themselves have been registered under the U.S.
Act or any state securities laws, and, furthermore, that the Shares must be held
indefinitely unless subsequently registered under the U.S. Act or an exemption
from such registration is available.

    

    

    3.2                      Legending
of the Shares.   The Subscriber also acknowledges and
understands that the certificates representing the Shares will be stamped with
the following legend (or substantially equivalent language) restricting transfer
in the following manner:

    

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT
AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE COMPANY SHALL HAVE RECEIVED AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT REGISTRATION OF
SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE
STATE SECURITIES LAWS IS NOT REQUIRED.

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 3 of 30

          
            

          

        

        
           

        

      

    

    

    

    

    The Subscriber hereby consents to the
Company making a notation on its records or giving instructions to any transfer
agent of the Shares in order to implement the restrictions on transfer set forth
and described hereinabove.

    

    

    3.3                      Disposition
under Rule 144.   The Subscriber also acknowledges and
understands that:

    

    

    
      	
               
      

            	
              (a)

            	
              the
      Shares are restricted securities within the meaning of Rule 144
      promulgated under the U.S. Act;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      exemption from registration under Rule 144 will not be available in any
      event for at least one year from the date of purchase and payment of the
      Shares by the Subscriber, and even then will not be available unless (i) a
      public trading market then exists for the Shares of the Company, (ii)
      adequate information concerning the Company is then available to the
      public and (iii) other terms and conditions of Rule 144 are complied with;
      and

            

    

    

    
      	
               
      

            	
              (c)

            	
              any
      sale of the Shares may be made by the Subscriber only in limited amounts
      in accordance with such terms and
conditions.

            

    

    

     

    3.4                      Further
restrictions on disposition.   The Company agrees to issue
or reissue certificates representing any of the securities, without the legend
set forth above if at such time, prior to making any transfer of any such
securities, such holder thereof shall give written notice to the Company
describing the manner and terms of such transfer and removal as the Company may
reasonably request.  Such proposed transfer and removal will not be
effected until: (a) either (i) the Company has received an opinion of counsel
reasonably satisfactory to the Company, to the effect that the registration of
the securities under the Securities Act is not required in connection with such
proposed transfer, (ii) a registration statement under the Securities Act
covering such proposed disposition has been filed by the Company with the
Commission and has become effective under the Securities Act, (iii) the Company
has received other evidence reasonably satisfactory to the Company that such
registration and qualification under the

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 4 of 30

          
            

          

        

        
           

        

      

    

     

     

    Securities Act
and state securities laws are not required (which may include an opinion of
counsel provided by the Company), or (iv) the holder provides the Company with
reasonable assurances that such security can be sold pursuant to Rule 144 under
the Securities Act (which may include an opinion of counsel provided by the
Company); and (b) either (i) the Company has received an opinion of counsel
reasonably satisfactory to the Company, to the effect that registration or
qualification under the securities or "blue sky" laws of any state is not
required in connection with such proposed disposition, (ii) compliance with
applicable state securities or "blue sky" laws has been effected, or (iii) the
holder provides the Company with reasonable assurances that a valid exemption
exists with respect thereto (which may include an opinion of counsel provided by
the Company).  The Company will respond to any such notice from a
holder within five (5) business days.  In the case of any proposed
transfer under this Section 3.4, the Company will use commercially reasonable
efforts to comply with any such applicable state securities or "blue sky" laws,
but shall in no event be required, (x) to qualify to do business in any state
where it is not then qualified, (y) to take any action that would subject it to
tax or to the general service of process in any state where it is not then
subject, or (z) to comply with state securities or “blue sky” laws of any state
for which registration by coordination is unavailable to the
Company.  The restrictions on transfer contained in this Section 3.4
shall be in addition to, and not by way of limitation of, any other restrictions
on transfer contained in any other section of this
Agreement.  Whenever a certificate representing the Conversion Shares
or Warrant Shares is required to be issued to a Purchaser without a legend, in
lieu of delivering physical certificates representing the Common Stock, provided
the Company's transfer agent is participating in the Depository Trust Company
("DTC") Fast Automated Securities Transfer program, the Company shall use its
reasonable best efforts to cause its transfer agent to electronically transmit
the Common Stock to a Subscriber by crediting the account of such Subscriber's
Prime Broker with DTC through its Deposit Withdrawal Agent Commission ("DWAC")
system (to the extent not inconsistent with any provisions of this
Agreement).

    

    

    Article
4

    METHOD OF
SUBSCRIPTION AND ACCEPTANCE BY THE COMPANY

    

    

    4.1                      Method of
subscription.   It is hereby acknowledged and agreed by
the parties hereto that any subscription for Shares shall be made by the
Subscriber:

    

    

    (a)           by
faxing to the Placement Agent, Legend Merchant Group, (954) 828-9392 , a
completed copy of this Agreement together with an executed copy
of  Registration Rights Agreement; and

    

    (b)           by
delivering to the Escrow Agent:

    American
Stock Transfer & Trust Company

    59
Maiden Lane

    New
York NY  10038

    
      Phone: 
(718) 921-8275

      Fax:     
(718)  921-8331

    

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 5 of 30

          
            

          

        

        
           

        

      

    

    

    

    An
originally executed copy of this completed Agreement and the Registration Rights
Agreement together with payment for the exact Subscription Price for such Shares
in the following manner:

    

    (i)           by
delivery to the Escrow Agent’s above address of a bank draft or cashier’s check
for the exact Subscription Price for the Shares; or

    

    (ii)           by
wire transfer to the Escrow Agent of the exact Subscription Price for the Shares
to the following wiring instructions:

    

    J.P.
Morgan Chase

    55
Water Street

    New
York, NY

    A/C
# 957-341-253

    ABA
# 021 000 021

    American
Stock Transfer & Trust Company

    As
Escrow Agent for

    DAIS
ANALYTIC CORPORATION

    

    4.2                      Acceptance
of subscription or return of Subscription Price by the
Company.   The Subscriber acknowledges that the Company
will be accepting subscriptions for Shares on a first come, first serve, basis.
As a consequence the Company, upon acceptance by its Board of all or part of
this subscription Agreement (the “Acceptance”), hereby agrees
to issue the accepted number of Shares, as fully paid and non-assessable, and as
consideration for the Subscriber’s subscription, and to refund any excess
subscription monies of the Subscription Price of any non-accepted portion of
this subscription Agreement by the Board.  In this regard the
Subscriber acknowledges that, although Shares may be issued to other purchasers
concurrently with the Company’s Acceptance of all or part of this subscription
Agreement, there may be other sales of Shares by the Company, some or all of
which may close before or after the Acceptance herein.  The Subscriber
further acknowledges that there is a risk that insufficient funds may be raised
by the Company upon the Company’s Acceptance of all or part of this subscription
Agreement to fund the Company’s objectives and that further closings may not
take place after Acceptance herein.

    

    

    4.3                      Delivery
of Share certificate.   The Company, subject to the terms
and conditions of the Convertible Note, agrees to deliver to the Subscriber a
certificate representing the accepted number of Shares purchased by the
Subscriber under this subscription Agreement and registered in the name of the
Subscriber.

    

    

    Article
5

    INVESTMENT
SUBSCRIPTION TERMS, CORPORATE DISCLOSURE AND

    GENERAL
SUBSCRIBER ACKNOWLEDGEMENTS AND WARRANTIES

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 6 of 30

          
            

          

        

        
           

        

      

    

    

    

    5.1                      Description
of the Shares.   The Company is issuing Shares at a price
per Share as determined pursuant to the terms of the Convertible
Note.  The Shares are a part of the authorized shares of the
Company.  Copies of the corporate documents of the Company describing
the classes of shares authorized by Company and the rights of shareholders are
available upon request.

    

    

    5.2                      Use of
funds for the Shares.   The Subscriber acknowledges and
agrees that the Subscription Price funds to be raised from the Shares are to be
employed for the business of the Company in accordance with management’s
discretion as to the best use of the same for the Company’s business
plans.  The Company reserves the right at any time to alter its
business plans in accordance with management’s appreciation of the market for
the goods and services of the Company.   The parties also
acknowledge that a portion of the initial proceeds received by the Company shall
be used to repay certain existing promissory notes of the Company.

    

    

    5.3                      The
Subscriber’s acknowledgments.  The Subscriber acknowledges and
agrees that:

    

    
      	
               
      

            	
              (a)

            	
              Further
      financings:  subject to the rights contained in the
      Convertible Note  and Warrants, including the price protection
      provisions, the Company may issue further offers similar to the within
      which may bear higher or lower prices (as determined by the Company in
      accordance with its appreciation of market conditions).  The
      Company may, and will, acquire debt and/or equity financings in the future
      required or advisable in the course of the Company’s business
      development;

            

    

    

    
      	
               
      

            	
              (b)

            	
              Withdrawal or
      revocation:   this Agreement is given for valuable
      consideration and shall not be withdrawn or revoked by the Subscriber once
      tendered to the Solicitors with the Subscription
  Price;

            

    

    

    
      	
               
      

            	
              (c)

            	
              Agreement to be
      bound:   the Subscriber hereby specifically agrees
      to be bound by the terms of this Agreement as to all particulars hereof
      and hereby reaffirms the acknowledgments, representations and powers as
      set forth in this Agreement;

            

    

    

    
      	
               
      

            	
              (d)

            	
              Reliance on
      Subscriber’s representations:   the Subscriber
      understands that the Company will rely on the acknowledgments,
      representations and covenants of the Subscriber contained herein in
      determining whether a sale of the Shares to the Subscriber is in
      compliance with applicable securities laws.  The Subscriber
      warrants that all acknowledgments, representations and covenants are true
      and accurate; and

            

    

    

    5.4                      The
Subscriber’s representations, warranties and
understandings.   The Subscriber acknowledges, represents
and warrants to the Company and understands that:

    

    

    
      	
               
      

            	
              (a)

            	
              Experience:   the
      Subscriber has the requisite knowledge and experience in financial and
      business matters for properly evaluating the risks of an investment in the
      Company;

            

    

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 7 of 30

          
            

          

        

        
           

        

      

    

     

    
      	
            	
              (b)

            	
              Information:   the
      Subscriber has received all information regarding the Company reasonably
      requested by the Subscriber;

            

    

    

    
      	
               
      

            	
              (c)

            	
              Risk:   the
      Subscriber understands that an investment in the Company involves certain
      risks of which the Subscriber has taken full cognizance, and which risks
      the Subscriber fully understands;

            

    

    

    
      	
               
      

            	
              (d)

            	
              Adequacy of
      information:   the Subscriber has been given the
      opportunity to ask questions of, and to receive answers from, the Company
      concerning the terms and conditions of the offering and to obtain
      additional information necessary to verify the accuracy of the information
      contained in the information described in paragraph “(b)” hereinabove, or
      such other information as the Subscriber desired in order to evaluate an
      investment in the Company;

            

    

    

    
      	
               
      

            	
              (e)

            	
              Residency:   the
      residence of the Subscriber as set forth herein below is the true and
      correct residence of the Subscriber and the Subscriber has no present
      intention of becoming a resident or domiciliary of any other State or
      jurisdiction;

            

    

    

    
      	
               
      

            	
              (f)

            	
              Independent
      investigation:   in making a decision to invest in
      the Company the Subscriber has relied solely upon independent
      investigations made by the Subscriber, and the particular tax consequences
      arising from an investment in the Company will depend upon the
      Subscriber’s individual circumstances;

               

            

    

    
      	
               
      

            	
              (g)

            	
              Principal:   the
      Subscriber is purchasing the Shares as principal for the Subscriber’s own
      account and not for the benefit of any other person, except as otherwise
      stated herein, and not with a view to the resale or distribution of all or
      any of the Shares; provided, however, that
      by making the representations herein, such Subscriber does not agree to
      hold the Shares for any minimum or other specific term and reserves the
      right to dispose of the Shares at any time in accordance with Federal and
      state securities laws applicable to such
  disposition;

            

    

    

    
      	
               
      

            	
              (h)

            	
              Decision to
      purchase:   the decision of the Subscriber to enter
      into this Agreement and to purchase Shares pursuant hereto has been based
      only on the representations of this Agreement and any collateral business
      plan or offering memorandum provided herewith or based upon the
      Subscriber’s relationship with a director and/or senior officer of the
      Company.  It is not made on other information relating to the
      Company and not upon any oral representation as to fact or otherwise made
      by or on behalf of the Company or any other person.  The
      Subscriber agrees that the Company assumes no responsibility or liability
      of any nature whatsoever for the accuracy, adequacy or completeness of any
      business plan information which has been created based upon the Company’s
      management experience.  In particular, and without limiting the
      generality of the foregoing, the decision to subscribe for Shares has not
      been influenced by:

            

    

    

    
      	
               
      

            	
              (i)

            	
              newspaper,
      magazine or other media articles or reports related to the Company or its
      business;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              promotional
      literature or other materials used by the Company for sales
      or marketing purposes; or

            

    

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 8 of 30

          
            

          

        

        
           

        

      

    

    

    
    

    

    
      	
               
      

            	
              (iii)

            	
              any
      representations, oral or otherwise, that the Company will become a listed
      company, that any of the Shares will be repurchased or have any guaranteed
      future realizable value or that there is any certainty as to the success
      of the Company or the liquidity or value of any of the
    Shares;

            

    

    

    
      	
               
      

            	
              (i)

            	
              Advertisements:   the
      Subscriber acknowledges that the Subscriber has not purchased Shares as a
      result of any general solicitation or general advertising, including
      advertisements, articles, notices or other communications published in any
      newspaper, magazine or similar media or broadcast over radio or
      television, or any seminar or meeting whose attendees have been invited by
      general solicitation or general
advertising;

            

    

    

    
      	
               
      

            	
              (j)

            	
              Information not
      received:   the Subscriber has received an Offering
      Memorandum describing the business and affairs of the Company which has
      been prepared for delivery to, and review by, prospective purchasers in
      order to assist them in making an investment decision in respect of the
      Shares, and the Subscriber has not become aware of any advertisement in
      printed media of general and regular paid circulation, radio or television
      with respect to the distribution of the
Shares;

            

    

    

    
      	
               
      

            	
              (k)

            	
              Information
      received:   the Subscriber has received an Offering
      Memorandum concerning the Company and has had access to additional
      information as the Subscriber has considered necessary in connection with
      the Subscriber’s investment decision to acquire the
  Shares;

            

    

    

    
      	
               
      

            	
              (l)

            	
              Satisfaction with
      information received:   the Subscriber acknowledges
      that, to the Subscriber’s
satisfaction:

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      Subscriber has either had access to or has been furnished with sufficient
      information regarding the Company and the terms of this investment
      transaction to the Subscriber’s
satisfaction;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      Subscriber has been provided the opportunity to ask questions concerning
      this investment transaction and the terms and conditions thereof and all
      such questions have been answered to the Subscriber’s satisfaction;
      and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              the
      Subscriber has been given ready access to and an opportunity to review any
      information, oral or written, that the Subscriber has requested, in
      particular to any offering memorandum or business plan of the Company, if
      available concurrent with or as a part of this
  Agreement;

            

    

    

    
      	
               
      

            	
              (m)

            	
              Reliance of
      representative:   the Subscriber, by reason of the
      Subscriber’s knowledge and experience in financial and business matters,
      is capable of evaluating the risks and merits of an investment in the
      Shares or, if the Subscriber is relying upon the investment advice of a
      representative who has advised the undersigned in connection with this
      investment (the “Representative”), the
      undersigned believes the Representative to be sophisticated and competent
      in the area of investment advice and analysis and therefore capable of
      evaluating the risks and merits of an investment in
      the Shares;

            

    

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 9 of 30

          
            

          

        

        
           

        

      

    

    

    
    

    

    
      	
               
      

            	
              (n)

            	
              Economic
      risk:   the Subscriber has such knowledge and
      experience in financial and business affairs as to be capable of
      evaluating the merits and risks of the Subscriber’s investment in and to
      any of the Shares, and the Subscriber is able to bear the economic risk of
      a total loss of the Subscriber’s investment in and to any of the
      Shares;

            

    

    

    
      	
               
      

            	
              (o)

            	
              Speculative
      investment:   the Subscriber understands that an
      investment in any of the Shares is a speculative investment and that there
      is no guarantee of success of the Company’s management’s
      plans.  Management’s plans are an effort to apply present
      knowledge and experience to project a future course of action which is
      hoped will result in financial success employing the Company’s assets and
      with the present level of management’s skills and of those whom the
      Company will need to attract (which cannot be
      assured).  Additionally, all plans are capable of being
      frustrated by new or unrecognized or unappreciated present or future
      circumstances which can typically not be accurately, or at all,
      predicted;

            

    

    

    
      	
               
      

            	
              (p)

            	
              Address:   the
      Subscriber is resident as set out on the last page of this Agreement as
      the “Subscriber’s Address”, and the address as set forth on the last page
      of this Agreement is the true and correct address of the
      Subscriber;

            

    

    

    
      	
               
      

            	
              (q)

            	
              Risk and resale
      restriction:   the Subscriber is aware of the risks
      and other characteristics of the Shares and of the fact that the
      Subscriber will not be able to resell the Shares except in accordance with
      the applicable securities legislation and regulatory
    policy;

            

    

    

    
      	
               
      

            	
              (r)

            	
              Representations as to
      resale:   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 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, over-the-counter or bulletin board market, or that application
      has been made to list and post any of the Shares for trading on any stock
      exchange, over-the-counter or bulletin board market;
  and

            

    

    

    
      	
               
      

            	
              the
      Subscriber will not resell the Shares except in accordance with the
      provisions of applicable securities legislation and stock exchange,
      over-the-counter and/or bulletin board market
  rules;

            

    

    

    
      	
               
      

            	
              (s)

            	
              Reports and
      undertakings:   if required by applicable securities
      legislation, policy or order or by any securities commission, stock
      exchange or other regulatory authority, the Subscriber will execute and
      otherwise assist the Company in filing such reports, undertakings and
      other documents as may be reasonably required with respect to the issue of
      the Shares;

            

    

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 10 of 30

          
            

          

        

        
           

        

      

    

     

    
      	
            	
              (t)

            	
              Resale
      restrictions:   the Subscriber has been
      independently advised as to the applicable hold period imposed in respect
      of the Shares by securities legislation in the jurisdiction in which the
      Subscriber’s resides and confirms that no representation has been made
      respecting the applicable hold periods for the Shares and is aware of the
      risks and other characteristics of the Shares and of the fact that the
      Subscriber may not be able to resell the Shares except in accordance with
      the applicable securities legislation and regulatory
    policy.

            

    

     

    
    

    
      	
               
      

            	
              (u)

            	
              Confidentiality:   the
      Subscriber understands that the Company’s business plan and this Agreement
      are confidential.  Furthermore, the Subscriber has not
      distributed such, or divulged the contents thereof, to anyone other than
      such legal or financial advisors as the Subscriber has deemed desirable
      for purposes of evaluating an investment in the Shares, and the Subscriber
      has not made any copies thereof except for the Subscriber’s own
      records;

            

    

    

    
      	
               
      

            	
              (v)

            	
              Age of
      majority:   the Subscriber, if an individual, has
      attained the age of majority and is legally competent to execute this
      Agreement and to take all actions required pursuant
  hereto;

            

    

    

    
      	
               
      

            	
              (w)

            	
              Authorization and
      formation of Subscriber:   the Subscriber, if a
      corporation, partnership, trust or other form of business entity, is
      authorized and otherwise duly qualified to purchase and hold the Shares,
      and such entity has not been formed for the specific purpose of acquiring
      Shares in this issue.  In addition, the entering into of this
      Agreement and the transactions contemplated hereby will not result in the
      violation of any of the terms of and provisions of any law applicable to,
      or the corporate documents, if a corporation, of, the Subscriber or of any
      agreement, written or oral, to which the Subscriber may be a party or by
      which the Subscriber may be bound;

            

    

    

    
      	
               
      

            	
              (x)

            	
              Legal
      obligation:   this Agreement has been duly and
      validly authorized, executed and delivered by and constitutes a legal,
      valid, binding and enforceable obligation of the
    Subscriber;

            

    

    

    
      	
               
      

            	
              (y)

            	
              Legal and tax
      consequences.   the Subscriber acknowledges that an
      investment in the securities of the Company may have tax consequences to
      the Subscriber under applicable law, which the Subscriber is solely
      responsible for determining, and the Subscriber also acknowledges and
      agrees that the Subscriber is responsible for obtaining its own legal and
      tax advice;

            

    

    

    
      	
               
      

            	
              (z)

            	
              Compliance with
      applicable laws:   The Subscriber knows of no reason
      (and is sufficiently knowledgeable to determine the same or has sought
      legal advice) why the delivery of this Agreement, the acceptance of it by
      the Company and the issuance of the Shares to the Subscriber will not
      comply with all applicable laws of the Subscriber’s jurisdiction of
      residence or domicile, and all other applicable laws, and the Subscriber
      has no reason to believe that the Subscriber’s subscription hereby will
      cause the Company to become subject to or required to comply with any
      disclosure, prospectus or reporting requirements or to be subject to any
      civil or regulatory review or proceeding.  In addition, the
      Subscriber will comply with all applicable securities laws and will assist
      the Company in all
      reasonable manner to comply with all applicable securities laws;
      and

            

    

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 11 of 30

          
            

          

        

        
           

        

      

    

    

    
    

    

    5.5                      Reliance
on Subscriber’s representations and warranties.   The
Subscriber understands that the Company will rely on the representations and
warranties of the Subscriber herein in determining whether a sale of the Shares
to the Subscriber is in compliance with federal and applicable state and
provincial securities laws.

    

    5.6                      Change in
Subscriber’s representations and warranties.   All of the
information set forth hereinabove with respect to the Subscriber and including,
without limitation, the acknowledgements, representations and warranties set
forth hereinabove, is correct and complete as of the date hereof.

    

    Article
6

    COMPANY
REPRESENTATIONS AND WARRANTIES

    

    

    6.1                      Representations
and warranties of the Company.   The Company acknowledges,
represents and warrants to and with the Subscriber that:

    

    (a)           Standing.   the
Company is a valid and subsisting corporation duly incorporated and in good
standing under the laws of the jurisdiction in which it is incorporated,
continued or amalgamated.

    

    (b)           Business.   the
Company is duly registered and licensed to carry on business in the
jurisdictions in which it carries on business or owns property where so required
by the laws of that jurisdiction.

    

    (c)           Reservation of
Shares.   the Company will reserve or set aside sufficient
shares in its treasury to issue to the Subscriber the Shares if the Company
accepts all or any part of the within subscription.

    

    (d)           Subscription
materials.   this subscription Agreement and all other
written representations made by the Company to the Subscriber in connection with
the within subscription for Shares are and will be accurate in all material
respects and do not and will not omit any fact, the omission of which does or
will make such representations misleading or incorrect.

    

    (e)           Compliance with securities
legislation.   the Company has complied and will comply
fully with the requirements of all applicable corporate and securities laws and
administrative policies and directions in relation to the issue and trading of
its securities and in all matters relating to the within
subscription.

    

    (f)           Compliance with corporate
materials.   the issue and sale of the Shares by the
Company does not and will not conflict with, and does not and will not result in
a breach of, any of the terms of the Company’s incorporating documents or any
agreement or instrument to which the Company is a party.

    

    (g)           Corporate
authority.   this Agreement has been or will be, when
accepted,
duly authorized by all necessary corporate action on the part of the Company,
and the Company has full corporate power and authority to undertake the within
subscription for Shares.

    

    
      
        
           

        

        
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    (h)           Restrictions on
Shares:   no order ceasing, halting or suspending trading
in securities of the Company or prohibiting the sale of such securities has been
issued to and is outstanding against the Company or any of its directors,
officers or promoters or against any other companies that have common directors,
officers or promoters, and no investigations or proceedings for such purposes
are pending or threatened.

    

    (i)           Capitalization.  The
authorized capital stock of the Company and the shares thereof currently issued
and outstanding as of the date hereof are set forth on Schedule 6.1(i)
hereto.  All of the outstanding securities have been duly and validly
authorized.  Except as set forth on Schedule 6.1(i) hereto, no shares
of Common Stock are entitled to preemptive rights or registration rights and
there are no outstanding options, warrants, scrip, rights to subscribe to, call
or commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company. Except as set
forth in Schedule 6.1 (i) there are no contracts, commitments, understandings,
or arrangements by which the Company is or may become bound to issue additional
shares of the capital stock of the Company or options, securities or rights
convertible into shares of capital stock of the Company.  Except as
set forth in schedule 6.1(i) the Company is not a party to any agreement
granting registration or anti-dilution rights to any person with respect to any
of its equity or debt securities.  The Company is not a party to, and
it has no knowledge of, any agreement restricting the voting or transfer of any
shares of the capital stock of the Company.

    

    (j)           Issuance of
Securities.  The securities to be issued at the closing have
been duly authorized by all necessary corporate action.  When the
Conversion Shares and the Warrant Shares are issued in accordance with the terms
of the Notes and the Warrants, respectively, such shares will be duly authorized
by all necessary corporate action and validly issued and outstanding, fully paid
and nonassessable, and the holders shall be entitled to all rights accorded to a
holder of Common Stock.

     

    (k)           No
Conflicts.  The execution, delivery and performance of the
transaction documents by the Company, the performance by the Company of its
obligations under this Agreement and the consummation by the Company of the
transactions contemplated herein and therein do not and will not (i) violate any
provision of the Company’s certificate of incorporation or bylaws, (ii) conflict
with, or constitute a default (or an event which with notice or lapse of time or
both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, mortgage, deed of
trust, indenture, note, bond, license, lease agreement, instrument or obligation
to which the Company is a party or by which it or its properties or assets are
bound, (iii) create or impose a lien, mortgage, security interest, charge or
encumbrance of any nature on any property of the Company under any agreement or
any commitment to which the Company is a party or by which the Company is bound
or by which any of its respective properties or assets are bound,
or

     

    

    
      
        
           

        

        
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    (iv)
result in a violation of any federal, state, local or foreign statute, rule,
regulation, order, judgment or decree (including Federal and state securities
laws and regulations) applicable to the Company or any of its subsidiaries or by
which any property or asset of the Company or any of its subsidiaries are bound
or affected, except, in all cases other than violations pursuant to clauses (i)
and (iv) above, for such conflicts, defaults, terminations, amendments,
accelerations, cancellations and violations as would not, individually or in the
aggregate, have a Material Adverse Effect.   For the purposes of
this Agreement, “Material Adverse Effect” means any material adverse effect on
the business, operations, properties, prospects, or financial condition of the
Company and its subsidiaries and/or any condition, circumstance, or situation
that would prohibit or otherwise materially interfere with the ability of the
Company to perform any of its obligations under this Agreement in any material
respect.

     

     

    (l)           Financial
Statements.  To the best of the Company’s knowledge, it has
delivered to the Subscribers true and complete copies of the Company’s audited
financial statements for the fiscal year ended December 31, 2006 (the “Audited
Financial Statements Date”) and unaudited financial statements for the fiscal
quarter ended June 30, 2007 (collectively, the “Financial
Statements”).  To the best of the Company’s knowledge, except as
disclosed on Schedule 6.1(l) hereto, the Financial Statements complied in all
material respects with the requirements of the Securities Exchange Act of 1934,
as amended (the "Exchange Act"), and the rules and regulations of the Securities
and Exchange Commission (the “Commission”) promulgated thereunder, and the
Financial Statements do not contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading.  To the best of the Company’s
knowledge, except as disclosed on Schedule 6.1(l) hereto, as of their respective
dates, the Financial Statements were complete and correct in all material
respects and complied with applicable accounting requirements and the published
rules and regulations of the Commission or other applicable rules and
regulations with respect thereto.  To the best of the Company’s
knowledge, such Financial Statements have been prepared in accordance with
accounting principles generally accepted in the United States ("GAAP") applied
on a consistent basis during the periods involved (except (i) as may be
otherwise indicated in such financial statements or the Notes thereto or (ii) in
the case of unaudited interim statements, to the extent they may not include
footnotes or may be condensed or summary statements), and fairly present in all
material respects the financial position of the Company and its subsidiaries as
of the dates thereof and the results of operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal
year-end audit adjustments).

     

     

    (m)           No Material Adverse
Change.  Other than as disclosed in the Financial Statements,
resulting from existing debt reflected on such Financial Statements, or due to
debts incurred in the operation of the business, the Company has not experienced
or suffered any Material Adverse Effect.

     

     

    (n)           No Undisclosed
Liabilities.   Since the Audited Financial Statements
Date, neither the Company nor any of its subsidiaries has incurred any
liabilities, obligations, claims or losses (whether liquidated or unliquidated,
secured or unsecured, absolute, accrued, contingent or otherwise) other than
those incurred in the ordinary course of the Company's or its subsidiaries
respective businesses or which, individually or in the aggregate, are not
reasonably likely to have a Material Adverse Effect.

       

    

     

    

    
      
        
           

        

        
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    (o)           Indebtedness.  The
Financial Statements and/or Schedule 6.1(o) hereto sets forth as of a recent
date all outstanding secured and unsecured Indebtedness of the Company or any
subsidiary, or for which the Company or any subsidiary has
commitments.  For the purposes of this Agreement, “Indebtedness” shall
mean (a) any liabilities for borrowed money or amounts owed in excess of
$175,000 (other than trade accounts payable incurred in the ordinary course of
business), (b) all guaranties, endorsements and other contingent obligations in
respect of Indebtedness of others, whether or not the same are or should be
reflected in the Company’s balance sheet (or the notes thereto), except
guaranties by endorsement of negotiable instruments for deposit or collection or
similar transactions in the ordinary course of business; and (c) the present
value of any lease payments in excess of $25,000 due under leases required to be
capitalized in accordance with GAAP.  Except as set forth on Schedule
2.1(k), neither the Company nor any subsidiary is in default with respect to any
Indebtedness.

     

     

    (p)           Title to
Assets.  Except as provided in Schedule 6.1(p) hereto, each of
the Company and the subsidiaries has good and marketable title to all of its
real and personal property, free and clear of any mortgages, pledges, charges,
liens, security interests or other encumbrances, except for those that,
individually or in the aggregate, do not cause a Material Adverse
Effect.  Upon the receipt of proceeds from this offering, all leases
of the Company and each of its subsidiaries will be brought current and will be
valid and subsisting and in full force and effect.

     

     

    (q)           Actions
Pending.  There is no action, suit, claim, investigation,
arbitration, alternate dispute resolution proceeding or any other proceeding
pending or, to the knowledge of the Company, threatened against the Company or
any subsidiary which questions the validity of this Agreement or any of the
other transaction documents or the transactions contemplated hereby or thereby
or any action taken or to be taken pursuant hereto or thereto.  Except
as set forth in the Financial Statements or on Schedule 6.1(q) hereto, there is
no action, suit, claim, investigation, arbitration, alternate dispute resolution
proceeding or any other proceeding pending or, to the knowledge of the Company,
threatened, against or involving the Company, any subsidiary or any of their
respective properties or assets.  There are no outstanding orders,
judgments, injunctions, awards or decrees of any court, arbitrator or
governmental or regulatory body against the Company or any subsidiary or any
officers or directors of the Company or subsidiary in their capacities as
such.

     

     

    (r)           Compliance with
Law.  The business of the Company and the subsidiaries has been
and is presently being conducted in accordance with all applicable federal,
state and local governmental laws, rules, regulations and ordinances, except for
such
noncompliance that, individually or in the aggregate, would not cause a Material
Adverse Effect.  The Company and each of its subsidiaries have all
franchises, permits, licenses, consents and other governmental or regulatory
authorizations and approvals necessary for the conduct of its business as now
being conducted by it unless the failure to possess such franchises, permits,
licenses, consents and other governmental or regulatory authorizations and
approvals, individually or in the aggregate, could not reasonably be expected to
have a Material Adverse Effect.

     

    

    
      
        
           

        

        
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    (s)           Taxes.  The
Company and each of the subsidiaries has accurately prepared and filed all
federal, state and other tax returns required by law to be filed by it, has paid
or made provisions for the payment of all taxes shown to be due and all
additional assessments, and adequate provisions have been and are reflected in
the financial statements of the Company and the subsidiaries for all current
taxes and other charges to which the Company or any subsidiary is subject and
which are not currently due and payable.  None of the federal income
tax returns of the Company or any subsidiary have been audited by the Internal
Revenue Service.  The Company has no knowledge of any additional
assessments, adjustments or contingent tax liability (whether federal or state)
of any nature whatsoever, whether pending or threatened against the Company or
any subsidiary for any period, nor of any basis for any such assessment,
adjustment or contingency.

     

     

    (t)           Intellectual
Property.  The Company and each of the subsidiaries owns or
possesses all patents, trademarks, domain names (whether or not registered) and
any patentable improvements or copyrightable derivative works thereof, websites
and intellectual property rights relating thereto, service marks, trade names,
copyrights, licenses and authorizations, and all rights with respect to the
foregoing, which are necessary for the conduct of its business as now conducted
without any conflict with the rights of others.

     

     

    (u)           Environmental
Compliance.  The Company and each of its subsidiaries have
obtained all material approvals, authorization, certificates, consents,
licenses, orders and permits or other similar authorizations of all governmental
authorities, or from any other person, that are required under
any  Environmental Laws.  “Environmental Laws” shall mean
all applicable laws relating to the protection of the environment including,
without limitation, all requirements pertaining to reporting, licensing,
permitting, controlling, investigating or remediating emissions, discharges,
releases or threatened releases of hazardous substances, chemical substances,
pollutants, contaminants or toxic substances, materials or wastes, whether
solid, liquid or gaseous in nature, into the air, surface water, groundwater or
land, or relating to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of hazardous substances, chemical
substances, pollutants, contaminants or toxic substances, material or wastes,
whether solid, liquid or gaseous in nature.  The Company has all
necessary governmental approvals required under all Environmental Laws and used
in its business or in the business of any of its subsidiaries.  The
Company and each of its subsidiaries are also in compliance with all other
limitations, restrictions, conditions, standards, requirements, schedules and
timetables required or imposed under all

     

    

    
      
        
           

        

        
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    Environmental
Laws.  Except for such instances as would not individually or in the
aggregate have a Material Adverse Effect, there are no past or present events,
conditions, circumstances, incidents, actions or omissions relating to or in any
way affecting the Company or its subsidiaries that violate or may violate any
Environmental Law after the Closing Date or that may give rise to any
environmental liability, or otherwise form the basis of any claim, action,
demand, suit, proceeding, hearing, study or investigation (i) under any
Environmental Law, or (ii) based on or related to the manufacture, processing,
distribution, use, treatment, storage (including without limitation underground
storage tanks), disposal, transport or handling, or the emission, discharge,
release or threatened release of any hazardous substance.

     

     

    (v)           Books and Record; Internal
Accounting Controls.  The books and records of the Company and
its subsidiaries accurately reflect in all material respects the information
relating to the business of the Company and the subsidiaries, the location and
collection of their assets, and the nature of all transactions giving rise to
the obligations or accounts receivable of the Company or any
subsidiary.  The Company maintains a manual system of internal
accounting controls to provide reasonable assurance that (i) transactions are
executed in accordance with management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial
statements to maintain asset accountability, and (iii) access to assets is
permitted only in accordance with management’s general or specific
authorization.

     

     

    (w)           Material
Agreements.  Except for the transaction documents (with respect
to clause (i) only) or as set forth in the Financial Statements or on Schedule
6.1(u) hereto, or as would not be reasonably likely to have a Material Adverse
Effect, (i) the Company and each of its subsidiaries have performed all
obligations required to be performed by them to date under any written or oral
contract, instrument, agreement, commitment, obligation, plan or arrangement,
filed or required to be filed with the Commission (the "Material Agreements"),
(ii) neither the Company nor any of its subsidiaries has received any notice of
default under any Material Agreement and, (iii) to the best of the Company's
knowledge, neither the Company nor any of its subsidiaries is in default under
any Material Agreement.

     

     

    (x)           Transactions with
Affiliates.  Except as set forth in the Financial Statements or
on Schedule 6.1(x) hereto or in Section 6.1(aa) below, there are no loans,
leases, agreements, contracts, royalty agreements, management contracts or
arrangements or other continuing transactions between (a) the Company or any
subsidiary on the one hand, and (b) on the other hand, any officer, employee,
consultant or director of the Company, or any of its subsidiaries, or any person
owning any capital stock of the Company or any subsidiary or any member of the
immediate family of such officer, employee, consultant, director or stockholder
or any corporation or other entity controlled by such officer, employee,
consultant, director or stockholder, or a member of the immediate family of such
officer, employee, consultant, director or stockholder.

     

     

     

    

    
      
        
           

        

        
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      (y)           Securities
Act of 1933.  Based in material part upon the representations
herein of the Subscribers, the Company has complied and will comply with
all applicable federal and state securities laws in connection with the offer,
issuance and sale of the Shares and the Warrants hereunder.  Neither
the Company nor anyone acting on its behalf, directly or indirectly, has or will
sell, offer to sell or solicit offers to buy any of the Shares, the Warrants or
similar securities to, or solicit offers with respect thereto from, or enter
into any preliminary conversations or negotiations relating thereto with, any
person, or has taken or will take any action so as to bring the issuance and
sale of any of the Shares and the Warrants under the registration provisions of
the Securities Act and applicable state securities laws, and neither the Company
nor any of its affiliates, nor any person acting on its or their behalf, has
engaged in any form of general solicitation or general advertising (within the
meaning of Regulation D under the Securities Act) in connection with the offer
or sale of any of the Shares and the Warrants.

    

     

     

    (z)           Governmental
Approvals.  Except for the filing of any notice prior or
subsequent to the Closing Date that may be required under applicable state
and/or Federal securities laws (which if required, shall be filed on a timely
basis), including the filing of a Form D and a registration statement or
statements pursuant to the Registration Rights Agreement, no authorization,
consent, approval, license, exemption of, filing or registration with any court
or governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign, is or will be necessary for, or in
connection with, the execution or delivery of the Shares and the Warrants, or
for the performance by the Company of its obligations under the transaction
documents.

     

     

    (aa)           Employees.  Neither
the Company nor any subsidiary has any collective bargaining arrangements or
agreements covering any of its employees.  The Company has employment
contracts with its CEO, its VP of Marketing and its general
counsel.  Each employee has signed a written agreement regarding
proprietary information, non-competition agreement, non-solicitation agreement,
confidentiality agreement, or any other similar contract or restrictive
covenant, relating to the right of any officer, employee or consultant to be
employed or engaged by the Company or such subsidiary.  No officer,
consultant or key employee of the Company or any subsidiary whose termination,
either individually or in the aggregate, could have a Material Adverse Effect,
has terminated or, to the knowledge of the Company, has any present intention of
terminating his or her employment or engagement with the Company or any
subsidiary.

     

     

    (bb)           Dilutive
Effect.  The Company understands and acknowledges that its
obligation to issue shares of Common Stock upon conversion of the Notes in
accordance with this Agreement and the Notes and its obligations to issue the
Warrant Shares upon the exercise of the Warrants in accordance with this
Agreement and the Warrants, is, in each case, absolute and unconditional
regardless of the dilutive effect that such issuance may have on the ownership
interest of other stockholders of the Company.

     

     

     

    

    
      
        
           

        

        
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      (cc)           No
Integrated Offering.  Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf, has directly or
indirectly made any offers or sales of any security or solicited any offers to
buy any security under circumstances that would cause the offering of the
securities pursuant to this Agreement to be integrated with prior
offerings by the Company for purposes of the Securities Act which would prevent
the Company from selling the securities pursuant to Rule 506 under the
Securities Act, or any applicable exchange-related stockholder approval
provisions, nor will the Company or any of its affiliates or subsidiaries take
any action or steps that would cause the offering of the Shares to be integrated
with other offerings.  The Company does not have any registration
statement pending before the Commission or currently under the Commission’s
review.

    

     

     

    (dd)           Independent Nature of
Subscribers.  The Company acknowledges that the obligations of
each Subscriber under this Agreement and the other transaction documents are
several and not joint with the obligations of any other Subscriber, and no
Subscriber shall be responsible in any way for the performance of the
obligations of any other Subscriber under the transaction
documents.  The Company acknowledges that the decision of each
Subscriber to purchase securities pursuant to this Agreement has been made by
such Subscriber independently of any other purchase and independently of any
information, materials, statements or opinions as to the business, affairs,
operations, assets, properties, liabilities, results of operations, condition
(financial or otherwise) or prospects of the Company or of its Subsidiaries
which may have made or given by any other Subscriber or by any agent or employee
of any other Subscriber, and no Subscriber or any of its agents or employees
shall have any liability to any Subscriber (or any other person) relating to or
arising from any such information, materials, statements or
opinions.  The Company acknowledges that nothing contained herein and
no action taken by any Subscriber pursuant hereto or thereto, shall be deemed to
constitute the Subscribers as a partnership, an association, a joint venture or
any other kind of entity, or create a presumption that the Subscribers are in
any way acting in concert or as a group with respect to such obligations or the
transactions contemplated by the Transaction Documents.

     

    

    (ee)           Off-Balance Sheet
Arrangements.  There is no transaction, arrangement, or other
relationship between the Company and an unconsolidated or other off balance
sheet entity that is not disclosed in its Financial Statements that should be
disclosed in accordance with GAAP and that would be reasonably likely to have a
Material Adverse Effect.

    

    (ff)           Foreign Corrupt
Practices.  Neither the Company nor any Subsidiary, nor to the
knowledge of the Company, any agent or other person acting on behalf of the
Company or any Subsidiary, has (i) directly or indirectly, used any corporate
funds for unlawful contributions, gifts, entertainment or other unlawful
expenses related to foreign or domestic political activity, (ii) made any
unlawful payment to foreign or domestic government officials or employees or to
any foreign or domestic political parties or campaigns from corporate funds,
(iii) failed to disclose fully any contribution made by the Company (or made by
any person acting on its behalf of which the Company is aware) which
is  in violation of law, or (iv) violated in any material respect any
provision of the Foreign Corrupt Practices Act of 1977, as amended.

    

    
      
        
           

        

        
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      6.2                      Reliance
on Company’s representations and warranties.   The
Subscriber acknowledges that no information or representation concerning
the Company has been provided to the Subscriber other than those contained in
this Agreement, and that the Subscriber is relying entirely upon this
Agreement.  Any other information given or statement made is given or
made without liability or responsibility howsoever arising on the part of the
Company.  No person acting as agent of the Company has any authority
to make or give any representation or warranty whatsoever in relation to the
Company or the Shares.  Any such information given or statement made
is given or made without liability or responsibility howsoever arising on the
part of the Company, and the Subscriber hereby releases the Company from any
claims that may arise in respect thereof.

    

    

    

    

    

    

    

    

    

    

    

    
      
        
           

        

        
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      Article
7

    

    COMPANY
COVENANTS

     

    7.1                      Securities
Compliance.  The Company shall notify the Commission in
accordance with their rules and regulations, of the transactions contemplated by
this Agreement, including filing a Form D with respect to the securities as
required under Regulation D and applicable “blue sky” laws, and shall take all
other necessary action and proceedings as may be required and permitted by
applicable law, rule and regulation, for the legal and valid issuance of the
securities to the Subscriber or subsequent holders.

     

    7.2                      Registration
and Listing.  The Company shall use
its commercially reasonable efforts to cause its Common Stock to be registered
under the Exchange Act, to comply in all respects with its reporting and filing
obligations under the Exchange Act, to comply with all requirements related to
any registration statement filed pursuant to this Agreement, and to not take any
action or file any document (whether or not permitted by the Securities Act or
the rules promulgated thereunder) to terminate or suspend such registration or
to terminate or suspend its reporting and filing obligations under the Exchange
Act or Securities Act, except as permitted herein.  The Company will
use its commercially reasonable efforts to trade its Common Stock on the OTC
Bulletin Board or other exchange or market on which the Common Stock may be
traded in the future.  Subject to the terms of this Agreement, the
Company further covenants that it will use its commercially reasonable efforts
as the Subscribers may reasonably request, all to the extent required from time
to time to enable the Subscribers to sell the Shares without registration under
the Securities Act within the limitation of the exemptions provided by Rule 144
promulgated under the Securities Act.

     

    7.3                      Compliance
with Laws. The
Company shall comply, and cause each subsidiary to comply, with all applicable
state and federal laws, rules, regulations and orders, noncompliance with which
could have a Material Adverse Effect.

     

    7.4                      Keeping
of Records and Books of Account.  The Company shall
keep and cause each subsidiary to keep adequate records and books of account, in
which complete entries will be made in accordance with GAAP consistently
applied, reflecting all financial transactions of the Company and its
subsidiaries, and in which, for each fiscal year, all proper and if applicable,
reasonable reserves for depreciation, depletion, obsolescence, amortization,
taxes, bad debts and other purposes in connection with its business shall be
made.

     

    7.5                      Use of
Proceeds. The net
proceeds from the sale of the Shares hereunder shall be used by the Company to
pay indebtedness and for working capital and general corporate purposes and not
to redeem any Common Stock or securities convertible, exercisable or
exchangeable into Common Stock or to settle any outstanding
litigation.

     

    7.6                      Reservation
of Shares.  So long as any of
the Notes or Warrants remain outstanding, the Company shall use its commercially
reasonable efforts to at all times have authorized, and reserved for the purpose
of issuance, free of preemptive rights and other similar contractual rights of
stockholders, a number of shares of Common Stock equal to
one hundred percent (100%) of the number of shares of Common Stock as shall from
time to time be sufficient to effect the conversion of all of the Notes and
exercise of the Warrants then outstanding.

    

    
      
        
           

        

        
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    7.7                      Reporting
Status.  So long as a
Subscriber beneficially owns any of the Shares, once the Company becomes a
reporting company, the Company shall use its commercially reasonable efforts to
timely file all reports required to be filed with the Commission pursuant to the
Exchange Act, and the Company shall not terminate its status as an issuer
required to file reports under the Exchange Act even if the Exchange Act or the
rules and regulations thereunder would permit such termination.

     

    7.8                      Disclosure
of Material Information.  The Company
covenants and agrees that neither it nor any other person acting on its behalf
has provided or will provide any Subscriber or its agents or counsel with any
information that the Company believes constitutes material non-public
information (other than with respect to the transactions contemplated by this
Agreement), unless prior thereto such Subscriber shall have executed a written
agreement regarding the confidentiality and use of such information.  The
Company understands and confirms that each Subscriber shall be relying on the
foregoing representations in effecting transactions in securities of the
Company.

     

    7.9                      Pledge of
Securities. The
Company acknowledges and agrees that the Shares may be pledged by a Subscriber
in connection with a bona fide margin agreement or other loan or financing
arrangement that is secured by the Common Stock.  The pledge of Common
Stock shall not be deemed to be a transfer, sale or assignment of the Common
Stock hereunder, and no Subscriber effecting a pledge of Common Stock shall be
required to provide the Company with any notice thereof or otherwise make any
delivery to the Company pursuant to this Agreement or any other Transaction
Document; provided that a Subscriber and its pledgee shall be required to comply
with the applicable provisions of this agreement in order to effect a sale,
transfer or assignment of Common Stock to such pledgee. At the Subscribers'
expense, the Company hereby agrees to execute and deliver such documentation as
a pledgee of the Common Stock may reasonably request in connection with a pledge
of the Common Stock to such pledgee by a Subscriber.

    

    7.10                      Company
Indemnity.  The Company
agrees to indemnify and hold harmless the Subscribers (and their respective
directors, officers, affiliates, agents, successors and assigns) from and
against any and all losses, liabilities, deficiencies, costs, damages and
expenses (including, without limitation, reasonable attorneys’ fees, charges and
disbursements) incurred by the Subscribers as a result of any inaccuracy in or
breach of the representations, warranties or covenants made by the Company
herein as such are incurred, except to the extent that such amounts result
solely from the Subscriber’ failure to perform any covenant or agreement
contained in this Agreement or the Subscriber’s illegal or willful misconduct,
gross negligence, misrepresentations, recklessness or bad faith (in each case,
as determined by a judgment to such effect) in performing its obligations under
this Agreement.

    

    
      
        
           

        

        
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    Article
8

    CLOSING
CONDITIONS

    

    8.1                      The
closing of the transactions contemplated by this Agreement is subject to the
satisfaction of each of the following conditions:

    

    (a)           The
Company shall have delivered to the Subscriber a secretary’s certificate, dated
as of the closing date, as to (i) the resolutions adopted by the Board of
Directors approving the transactions contemplated hereby, (ii) the incorporation
documents and bylaws of the Company, each as in effect at the closing, and (iii)
the authority and incumbency of the officers of the Company executing the
Transaction Documents and any other documents required to be executed or
delivered in connection therewith;

    

    (b)           The
Company shall have delivered to Subscribers a copy of the resolutions adapted by
its Board of Directors authorizing the offering, the issuance of the Notes and
Warrants;

    

    (c)           No
Material Adverse Effect (as hereinafter defined) shall have occurred since the
date this offer was accepted;

    

    (d)           All
of the representations and warranties of the Company and each Subscriber
hereunder shall be true and correct in all material respects as of the closing
date, except for representations and warranties that are expressly made as of a
particular date, which shall be true and correct as of such date.

    

    (e)           The
Company shall have delivered to the Subscriber an
officer’s  certificate signed by an executive officer on behalf of the
Company, dated as of the closing date, confirming the accuracy of the Company’s
representations, warranties and covenants as of the closing date and confirming
the compliance by the Company with the conditions precedent set forth herein as
of the closing date; and

    

    (f)           The
Company shall have issued or authorized the issuance of the certificates
representing the Notes and the Warrants, to each Subscriber based upon their
respective purchase amounts hereunder, which Notes and Warrants shall be
delivered to the Subscribers within ten (10) business days of the closing
date.

    

    

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 23 of 30

          
            

          

        

        
           

        

      

    

    

    
      Article
9

      

      GENERAL
PROVISIONS

      

      

      9.1                      Address
for delivery.   Each notice, demand or other communication
required
or permitted to be given under this Agreement shall be in writing and shall be
sent by delivery (electronic with conformation or otherwise) or by prepaid
registered mail  return receipt requested deposited in a post office
in United States  addressed to the Subscriber or the Company at the
address specified in this Agreement.  The date of receipt of such
notice, demand or other communication shall be the date of delivery thereof if
delivered, or, if given by registered mail as aforesaid, shall be deemed
conclusively to be the fifth day after the same shall have been so mailed,
except in the case of interruption of postal services for any reason whatsoever,
in which case the date of receipt shall be the date on which the notice, demand
or other communication is actually received by the addressee.  Either
party may at any time and from time to time notify the other party in writing of
a change of address and the new address to which notice shall be given to it
thereafter until further change.

    

    

    

    9.2                      Severability
and construction.  Each Article, section, sub-section,
paragraph, sub-paragraph, term and provision of this Agreement, and any portion
thereof, shall be considered severable, and if, for any reason, any portion of
this Agreement is determined to be invalid, contrary to or in conflict with any
applicable present or future law, rule or regulation, that ruling shall not
impair the operation of, or have any other effect upon, such other portions of
this Agreement as may remain otherwise intelligible (all of which shall remain
binding on the parties and continue to be given full force and agreement as of
the date upon which the ruling becomes final).

    .

    

    9.3                      Governing
law; Jurisdiction.  This Agreement shall be construed and
enforced in accordance with, and the rights of the parties shall be governed by,
the laws of the State of New York, without regard to principles of conflicts of
laws.  Any legal action or proceeding with respect to this Agreement
shall be brought in the courts of the State of New York or of the United States
of America sitting in Manhattan, New York, and, by execution, delivery and
acceptance of this Agreement, both the Company and Subscriber hereby accept for
itself and in respect of its property, generally and unconditionally, the
jurisdiction of the aforesaid courts.  The Company and Subscriber
hereby irrevocably waive, in connection with any such action or proceeding, any
objection, including, without limitation, any objection to the laying of venue
or based on the grounds of forum non conveniens, which they may now or hereafter
have to the bringing of any such action or proceeding in such respective
jurisdictions.

    

    

    9.4                      Survival
of representations and warranties.   The covenants,
representations and warranties contained herein shall survive the closing of the
transactions contemplated hereby.

    

    

    9.5                      Counterparts.   This
Agreement may be signed by the parties hereto in as many counterparts as may be
necessary, each of which so signed shall be deemed to be an original, and such
counterparts together shall constitute one and the same instrument and
notwithstanding the date of execution will be deemed to bear the execution date
as set forth in this Agreement.  This Agreement may also be executed
and exchanged by facsimile and such facsimile copies shall be valid and
enforceable agreements.

    

    9.6                      Entire
Agreement and amendments.   This Agreement constitutes the
only agreement between the parties with respect to the subject matter hereof and
shall supersede any and all prior negotiations and
understandings.  There are no collateral agreements or understandings
hereto and this Agreement, and the documents contemplated
herein, constitutes the totality of the parties’ agreement.  This
Agreement may be amended or modified in any respect by written instrument
only.

      

    

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 24 of 30

          
            

          

        

        
           

        

      

    

    

     

    

    9.7                      Successors
and assigns.   The terms and provisions of this Agreement
shall be binding upon and enure to the benefit of the Subscriber, the Company
and their respective successors and lawfully permitted assigns; provided that,
except as herein provided, this Agreement shall not be assignable by any party
without the written consent of the other.  The benefit and obligations
of this Agreement, insofar as they extend to or affect the Subscriber, shall
pass with any assignment or transfer of any of the Shares in accordance with the
terms of this Agreement.

    

    

    9.8                      Effective
date.  This Agreement shall take effect upon the date of
acceptance by the Company.

    

    

    

    

    

    

    

    

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 25 of 30

          
            

          

        

        
           

        

      

    

    

    

    IN
WITNESS WHEREOF the Parties hereto have hereunto set their respective
hands and seals in the presence of their duly authorized signatories effective
as at the date first above written.

    

    Subscription
by Subscriber:

    

    

    Dated
at __________, __________, on this _____ day of __________, 200_.

    

    

     

    
      
         

        
          	 	 	 
	 Name
      of Subscriber - please print	 	 
	 	 	
                  Subscriber’s
      Address

                
	 	 	 
	 By:   	 	 
	 Official Capacity or Title - please
      print	 	 
	 	 	 
	 	 	 
	 Authorized
      Signature                                                                                                  	 	Telephone Number
	 	 	 
	 	 	 
	
                  Please
      print name of individual whose

                	 	  Facsimile
      Number
	signature
      appears above if different than	 	 
	
                  the
      name of the Subscriber printed above

                	 	 

        

         

        
 

        Acceptance
by the Company:

         

         

        DAIS
ANALYTIC CORPORATION. hereby accepts the above subscription by the
Subscriber on this _____ day of ___________, 2007.

         

         

         

        
          	The CORPORATE SEAL
      of                                               	 )	 
	DAIS
      ANALYTIC  CORPORATION., 	 )	 
	The Company
      herein,    	 )	 
	was hereunto affixed
      in the presence of:  	 )	      
      (C/S)
	 	 )	 
	Authorized
      Signatory  	 )	 

      

    

    
       

    

    

    

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 26 of 30

          
            

          

        

        
           

        

      

    

    

    SCHEDULE
OF EXCEPTIONS PURSUANT TO ARTICLE 6

    OF

    SUBSCRIPTION
AGREEMENT AND ACCREDITED INVESTOR QUESTIONNAIRE

    

    

    SCHEDULE
6.1 (i)

    

    
      	
               
      

            	
              a.

            	
              Authorized
      capital stock of Company and the shares thereof currently issued and
      outstanding as of the date hereof:

            

    

     

    

     

    
      	Authorized
      Shares:	 	 	 
	 	 	 	 
	Preferred
      Shares                                                                           	 	 	10,000,000	 
	Common
      Shares                                                                           	 	 	50,000,000	 
	 	 	 	 	 
	Issued and Outstanding
      Shares:	 	 	 	 
	 	 	 	 	 
	Preferred
      (1) 	 	 	- 0 -	 
	Common       	 	 	8,427,579	 
	Options/Warrants
      Issued (2)  	 	 	6,844,181	 
	 	 	 	 	 
	Shares issuable
      under Company’s
      2000 Incentive Plan                                                                   	 	 	626,856	 
	 	 	 	 	 
	Shares subject to
      issuance under Convertible
      note and Warrants Issuable
      (3)  	 	 	2,586,741	 
	 	 	 	 	 
	Common
      Stock subject to Issue due to Bridge
      Financing:	 	 	 	 
	 	 	 	 	 
	Share
      subject to issue pursuant to Bridge
      financing including warrant shares
      to Placement Agent assuming $3Million
      in Notes are issued	 	 	31,500,000	 
	 	 	 	 	 
	Share
      subject to issue pursuant to Bridge
      financing including warrant shares
      to Placement Agent assuming $3Million
      in Notes are issued	 	 	 	 
	 	 	 	 	 

    

     

     

    
      	
               
      

            	
              Footnotes:

            

    

    

    
      	
               
      

            	
              (1)
      In anticipation of this Offering the Company has an agreement with the
      existing Preferred Shareholder finding all Series A Preferred Holdings,
      Rights, etc. satisfied with the former Preferred Shareholder now being a
      Common Shareholder. When the execution of this agreement is complete all
      existing Preferred Shares and Warrants, and associated Preferred
      Shareholder rights cease to
      exist.

            

    

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 27 of 30

          
            

          

        

        
           

        

      

    

    

    
    

    

    
      	
              (2)

            	
              An
      existing option holder is has agreed to return 328,500 options to the
      Company as of October 15, 2007.

            

    

    

    
      	
              (3)

            	
              This
      sum is comprised of two items – the first is 248,687 warrants owed to
      previous investors. The second is the Company entered into a six month
      financial and strategic consulting agreement dated September 1, 2005 with
      a financial consulting company. (“Consulting Company”) by which the
      Consulting Company was to provide the Company with consulting services and
      assist it in the procurement of equity and debt financing for business
      expansion and development up to a maximum of $20,000,000.  The
      Consulting Company is not a license broker-dealer. In exchange for these
      services, two of the shareholders of the Company assigned their
      Convertible Notes Receivable, valued at $627,723, to the Consulting
      Company.  Per the terms of the Consulting Agreement and its
      related documents, one half of the first note became vested in the
      Consulting Company upon the execution of the Consulting Agreement which by
      the terms of the Agreement resulted in $156,930 of said first note being
      subject to conversion into the Company’s common stock at the rate of one
      share per $.10 of note balance.  In addition, the agreement
      states that an additional $156,931 would be potentially eligible for
      conversion upon the Company raising $1,000,000 in financing from any
      source during the term of the Consulting Agreement. Conversion rights were
      subject to pro rata vesting based on the funding secured.  For
      financial presentation purposes, the Company has accounted for this
      transaction as a capital contribution by the stockholders of $627,723 for
      the forgiveness of their notes and as consulting expense for equity given
      to the Consulting Company.  During the year ended December 31,
      2005, the Company received funding of $599,972 in the form of bridge
      loans.  On December 23, 2005 the Company terminated the
      Consulting Agreement subject to the provisions thereof.  The
      Company has no further obligations of any nature to the Consulting Company
      for lack of performance by the Consulting Company. The shares to which
      this note may be converted - 2,338,954 are included in the above table
      even though the note balance has not been converted. In addition, the
      shareholder of second note may contend, and has a possibility of being
      successful, in having the amendment and assignment declared void requiring
      his note be reinstated on the Company’s books.   The shares
      associated with this note are included in the Fully Diluted totals
      presented above. The accounting entries made by the Company with regard to
      the first note are not to be construed as a waiver of any rights the
      Company may have in law or equity under the consulting agreement or any
      agreements related thereto, nor as an admission, of an nature, by the
      Company.

            

    

    

    
      	
              (4)

            	
              The
      Company has entered into an agreement with Next Generation Investments,
      LLC to modify the parties February 26, 2007 note indicating the
      outstanding principal and interest of this note shall be made solely in
      cash and not in the securities of the Company. Next Generation has
      indicated a willingness to reinvest a portion of the initial investment in
      this Offering.

            

    

    

    
      	
              (5)

            	
              Company
      has an agreement with holders of 3,430,455 common shares whereby the
      twelve parties have agreed to registration right agreement with the
      Company if needed.

            

    

     

     

    
      
        
        

      

      
        Subscription Agreement and Accredited Investor Questionnaire - Page 28 of
30

        
          

        

      

      
        
        

      

    

    
 

    Schedule
6.1 (l)

    

    None

    

    Schedule
6.1 (o)

    

    
      	
              Secured
      Debt:

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              Holder

            	
              Amount

            	 
      	
              Description

            
	
              Beno
      Sternlicht

            	
              80,050

            	 
      	
              Loan

            
	
              Vision
      Capital

            	
              83,683

            	 
      	
              Loan

            
	
              Next
      Generation

            	
              151,167

            	 
      	
              Loan
      – reinvesting a portion

            
	
              Timothy
      Tangredi

            	
              89,285

            	 
      	
              Loan

            
	 
      	 
      	 
      	 
      
	
              Unsecured
      Debt:

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              Holder

            	
              Amount

            	 
      	
              Description

            
	
              Robb
      Family Trust

            	
              208,617

            	 
      	
              Loan

            

    

    

    Schedule
6.1 (p)

    

    Company’s
inventory, equipment, furnishings, receivables and trade fixtures together with
all of its right, title, and interest to any trademarks, trade names, contract
rights, and leasehold interests are pledge as security under the notes to
Sternlicht, Vision Capital, Next Generation (has stated willingness to reinvest
some portion or all into this Offering), and Tangredi notes.

    

    Schedule
6.1 (q)

    

    Patent
interference relating to Company’s United States Patent number 6,413,298 was
filed with United States Patent Office in May of 2006.

    

    

    Schedule
6.1 (u)

    

    None

    

    

    
      
        
           

        

        
          Subscription
Agreement and Accredited Investor Questionnaire - Page 29 of 30

          
            

          

        

        
           

        

      

    

    

    Schedule 6.1(x)

    

    
      	
               
      

            	
              ·

            	
              Ethos
      Business Ventures, LLC.

            

    

    
      	
               
      

            	
              ·

            	
              Aegis
      Biosciences, LLC

            

    

    
      	
               
      

            	
              ·

            	
              Robb
      Family Charitable Trust

            

    

    
      	
               
      

            	
              ·

            	
              Legend
      Merchant Group

            

    

    
      	
               
      

            	
              ·

            	
              Next
      Generation Capital

            

    

    
      	
               
      

            	
              ·

            	
              Brian
      Kelly - Individual

            

    

    
      	
               
      

            	
              ·

            	
              Timothy
      Tangredi

            

    

    
      	
               
      

            	
              ·

            	
              Charles
      Buchanan

            

    

    
      	
               
      

            	
              ·

            	
              Williams
      Law Group

            

    

    
      	
               
      

            	
              ·

            	
              Spartan
      Capital

            

    

    
      	
               
      

            	
              ·

            	
              Option/warrant
      agreements

            

    

    
      	
               
      

            	
              ·

            	
              Agreement
      to enter into Registration Rights Agreement with twelve (12) existing
      shareholders as noted in Schedule
6.1(i)

            

    

    

    

    

    

    

    

    

    

    

    
Subscription Agreement and Accredited Investor Questionnaire - Page
30of 30

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