Document:

exhibit10-1.htm

Exhibit 10.1

Vu1 CORPORATION

SUBSCRIPTION AGREEMENT

Subscription Agreement between Vu1 Corporation, a California corporation (the “Company”), and the undersigned (the “Subscriber”), the effective date of which shall be the date of execution by the Company.

WHEREAS, the Company is conducting an exempt, limited private offering of up to $420,000 (the “Offering”) of Units (the “Units”) at a price of $0.80 per Unit, each Unit consisting of one share of Company common stock, no par value per share (the “Common Stock”), and a three-year warrant to purchase one share of Common Stock at an exercise price of $1.50 per share (the “Warrant,” and collectively with the Units and Common Stock, the “Securities”);

WHEREAS, the Offering is being made under Rule 506 of Regulation D (“Reg. D”) promulgated under the Securities Act of 1933, as amended (the “Securities Act”), on the terms and conditions hereinafter set forth; and

WHEREAS, the Subscriber desires to acquire the number of Units as specifically set forth on the signature page hereof, on the terms and conditions hereinafter set forth;

NOW, THEREFORE, for and in consideration of the agreements hereinafter set forth, the parties agree as follows:

1.             Subscription for Units.  Subject to the terms and conditions hereinafter set forth, the Subscriber hereby irrevocably subscribes for and agrees to purchase from the Company such number of Units set forth upon the signature page hereof at a price equal to $0.80 per Unit.  The Subscriber is concurrently delivering to the Company with this Subscription Agreement payment of the sum of $300,000 (three hundred thousand dollars) as part payment of the purchase price for the Units, which shall be made by way of cash or by wire transfer in each
case in U.S. Dollars and, in the case of a wire transfer, to the bank account of the Company as follows:

	
Account Name

	
Vu1 Corporation

	
Bank Name

	
Wells Fargo Bank

	
City, State

	
San Francisco, CA

	
Account Number

	
7605099592

	
ABA Number

	
121000248

	
Swift Code

	
WFBIUS6S

 

The balance of the purchase price of $100,000 for the Units will be settled or paid by the Subscriber by the provision of other accommodation and services (financial or otherwise including but not limited to fees paid to management consultants; disbursements paid; legal fees for preparation review and negotiation of documentation) to the Company.

 

2.              Acceptance.  Subscriber understands that this Subscription is not binding upon the Company until the Company accepts it, which acceptance is at the sole discretion of the Company and is to be evidenced by the Company’s execution of this Agreement where indicated.  This Agreement shall be null and void if the Company does not accept it.  Subscriber understands that Subscriber is not entitled to cancel, terminate or revoke this Agreement.  Subscriber understands that the Company may, in its sole
discretion, reduce the number of Units subscribed for under this Agreement by any amount and to any extent, whether or not pro rata reductions are made of any other investor’s subscription.

                                                                     

  

  

  

	
  

	
3.

	
Acknowledgements, Agreements, Representations and Covenants of Subscriber.

3.1           (a)           The Subscriber acknowledges that a purchase of the Securities and an investment in the Company involves a high degree of risk in that (i) the Company is highly speculative; (ii) the investment is illiquid; and (iii) transferability of the Securities are restricted.  Subscriber has reviewed and understands the risk factors set forth in the Company’s periodic filings with the U.S. Securities and Exchange Commission (the “SEC”), including its annual report on Form 10-K for the fiscal year ended December 31, 2011, its 2012 quarterly
reports on Form 10-Q and its current reports on Form 8-K filed through the date hereof (collectively, the “Public Filings”).  The Company’s business, financial condition or results of operations could be materially and adversely affected by any of these and other risks and the value of an investment in the Company could decline.  Subscriber recognizes that it could lose all or part of its investment.  In particular, Subscriber recognizes that the Company has not had any significant revenues during any of the past three fiscal years, the Company may not obtain commercial development for its proprietary technology or products under development, any products that the Company develops may not receive market acceptance or may not compete effectively in the marketplace, and the
Company will need additional capital to be successful.  Subscriber acknowledges that the Company may not be successful in raising the full amount of the Offering, and that even if the Offering is fully subscribed, the Company will need additional financing in the future, whether equity or debt, which may be at offering prices greater or less than the purchase price in this Offering.

(b)           Subscriber has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder.  If Subscriber is an entity, this Agreement has been duly authorized by all necessary actions of the board of directors, shareholders, members, managers, partners, trustees, or other duly authorized acting body or person on the part of the Subscriber, and has been duly executed by an authorized officer or representative of the Subscriber.  This Agreement is a legal, valid, and binding obligation of Subscriber enforceable against Subscriber in accordance with its terms.

(c)           The Subscriber represents that he/she/it is an “accredited investor” within the meaning of Rule 501(a) of Reg. D.  In addition, Subscriber is a sophisticated investor and is able to fend for itself in the transactions contemplated by this Agreement, and has such knowledge and expertise in financial and business matters that Subscriber is capable of evaluating the merits and risks involved in an investment in the Company and purchase of the Securities.  Concurrently with this subscription, Subscriber is completing and delivering to the Company the
“Investor Questionnaire” and the information provided therein is true, accurate and complete.

(d)           The investment in the Securities is suitable for Subscriber based upon Subscriber’s investment objectives and financial needs.  Subscriber has adequate means and net worth for providing for its current financial needs and contingencies and has no need for liquidity of investment with respect to the Securities.  Subscriber’s overall commitment to investments that are illiquid or not readily marketable is not disproportionate to its net worth, and investment in the Securities will not cause such overall commitment to become excessive.  Subscriber is able to bear the substantial economic
risks of an investment in the Securities for an indefinite period of time, and can afford a complete loss of this investment.

(e)           Subscriber has been solely responsible for his, her or its own due diligence investigation of the Company and its business, and analysis of the merits and risks of the investment in the Securities, and is not relying on anyone else’s analysis or investigation of the Company, its business or the merits and risks of the Securities.  The Subscriber represents and warrants (i) that he/she/it has been furnished by the Company during the course of evaluating his/her/its interest in this transaction with all information regarding the Company
which he/she/it had requested or desired to know; (ii) that all documents which could be reasonably provided have been made available for his/her/its inspection and review; (iii) that he/she/it has been afforded the opportunity to ask questions of and receive answers from duly authorized representatives of the Company concerning the terms and conditions of the offering; and (iv) all questions, if any, have been answered to the full satisfaction of Subscriber, and Subscriber desires no further information pertaining to the Company.  Except as expressly set forth in this Agreement, no oral or written representations or warranties have been made to Subscriber by the Company or by any agent, employee, or affiliate of the Company.

                                                                     

  

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(f)           The Subscriber acknowledges that the purchase price for the Units has been determined by the Company, and bears no relationship to the assets or book value of the Company, or any other customary valuation criteria.

(g)           The Subscriber represents (i) that he/she/it has not been the subject of any general solicitation by the Company, and (ii) that he/she/it knows of no general solicitation, including any general advertising, by the Company in connection with the offer and sale of the Securities.

(h)           Subscriber has been encouraged to consult his, her or its own financial advisor, legal counsel and tax accountant concerning this investment, including any tax implications.  Subscriber has obtained, to the extent he, she or it deems necessary, personal professional advice with respect to the risks inherent in an investment in the Securities and the suitability of such investment in light of the Subscriber’s personal financial condition and investment needs.  The Subscriber has not employed the services of a purchaser representative, as defined in Regulation D under the Securities Act, in
connection with this investment.

(i)           Subscriber acknowledges and agrees that Subscriber is not entitled to cancel, terminate or revoke this subscription, any of the agreements of the Subscriber hereunder, and Subscriber agrees that such subscription and agreements shall survive (i) any changes in the transaction, documents and instruments described in this Agreement which in the aggregate are not material or which are contemplated by this Agreement, and (ii) the death or disability of Subscriber.

(j)           Subscriber is aware of the trading restrictions and anti-manipulation rules of Regulation M under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  Subscriber agrees to comply with all applicable provisions of Regulation M.  Subscriber has not taken, and will not take, directly or indirectly, any action designed to, or that might reasonably be expected to, cause or result in stabilization or manipulation of the price of the Common Stock to facilitate the sale or resale of the Common Stock or affect the price
at which the Common Stock may be issued or resold.  In addition, Subscriber shall not, and shall cause its affiliates not to, engage, directly or indirectly, in any transactions in the securities of the Company (including, without limitation, any short sales involving the Common Stock) during the period from the date hereof until such time as the transactions contemplated by this Agreement are first publicly announced.

3.2           (a)           The Subscriber acknowledges that this offering of Units has not been reviewed by the SEC based on the Company’s intention that it be a non-public offering conducted pursuant to exemption from the registration requirements of the Securities Act, specifically Rule 506 of Reg. D.  The Subscriber acknowledges that the Securities have not been registered under the Securities Act, or the securities laws of any individual states.  Subscriber represents and warrants that it is acquiring the Securities for investment purposes and not with a
view to distribution or resale, nor with the intention of selling, transferring or otherwise disposing of all or any part of such Securities for any particular price, or at any particular time, or upon the happening of any particular event or circumstances, except in full compliance with all applicable provisions of the Securities Act, the rules and regulations promulgated by the SEC thereunder or in connection therewith, and applicable state securities laws.  The Subscriber further acknowledges that the Securities must be held indefinitely unless they become registered under the Securities Act, or an exemption from such registration is available, and an opinion of counsel is furnished stating that registration is not required under the Securities Act or such state securities laws.

                                                                     

  

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(b)           The Subscriber is aware and understands that availability of the claimed exemption from registration under the Securities Act pursuant to which this offering is being conducted depends, in part, upon his/her/its investment intention.  In this connection, the Subscriber is further aware and understands that it is the position of the SEC that the statutory basis for such exemption would not be present if his/her/its representation merely meant that his/her/its present intention was to hold such securities for a short period, such as the capital gains period under any tax statutes, for a deferred sale, for a market
rise, assuming that a market is maintained, or for any other fixed period.  The Subscriber is further aware and understands that, in the view of the SEC, a purchase now with an intent to resell would represent a purchase with an intent inconsistent with his/her/its representation to the Company contained herein, and the SEC would likely regard such a sale or disposition as a deferred sale to which such exemptions are not available.

(c)           Subscriber understands that:  (i) the Securities have not been registered under the Securities Act or state securities laws, but are being offered and sold pursuant to exemptions from such laws; (ii) the Securities are and will be classified as “restricted securities,” as defined under the Securities Act; (iii) the Securities may not be sold or otherwise transferred unless they have been registered under the Securities Act and applicable state securities laws, or unless exemptions from such registration provisions are available with respect to resale or transfer; and (iv) the Company
is under no obligation to register the Securities under the Securities Act or any state securities laws, or to take any action to make any exemption from any such registration provisions available.  The Subscriber further understands that Rule 144 (the “Rule”) promulgated under the Securities Act requires, among other conditions, a six month holding period prior to the resale (in limited amounts) of securities acquired in a non-public offering without having to satisfy the registration requirements under the Securities Act.   The Subscriber further understands and hereby acknowledges that, unless and until the Securities are registered, any determination to allow the Securities to be transferred out of the Subscriber’s name shall be within the exclusive discretion of the Company, and shall only be permitted to the extent that an opinion of
counsel, acceptable to the Company, has been obtained to the effect that neither the sale nor the proposed transfer would result in a violation of the Securities Act or of the applicable securities laws of any state or other jurisdiction.

(d)           Subscriber acknowledges that the Securities will bear a legend to the effect that the Securities are “restricted securities” and that transfer of the securities represented thereby is subject to the provisions hereof, and stop-transfer instructions will be placed with the transfer agent for the Securities, in addition to any other legends required by applicable federal or state law.

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT, OR THE SECURITIES LAWS OF CERTAIN STATES AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS.  THE SECURITIES ARE SUBJECT TO RESTRICTION ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND SUCH LAWS PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.  THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR OTHER
REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

                                                                     

  

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3.3           The Subscriber agrees to indemnify and hold harmless the Company and each of its officers, directors, shareholders, agents and attorneys against any and all losses, claims, demands, liabilities and expenses (including reasonable legal or other expenses as such are incurred) incurred by the Company and/or any such individual which (i) arises out of or is based upon any untrue representation or other statement by the Subscriber of a material fact contained in this Subscription Agreement, or (ii) arises out of or is based upon any breach by the Subscriber of any representation,
warranty, agreement or covenant contained herein.

3.4           The Subscriber represents that the address furnished at the end of this Subscription Agreement is the address of Subscriber’s principal residence, if an individual, or its principal place of business, if an entity.

3.5           If the Subscriber is not a United States person, such Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities or any use of this Subscription Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Securities, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption,
sale, or transfer of the Securities.  Any such Subscriber’s subscription and payment for, and its continued beneficial ownership of, any of the Securities will not violate any applicable securities or other laws of the Subscriber’s non-U.S. jurisdiction.

3.6           The Subscriber agrees and covenants to execute and deliver all such further documents, agreements, and instruments, and take such other and further action, as may be reasonably requested by the Company to carry out the purposes and intent of, and any legal requirements associated with, this Subscription Agreement.

4.           Representations, Agreements, and Covenants of the Company.

4.1            The Company hereby represents and warrants to the Subscriber as of the date hereof as follows:

(a)           The Company is a corporation duly organized and existing under the laws of the State of California, and has the power to conduct the business which it conducts.

(b)           The acceptance, execution, and delivery of this Subscription Agreement by the Company shall have been duly approved by the Company, and all other actions required to authorize and effect the offer and sale of the Securities shall have been duly taken and approved.

(c)           The Securities, when issued, sold and delivered in accordance with the terms hereof for the consideration set forth herein, will be duly and validly issued, fully paid and nonassessable.

4.2           The Company covenants and agrees to refrain from disclosing the name, address, social security number (or federal tax identification number, as applicable) or any other information relating to the Subscriber, except as may be required by law, advised by counsel, or as otherwise reasonably necessary to conduct its business.

                                                                     

  

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5.           Miscellaneous.

5.1           Subject to applicable statute of limitations, the representations, warranties, agreements and covenants contained herein shall survive the sale of the Units.

5.2           Any notice, service of process, or other communication given hereunder shall be deemed sufficient if in writing and sent by registered or certified mail, return receipt requested, addressed to the Company at their corporate headquarters and to the Subscriber at his/her/its address indicated on the last page of this Subscription Agreement.  Notices shall be deemed to have been given on the date of mailing, except notices of change of address, which shall be deemed to have been given when received.  Either party may change its address for purposes hereof at any time or from time to time by providing notice in
writing to the other party in accordance herewith, and any such newly designated address shall thereafter serve for purposes hereof in lieu of the address stated herein.

5.3           This Subscription Agreement shall not be changed, modified, or amended except through a writing signed by both the Company and the Subscriber.

5.4           This Subscription Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective heirs, legal representatives, successors, and/or assigns.   This Subscription Agreement sets forth the entire agreement and understanding between the parties as to the subject matter hereof and supersedes all prior discussions, agreements, and understandings of any and every nature between them.

5.5           Notwithstanding the place where this Subscription Agreement may have been executed by either party, it is agreed that all the terms and provisions hereof shall be construed in accordance with and governed by the laws of the State of New York, without regard to principles of conflicts of laws.  The parties hereby agree that any dispute that may arise between them arising out of or in connection with this Subscription Agreement shall be adjudicated before a federal or state court located in New York County, New York and they hereby submit to the exclusive jurisdiction of such courts with respect to any action or legal
proceeding commenced by either party, and irrevocably waive any objection they now or hereafter may have respecting the venue of any such action or proceeding brought in such a court or respecting the fact that such court is an inconvenient forum, relating to or arising out of this Subscription Agreement or any acts or omissions relating to the sale of the securities pursuant hereto.

5.6           This Subscription Agreement may be executed in counterparts.  Upon the execution and delivery of this Subscription Agreement by the Subscriber, this Subscription Agreement shall become a binding obligation of the Subscriber with respect to the purchase of the Subscription Shares as herein provided, but shall only be binding upon the Company if and when executed by the Company.

5.7           The holding of any provision of this Subscription Agreement to be invalid or unenforceable by a court of competent jurisdiction shall not affect any other provision of this Subscription Agreement, which shall remain in full force and effect.

5.8           It is agreed that a waiver by either party of a breach of any provision of this Subscription Agreement shall not operate, or be construed, as a waiver of any subsequent or continuing breach by that same party.

                                                                     

  

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[Remainder of Page Intentionally Left Blank; Signature Page Follows]

                                                                     

  

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EXECUTED IN WITNESS WHEREOF, the parties have executed this Subscription Agreement as of the day and year set forth in each case below.

 

	 Signature of Subscriber or Authorized Representative:  	 	 Subscription Accepted:	 
	 	 	 VU1 CORPORATION	 
	 	 	 A California corporation	 
	 	 	 	 
	 By:	 	 By:	 
	 Name:	 	 Name:	 
	 [Title]:	 	 [Title}:	 
	 Date:	 	 Date:	 
	 	 	 	 

                           

Address (principal residence):                                                      

          

 

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

                                                                                                               

 

	 Email Address:  	 	 
	 Social Security or Taxpayer:  	 	 
	 Identification Number of Subscriber:   	 	 
	 Total Number of Units Subscribed For: 	 	 
	 Total Subscription Amount:  $ 	 	 
	 	 	 

 

                                                                                                          

240,667,396v2NY 

8exhibit10-2.htm

Exhibit 10.2

THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.  THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

VU1 CORPORATION

COMMON STOCK PURCHASE WARRANT

	  	  
	
Warrant Number

	
«Warrant_»

 

	
Issue Date

 

	
12/20/12

	
Expiration Date

 

	
12/20/15 (3 Years from Origin Date)

	
Name of Warrant Holder

 

	
«AddressBlock»

	
Number of Shares of Common Stock

(subject to adjustment as provided herein)

 

	
«Warrants» Shares

	
Exercise Price per Share

 

	
$1.50

Vu1 Corporation, a California corporation (the “Company”), for value received, hereby certifies that the Warrant Holder identified above or its registered assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company up to the number of shares of Company common stock, no par value per share (the “Common Stock”), set forth above at the exercise price per share set forth above, on the terms and conditions set forth herein.  The number of shares of Common Stock issuable upon exercise of this Warrant, and the exercise price per share, each as adjusted from time to time pursuant to the provisions of this Warrant,
are hereinafter referred to as the “Warrant Stock” and the “Exercise Price,” respectively.  This Warrant is delivered to Holder pursuant to the terms of that certain Subscription Agreement between the Company and Holder.

1.           Manner of Exercise.  This Warrant may be exercised in whole or in part by delivering to the Company at its principal place of business (i) this Warrant, (ii) the form of Election to Purchase attached hereto as Exhibit A duly completed and executed by Holder, and (iii) cash, wire transfer, or bank check payable to the Company, in the amount of the Exercise Price multiplied by the number of shares for which this Warrant is being exercised (the “Purchase
Price”).  Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant shall have been surrendered to the Company as provided herein or at such later date as may be specified in the executed form of Election to Purchase.

  

  

  

2.           Delivery of Stock Certificate.  As soon as practicable after the exercise of this Warrant, in full or in part, and in any event within 10 days thereafter, the Company at its expense will cause to be issued in the name of and deliver to the Holder (a) a certificate or certificates for the number of fully paid and nonassessable shares of Warrant Stock to which Holder shall be entitled upon such exercise and (b) if applicable, a new Warrant of like tenor to purchase up to that number of shares of Warrant Stock, if any, not previously exercised by
Holder.  Holder shall for all purposes be deemed to have become the holder of record of such shares of Warrant Stock on the date on which this Warrant was properly exercised in accordance with Section 1, irrespective of the date of delivery of the certificate or certificates representing the Warrant Stock; provided that, if the date of such exercise is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of record of such shares of Warrant Stock at the close of business on the next succeeding date on which the stock transfer books are open.

3.           Reservation of Warrant Stock.  The Company covenants and agrees that the Company will at all times have authorized and reserved a sufficient number of shares of Common Stock to provide for the exercise of the rights represented by this Warrant.

4.           Termination.  To the extent not earlier exercised, the Warrant evidenced hereby shall be void and of no effect and all rights hereunder shall cease upon the earlier of (a) 5:00 p.m., Pacific Time, on the Expiration Date set forth above, or (b) the closing of any merger, consolidation or other reorganization of the Company with or into any other corporation or other business entity, or the sale of all or substantially all of its assets, or the liquidation or dissolution of the Company (each, a “Transaction”).  The
Company shall provide Holder with written notice not less than 10 days prior to the closing of any proposed Transaction.  All restrictions set forth herein on the shares of Warrant Stock issued upon exercise of any rights hereunder shall survive such exercise and expiration of the rights granted hereunder.

5.           Adjustments to Warrant.  In case the Company shall issue any shares of Common Stock as a stock dividend or subdivide the number of outstanding shares of Common Stock into a greater number of shares, then, in either of such cases, the Exercise Price in effect at the time of such action shall be proportionately reduced and the number of shares of Warrant Stock at that time purchasable pursuant to this Warrant shall be proportionately increased; and, conversely, in the event the Company shall contract the number of outstanding shares of Common Stock by
combining such shares into a smaller number of shares, then, in such case, the Exercise Price in effect at the time of such action shall be proportionately increased and the number of shares of Warrant Stock at that time purchasable pursuant to this Warrant shall be proportionately decreased.  Any calculations of adjustments shall be made to the nearest cent or to the nearest one whole share, as the case may be.

6.           Restrictions on Transfer.  Neither this Warrant nor the Warrant Stock have been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any applicable state law, and no interest therein may be sold, distributed, assigned, offered, pledged or otherwise transferred unless (a) there is an effective registration statement under the Securities Act and applicable state securities laws covering any such transaction involving said securities, (b) the Company receives an opinion of legal counsel for Holder
(concurred in by legal counsel for the Company) stating that such transaction is exempt from registration, or (c) the Company otherwise satisfies itself that such transaction is exempt from registration.

7.           Legend.  A legend setting forth or referring to the restrictions stated in Section 6 shall be placed on this Warrant, any replacement hereof and any certificates representing Warrant Stock, and a stop transfer restriction or order shall be placed on the books of the Company and with any transfer agents against this Warrant and shares of Warrant Stock until they may be legally sold or otherwise transferred.

  

  

  

8.           Fractional Shares.  No fractional shares shall be issued upon the exercise of the Warrant.  In lieu of fractional shares, the Company shall round the number of shares to be issued upon exercise of this Warrant to the nearest whole share.

9.           Holder as Owner.  Unless this Warrant is transferred or assigned, the Company may deem and treat the Holder at all times as the absolute owner of the Warrant evidenced hereby for all purposes regardless of any notice to the contrary.

10.         No Rights as Shareholder.  This Warrant shall not entitle Holder to any voting rights or any other rights as a shareholder of the Company, or to any other rights whatsoever except the rights stated herein; and no dividend or interest shall be payable or shall accrue in respect of this Warrant or the shares purchasable hereunder unless, and until, and except to the extent that, this Warrant shall be exercised.

11.         Exchange or Destruction of Warrant.  This Warrant is exchangeable, without expense to Holder and upon delivery hereof to the Company, for Warrants of different denominations entitling Holder to purchase shares of Warrant Stock equal in total number and identical in type to the shares of Warrant Stock covered by this Warrant.  In addition, upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation of this Warrant and, in the case of any such loss, theft or destruction, upon receipt of an
affidavit and indemnity reasonably satisfactory to the Company, or in the case of any such mutilation upon surrender and cancellation of such Warrant, the Company at its expense will make and deliver a new Warrant, of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant.

12.         Notices.  Unless otherwise provided, any notice, request or other document required or permitted to be given or delivered to Holder hereof or the Company shall be given in writing and shall be deemed effectively given (a) upon personal delivery to the party to be notified, (b) upon confirmation of receipt by fax by the party to be notified, or (c) upon receipt if delivered by prepaid overnight delivery, courier service or registered or certified mail addressed, (i) if to Holder, to the address of Holder most recently furnished in writing to the
Company and (ii) if to the Company, to the address set forth below, or in either case at such other address as such party may designate by five days’ advance written notice to the other party given in the foregoing manner.

13.         Successors and Assigns.  The terms and provisions of this Warrant shall be binding upon the Company and Holder and their respective successors and assigns, subject at all times to the restrictions set forth herein.

14.         Applicable Law.  The validity, interpretation and performance of this Warrant shall be governed by the laws of the State of New York, without regard to principles of conflicts of laws.

EXECUTED as of the day and year first above written.

 

	 	 VU1 CORPORATION	 
	 	 	 	 
	 	 	 	 
	 	 By:   	 	 
	 	 	 Matthew DeVries, Chief Financial Officer	 
	 	 	 	 

 

                                                   

 

  

  

  

Exhibit A to Common Stock Purchase Warrant

ELECTION TO PURCHASE

Vu1 Corporation

Attention:  Corporate Secretary

The undersigned hereby irrevocably elects to purchase __________ shares of Common Stock of Vu1 Corporation, a California corporation (the “Company”), issuable upon the exercise of the attached Warrant, and requests that certificates for such shares be issued in the name of and delivered to the undersigned at the address stated below.  If said number of shares shall not be all the shares which may be purchased pursuant to the attached Warrant, the Company shall issue a new Warrant to the Holder evidencing the right of the Holder to purchase the balance of such shares under terms identical to the attached Warrant.

The undersigned hereby agrees with and represents to the Company that such shares of Common Stock are acquired for investment and not with a view to, or for sale in connection with, any distribution or public offering thereof within the meaning of the Securities Act of 1933, as amended, and that the undersigned has no present intention of distributing or reselling such shares.  The undersigned acknowledges and agrees that the exercise of the attached Warrant and the issuance and transfer of the Common Stock to be purchased are subject to Sections 6 and 7 of the attached Warrant.

	
Payment enclosed in the amount of:

	
$_________________

	  	  
	
Dated:  ______________, 20__

	  
	  	  
	
Name of Holder of Warrant (please print):

	
________________________________

	  	  
	
Address:

	
________________________________

________________________________

________________________________

	  	  
	
Signature:

	
________________________________

240,667,420v2NY

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