Document:

exv10w1

 

Exhibit 10.1

FORM OF SUBSCRIPTION AGREEMENT

     THIS AGREEMENT (the “Agreement”) is made
effective as of the ___day of ___, 2005 (the "Effective Date”), by and between O2DIESEL CORPORATION,
a Delaware corporation, with its principal office at 100 Commerce Dr., Suite 301, Newark, Delaware 19713 (the “Company”)
and [                        
                         
      ] of [                
                         
                         
                         
                         
                         
                         
                         
                         
                         
                         
                         
                         
                         
                         
      ] (the “Subscriber”).

WHEREAS:

	A.	 	The Company desires to issue and sell up to 4,285,714 shares of common stock (the
“Offering"), with $0.0001 par value, at US $0.70 per share (each, a “Common Share”), in an
offer and sale that satisfies certain requirements of Regulation D (“Regulation D”)
promulgated under the Securities Act of 1933, as amended (the “Securities Act”).
	 
	B.	 	The Subscriber desires to purchase the number of Common Shares set forth below under the
terms and conditions set forth in this Agreement.
	 
	C.	 	The Company is offering the Common Shares pursuant to an exemption from the registration
requirements of the Securities Act available under Regulation D.
	 
	D.	 	Subscriber is an “accredited investor” as that term is defined in the Securities Act and
Regulation D thereunder.

     NOW THEREFORE THIS AGREEMENT WITNESSES that, in consideration of the mutual covenants and
agreements herein contained, the receipt of which is acknowledged, the parties covenant and agree
with each other as follows:

	1.	 	Agreement to Purchase.

          1.1.      On the terms and subject to the conditions of this Agreement, the Subscriber tenders this
subscription and irrevocably subscribes for the purchase of
[              ] Common
Shares at the price of US $0.70 per share (“Common Shares”) to be purchased at the Closing (as
herein defined), pursuant to an exception from registration under Section 4(2) of the Securities
Act and Regulation D thereunder. By signing this Agreement, the Subscriber acknowledges that the
Company is relying on the accuracy and completeness of the representations contained in this
Agreement in complying with its obligations under applicable securities laws.

          1.2.      At the Closing, the Company shall issue to the Subscriber a warrant to purchase one
additional Common Share for each two Common Shares purchased (the “Warrant”) expiring twenty four
(24) months following the Closing (“Warrant Expiration Date”). The Warrant shall be exercisable at
an exercise price of $0.70 per share during the twelve (12) months following the Closing or at an
exercise price of $1.05 per share during the period twelve (12) months after the Closing to the Warrant
Expiration Date.

 

 

	2.	 	Closing.

          2.1.      Subject to satisfaction or waiver of the conditions set forth in Section 3 below, the
closing of the sale and purchase of the Common Shares shall take place on the 120th day
after the Effective Date, or such earlier day that is agreed between the Company and the
Subscriber, at the offices of Arnold & Porter LLP, 1600 Tysons Boulevard, McLean, Virginia 22102,
or such other place as the Company may designate (“Closing”).

          2.2.      Concurrent with the execution of this Agreement, the Subscriber will tender to the
Company the subscription funds for the Common Shares (a) in the form of a check payable to
“O2Diesel Corporation” to be delivered to Arnold & Porter LLP, 1600 Tysons Boulevard, McLean,
Virginia 22102, Attn.: Kevin J. Lavin, Esq. or (b) by wire transfer to the following account:

	 	 	 
	Account Name:

	 	Arnold & Porter LLP Client Trust Account
	Account No.

	 	3700 3879
	ABA No.

	 	254 07 0116
	Bank Name:

	 	Citibank FSB
	

	 	1101 Pennsylvania Avenue, NW
	
	 	Washington, DC 20004
	Note:
	 	O2Diesel Corporation / Equity Subscription

     This Subscription Agreement shall not be binding upon the Company until the subscription funds
have been received in accordance with this Section 2.2. In the even that less than the full
subscription funds are received, this Subscription Agreement will be binding only in respect of the
number of Common Shares that may be purchased based on the subscription funds received.

          2.3.      In the event that the Closing has not occurred by the latest time specified in
Sections 2.1, the obligations of the parties in respect of the Closing shall terminate and any subscription
funds tendered in respect of the Closing shall be returned to the Subscriber. In such event, the
Company shall have no liability to the Subscriber other than to return any funds tendered, without
interest.

          2.4.      No later than five days after the Closing, the Company shall deliver a treasury order to
its transfer agent sufficient to cause the transfer agent to issue to the Subscriber a share
certificate or certificates representing the Common Shares, registered in the name of the
Subscriber, as provided for below.

          2.5.      The Company and the Subscriber also hereby agree to execute and deliver at the Closing
such other documents as may be necessary or appropriate.

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	3.	 	Conditions to the Closing.

          As a condition to the Closing, the Company shall have:

          (a)      Expanded existing management by appointing a Chief Operating Officer or new Chief
Executive Officer; and

          (b)      Received shareholder approval for the sale or issuance of common stock equal to twenty
(20%) or more of the Company’s presently outstanding stock as required by The American Stock
Exchange.

	4.	 	Covenants.

          The Company agrees it shall within sixty (60) days following the Closing, prepare and file, at
its own expense, a registration statement or registration statements for all the Common Shares
issued (the “Registration Statements”) under the Securities Act with the Securities and Exchange
Commission (“SEC”). The Company will use its reasonable best efforts to cause such Registration
Statements to become effective within six (6) months from the initial filing thereof.

	5.	 	Information Concerning the Company.

          Subscriber acknowledges that it has received all such information as Subscriber deems
necessary and appropriate to enable it to evaluate the financial risk inherent in making an
investment in the Common Shares, including but not limited to the Company’s reports filed under the
Securities Exchange Act of 1934, as amended, with the SEC (“Disclosure Documents”). Subscriber
further acknowledges that Subscriber has (a) received satisfactory and complete information
concerning the business and financial condition of the Company in response to all inquiries in
respect thereof, and (b) been given the opportunity to meet with management of the Company.

	6.	 	Economic Risk and Suitability.

          Subscriber represents and warrants as follows:

          (a)      Subscriber is acquiring the Common Shares for his, her or its own account for investment
and not with a view to, or for sale in connection with, any distribution thereof, nor with any
present intention of distributing or selling the same; and Subscriber has no present or
contemplated agreement, undertaking, arrangement, obligation, indebtedness or commitment providing
for the disposition thereof. Subscriber is an “accredited investor” as defined in Rule 501(a)
under the Securities Act. Subscriber understands that the Common Shares have not been, and will
not be, registered under the Securities Act by reason of a specific exemption from the registration
provisions of the Securities Act, the availability of which depends upon, among other things, the
bona fide nature of the investment intent and the accuracy of Subscriber’s representations as
expressed herein.

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          (b)      Subscriber recognizes that there is no assurance of future profitable operations and that
investment in the Company involves substantial risks, and that the Subscriber has taken full
cognizance of and understands all of the risk factors related to the purchase of the Common Shares.

          (c)      Subscriber has carefully considered and has, to the extent Subscriber believes such
discussion necessary, discussed with Subscriber’s professional legal, tax and financial advisors
the suitability of an investment in the Company for the particular tax and financial situation of
Subscriber and that Subscriber and/or Subscriber’s advisors have determined that the Common Shares
are a suitable investment for Subscriber.

          (d)      The financial condition and investment of Subscriber is such that it is in a financial
position to bear the economic risk of, and withstand a complete loss of, the entire investment.

          (e)      Subscriber alone, or with the assistance of professional advisors, has such knowledge and
experience in financial and business matters that the undersigned is capable of evaluating the
merits and risks of Subscriber’s purchase of the Common Shares or has a pre-existing personal or
business relationship with the Company or any of its officers, directors, or controlling persons of
a duration and nature that enables the Subscriber to be aware of the character, business acumen and
general business and financial circumstances of the Company.

          (f)      Subscriber has carefully read the Disclosure Documents and the Company has made available
to Subscriber or its advisors all information and documents requested by Subscriber relating to
investment in the Common Shares, and has provided answers to Subscriber’s satisfaction to all of
its questions concerning the Company and the Offering.

          (g)      Subscriber has relied solely upon the Disclosure Documents, advice of his or her
representatives, if any, and independent investigations made by the Subscriber and/or its purchaser
representatives, if any, in making the decision to purchase the Common Shares and acknowledges that
no representations or agreements other than those set forth in the Disclosure Documents have been
made to the Subscriber in respect thereto.

          (h)      All information which the Subscriber has provided concerning itself is correct and
complete as of the date set forth below, and if there should be any material change in such
information prior to the acceptance of this subscription for the Common Shares, it will immediately
provide such information to the Company.

          (i)      The Subscriber acknowledges that hedging transactions involving the Common Shares may not
be conducted unless in compliance with the Securities Act and all applicable securities laws, rules
and regulation.

          (j)      The Subscriber acknowledges there may be material tax consequences to the Subscriber of an
acquisition or disposition of the Common Shares. The Company gives no opinion and makes no
representation with respect to the tax consequences to the
Subscriber under United States, state, local or foreign tax law of the Subscriber’s
acquisition or disposition of such securities.

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          (k)      The Subscriber acknowledges that a broker fee of eight percent (8%) of the funds received
will be paid to Clear Channel Inc.

          (l)      Subscriber resides at the address indicated below.

	7.	 	Restricted Securities.

          Subscriber acknowledges that the Company has hereby disclosed to Subscriber in writing:

          (a)      The Common Shares have not been registered under the Securities Act, or the securities
laws of any state of the United States, and such securities must be held indefinitely unless a
transfer of them is subsequently registered under the Securities Act, or such securities are sold
pursuant to an exemption from registration under the Securities Act; and

          (b)      The Company will make a notation in its records of the above-described restrictions on
transfer and of the legend described below.

	8.	 	Legend.
	 
	 	 	Subscriber agrees that all of the certificates representing the Common Shares shall have
endorsed thereon a legend in substantially the following form:
	 
	 	 	THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED BY THE HOLDER
FOR ITS OWN ACCOUNT, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO THE
DISTRIBUTION OF SUCH SECURITIES. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE
SECURITIES LAWS AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT (I) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND COMPLIANCE WITH SUCH
STATE SECURITIES LAWS, (II) IN COMPLIANCE WITH RULE 144 UNDER THE ACT AND
APPLICABLE STATE SECURITIES LAWS, OR (III) UPON THE DELIVERY TO O2DIESEL
CORPORATION (THE “COMPANY”) OF AN OPINION OF COUNSEL OR OTHER EVIDENCE
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION AND/ OR COMPLIANCE IS NOT
REQUIRED.

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	9.	 	Further Limitations on Disposition.

          Without in any way limiting its representations set forth above, Subscriber further agrees
that it shall in no event make any disposition of all or any portion of the Common Shares unless:

          (a)      There is then in effect a registration statement under the Securities Act covering such
proposed disposition and such disposition is made in accordance with said registration statement;
or

          (b)      (i) Subscriber shall have notified the Company of the proposed disposition and shall have
furnished the Company with a reasonably detailed statement of the circumstances surrounding the
proposed disposition; (ii) Subscriber shall have furnished the Company with an opinion of his or
her counsel to the effect that such disposition will not require registration under the Securities
Act; and (iii) such opinion shall be in form and substance reasonably acceptable to counsel for the
Company and the Company shall have advised Subscriber of such acceptance.

	10.	 	Understandings.

          Subscriber understands, acknowledges and agrees with the Company as follows:

          (a)      The Subscriber hereby acknowledges and agrees that the subscription hereunder is
irrevocable by the Subscriber, that, except as required by law, the Subscriber is not entitled to
cancel, terminate or revoke this Agreement or any agreements of the Subscriber hereunder and that
this Agreement and such other agreements shall survive the death or disability of the Subscriber
and shall be binding upon and inure to the benefit of the parties and their heirs, executors,
administrators, successors, legal representatives and permitted assigns. If the Subscriber is more
than one person, the obligations of the Subscriber hereunder shall be joint and several and the
agreements, representations, warranties and acknowledgments herein contained shall be deemed to be
made by and be binding upon each such person and his/her heirs, executors, administrators,
successors, legal representatives and permitted assigns.

          (b)      No federal or state agency has made any finding or determination as to the accuracy or
adequacy of the Disclosure Documents or as to the fairness of the terms of this offering for
investment nor any recommendation or endorsement of the Common Shares.

          (c)      The representations, warranties and agreements of the Subscriber contained herein and in
any other writing delivered in connection with the transactions contemplated hereby shall be true
and correct in all respects on and as of the date of the sale of the Common Shares as if made on
and as of such date and shall survive the execution and delivery of this Agreement.

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	11.	 	Miscellaneous.

          (a)      On or after the date of this Agreement, each of the parties shall, at the request of the
other, furnish, execute and deliver such documents and instruments and
take such other action as the requesting party shall reasonably require as necessary or
desirable to carry out the transactions contemplated herein.

          (b)      This Agreement, including all matters of construction, validity and performance, shall be
governed by and construed and enforced in accordance with the laws of the State of Delaware, as
applied to contracts made, executed and to be fully performed in such state by citizens of such
state, without regard to its conflict of law rules. The parties hereto agree that the exclusive
jurisdiction and venue for any action brought between the parties under this Agreement shall be the
state and federal courts sitting in Newark, Delaware and each of the parties hereby agrees and
submits itself to the exclusive jurisdiction and venue of such courts for such purpose.

          (c)      This Agreement comprises the entire agreement between the parties. It may be changed only
by further written agreement, signed by both parties. It supersedes and merges within it all prior
agreements or understandings between the parties, whether written or oral. In interpreting or
construing this Agreement, the fact that one or the other of the parties may have drafted this
Agreement or any provision shall not be given any weight or relevance.

          (d)      This Agreement may be executed in counterparts, each of which will be deemed to be an
original and all of which will constitute one agreement. A facsimile copy is deemed to be
effective delivery of this Agreement.

[Signature Page Appears on Next Page]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first indicated above.

	 	 	 	 	 
	 	O2DIESEL CORPORATION

 	 
	 	By:  	
 	 
	 	 	Alan R. Rae 	 
	 	 	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 
	 
	 	Address:	 	 
	 
	 	 	 
	 

- 8 -exv4w1

 

EXHIBIT 4.1

	

INCORPORATED UNDER THE LAWS
OF THE STATE OF DELAWARE

LIBERTY GLOBAL, INC.

SERIES A COMMON STOCK

THIS CERTIFICATE IS TRANSFERABLE IN
CANTON, MA, JERSEY CITY, NJ AND NEW YORK, NY

CUSIP 530555 10 1

SEE REVERSE FOR CERTAIN DEFINITIONS

THIS CERTIFIES that

is the owner of

FULLY PAID AND NON-ASSESSABLE SHARES OF THE SERIES A
COMMON STOCK, PAR VALUE $.01 PER SHARE, OF

LIBERTY GLOBAL, INC.

transferable on the books of the Corporation by the holder hereof, in person or
by duly authorized attorney, upon surrender of this Certificate properly
endorsed.

This Certificate is not valid unless countersigned by the Transfer Agent
and registered by the Registrar.

WITNESS the facsimile seal of the Corporation and the facsimile signatures of
its duly authorized officers.

[sig]

CHIEF EXECUTIVE OFFICER

[sig]

SECRETARY

LIBERTY GLOBAL, INC

CORPORATE

SEAL

DELAWARE

Dated:

COUNTERSIGNED AND REGISTERED:

EQUISERVE TRUST COMPANY, N.A.

TRANSFER AGENT AND REGISTRAR

BY

AUTHORIZED SIGNATURE

AMERICAN BANK NOTE COMPANY
711 ARMSTRONG LANE
COLUMBIA, TENNESSEE 38401
(931) 388-3003

/ETHER 19 /LIVE JOBS/L/ LIBERTY 19998 FC Lot 1

PRODUCTION COORDINATOR: TODD DEROSSETT 931-490-1720

PROOF OF JUNE 6, 2005

LIBERTY GLOBAL, INC.

TSB 19998 FC Lot 1

Operator: Ron/Teresa

REV. 1

PLEASE INITIAL THE APPROPRIATE SELECTION FOR THIS PROOF: __ OK AS IS __ OK WITH
CHANGES __ MAKE CHANGES AND SEND ANOTHER PROOF

Colors Selected for Printing: Intaglio prints in SC-9 Dark Purple.

COLOR: This proof was printed from a digital file or artwork on a graphics
quality, color laser printer. It is a good represention of the color as it will
appear on the final product.

However, it not an exact color rendition, and the final printed product may
appear slighty different from the proof due to the difference between the dyes
and printing ink.

 

LIBERTY GLOBAL, INC.

  
     The Corporation
    will furnish without charge to each shareholder who so requests a full statement
    of the designations, preferences, limitations and relative rights of each
    class of stock or series thereof of the Corporation and the variations in
    the relative rights and preferences between the shares of any series of preferred
    stock, so far as the same have been fixed and determined, and the authority
    of the board of directors to fix and determine the relative rights and preferences
    of any series of preferred stock. Such requests may be made to the Corporation
    or to the transfer agent.
  
ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable
laws or regulations:

    	 	 	 	 	 	 	 	 	 	 	 
	TEN
            COM 
	— 	as tenants in common 	 	 	 	UNIF GIFT MIN
            ACT —
	               	 	Custodian 
	                                                                  
	TEN ENT
          
	— 	as tenants by the entities	 	 	 	                   
          
	(Cust) 
	 	
	(Minor)

	JT TEN
          
	— 	as joint tenants with the right of
        	 	 	 	
	under Uniform Gifts to Minors

	 
	 	survivorship and not as tenants 	 	 	 	 	Act	 	                                                                                              
	 
	 	in common 	 	 	 	 	 	 	(State)
	 

Additional abbreviations may also be used though not in the above list.

FOR VALUE RECEIVED,                                                     hereby sell, assign and transfer unto

	 	 	 
	PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE	 	 
	
	 	 
	
	 	 
	
	 	 
	
	 	 

	 	 	 
	

        
	(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS,
          INCLUDING ZIP CODE, OF ASSIGNEE)

	

	

	 	 	 	 	 
	

	 	Shares
          

	

of the Series A Common Stock represented by the within Certificate, and do hereby irrevocably constitute and appoint
	 	 	 	 
	

	 	Attorney
          

	

to transfer the said Shares on the books of the within named
Corporation with full power of substitution in the premises.

	 	 	.	 
	

	 	 	 	 

Dated                               

	 	 	 	 	 
	

	 	 	 	Signature(s):
	

	 	ý
	 	 

	

	 	ý
	 	 
	 
	 	 	 	

	

	 	NOTICE: 
	 	THE SIGNATURE OF THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF
THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE
WHATEVER.
	

	 	 	 	 

Signature(s) Guaranteed

    	 	 	 	 
	By 
	 	 	

	

          
	 	
	 
	
          

          THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION
          (BANKS,

          STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP
          IN

          AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM),
PURSUANT TO S.E.C.

          RULE 17Ad – 15.

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