Document:

HUMT form of Stock Purchase Agmt

[FORM OF]

HUMATECH, INC.

Common Stock Purchase Agreement

Under 2004 Non-Qualified Stock Grant and Option Plan

THIS AGREEMENT is dated as of _______________, 20__, between Humatech, Inc., an Illinois corporation (the “Company”), and ___________________________ (“Purchaser”).

W I T N E S S E T H:

WHEREAS, pursuant to the terms of a ________________ Agreement dated ________________, 20__, by and between Purchaser and the Company (the “_____________ Agreement”), the Company has agreed to issue to Purchaser _______________ shares of the Company’s common stock in exchange for __________________________________________.

 

WHEREAS, pursuant to the terms hereof, Purchaser desires to purchase shares of the Company as herein described, on the terms and conditions set forth in this Agreement and the Humatech, Inc. 2004 Non-Qualified Stock Grant and Option Plan (the “Plan”). Certain capitalized terms used in this Agreement are defined in the Plan.

 

NOW, THEREFORE, it is agreed between the parties as follows:

 

1.   PURCHASE OF SHARES.

 

Purchaser hereby agrees to purchase from the Company and the Company agrees to sell and issue to Purchaser ________________ shares of the Company’s common stock (the “Stock”) in exchange for ________________ valued by the Company at $___________ per the terms of the ______________ Agreement. Vesting of the Stock shall be governed by the ______________Agreement. The closing hereunder (the “Closing”) shall occur at the offices of the Company on the date hereof, or such other time and place as may be designated by the Company (the “Closing Date”). The Purchaser’s interest in the Stock shall be fully vested as of the Closing Date.

 

2.   PURCHASER’S INVESTMENT REPRESENTATIONS.

 

This Agreement is made with Purchaser in reliance upon Purchaser’s representation to the Company, which by Purchaser’s acceptance hereof Purchaser confirms, that the Stock which Purchaser will receive will be acquired with Purchaser’s own funds for investment for an indefinite period for Purchaser’s own account, not as a nominee or agent, and not with a view to the sale or distribution of any part thereof, and that Purchaser has no present intention of selling, granting participation in, or otherwise distributing the same, but subject, nevertheless, to any requirement of law that the disposition of Purchaser’s property shall at all times be within Purchaser’s control. By executing this Agreement, Purchaser further represents that Purchaser does not have any contract, understanding or agreement with any person to sell, transfer, or grant participation, to such person or to any third person, with respect to any of the Stock.

 

In connection with the investment representations made herein, Purchaser represents that Purchaser is able to fend for himself or herself in the transactions contemplated by this Agreement, has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of Purchaser’s investment, has the ability to bear the economic risks of Purchaser’s investment and has been furnished with and has had access to such information as would be made available in the form of a registration statement together with such additional information as is necessary to verify the accuracy of the information supplied and to have all questions answered by the Company.

 

	 
	 	Page 1 of 3	 
	

	 

 

3.   NO DUTY TO TRANSFER IN VIOLATION HEREUNDER.

 

The Company shall not be required (a) to transfer on its books any shares of Stock of the Company which shall have been sold or transferred in violation of any of the provisions set forth in this Agreement or (b) to treat as owner of such shares or to accord the right to vote as such owner or to pay dividends to any transferee to whom such shares shall have been so transferred.

 

 

4.   OTHER NECESSARY ACTIONS.

 

      The parties agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.

 

5.   NOTICE.

Any notice, request, or instructions given in connection with this Option shall be in writing and shall be delivered in person during normal business hours, by facsimile, or by overnight mail against a receipt for delivery, to the following addresses:

 

If to Grantor, at Humatech, Inc., 1959 South Val Vista Drive, Suite 130, Mesa, Arizona 85204, Facsimile No. (480) 813-8485, Attention: Corporate Secretary.

 

If to Grantee, at ___________________________, Facsimile No. ____________ or at such other address as either of the parties shall have given notice to the other in accordance with the provisions hereof.

 

6.   SUCCESSORS AND ASSIGNS.

 

This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on transfer herein set forth, be binding upon Purchaser and Purchaser’s heirs, executors, administrators, successors and assigns. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition, whether of a like or different nature.

 

7.   APPLICABLE LAW.

 

This Agreement shall be governed by, and construed in accordance with, the laws of the State of Arizona, as such laws are applied to contracts entered into and performed in such state.

 

8.   NO ORAL MODIFICATION.

 

No modification of this Agreement shall be valid unless made in writing and signed by the parties hereto.

 

	 
	 	Page 2 of 3	 
	

	 

9.   ENTIRE AGREEMENT.

 

This Agreement and the ____________ Agreement constitute the entire complete and final agreement between the parties hereto with regard to the subject matter hereof.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

 

 

	 Humatech, Inc.	 	 	 
	an Illiniois corporation	 	 	
	 	 	 	

		 	 	
	

	 	 	

	By:	 		By:
	Its:	 	 	Its:

	 

 

	 
	 	 Page 3 of 3(Exhibit 10.40)
WEINBERG & COMPANY, P.A.
[Letterhead]

June 23, 2004

Securities and Exchange Commission
450 Fifth Street
Washington, D.C. 20549

RE:   FORM 8-K - XYNERGY CORPORATION

Gentlemen:

On June 17, 2004 we received simultaneous with its late filing with the
Securities and Exchange Commission ("SEC"), a copy of Form 8K regarding our
dismissal as auditor on June 3, 2004. The statements contained many inaccuracies
and do not disclose the issue with regard to the engagement.

At the time of the receipt of the dismissal, our Executive Committee was
reviewing the entire engagement and our desire to disassociate ourselves from
the Company and its personnel. When we received a letter of termination, it was
decided that it was most expeditious way to handle the matter was to merely
accept dismissal. We did immediately notify the SEC that our relationship with
Xynergy was terminated. However the late filing of the 8K not provided to us
prior to its filing and its inappropriate disclosures must be addressed. The
facts are as follows:

      1. We were approached in January 2004 to represent the Company. The
managing partner for the firm and the California resident partner held
discussions with the prior auditor to satisfy the requirements of Statements On
Auditing Standards 84. An engagement letter was prepared on January 21, 2004 to
audit the Company's December 31, 2003 financial statements, but did not receive
a retainer until February 27, 2004 and no substantive work was initiated until
March.

      2. In lieu of a financial statement,, we were provided with the first
trial balance of the company on March 17, 2004. The balances in the e general
letter did not agree to the e audited financial statements that had been filed
with the Commission the year 2002. We contacted the Company and received new
trails balance and general ledger on April 10,2004. His once again was
incorrect, and we received another general ledger on April 12, 2004.

      3. In mid April, we started discussing with the Company when we would be
receiving the financial statements and footnotes. Company personnel seemed
surprised t hath the Company was required to complete their own financial
statements and along with appropriate footnotes. We advised the company that we
must receive the statements. Between April 22 and May 27, 2004 we received no
less than five purported financial statements from the company with disclosures.
Each time we communicated with the Company to indicate that the financial
statements were deficient because of inconsistencies between prior year numbers
and the amounts included in SEC filings, unidentified prior period adjustments,
inadequate disclosures, equity transactions the at did not balance. There were
many other items that did not balance. There were many other items that did not
reflect the minimum level of financial reporting of the Securities and Exchange
Commission.

                                       4
<PAGE>

      4. On or about April 15, 2004 the Company filed a Form 10KSB without
audited financial statements. We immediately sent a letter to the company
pursuant to Section 10A of the Securities and Exchange Commission Act of 1934,
that this filing was not in compliance with Regulation 228.310 under Regulation
S-B. The Company responded orally the would amend the filing as soon as
possible. Since the Company took no corrective action and the SEC was not aware
of the deficiency an "E" was never placed on their account.

      5. On May 19, 2004 we contacted Henry Schiffer, CPA, prior auditor of the
Company in order to arrange for the reissuance of his opinion on the December
31, 2002 financial statements in connection with the filing of the 10KSB. Mr.
Schiffer referred us to his attorney. On May 20, 2004, we spoke to Mark Tow,
attorney for Mr. Schiffer,, who indicated that Mr. Schiffer's firm was under
investigation by SEC and PCAOB and that he would not be issuing his opinion. We
immediately contacted the company to allow them to determine a course of
action,, including but not limited to a re-audit of the 2002 financial
statements. Representatives of the Company indicated they would like to file
without the necessary Consent, and we strenuously objected.

      On May 27, 2004 we stopped all further work with regard to the engagement
and started our withdrawal procedures. It appeared the Company did not have the
adequate disclosure controls t produce accurate financial statements and we
advised the client orally of this issue and all communication with the company
ceased.

      We did receive an SAS communication from a successor auditor, and advised
the successor that nothing had come to our attention to indicate that the
management of Xynergy was not of good moral character, but emphasized our
concerns about internal control procedures and policies, the competence of
corporate personnel to prepare adequate financial statements, and the balance of
fees outstanding.

                                        Very truly yours,

                                        /s/

                                        WEINBERG & COMPANY, P.A.
                                        Certified Public Accounts

/ihr
cc:   Mr. Ed Rose
      Ms. Raquel Zepeda

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