Exhibit 10.3
SUBSCRIBER'S NAME:
__________________________________________
NTH GAMES, INC.
SUBSCRIPTION BOOKLET
THE
PRIVATE PLACEMENT OF SECURITIES DESCRIBED HEREIN HAS NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR UNDER ANY SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION.
THIS PRIVATE PLACEMENT IS MADE PURSUANT TO SECTION 4(2) OF SAID
ACT, WHICH EXEMPTS FROM SUCH REGISTRATION TRANSACTIONS NOT
INVOLVING A PUBLIC OFFERING. FOR THIS REASON, THESE SECURITIES WILL
BE SOLD ONLY TO INVESTORS WHO MEET CERTAIN MINIMUM SUITABILITY
QUALIFICATIONS DESCRIBED HEREIN.
IN
MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN
EXAMINATION OF THE COMPANY AND THE SECURITIES OFFERED, INCLUDING
THE MERITS AND RISKS INVOLVED. AN INVESTOR SHOULD BE PREPARED TO
BEAR THE ECONOMIC RISK OF AN INVESTMENT IN THE COMPANY FOR AN
INDEFINITE PERIOD OF TIME BECAUSE THE SECURITIES DESCRIBED HEREIN
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR THE LAWS OF
ANY OTHER JURISDICTION, AND, THEREFORE, CANNOT BE SOLD UNLESS THEY
ARE SUBSEQUENTLY REGISTERED OR AN EXEMPTION FROM REGISTRATION IS
AVAILABLE. THERE IS NO OBLIGATION OF THE ISSUER TO REGISTER THE
SECURITIES UNDER THE SECURITIES ACT OR THE LAWS OF ANY OTHER
JURISDICTION.
SUBSCRIPTION AGREEMENT
This
Subscription Agreement (the “Agreement”) relates to a private
placement of 500,000 shares of common stock, $0.0001 par value,
priced at $2.00 per share (the Shares”), for a total offering
amount of $1,000,000 (the “Offering”) by Nth Games, Inc., a
Delaware corporation with a place of business located at 2912
Colorado Ave., Suite 200, Santa Monica, CA 90404 (the "Company").
The
undersigned purchaser (“Purchaser” or “Investor”) hereby subscribes to
purchase the number of Shares set forth in Section 1(a)
below.
(a)
Shares Subscription. Subject to the
acceptance hereof by an authorized representative of the Company,
the Purchaser hereby subscribes for ______________ (________)
Shares at a price of $2.00 per share, for an investment amount of
____________________________ ($___________) (the
“Cash
Consideration”).
(b)
Cash Consideration. The Purchaser
agrees that payment of the Cash Consideration shall be made on the
date of acceptance of this Subscription Agreement by an authorized
representative or a member of the Company either (i) via check made
payable to “Nth Games, Inc.”, or (ii) preferably via
wire transfer as follows:
Wells
Fargo Bank, N.A.
11836
San Vicente Blvd.
Los
Angeles, CA 90049
Routing
Number: 121000248
Account
Number: 6158312352
Account
Name: Nth Games, Inc.
2.
Representations and
Warranties. The Purchaser hereby represents and warrants
that:
(a)
Information. The Purchaser has received
and reviewed a copy of the Certificate of Incorporation and
powerpoint presentation of the Company. In making the decision to
purchase the Shares, the Purchaser has relied on an independent
investigation made by the Purchaser and/or on the advice given to
the Purchaser by the Purchaser's own counsel, accountant or other
advisers and HAS NOT RELIED
upon any projections or other information, oral or written (other
than contained in the Certificate of Incorporation and powerpoint
presentation) that may have been provided to the Purchaser by
anyone. The Purchaser further represents that the Purchaser and
his, her or its advisors have had the opportunity to ask questions
and receive answers concerning the terms and conditions of the
offering of the Shares and to obtain any additional information
necessary to evaluate this investment and to verify the accuracy of
the information otherwise furnished to the Purchaser and his or her
advisers.
(b)
Distribution. The Purchaser has not
reproduced or distributed this Agreement or the Certificate of
Incorporation to any person other than the Purchaser's counsel,
accountant or other adviser.
(c)
Registration or Qualification. The
Purchaser is aware that the Shares have not been registered under
the Securities Act of 1933, as amended (the "Act"), or qualified under any other
securities law or regulation.
(d)
Own Account. The Purchaser is
acquiring the Shares solely for the Purchaser's own account and not
for the account of any other person, for investment only, and not
with a view to resale, assignment or distribution.
(e)
Economic Risk. The Purchaser is able to
bear the economic risk of this investment, can afford to hold the
Shares for an indefinite period and can afford a complete loss of
the investment.
(f)
Appropriate Risks. The Purchaser has
evaluated the risks of investing in the Company in light of the
foregoing and is satisfied that the investment is appropriate for
the Purchaser.
(g)
Information True. All information which
the Purchaser has provided to the Company concerning the Purchaser,
his, her or its financial position, his, her or its status as an
accredited investor, his, her or its knowledge of financial and
business matters, all statements and representations as contained
herein are correct and complete and if there should be any material
change in such information prior to this subscription being
accepted, the Purchaser will immediately provide the Company with
such information.
(h)
Restricted Securities. The Purchaser
understands that the Shares are characterized as "restricted
securities" under the federal securities laws inasmuch as they are
being acquired in a transaction not involving a public offering and
that under such laws and applicable regulations the Shares may be
resold without registration under the Act only in certain limited
circumstances and that otherwise the Shares must be held
indefinitely. In this connection, the Purchaser represents that
he/she is familiar with Securities and Exchange Commission Rule
144, as presently in effect, and the conditions which must be met
in order for that Rule to be available for resale of "restricted
securities", and understands that resale limitations are imposed by
the Act.
(i)
Disposition. Without in any way
limiting the representations set forth above, the Purchaser agrees
not to make any disposition of all or any portion of the Shares
unless and until:
(x)
there is then in effect a registration statement under the Act
covering such proposed disposition and such disposition is made in
accordance with such registration statement and any applicable
requirements of state securities laws; or
(y) (1)
the Purchaser 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; and (2) the Purchaser shall have furnished the Company
with an opinion of counsel, reasonably satisfactory to the Company,
that such disposition will not require registration of such Shares
under the Act or the consent of or permission from appropriate
authorities under any applicable state securities law.
(j)
Legends. It is understood that the
certificate evidencing the Shares may bear the following
legends:
THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE
BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933. SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED
OR PLEDGED IN THE ABSENCE OF SUCH REGISTRATION UNLESS THE COMPANY
RECEIVES AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY
STATING THAT SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION
AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT. COPIES OF THE
AGREEMENT, IF ANY, COVERING THE PURCHASE OF THESE SHARES AND
RESTRICTING THEIR TRANSFER MAY BE OBTAINED AT NO COST BY WRITTEN
REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE
SECRETARY OF THE COMPANY AT THE PRINCIPAL EXECUTIVE OFFICES OF THE
COMPANY..
(k)
Accredited Investor. The undersigned
purchaser is an accredited investor as defined in Rule 501(a) of
Regulation D promulgated under the Securities Act. The Purchaser is
an investor in securities of companies in the development stage and
acknowledges that he, she or it is able to fend for itself, can
bear the economic risk of its investment, and has such knowledge
and experience in financial or business matters that it is capable
of evaluating the merits and risks of the investment in the Shares.
If other than an individual, the Purchaser also represents it has
not been organized for the purpose of acquiring the
Shares.
(x)
Purchaser Suitability. The
Purchaser represents and warrants that the Purchaser comes within
one or more of the categories marked below, and that for any
category marked the Purchaser has truthfully set forth the factual
basis or reason the Investor comes within that category. ALL
INFORMATION IN RESPONSE TO THIS SECTION WILL BE KEPT STRICTLY
CONFIDENTIAL, EXCEPT FOR DISCLOSURES TO FEDERAL OR STATE REGULATORY
AUTHORITIES. The Purchaser agrees to furnish any additional
information that the Company deems necessary in order to verify the
answers set forth below.
Category
I
The Purchaser is an
individual (not a partnership, corporation, etc.) whose individual
net worth, or joint net worth with the Purchaser’s spouse,
presently exceeds $1,000,000, exclusive of the
Purchaser’s primary residence. In the calculation of net
worth (the amount of assets in excess of liabilities):
●
The Purchaser may
include equity in personal property and real estate, expressly
excluding the
Investor’s principal residence, cash, short-term investments,
stocks and securities. Equity in personal property and real estate
should be based on the fair market value of such property less debt
secured by such property.
●
The amount of debt
secured by the primary residence, up to its estimated fair market
value, is not included as a liability, unless the person incurred
debt within 60 days before buying securities in the unregistered
offering for the purpose of buying those securities and not for
buying the residence. In that situation, the amount of debt
borrowed during that 60-day period must be included as a
liability.
●
Any debt secured by
the primary residence in excess of the estimated fair market value
of the home is included as a liability.
Category
II
The Purchaser is an
individual (not a partnership, corporation, etc.) who had an
individual income in excess of $200,000 in 2012 and 2013, or joint
income with his/her spouse in excess of $300,000 in 2012 and 2013,
and has a reasonable expectation of reaching that income level in
2014.
Category
III
The Purchaser is a
bank, savings and loan, insurance company; registered broker or
dealer, registered investment company; registered business
development company; licensed small business investment company; or
employee benefit plan within the meaning of Title I of ERISA whose
plan fiduciary is either a bank, savings and loan, insurance
company or registered investment advisor or whose total assets
exceed $5,000,000.
_________________________________________________________
(describe
entity)
Category
IV
The Purchaser is a
private business development company as defined in Section
202(a)(22) of the Investment Advisers Act of 1940.
_________________________________________________________
(describe
entity)
Category
V
The Purchaser is a
non-profit organization within the meaning of Section 501(c)(3) of
the Internal Revenue Code, corporation, business trust, or
partnership, not formed for the purpose of acquiring the securities
offered, with total assets in excess of $5,000,000.
_________________________________________________________
(describe
entity)
Category
VI
The Purchaser is a
trustee for a trust that is revocable by the grantor at any time
(including an IRA) and the grantor qualified under either Category
I or Category II above. A copy of the declaration of trust or trust
agreement and a representation as to the net worth or income of the
grantor is enclosed.
Category
VII
The Purchaser is an
entity all the equity owners of which are “accredited
investors” within one or more of the above categories, other
than Category IV or Category V. If
relying upon this category alone, each equity owner must complete a
separate copy of this Agreement.
The Purchaser should check the Office of Foreign Assets Control
(“OFAC”) website at www.treas.gov/ofac before making
the following representations in subsections (l), (m) and (n)
below:
(l)
The Purchaser
represents that the amount invested in the Company is not directly
or indirectly derived from activities that contravene federal,
state or international laws and regulations, including anti-money
laundering laws and regulations. Federal regulations and Executive
Orders administered by OFAC prohibit, among other things, the
engagement in transactions with, and the provision of services to,
certain foreign countries, territories, entities and individuals.
The lists of OFAC prohibited countries, territories, persons and
entities can be found on the OFAC website at www.treas.gov/ofac. In
addition, the programs administered by OFAC (the
“OFAC Programs”)
prohibit dealing with individuals or entities in certain countries
regardless of whether such individuals or entities appear on the
OFAC lists;
(m)
To the best of the
Purchaser’s knowledge, neither the Purchaser nor any person
controlled by the Purchaser is an individual or entity named on an
OFAC list, or a person or entity prohibited under the OFAC
Programs. Please be advised that the Company may not accept any
amounts from a prospective investor if such prospective investor
cannot make the representation set forth in the preceding sentence.
The Purchaser agrees to promptly notify the Company should the
Purchaser become aware of any change in the information set forth
in these representations. The Purchaser understands and
acknowledges that, by law, the Company may be obligated to
“freeze the account” of the Purchaser, by declining any
redemption requests and/or segregating the assets in the account in
compliance with governmental regulations. The Purchaser further
acknowledges that the Company may, by written notice to the
Purchaser, suspend the redemption rights, if any, of the Purchaser
if the Company reasonably deems it necessary to do so to comply
with anti-money laundering regulations applicable to the Company or
any of the Company’s service providers; and
(n)
To the
best of the Purchaser’s knowledge, neither the Purchaser nor
any person controlling the Purchaser is a senior foreign political
figure, or any immediate family member or close associate of a
senior foreign political figure, as such terms are defined in the
footnotes hereto.
(o)
Disqualification. The Purchaser
represents that neither such Purchaser, nor any person or entity
with whom such Purchaser shares beneficial ownership of any
Securities, is subject to any of the “Bad Actor”
disqualifications described in Rule 506(d)(1)(i) to (viii) under
the Securities Act of 1933, as amended.
3.
Indemnification. The
undersigned Purchaser agrees to indemnify, defend and hold harmless
members of the Board of Directors, the Company and each of its
officers, members, employees, affiliates, anyone acting on behalf
of the Company or the Board of Directors and any person who
controls any of them (each an “Indemnified Party"), from and against
all damages, losses, costs and expenses (including without
limitation any and all expenses whatsoever reasonably incurred in
investigating, preparing or defending against any litigation
commenced or threatened or any claim whatsoever), including without
limitation reasonable attorneys' fees and expenses, which an
Indemnified Party may incur arising out of or based upon any false
representation or warranty of the undersigned or breach by the
undersigned or the failure of the undersigned to fulfill any of the
terms and conditions of this Subscription Agreement or any other
document furnished by the undersigned to any Indemnified Party in
connection with the undersigned's purchase of the
Shares.
4.
Independence of
Obligations. The undersigned agrees that its, his or her
obligations hereunder shall not be contingent upon or affected by
the similar undertakings of any other investor under its
subscription agreement and that the Company may proceed to enforce
this Agreement without also proceeding to enforce any other
investor's subscription agreement.
5.
Notice. All notices
and other communications given or made pursuant to this Agreement
shall be in writing and shall be deemed effectively given upon the
earlier of actual receipt or: (a) personal delivery to the party to
be notified, (b) when sent, if sent by facsimile or email during
normal business hours of the recipient, and if not sent during
normal business hours, then on the recipient’s next business
day, (c) five (5) days after having been sent by registered or
certified mail, return receipt requested, postage prepaid, or (d)
one (1) business day after deposit with a nationally recognized
overnight courier, freight prepaid, specifying next business day
delivery, with written verification of receipt. All communications
shall be sent to the respective parties at their address as set
forth on the signature page, or to such address or facsimile number
as subsequently modified by written notice given in accordance with
this Agreement. If notice is given to the Company, it shall be sent
to the address listed in the preamble hereto.
With respect to any notice given by the Company under any provision
of the Delaware General Corporation Law or the Company’s
certificate of incorporation or bylaws (as they may be amended),
Purchaser agrees that such notice may be given by facsimile or by
electronic mail or by any other electronic transmission authorized
under the Delaware General Corporate Law.
6. Residency. My state of
residence, the state I received the offer to invest, and the state
I made the decision
to invest in the Shares is: _________________.
7. Ownership of Securities. The
Shares shall be issued in the following manner: Place an
“X” in one space below:
(a) ____
Individual Ownership
(b) ____
Community
Property
(c) ____
Joint Tenant with Right of Survivorship (both parties must
sign)
(e)
____ Corporation
(f)
____ Limited Liability Company
(g)
____ Other
8. Registration of the Securities.
The Shares subscribed for herein should be registered as
follows: ___________________________
Please
print above the exact name(s) in which the Securities are to be
held.
[SIGNATURE
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SIGNATURE
The
Purchaser hereby represents that he/she/it has read the entire
Subscription Agreement and by their signature below agrees to the
terms hereof.
Date:
____________________________
By:
_____________________________
Name:
___________________________
Title
(if applicable): ________________
|
Address to Which
Correspondence Should Be Directed:
____________________________________
Street
Address
____________________________________
City,
State and Zip Code
____________________________________
Social
Security Number
____________________________________
Telephone
Number
____________________________________
Email
Address
|
ACCEPTANCE
The
subscription for the Shares is hereby accepted by Nth Games, Inc.,
a Delaware corporation, as of the date set forth
below.
NTH
GAMES, INC.
David
Steigelfest
President