SUBSCRIPTION AGREEMENT – SERIES BB - 2009
EXHIBIT
99.1
Subscriber:
_______________
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Subscription
No.
______
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SUBSCRIPTION AGREEMENT – SERIES BB -
2009
RE: Private
offering of unregistered common stock of
Sibling
Entertainment Group Holdings, Inc. (the "Company")
Xxxxxxxx
Xxxxxxx, President
Dear
__________________,
1. Subscription and
Offering. The undersigned hereby subscribes for and agrees to
purchase _____________________ (_______________ ) shares of the common
stock $0.0001 par value per share of the Company at a price of $0.05 per
share (the "Shares"), and agrees to pay therefore the total sum of
___________________________ ($US______________) dollars in cash,
receipt of which is hereby acknowledged by the Company's acceptance of this
subscription, below. [The
undersigned understands that the Company is
offering up to nine million (9,000,000) shares (the "offering") to a group of
not more than nine (9) investors until September 30, 2009. The
offering will close at
the end at 5:00PM (Eastern
Standard Time)
on September 30, 2009 or at such time as all nine million (9,000,000)
shares are sold, whichever is sooner. The Company reserves the
right to extend the offering for an additional 30-day period.]
The
undersigned shall be entitled to receive a purchase warrant substantially in the
form of Exhibit A hereto
(the “SERIES BB-1 Warrant”) and a stock purchase warrant substantially in the
form of Exhibit B hereto
(the “SERIES BB-2 Warrant”). The SERIES BB-1 Warrant will entitle the
holder thereof to purchase _______________ (________) shares of the Company’s
common stock at a price of $0.20 per share for a period
of Three (3) years commencing on the date of the acceptance of this Subscription
Agreement by the Company; and each SERIES BB-2 Warrant will entitle the holder
thereof to purchase _______________ (________) shares of the Company’s common
stock at a price of $0.50 per share for a period
of Three (3) years commencing on the date of the acceptance of this Subscription
Agreement by the Company.
All
dollar references herein are to U.S. dollars unless otherwise
indicated.
2. Acceptance or
Rejection. The undersigned understands that the Company, in
its sole discretion and for any reason, may accept or reject this subscription,
in whole or in part.
1
3. Acknowledgement. The
undersigned acknowledges that: (1) the offering of Shares was made
only through direct personal communication between the undersigned and a
representative of the Company; (2) the undersigned has had the opportunity to
obtain all information concerning the Company, its operations, legal structure
and any other information or documentation requested by the undersigned; (3) the
undersigned has been advised by the Company that (i) he or she must be prepared
to bear the economic risk of the investment for an indefinite period; (ii) the
Shares have not been registered under the Securities Act of 1933, or applicable
state securities laws and hence cannot be sold unless they are subsequently
registered or an exemption from such registration is available; (iii) the Shares
are highly speculative, involve a high degree of risk and should only be
purchased by individuals who can afford to lose their entire investment; and
(iv) the certificates for the Shares will contain an appropriate restrictive
legend prohibiting their sale or transfer, except under certain circumstances in
substantially the following form:
"The
shares represented by this Certificate have not been registered under the
Securities Act of 1933 (the "Act") and are "restricted securities" as that term
is defined in Rule 144 under the Act. The shares may not be offered
for sale, sold or otherwise transferred except pursuant to an effective
registration statement under the Act or pursuant to an exemption from
registration under the Act, the availability of which is to be established to
the satisfaction of the Company."
4. Execution of
Agreement. When accepted by the Company, in whole or in part,
this subscription shall be valid and binding on the undersigned and the Company
for all purposes. The undersigned represents and warrants that the
undersigned has received, read and understands the contents hereof and has
consulted with his attorney, business advisor and/or accountant concerning the
offering of shares.
5. Personal
Investigation. The undersigned warrants and represents that,
prior to making a decision whether to invest herein, he or she has conducted a
personal investigation and has researched and considered all factors that bear
on the advisability of investing in the Company, and that his or her investment
decision has not been based solely upon the representations of the Company or
its affiliates or representatives. In this regard, the undersigned
has been furnished and has carefully reviewed all information available with
respect to the Company at the Securities and Exchange Commission website (xxx.xxx.xxx) and
related documents at the following location:
CIK 0001099728 Sibling
Entertainment Group Holdings, Inc.
xxxx://xxx.xxx.xxx/xxx-xxx/xxxxxx-xxxx?xxxxxxxxxxxxxxxxx&XXXx0000000000&xxxxxxxxxxxxx&xxxxxx00
6. Purchase for Own
Account. The undersigned warrants and represents that the
Shares subscribed by the undersigned will be acquired for the undersigned's own
account and benefit and not for the account of any other person or business
entity, and the undersigned has no present intention of selling or distributing
the Shares or any part hereof. The undersigned is not acting as a
nominee for any other person or entity. The undersigned understands
that the Shares may not be sold, hypothecated, pledged, transferred, assigned or
disposed of except in accordance with the substantial restrictions on transfer
described herein.
7. Investment
Experience. The undersigned warrants and represents that the
undersigned is experienced in investments and business matters, has made similar
speculative investments in the past, has sufficient investment acumen to analyze
and evaluate the merits and risks of investing in the Shares and has sufficient
financial resources to hold the Shares for an indefinite period of
time.
2
8. Confidentiality. The
undersigned understands that this Subscription Agreement and all other documents
delivered to the undersigned in connection with this subscription are
confidential documents prepared solely for the benefit of a limited number of
qualified investors associated with the Company. The undersigned
agrees that he or she will not reproduce or distribute any of such documents in
whole or in part.
9. Rule 144
Limitation. The undersigned acknowledges and understands that,
if the Shares are held for a period of at least six (6) months, and if Rule 144
(the "Rule") is applicable (there being no representation by the Company that it
will be applicable), then only routine sales of the Shares in limited amounts in
a specified manner and in accordance with the terms and conditions of the Rule
are permitted. If the Rule is not applicable, any sales may be made
only pursuant to an effective registration statement or an available exemption
from registration.
10. Purchase Price; Further
Restriction. The undersigned recognizes that the Company may
acquire additional funds from investors through private and public offerings of
its securities in the future at prices above or below the purchase price of the
Shares. The undersigned is also aware that in order to comply with
the securities laws of certain states in which a future offering may be
conducted or to enter into an underwriting agreement with an investment banker,
restrictions upon the transfer of the Shares may be imposed which could severely
limit the undersigned's ability to transfer the Shares for up to two years from
the date of such an offering. The undersigned agrees to allow his or
her stock certificate(s) to be legended to reflect the aforementioned
restriction(s).
11. Indemnification. The
undersigned recognizes that the sale of the Shares will be based upon his or her
representations and warranties set forth herein, and the undersigned hereby
agrees to indemnify and defend the Company and to hold each officer and/or
director thereof harmless from and against any and all loss, damage, liability
or expense, including costs and reasonable attorneys' fees, to which they may be
put or which they may incur by reason of, or in connection with, any
misrepresentation made by the undersigned in this Subscription Agreement or
elsewhere, any breach by the undersigned of his or her warranties and/or a
failure to fulfill any of the covenants or agreements set forth herein or
elsewhere or arising out of the sale or distribution of any Shares by the
undersigned in violation of the Securities Act of 1933, as amended, and any
other applicable state securities laws.
12. Suitability. The
undersigned does
does not
have either (i) a net worth of at least $1,000,000 or (ii) individual income in
excess of $200,000 in each of the last two years (or joint income of $300,000
including the undersigned's spouse's income) and a reasonable expectation of
reaching the same income level during the current year.
13. N.A.S.D.
Affiliations. The undersigned represents that he or she is not
directly or indirectly associated or affiliated with any member of the National
Association of Securities Dealers, Inc.
14. Brokerage
Commission. The Company has reserved the right to sell all or
a portion of the units through registered broker/dealers, and in connection
therewith will pay sales commissions equal to (x) a cash payment of 8% of the
gross sale proceeds from such sales to generated by such registered
broker/dealers; and (y) a cashless exercise warrant to purchase a number of
shares equal to 4% of the number of shares included in the number of units sold
by such registered broker/dealers at a price per share equal to $0.20/share. and
(y) a cashless exercise warrant to purchase a number of shares equal to 4% of
the number of shares included in the number of units sold by such registered
broker/dealers at a price per share equal to $0.50/share.
3
IN WITNESS WHEREOF, the
parties hereto caused this Agreement to be duly executed as of the dates set
forth below.
(Name
of Investor – please print)
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(Social
Security Number or Tax ID)
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By: _______________________________________
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Number
of Shares:
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Authorized
Signature (Print):
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______________________________
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(Official
Capacity or Title – please print)
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(Please
print name of individual whose signature appears above if different than
the name of the Investor printed above.)
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Aggregate
Consideration:
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(Address)
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$
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(City,
State and Zip)
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OFFICE USE ONLY:
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Telephone:
______________________________________
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Fax: ______________________________________
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Email: ______________________________________
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ACCEPTANCE
The
Company hereby accepts the above subscription for Subscribed for Shares of the
Company effective the _____day of___________ ,
2009.
By:
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Xxxxxxxx
Xxxxxxx,
President
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4
EXHIBIT
A
(a
Texas
Corporation)
2009
- SERIES BB-1 WARRANT CERTIFICATE
WARRANT
NUMBER BB1 - ___
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NUMBER
OF WARRANTS: __________
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CLASS
“BB” WARRANT CERTIFICATE FOR THE PURCHASE OF SHARES
OF
THE $.0001 PAR VALUE COMMON STOCK OF
THE ISSUE
OF THESE WARRANTS HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES
HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE TRANSFERRED OR SOLD IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT OR OTHER COMPLIANCE UNDER THE ACT
OR THE LAWS OF THE APPLICABLE STATE OR A “NO ACTION” OR INTERPRETIVE LETTER FROM
THE SECURITIES AND EXCHANGE COMMISSION OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE ISSUER, AND ITS COUNSEL, TO THE EFFECT THAT THE SALE OR
TRANSFER OF THESE WARRANTS IS EXEMPT FROM REGISTRATION UNDER THE ACT AND SUCH
STATE STATUTES.
FOR VALUE RECEIVED, Sibling
Entertainment Group Holdings, Inc. (the “Company”), a Texas
corporation, hereby certifies that ________________________________ the
registered holder hereof, or registered assigns, (the “Holder”) subject to
the terms and conditions hereinafter set forth and at any time during the period
beginning from the date hereof and ending three (3) years thereafter on August
____, 2012 is entitled to:
1. Purchase
shares of the Common Stock of the Company for each of the within Warrants
exercised at a price of $US0.20
per share of such Common Stock
2. Upon
exercise of these Warrants, the registered Holder hereof shall surrender to the
stock transfer agent of the Company this Warrant Certificate together with the
form of subscription attached hereto and a certified check or bank draft payable
to the order of the Company.
3. In
the exercise of the Warrants no fractional shares the Common Stock of the
Company shall be issued.
4. The
Company covenants and agrees that shares of Common Stock which may be delivered
upon the exercise of this Warrant will, upon delivery, be free from all taxes,
liens and charges with respect to the purchase thereof
hereunder. This Warrant shall not be exercised by Holder in any state
where such exercise would be unlawful such as a state in which the Company’s
Common Stock is not registered or qualified as the case
requires.
5
5. The
Company agrees at all times to reserve or hold available a sufficient number of
shares of its Common Stock to cover the number of shares issuable upon the
exercise of this and all other Warrants of like tenor then
outstanding.
6. This
Warrant does not entitle the Holder to any voting rights or other rights as a
shareholder of the Company, or to any other rights whatsoever except the rights
herein set forth, and no dividend shall be payable to accrue in respect to this
Warrant or the interest represented hereby, or the shares which may be acquired
hereunder, until or unless, and except to the extent that this Warrant shall be
exercised and the Common Stock which may be acquired upon exercise thereof shall
become deliverable.
7. This
Warrant is exchangeable upon the surrender hereof by the Holder to the Company
for new Warrants of like tenor and date representing in the aggregate the right
to acquire the number of shares which may be acquired hereunder, each of such
new Warrants to represent the right to acquire such number of shares as may be
designated by the registered Holder at the time of such surrender.
8. The
Company may deem and treat the Holder at any time as the absolute owner hereof
for all purposes and shall not be affected by any notice to the
contrary.
IN WITNESS WHEREOF, the Company has
caused this Warrant to be executed by its duly authorized officer this ___day of
August, 2009.
(a
Texas corporation)
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By:
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Xxxxxxxx
Xxxxxxx, President
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ATTEST:
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Secretary
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6
(a
Texas
Corporation)
2009
- SERIES BB-1 ASSIGNMENT FORM
(To
be executed by the registered Holder to effect a
transfer
of the within Warrant)
For Value
Received, ____________________________ hereby sells, assigns, and transfers
unto
this
Warrant and the rights represented thereby to purchase Common Stock of Sibling Entertainment Group Holdings,
Inc., in accordance with the terms and conditions thereof, and does
hereby irrevocable constitute and appoint _________________________ attorney to
transfer this Warrant on the books of the Company with full power of
substitution.
Date:
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Signed
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SIBLING
ENTERTAINMENT GROUP HOLDINGS, INC.
(a
Texas
Corporation)
2009
- SERIES BB-1 WARRANT SUBSCRIPTION FORM
(To
be executed by the Registered Holder to exercise the rights
to
purchase Common Stock evidenced by the within Warrant)
The undersigned Registered Holder
hereby irrevocably subscribes for _______________ shares of the Common Stock of
Sibling Entertainment Group
Holdings, Inc., pursuant and in accordance with the terms and conditions
of the Warrant Certificate attached hereto and hereby makes payment of
$_____________ therefore, and requests that certificate(s) for such shares be
issued in the name of the undersigned and be delivered to the address stated
below, and if such number of shares not be all of the shares purchasable
hereunder, that a new Warrant of like tenor for the balance of the remaining
shares purchasable hereunder be delivered to the undersigned at the address
stated below.
Date:
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Signed
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SIGNATURE(S)
MUST BE GUARANTEED BY A FIRM WHICH IS A MEMBER OF A REGISTERED NATIONAL STOCK
EXCHANGE, OR BY A BANK (OTHER THAN A SAVINGS BANK), OR A TRUST
COMPANY. THE SIGNATURE TO THE ABOVE SUBSCRIPTION FORM MUST CORRESPOND
WITH THE NAME AS WRITTEN UPON THE FACE OF THE WARRANT. IN EVERY
PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT, OR ANY CHANGE
WHATSOEVER.
EXHIBIT
B
SIBLING
ENTERTAINMENT GROUP HOLDINGS, INC.
(a
Texas
Corporation)
2009
- SERIES BB-2 WARRANT CERTIFICATE
WARRANT
NUMBER BB2 - ___
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NUMBER
OF WARRANTS: __________
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CLASS
“BB” WARRANT CERTIFICATE FOR THE PURCHASE OF SHARES
OF
THE $.0001 PAR VALUE COMMON STOCK OF
SIBLING
ENTERTAINMENT GROUP HOLDINGS, INC.
THE ISSUE
OF THESE WARRANTS HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES
HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE TRANSFERRED OR SOLD IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT OR OTHER COMPLIANCE UNDER THE ACT
OR THE LAWS OF THE APPLICABLE STATE OR A “NO ACTION” OR INTERPRETIVE LETTER FROM
THE SECURITIES AND EXCHANGE COMMISSION OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE ISSUER, AND ITS COUNSEL, TO THE EFFECT THAT THE SALE OR
TRANSFER OF THESE WARRANTS IS EXEMPT FROM REGISTRATION UNDER THE ACT AND SUCH
STATE STATUTES.
FOR VALUE RECEIVED, Sibling
Entertainment Group Holdings, Inc. (the “Company”), a Texas
corporation, hereby certifies that ________________________________ the
registered holder hereof, or registered assigns, (the “Holder”) subject to
the terms and conditions hereinafter set forth and at any time during the period
beginning from the date hereof and ending three (3) years thereafter on August
____, 2012 is entitled to:
1. Purchase
shares of the Common Stock of the Company for each of the within Warrants
exercised at a price of $US0.50
per share of such Common Stock
2. Upon
exercise of these Warrants, the registered Holder hereof shall surrender to the
stock transfer agent of the Company this Warrant Certificate together with the
form of subscription attached hereto and a certified check or bank draft payable
to the order of the Company.
3. In
the exercise of the Warrants no fractional shares the Common Stock of the
Company shall be issued.
4. The
Company covenants and agrees that shares of Common Stock which may be delivered
upon the exercise of this Warrant will, upon delivery, be free from all taxes,
liens and charges with respect to the purchase thereof
hereunder. This Warrant shall not be exercised by Holder in any state
where such exercise would be unlawful such as a state in which the Company’s
Common Stock is not registered or qualified as the case
requires.
5. The
Company agrees at all times to reserve or hold available a sufficient number of
shares of its Common Stock to cover the number of shares issuable upon the
exercise of this and all other Warrants of like tenor then
outstanding.
6. This
Warrant does not entitle the Holder to any voting rights or other rights as a
shareholder of the Company, or to any other rights whatsoever except the rights
herein set forth, and no dividend shall be payable to accrue in respect to this
Warrant or the interest represented hereby, or the shares which may be acquired
hereunder, until or unless, and except to the extent that this Warrant shall be
exercised and the Common Stock which may be acquired upon exercise thereof shall
become deliverable.
7. This
Warrant is exchangeable upon the surrender hereof by the Holder to the Company
for new Warrants of like tenor and date representing in the aggregate the right
to acquire the number of shares which may be acquired hereunder, each of such
new Warrants to represent the right to acquire such number of shares as may be
designated by the registered Holder at the time of such surrender.
8. The
Company may deem and treat the Holder at any time as the absolute owner hereof
for all purposes and shall not be affected by any notice to the
contrary.
IN WITNESS WHEREOF, the Company has
caused this Warrant to be executed by its duly authorized officer this ___day of
August, 2009.
Sibling
Entertainment Group Holdings, Inc.
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(a
Texas corporation)
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By:
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Xxxxxxxx
Xxxxxxx, President
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ATTEST:
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Secretary
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10
SIBLING
ENTERTAINMENT GROUP HOLDINGS, INC.
(a
Texas
Corporation)
2009
- SERIES BB-2 ASSIGNMENT FORM
(To
be executed by the registered Holder to effect a
transfer
of the within Warrant)
For Value
Received, ____________________________ hereby sells, assigns, and transfers
unto
(Please
print or typewrite name and address, including postal zip code of
assignee)
this
Warrant and the rights represented thereby to purchase Common Stock of Sibling Entertainment Group Holdings,
Inc., in accordance with the terms and conditions thereof, and does
hereby irrevocable constitute and appoint _________________________ attorney to
transfer this Warrant on the books of the Company with full power of
substitution.
Date:
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Signed
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SIBLING
ENTERTAINMENT GROUP HOLDINGS, INC.
(a
Texas
Corporation)
2009
- SERIES BB-2 WARRANT SUBSCRIPTION FORM
(To
be executed by the Registered Holder to exercise the rights
to
purchase Common Stock evidenced by the within Warrant)
The undersigned Registered Holder
hereby irrevocably subscribes for _______________ shares of the Common Stock of
Sibling Entertainment Group
Holdings, Inc., pursuant and in accordance with the terms and conditions
of the Warrant Certificate attached hereto and hereby makes payment of
$_____________ therefore, and requests that certificate(s) for such shares be
issued in the name of the undersigned and be delivered to the address stated
below, and if such number of shares not be all of the shares purchasable
hereunder, that a new Warrant of like tenor for the balance of the remaining
shares purchasable hereunder be delivered to the undersigned at the address
stated below.
Date:
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Signed
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SIGNATURE(S)
MUST BE GUARANTEED BY A FIRM WHICH IS A MEMBER OF A REGISTERED NATIONAL STOCK
EXCHANGE, OR BY A BANK (OTHER THAN A SAVINGS BANK), OR A TRUST
COMPANY. THE SIGNATURE TO THE ABOVE SUBSCRIPTION FORM MUST CORRESPOND
WITH THE NAME AS WRITTEN UPON THE FACE OF THE WARRANT. IN EVERY
PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT, OR ANY CHANGE
WHATSOEVER.