Exhibit
4.1
SUBSCRIPTION
AGREEMENT
TITLE
STARTS ONLINE, INC.
Title
Starts Online, Inc. (the "Company") has authorized for sale an aggregate of
_____ shares of common stock, $0.001 par value common stock (“Common
Stock”). The undersigned hereby subscribes for the Shares (as defined
on the signature page attached hereto) of common stock for the Subscription
Price (as defined on the signature page attached hereto).
The undersigned agrees to pay the
Subscription Price for the Shares being purchased hereunder. The
entire purchase price is due and payable upon the submission of this
Subscription Agreement and shall be payable by wire transfer or
check. The Company has the right to reject this subscription in whole
or in part.
The undersigned acknowledges that the
Shares being purchased hereunder will not be registered under the Securities Act
of 1933 (the "Act"), or the securities laws of any state (the “State Acts”), in
reliance upon an exemption from the registration requirements of the Act and the
State Acts; that absent an exemption from registration contained in the Act and
the State Acts, the Shares, would require registration; and that the Company's
reliance upon such exemptions is based, in material part, upon the undersigned's
representations, warranties, and agreements contained in this Subscription
Agreement (the "Subscription Documents").
1. The
undersigned represents, warrants, and agrees as follows:
a. The
undersigned agrees that this Subscription Agreement is and shall be
irrevocable.
b. The
undersigned has carefully read the Form 8-K Current Report filed with the
Securities and Exchange Commission (the “SEC”) on January 4, 2010 (the "Super
8K"), which is attached hereto as Exhibit A, as well as all other filings made
by the Company with the SEC, and the related risk factors (the “Risk Factors”),
which are attached hereto as Exhibit B. The undersigned has been
given the opportunity to ask questions of, and receive answers from, the Company
concerning the terms and conditions of this Offering, the Super 8K and the Risk
Factors and to obtain such additional information, to the extent the Company
possesses such information or can acquire it without unreasonable effort or
expense, necessary to verify the accuracy of same as the undersigned reasonably
desires in order to evaluate the investment. The undersigned
understands the Super 8K and the associated Risk Factors, and the undersigned
has had the opportunity to discuss any questions regarding any of the disclosure
in the Super 8K and the associated Risk Factors with his counsel or other
advisor. Notwithstanding the foregoing, the only information upon
which the undersigned has relied is that set forth in the Super 8K and the
associated Risk Factors. The undersigned has received no
representations or warranties from the Company, its employees, agents or
attorneys, in making this investment decision other than as set forth in the
Super 8K and the associated Risk Factors. The undersigned does not
desire to receive any further information. The undersigned
understands that the Company intends to forward split the outstanding shares of
common stock at a ratio of 14:1 and to change its name. The Company
intends to take such action during the first quarter of 2010 but cannot confirm
or guarantee the timing of such action.
c. The
undersigned is aware that the purchase of the Shares is a speculative investment
involving a high degree of risk, that there is no guarantee that the undersigned
will realize any gain from this investment, and that the undersigned could lose
the total amount of this investment. The undersigned acknowledges
that the proceeds will be utlize to repay a bridge loan in the amount of
$60,000, the payment of fees owed to John Carris Investments LLC, the payment of
outstanding legal fees and working capital.
d. The
undersigned understands that no federal or state agency has made any finding or
determination regarding the fairness of the Shares for investment, or any
recommendation or endorsement of the Share.
e. The
undersigned is purchasing the Shares for the undersigned's own account, with the
intention of holding the Shares with no present intention of dividing or
allowing others to participate in this investment or of reselling or otherwise
participating, directly or indirectly, in a distribution of the Shares, and
shall not make any sale, transfer, or pledge thereof without registration under
the Act and any applicable securities laws of any state or unless an exemption
from registration is available under those laws. Unless such resale
is registered with the SEC, the undersigned understands that it will be required
to resell such Shares under Rule 144 as adopted under the Securities Act of
1933, as amended (“Rule 144”) and, as the Company was a shell company (as such
term is defined in Rule 12b-2 of the Securities Exchange Act of 1934, as
amended), the undersigned will not be able to avail itself of the Rule 144
exemption until January 5, 2011, if at all.
f. The
undersigned represents that if an individual, he has adequate means of providing
for his or her current needs and personal and family contingencies and has no
need for liquidity in this investment in the Shares. The undersigned
has no reason to anticipate any material change in his or her personal financial
condition for the foreseeable future.
g. The
undersigned is financially able to bear the economic risk of this investment,
including the ability to hold the Shares indefinitely, or to afford a complete
loss of his investment in the Shares.
h. The
undersigned represents that the undersigned's overall commitment to investments
which are not readily marketable is not disproportionate to the undersigned's
net worth, and the undersigned's investment in the Shares will not cause such
overall commitment to become excessive. The undersigned understands
that the statutory basis on which the Shares are being sold to the undersigned
and others would not be available if the undersigned's present intention were to
hold the Shares for a fixed period or until the occurrence of a certain
event. The undersigned realizes that in the view of the SEC, a
purchase now with a present intent to resell by reason of a foreseeable specific
contingency or any anticipated change in the market value, or in the condition
of the Company, or that of the industry in which the business of the Company is
engaged or in connection with a contemplated liquidation, or settlement of any
loan obtained by the undersigned for the acquisition of the Shares, and for
which such Shares may be pledged as security or as donations to religious or
charitable institutions for the purpose of securing a deduction on an income tax
return, would, in fact, represent a purchase with an intent inconsistent with
the undersigned's representations to the Company, and the Commission would then
regard such sale as a sale for which the exemption from registration is not
available. The undersigned will not pledge, transfer or assign this
Subscription Agreement.
i. The
undersigned represents that the funds provided for this investment are either
separate property of the undersigned, community property over which the
undersigned has the right of control, or are otherwise funds as to which the
undersigned has the sole right of management. The undersigned is
purchasing the Shares with the funds of the undersigned and not with the funds
of any other person, firm, or entity and is acquiring the Shares for the
undersigned's account. No person other than the undersigned has any
beneficial interest in the Shares being purchased hereunder.
j. The
address shown under the undersigned's signature at the end of this Subscription
Agreement is the undersigned's principal residence if he or she is an
individual, or its principal business address if it is a corporation or other
entity.
l. The
undersigned has such knowledge and experience in financial and business matters
as to be capable of evaluating the merits and risks of an investment in the
Shares.
m. The
undersigned acknowledges that the certificates for the Shares which the
undersigned will receive will contain a legend substantially as
follows:
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THE
SECURITIES WHICH ARE REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"ACT"). THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT
PURPOSES ONLY AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT
BE SOLD, TRANSFERRED, MADE SUBJECT TO A SECURITY INTEREST, PLEDGED,
HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS AND UNTIL REGISTERED UNDER
THE SECURITIES ACT OF 1933 (THE "ACT"), AS AMENDED, OR EVIDENCE
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER
SUCH ACT.
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The undersigned further acknowledges
that a stop transfer order will be placed upon the certificates for the
securities in accordance with the Act. The undersigned further
acknowledges that the Company is under no obligation to aid the undersigned in
obtaining any exemption from registration requirements.
n. The
undersigned represents that he is an “accredited investor” as that term is
defined under the Act.
o. The
undersigned represents that he is not a broker, a broker dealer or an affiliate
of a broker dealer.
2. The
undersigned expressly acknowledges and agrees that the Company is relying upon
the undersigned's representations contained in the Subscription
Documents.
3. The
Company has been duly and validly incorporated and is validly existing and in
good standing as a corporation under the laws of the State of
Nevada. The Company represents that it has all requisite power and
authority, and all necessary authorizations, approvals and orders required as of
the date hereof to enter into this Subscription Agreement and to be bound by the
provisions and conditions hereof.
4. Except
as otherwise specifically provided for hereunder, no party shall be deemed to
have waived any of his or its rights hereunder or under any other agreement,
instrument or papers signed by any of them with respect to the subject matter
hereof unless such waiver is in writing and signed by the party waiving said
right. Except as otherwise specifically provided for hereunder, no
delay or omission by any party in exercising any right with respect to the
subject matter hereof shall operate as a waiver of such right or of any such
other right. A waiver on any one occasion with respect to the subject
matter hereof shall not be construed as a bar to, or waiver of, any right or
remedy on any future occasion. All rights and remedies with respect
to the subject matter hereof, whether evidenced hereby or by any other
agreement, instrument, or paper, will be cumulative, and may be exercised
separately or concurrently.
5. The
parties have not made any representations or warranties with respect to the
subject matter hereof not set forth herein, and this Subscription Agreement,
together with any instruments or documents executed simultaneously herewith in
connection with this offering, constitutes the entire agreement between them
with respect to the subject matter hereof. All understandings and
agreements heretofore had between the parties with respect to the subject matter
hereof are merged in this Subscription Agreement and any such instruments and
documents, which alone fully and completely expresses their
agreement.
6. This
Subscription Agreement may not be changed, modified, extended, terminated or
discharged orally, but only by an agreement in writing, which is signed by all
of the parties to this Subscription Agreement.
7. The
parties agree to execute any and all such other further instruments and
documents, and to take any and all such further actions reasonably required to
effectuate this Subscription Agreement and the intent and purposes
hereof.
8. This
Subscription Agreement shall be governed by and construed in accordance with the
laws of the State of Ohio and the undersigned hereby consents to the
jurisdiction of the courts of the State of Ohio and the United States District
Courts situated therein.
[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]
EXECUTION
BY SUBSCRIBER
$_________________________
($4.70588 per share) (the “Subscription Price”)
Shares_____________________
(determined by dividing the above subscription amount by $4.70588) (the
“Shares”)
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Exact Name in Which
Title is to be Held |
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(Signature) |
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Name and Title (if
applicable) |
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Address: Number
and Street |
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City |
State |
Zip
Code |
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Social Security
Number or Tax Identification
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Accepted
this ___ day of _________, 2010 on behalf of Title Starts Online,
Inc.
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By:
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Stephen
S. Burns, Chief Executive |
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Officer,
Chief Financial Officer, Treasurer, Secretary
and Director |
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