SUBSCRIPTION AGREEMENT

 

THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE
SECURITIES LAWS OF ANY U.S. STATE OR ANY OTHER JURISDICTION. THERE ARE FURTHER
RESTRICTIONS ON THE TRANSFERABILITY OF THE SECURITIES DESCRIBED HEREIN. THIS
OFFERING IS RESTRICTED TO ACCREDITED INVESTORS WITHIN THE MEANING OF RULE 501(a)
UNDER THE SECURITIES ACT OF 1933, AS AMENDED

 

THE PURCHASE OF THE SECURITIES INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE
CONSIDERED ONLY BY PERSONS WHO CAN BEAR THE RISK OF THE LOSS OF THEIR ENTIRE
INVESTMENT

 

American Battery Metals Corporation

930 Tahoe Blvd. Suite 802-16

Incline Village, NV 89451

Attn: Doug Cole, Chief Executive Officer

 

Dear Sir or Madam:

The undersigned (the “Subscriber”) hereby represents, warrants and agrees with
American Battery Metals Corporation (the “Company”) as follows:

 

1. Subscription. 

 

Subject to the terms and conditions hereof, the Subscriber hereby irrevocably
subscribes to purchase ________ Units of the Offering, each consisting of
625,000 shares of Common Stock (the “Shares”) of the Company and 500,000
Warrants to Purchase Common Stock (“Warrants” as further described herein) of
the Company (the Shares and Warrants are collectively referred to herein as the
“Units”), at the price of U.S. $25,000 per Unit, for an aggregate purchase price
of U.S.$_______________. The Subscriber understands that the sale of the Units
is being made without registration under the Securities Act of 1933, as amended
(the “Securities Act”) or any state law in reliance upon an exemption therefrom.
The Subscriber acknowledges that the Units will be subject to restrictions on
transfer pursuant to applicable law and the terms set forth in this subscription
agreement (the “Agreement”). Based on the $25,000 per Unit price, each share of
Common Stock is valued at $0.04 (not including the Warrants). All amounts for
payments of the Units shall be wired to the Company’s bank account as set forth
in Exhibit A attached hereto.

 

Summary: Dollars Invested _______________ / $25,000 = ________________ Units

 

2. Acceptance of Subscription and Issuance of Units. 

 

It is understood and agreed that, upon execution and delivery by the Company of
this Subscription Agreement, the Company has, in reliance upon the
representations and warranties of the Subscriber and against payment for the
Units, accepted this subscription. Notwithstanding anything in this Agreement to
the contrary, there shall be no obligation to issue any Units if such issuance
would constitute a violation of the Securities Act or any state law.

 

3. Representations, Warranties and Covenants of the Subscriber. 

 

The Subscriber hereby represents and warrants as follows:

 

(a) Restricted Securities. The Subscriber acknowledges that the Company is
issuing and selling the Units in reliance upon an applicable exemption from the
registration requirements of the Securities Act and is relying in part upon
these representations of the Subscriber set forth herein and in the Subscriber
Questionnaire set forth in Exhibit B attached hereto. The Subscriber agrees that
the Units may only be transferred (i) if registered pursuant to an effective
registration statement under the Securities Act or (ii) pursuant to an exemption
from such registration requirements. The Subscriber understands that there is no
assurance that any exemption from registration under the Securities Act will be
available and that, even if available, such exemption may not allow the
Subscriber to transfer all or any portion of the Units under the circumstances,
in the amounts or at the times the Subscriber might propose. 

 

(b) Subscriber Bears Economic Risk. The Subscriber is experienced in evaluating
and making investments of the type contemplated by this Agreement and is
financially able to bear the risks of the investment. The Subscriber understands
and acknowledges that it could lose their entire investment. 

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(c) Acquisition for Own Account. The Subscriber is acquiring the Units for its
own account for investment purposes only, not as nominee or agent, and not with
a view towards selling, granting any participation in or otherwise distributing
same; except with respect to transferring to employees, affiliates or family
members of Subscriber. 

 

(d) Subscriber Can Protect Its Interest. The Subscriber represents that by
reason of its, or of its management’s, business or financial experience, the
Subscriber has the capacity to protect its own interests in connection with the
transactions contemplated herein. Further, the Subscriber is aware of no
publication of any advertisement or form of general solicitation utilized by the
Company in connection with the transactions contemplated in this Agreement. 

 

(e) Company Information. The Subscriber has reviewed the financial statements
and other information set forth in the Company’s filings located on the
Securities and Exchange Commission’s (“SEC”) EDGAR website1 and the Company’s
website2 and has had an opportunity to discuss the Company’s business,
management and financial affairs with directors, officers and management of the
Company and has had the opportunity to review the Company’s operations and
facilities. The Subscriber has also had the opportunity to ask questions of, and
receive answers from, the Company and its management regarding this investment. 

 

(f) Warrants. The Warrants have an exercise price of $0.15 per share subject to
adjustment as set forth in the Warrants. The Warrants have an expiration date of
October 31, 2024 and are subject to optional redemption by the Company.
Subscriber has reviewed the form of Warrant set forth as Exhibit C and has had
the opportunity to ask questions from the management of the Company regarding
the Warrants. 

 

(g) Registration Rights. The Company shall include on the next registration
statement the Company files with the SEC all of the Shares unless the Shares are
at that time eligible for sale under Rule 144 under the Securities Act (“Rule
144”). In addition, the Company shall include in such registration statement
shares underlying the Warrants unless such shares are at that time eligible for
sale under Rule 144 in the case of a cashless exercise of the Warrant (as
detailed in the Warrant). 

 

4. Waiver, Amendment; Binding Effect. 

 

Neither this Agreement nor any provisions hereof shall be modified, changed,
discharged or terminated except by an instrument in writing, signed by the party
against whom any waiver, change, discharge or termination is sought. The
provisions of this Agreement shall be binding upon and accrue to the benefit of
the parties hereto and their respective heirs, legal representatives, successors
and assigns.

 

5. Assignability. 

 

Neither this Agreement nor any right, remedy, obligation or liability arising
hereunder or by reason hereof shall be assignable by the Company or the
Subscriber without the prior written consent of the other.

 

6. Applicable Law; Jurisdiction and Venue. 

 

This Agreement shall be governed by and construed in accordance with the laws of
the State of Nevada, without regard to the conflict of laws provisions thereof.
Subscriber agrees that the sole forum for resolving disputes arising out of or
relating to this Agreement are the federal and state courts located in Reno,
Nevada and the parties hereby irrevocably consent to the jurisdiction of such
courts and agree to said venue.

 

7. Counterparts. 

 

This Agreement may be executed in any number of counterparts and by facsimile,
each of which when so executed and delivered shall be deemed to be an original
and all of which together shall be deemed to be one and the same agreement.

 

8. Survival. 

 

All representations, warranties and covenants contained in this Agreement shall
survive the acceptance of the subscription by the Company and the delivery of
the Units.

 

(Signature page immediately follows)

 

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1 https://www.sec.gov/edgar/searchedgar/companysearch.html

2 https://batterymetals.com

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Date:

 

 

Number of Units Subscribed For:

 

 

Purchase Price per Unit:

$

25,000

(Minimum purchase is one Unit unless waived by the Company)

 

 

Aggregate Purchase Price:

$

 

 

 

 

 

Taxpayer I.D. Number

 

As (check one) Individual [   ] Tenants in Common [   ] Existing Partnership [
  ] Joint

 

Capacity in which signed: Tenants [   ] Corporation [   ] Trust [   ] Minor with
Adult Custodian under UGMA [   ]

 

 

Subscriber’s name and business address

 

 

(please type or print)

 

Signature of Subscriber

 

 

 

 

 

Subscriber’s mailing address

 

 

(if different than business address)

 

 

 

 

 

 

Taxpayer I.D. Number of Co-Subscriber

 

 

 

 

 

Co-Subscriber’s name and business address

 

 

(please type or print)

 

Signature of Co-Subscriber

 

 

 

 

 

Co-Subscriber’s mailing address

 

 

(if different than business address)

 

 

 

 

 

 

 

 

 

 

Accepted:

American Battery Metals Corporation

 

By:

 

Date:

 

Title:

 

 

 

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Exhibit A

Wiring Instructions

___________________________

___________________________

___________________________

___________________________

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Exhibit B

Investor Questionnaire

 

To: American Battery Metals Corporation

 

American Battery Metals Corporation, a Nevada corporation (the “Company”), is
offering (the “Offering”), pursuant to an accompanying Subscription Agreement
(the “Subscription Agreement) Shares and Warrants (as defined therein).

 

I. The undersigned subscriber (the “Subscriber”) represents and warrants that
he, she or it comes within one category marked below and that for any category
marked, he, she or it has truthfully set forth, where applicable, the factual
basis or reason the Subscriber comes within that category. ALL INFORMATION IN
RESPONSE TO THIS SECTION WILL BE KEPT STRICTLY CONFIDENTIAL EXCEPT AS NECESSARY
FOR THE COMPANY TO COMPLY WITH LAW AND/OR ANY RULES PROMULGATED BY ANY
REGULATORY AGENCY. The undersigned shall furnish any additional information
which the Company deems necessary in order to verify the answers set forth
below.  

 

CATEGORY A _______

 

The undersigned is an individual (not a partnership, corporation, etc.) whose
individual net worth, or joint net worth with his or her spouse, presently
exceeds $1,000,000 (excluding the value of Subscriber’s principal residence).

 

 

 

CATEGORY B _______

 

The undersigned is an individual (not a partnership, corporation, etc.) who had
an individual income in excess of $200,000 in each of the two most recent years,
or joint income with his or her spouse in excess of $300,000 in each of those
years.

 

 

 

CATEGORY C _______

 

The undersigned is a director or executive officer of the Company, which is
issuing and selling the Shares.

 

 

 

CATEGORY D _______

 

The undersigned is a trust with total assets in excess of $5,000,000, not formed
for the specific purpose of acquiring the Securities, where the purchase is
directed by a “sophisticated person” as defined in Regulation 506(b)(2)(ii)
under the Securities Act of 1933.

 

 

 

CATEGORY E _______

 

The undersigned is an entity (other than a trust) all the equity owners of which
are “accredited investors” within one or more of the above categories. If
relying upon this category alone, each equity owner must complete a separate
copy of this Questionnaire.

 

 

 

 

 

 

 

 

(describe entity)

 

II. SUITABILITY (Please answer each question) 

 

please state whether you have you participated in other private placements
before:

 

YES [   ] NO [   ]

 

(a) If your answer to question (d) above was “YES”, please indicate frequency of
such prior participation in private placements of: 

 

 

Public

Companies

 

Private

Companies

 

 

 

 

Frequently

 

 

 

Occasionally

 

 

 

Never

 

 

 

 

(b) Do you have any other investments or contingent liabilities which you
reasonably anticipate could cause you to need sudden cash requirements in excess
of cash readily available to you? 

 

YES [   ] NO [   ]

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(c) Are you familiar with the risk aspects and the non-liquidity of investments
such as the Securities for which you seek to subscribe? 

 

YES [   ] NO [   ]

 

(d) Do you understand that there is no guarantee of financial return on this
investment and that you run the risk of losing your entire investment? 

 

YES [   ] NO [   ]

 

III. FINRA AFFILIATION. 

 

Are you affiliated or associated with a FINRA member firm (please check one)?

 

YES [   ] NO [   ] If yes, please explain: _________________________

 

IV. DISQUALIFICATION EVENTS. 

 

(a) Certain Criminal Convictions. 

 

Have you been convicted, within the past ten (10) years (or five (5) years, in
the case of the Company, its predecessors and affiliated issuers), of any felony
or misdemeanor involving:

 

in connection with the purchase or sale of any security; 

 

involving the making of any false filing with the U.S. Securities and Exchange
Commission (the “SEC”); or 

 

arising out of the conduct of the business of an underwriter, broker, dealer,
municipal securities dealer, investment advisor or paid solicitor of purchasers
of securities? 

 

YES [   ] NO [   ] If yes, please explain: _________________________

 

(b) Certain Court Injunctions and Restraining Orders. 

 

Are you subject to any order, judgment or decree of any court of competent
jurisdiction that was entered within the past five (5) years and currently
restrains or enjoins you from engaging in any conduct or practice:

 

in connection with the purchase or sale of any security; 

 

involving the making of any false filing with the SEC; or 

 

arising out of the conduct of the business of an underwriter, broker, dealer,
municipal securities dealer, investment adviser or paid solicitor of purchasers
of securities? 

 

YES [   ] NO [   ] If yes, please explain: _________________________

 

(c) Final Orders of Certain State and Federal Regulators. 

 

Are you subject to a Final Order3 (as defined below) of state regulators of
securities, insurance, banking, savings associations or credit unions; federal
banking agencies; the Commodity Futures Trading Commission; the National Credit
Union Administration?

 

YES [   ] NO [   ] If yes, please explain: _________________________

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3 The term “ Final Order ” means a written directive or declaratory statement
issued by a federal or state agency described in Rule 506(d)(1)(iii) under the
Securities Act of 1933 under applicable statutory authority that provides for
notice and an opportunity for a hearing, which constitutes a final disposition
or action by that federal or state agency

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(d) SEC Disciplinary Orders or Cease-and-Desist Orders. 

 

Have you been the subject to any disciplinary order of the SEC or an order that
orders you to cease and desist from committing or causing a future violation of
any of the federal securities laws?

 

YES [   ] NO [   ] If yes, please explain: _________________________

 

V. REPRESENTATIONS.  

 

(a) The undersigned is informed of the significance to the Company of the
foregoing representations and answers contained in this Questionnaire contained
herein and such answers have been provided under the assumption that the Company
will rely on them. 

 

(b) In furnishing the above information, the undersigned acknowledges that the
Company will be relying thereon in determining, among other things, whether
there are reasonable grounds to believe that the undersigned qualifies as a
Purchaser under Section 4(2) and/or Regulation D of the Securities Act of 1933
and applicable state securities laws for the purposes of the proposed
investment. 

 

(d) The undersigned understands and agrees that the Company may request further
information of the undersigned in verification or amplification of the
undersigned’s knowledge of business affairs, the undersigned’s assets and the
undersigned’s ability to bear the economic risk involved in an investment in the
securities of the Company. 

 

(e) The undersigned represents to you that (a) the information contained herein
is complete and accurate on the date hereof and may be relied upon by you, (b)
the undersigned will notify you immediately of any change in any such
information occurring prior to the acceptance of the subscription and will
promptly send you written confirmation of such change. The undersigned hereby
certifies that he, she or it has read and understands the Subscription Agreement
related hereto and (c) the undersigned acknowledges that you may be required to
publicly disclose the information provided in this Questionnaire and that he,
she or it consents to such public disclosure. 

 

(f) Subscriber (and any beneficial owners of Subscriber), are currently (a) in
compliance with the regulations of the Office of Foreign Assets Control (“OFAC”)
of the U.S. Department of Treasury and any statute, executive order, or
regulation relating thereto, (b) not listed on be listed on, the Specially
Designated Nationals and Blocked Persons List maintained by OFAC and/or on any
other similar list maintained by OFAC or other governmental authority pursuant
to any authorizing statute, executive order, or regulation, and (c) not a person
or entity with whom a U.S. person is prohibited from conducting business under
the OFAC Rules. 

 

(Signature page immediately follows).

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INVESTOR QUESTIONNAIRE EXECUTION PAGE

 

 

 

 

Signature

 

Signature (if purchasing jointly)

 

 

 

 

 

 

Name Typed or Printed

 

Name Typed or Printed

 

 

 

 

 

 

Entity Name

 

Entity Name

 

 

 

 

 

 

Address

 

Address

 

 

 

 

 

 

City, State and Country

 

City, State and Country

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Exhibit C

Form of Warrant

(Attached)

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