Document:

Exhibit 10.21 Form Warrant Issued to Sandor

 

NEITHER THIS WARANT NOR THE SHARES OF STOCK ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR STATE SECURITIES LAWS. NO SALE, TRANSFER OR OTHER DISPOSITION OF THIS WARRANT OR SAID SHARES MAY BE EFFECTED WITHOUT (i) AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO UNDER APPLICABLE FEDERAL AND STATE SECURITIES LAWS, OR (ii) AN EXEMPTION FROM REGISTRATION UNDER SUCH LAWS IS AVAILABLE.

 

Warrant No. A0008STOCK PURCHASE WARRANTNo. of Shares: 9,000,000 

 

To Subscribe for and Purchase Common Stock of

Northsight Capital, Inc.

 

THIS CERTIFIES that, for value received, Sandor Capital Master Fund (or its designee) (together with any subsequent transferees of all or any portion of this Warrant, the “Holder”), is entitled, upon the terms and subject to the conditions hereinafter set forth, to subscribe for and purchase from Northsight Capital, Inc., a Nevada Corporation (hereinafter called the “Company”), at the price hereinafter set forth in Section 2, up to NINE MILLION fully paid and non-assessable shares (the “Shares”) of the Company’s Common Stock, $.001 par value per share (the “Common Stock”). 

 

1.Definitions. As used herein the following term shall have the following meaning: 

“Act” means the Securities Act of 1933, as amended, or a successor statute thereto and the rules and regulations of the Securities and Exchange Commission issued under that Act, as they each may, from time to time, be in effect.

 

2. Purchase Rights. The purchase rights represented by this Warrant shall be exercisable by the Holder in whole or in part any time after the date hereof upon written notice to the Company. The purchase rights represented by this Warrant shall expire three years from the date hereof. This Warrant may be exercised for Shares at a price of FIVE CENTS ($.05) per share, subject to adjustment as provided in Section 6 (the “Warrant Purchase Price”). 

 

3. Exercise of Warrant. Subject to Section 2 above, the purchase rights represented by this Warrant may be exercised, in whole or in part and from time to time, by the surrender of this Warrant, the duly executed Notice of Exercise (the form of which is attached as Exhibit A), and a form of subscription letter acceptable to the Company, at the principal office of the company and by payment to the Company, by check, of an amount equal to the then applicable Warrant Purchase Price per share multiplied by the number of Shares then being purchased. Upon exercise, the Holder shall be entitled to receive, within a reasonable time, a certificate or certificates, issued in the Holders’ name or in such name or names as the Holder may direct, for the number of Shares so purchased. The Shares so purchased shall be deemed to be issued as of the close of business on the date on which this Warrant shall have been exercised. 

 

4.Shares to be Issued. Reservation of Shares. The Company covenants that the Shares that may be issued upon the exercise of the purchase rights represented by this Warrant will, upon issuance in accordance herewith, be fully paid and non-assessable, and free from all liens and charges with respect to the issue thereof. During the period within which the purchase rights represented by the Warrant may be exercised, the Company will, at all times, have authorized and reserved, for the purpose of issuance upon exercise of the purchase rights represented by this Warrant, a sufficient number of shares of its Common Stock to provide for the exercise of the right represented by this Warrant. 

 

5.No Fractional Shares. No fractional shares shall be issued upon the exercise of this Warrant. In lieu thereof, a cash payment shall be made equal to such fraction multiplied by the fair market value of such shares of Common Stock, as determined in good faith by the Company’s Board of Directors. 

 

6.Adjustments of Warrant Purchase Price and Number of Shares. If there shall be any change in the Common Stock of the Company, through merger, consolidation, reorganization, recapitalization, stock dividend, stock split or other change in the corporate structure of the Company, appropriate adjustments shall be made by the Board of Directors of the Company (or if the Company is not the surviving corporation in any such transaction, the Board of Directors of the surviving corporation) in the aggregate number and kind of shares subject to this Warrant, and the number and kind of shares and the price per share then applicable to the shares covered by the unexercised portion of this Warrant. 

 

7.No Rights as Shareholders. This Warrant does not entitle the Holder to any voting rights or other rights as a shareholder of the Company prior to the exercise of this Warrant and the payment for the Shares so purchased. Notwithstanding the foregoing, the Company agrees to transmit to the Holder such information, documents and reports as are generally distributed to holders of the capital stock of the Company concurrently with the distribution thereof to the shareholders. Upon valid exercise of this Warrant and payment for the Shares so purchased in accordance with the terms of the Warrant, the Holder or the Holder’s designee, as the case may be, shall be deemed a shareholder of the Company. 

8.Sale or Transfer of the Warrant and the Shares; Legend. The Warrant and the Shares shall not be sold or transferred unless either (i) they first shall have been registered under applicable Federal and State Securities laws, or (ii) such sale or transfer is exempt from the registration requirements of such laws. Each certificate representing any Warrant shall bear the legend set out on page 1 hereof. Each certificate representing any Shares shall bear a legend substantially in the following form, as appropriate: 

 

THE SHARES EVIDENCED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFEFCTIVE REGISTRATION STATEMENT RELATED THERETO UNDER APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION UNDER APPLICABLE FEDERAL AND STATE SECURITIES LAWS.

 

The Warrant and Shares may be subject to additional restrictions on transfer imposed under applicable state and federal securities law.

 

9.Modifications and Waivers. This Warrant may not be changed, waived, discharged or terminated except by an instrument in writing signed by the party against which enforcement of the same is sought. 

 

10.Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder or the Company shall be delivered, or shall be sent by certified or registered mail, postage prepaid, to the Holder at its address shown on the books of the Company, or in the case of the Company, at the address indicated therefore on the signature page of this Warrant, or, if different, at the principal office of the Company. 

 

11.Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants with the Holder that upon its receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant or any stock certificate and, in the case of any such loss, theft or destruction, of an indemnity or security reasonably satisfactory to it, and upon reimbursement to the Company of all reasonable expenses incidental thereto, and upon surrender and cancellation of this Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate, of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant or stock certificate. 

 

12.Binding Effect on Successors. This Warrant shall be binding upon any corporation succeeding the Company by merger, consolidation or acquisition of all or substantially all of the Company’s assets, and all of the obligations of the Company relating to the Shares issuable upon exercise of this Warrant shall survive the exercise and termination of this Warrant and all of the covenants and agreements of the Company shall inure to the benefit of the successors and assigns of the Holder. 

 

13.Governing Law. This Warrant shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of Nevada, without regard to the conflicts of law provisions thereof. 

 

IN WITNESS WHEREOF, Northsight Capital, Inc. has caused this Warrant to be executed by its officer thereunto duly authorized.

 

ORIGINAL ISSUANCE AS OF: October 16, 2017

 

Northsight Capital, Inc.  

 

/s/ John P. Venners

By: John P. Venners, 

EVP, Operations

EXHIBIT A

 

NOTICE OF EXERCISE

 

To:Northsight Capital, Inc., 

 

1.The undersigned hereby elects to purchase ____________ shares of Common Stock of Northsight Capital, Inc. pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price of such shares in full. 

 

2.Please issue a certificate or certificates representing said shares in the name of the undersigned or in such other name or names as are specified below. 

 

3.The undersigned represents that the aforesaid shares of Common Stock are being acquired for the account of the undersigned for investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares. The undersigned further represents that such shares shall not be sold or transferred unless either (i) they first shall have been registered under applicable federal and state securities laws or (ii) an exemption from applicable federal and state registration requirements is available. 

 

4.In the event of partial exercise, please re-issue an appropriate Warrant exercisable into the remaining shares. 

 

 

 

_________________________________ 

Name 

 

 

_________________________________ 

 

_________________________________ 

 

_________________________________ 

Address 

 

_________________________________ 

Signature 

 

_________________________________ 

DateExhibit 10.22 Preliminary Agreement to Acquire stock of Westcliff Technologies and the Company, dated November 11, 2017*

 

NORTHSIGHT CAPITAL, INC.

7580 E. Gray Road, #103

Scottsdale, AZ 85260

 

November 10, 2017 Westcliff Technologies

 

This letter is intended to summarize the principal terms of a proposal by Northsight Capital, Inc. (the ''Buyer'') to acquire 80% of the issued and outstanding capital stock of Westcliff Technologies, a California Corporation (the ''Company''), and 49% of ''NewCo'', which operates a business focused upon the currently called ''bitcoin'' industry. The acquisition will take the form of a stock exchange, in accordance with the provisions set forth below.

 

The Parties wish to commence negotiating a definitive acquisition agreement providing for the proposed acquisition (a ''Definitive Agreement''). The Definitive Agreement shall include the terms set forth in this Part I.

 

Form of Transaction and Purchase Price.

 

Buyer will acquire 80% Westcliff Technology and 49% of ''New Co'' for a total of 18 million restricted shares of common stock of Buyer (the ''Buyer Common Stock'') and cash of $3,000,000 to be paid out over a 36 month period, or $83,333 per month. The first payment of $83,333 will be due upon the closing of the acquisition.

 

The transaction will be structured as a stock for stock exchange, pursuant to which the Buyer issues shares of its common stock to the existing shareholders of the Company, in an amount as specified above.

 

The buyer guarantees a stock price and valuation of $2.00 a share/$36 million dollars within the holding time of 12 months for restricted stock based upon milestones agreed to by both parties. If NCAP stock is not $2 in 12 months after the closing, NCAP will issue additional shares to make up the difference. NCAP agrees to put sellers shares on any future registration statement done for the benefit of shareholders.

 

Buyer guarantees a cash injection of working capital of $3 million, $1.5 million to each entity as part of the purchase price. The closing of the acquisition is subject to the $3 million funding at the time of the closing.

 

Payment.

 

The purchase price to be paid by the Buyer would be paid in the following manner:

 

(a) at the Closing, the Buyer would deliver to the Company's shareholders one or more stock certificates evidencing the Buyer Common Stock.

 

Assumption as to Company Assets.

 

This letter of intent is executed upon the assumption that the business information furnished by the Company to Buyer with respect to the Company's assets in connection with their negotiations to date is accurate and that no material adverse change with respect to the such assets has occurred since the date of such information.

 

Reasonable Efforts.

 

The Buyer and the Company shall use commercially reasonable efforts to negotiate in good faith and execute a Definitive Agreement containing the terms set forth herein and such other terms as are appropriate or necessary to a transaction of the type herein contemplated, and to obtain any necessary third party consents and regulatory approvals as promptly as reasonably possible.

 

Execution of Definitive Agreement; Closing.

 

Subject to receipt of any necessary third party consents and regulatory approvals, the parties will endeavor to negotiate and execute a Definitive Agreement by the acquisition transaction will be consumated at a closing (the ''Closing'') within 5 business days of execution of the Agreement, or at such time as the parties may determine.

 

Definitive Agreement.

 

In the Definitive Agreement:

 

The majority shareholder of the Company shall make the representations, warranties and covenants concerning the Company and its assets as are customary or necessary in a transaction of the type contemplated herein. The accuracy of the representations and warranties and the performance of the covenants shall be a condition precedent to Closing and shall give rise to indemnification rights in Buyer, as hereafter described.

 

The Definitive Agreement shall provide that representations and warranties of the majority shareholder shall survive the Closing, and the majority shareholder shall indemnify the Buyer against any loss, damage or expense which the Buyer may suffer as a consequence of any breach of any representation, warranty or covenant of the Seller under the agreement. The indemnity obligations shall be limited to claims asserted within two years following the Closing.

 

The Parties will endeavor to structure transaction so as to qualify as a tax-free reorganization, if possible.

1

Securities Law Compliance.

 

The Buyer Shares to be issued in the transaction will be exempt fro111the registration reqt1irements of the Securities Act of 1933, as amended (the ''Sect1rities Act''), pursuant to Section 4(2) thereof or Reg11lation D theret1nder, and will be exempt from the registration or qualification requirements of the applicable state ''blue sky'' laws. They therefore wotud be subject to the resale restrictions imposed under such exemptions from registration or qualification. The certificates representing such Buyer Shares would bear a legend reflecting such restrictions.

 

Upon the signing of this letter by the last party to sign (the ''Signing Date'') the provisions of this Letter of Intent shall become legally binding and enforceable agreements of the Buyer and the Company.

 

Access to Information; Confidentiality.

 

The Company shall give the Buyer and its representatives full and free access at reason able times to the Company's assets and related records and business files and the Company and its majority shareholder shall make themselves and their representatives available to the Buyer and its representatives at reasonable times.

 

Except as and to the extent required by law, the Buyer will not disclose or use, and will direct its representatives not to disclose or use to the detriment of the Company, any Confidential Inforn1ation (as defined below) with respect to the Company furnished, or to be furnished, by either Company or its representatives to the Buyer or its representatives at any time or in any manner other than in connection with its evaluation of the transaction proposed in this letter.

 

Confidential Information under this Agreement means and includes any and all (i) information disclosed orally or in writing of a competitively sensitive or proprietary nature, whether or not marked confidential or proprietary, including without limitation information relating to business strategy, projects, designs, forecasts, know-how, and trade secrets; and (ii) any other information marked as ''confidential'' or ''proprietary'' or, if not disclosed in writing, identified as confidential or in proprietary at the time of disclosure and summarized in a written disclosure.

 

Each party agrees that it will (i) use the same degree of care to maintain the Confidential Information secret as it uses in maintaining as secret its own proprietary, confidential, and trade secret information, but always with no less than a reasonable degree of care; and (ii) use the Confidential Information only for the purposes of proposing or evaluating the proposed transaction. Each party hereto will only provide Confidential Information to persons who have a need to know such Confidential Information in order to perform due diligence, participate in negotiations or otherwise evaluate the proposed transaction, and who are under a legally enforceable obligation to protect the confidentiality of such Confidential Information.

 

Upon the written request of the Company, the B11yer will promptly return to the Company or destroy any Confidential Information in its possession and certify in writing to the Company that it has done so.

 

Public Announcement or Disclosure.

 

Except as and to the extent required by law, including any obligations under federal securities laws, without the prior consent of the other party, neither the Buyer nor Company will, and each will direct its representatives not to make, directly or indirectly, any public comment, statement, or communication with respect to, or otherwise to disclose or to permit the disclosure of the existence of discussions regarding, a possible transaction between the parties or any of the terms, conditions, or other aspects of the transaction proposed in this letter. If a party is required by law to make any such disclosure it will, to the extent possible consistent with such legal obligation, furnish to the other party or its representative advance copies of any press releases or other public disclosures which it proposes to make concerning the transaction, the reasons that such disclosure is required by law, and the time and place that the disclosure will be made.Notwithstanding the foregoing, each party shall be free to disclose the tax treatment and tax structure of a transaction no later than the earlier of (a) the date of public announcement of discussions related to the proposed transaction, (b) the date of public announcement of the transaction, or (c) the date of execution of a Definitive Agreement.

 

Costs.

 

The Buyer and the Company (and its owners) shall each be responsible for and bear all of its own costs and expenses (including any broker's or finder's fees and the expenses of its representatives) incurred at any time in connection with pursuing or consummating the proposed acquisition.

 

Termination.

 

The provisions of this letter will terminate on the earlier of (i) the date of vo1untary termination by agreement of both parties. From and after the Termination Date, the parties will have no further obligations hereunder; provided, however, that (i) the termination of the provisions of this letter will not affect the liability of a party for breach of any of the provisions of this letter prior to the Termination Date, and (ii) the provisions of Part II will survive any such termination.

2

Miscellaneous Provisions.

 

The provisions of this letter constitute the entire agreement between the parties, and supersede all prior oral or written agreements, understandings, representations and warranties, and courses of conduct and dealing between the parties on the subject matter hereof. Except as otherwise provided herein, the provisions of this letter may be amended or modified only by a writing executed by all of the parties.

 

The agreement contained in this letter will be governed by and construed under the laws of Arizona, withot1t regard to conflicts of laws principles.

 

Any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this letter may be brought against any of the parties in the courts of the State of Arizona, County of Maricopa and each of the parties consents to the jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding and waives any objection to venue laid therein. Process in any action or proceeding referred to in the preceding sentence may be served on any party anywhere in the world.

 

This letter may be executed in one or more counterparts, each of which will be deemed to be an original copy of this letter and all of which, when taken together, will be deemed to constitute one and the same agreement.

 

If you are in agreement with the terms of this letter, please sign in the space provided and rett1rn same to us, whereupon this letter will constitute a non-binding agreement with respect to its subject matter.

 

Very truly yours,

 

Northsight Capital, Inc

 

By: /s/John P. Venners 

John P. Venners, EVP

 

AGREED TO AND ACCEPTED:

 

Westcliff Technologies, Inc

 

By:/s/ Cailen Sullivan

Cailen Sullivan

 

 

Date: 11/11/2017

3

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