Document:

wmtn_ex1020.htm

Exhibit 10.20

IMPORTANT:  PLEASE READ CAREFULLY BEFORE SIGNING.

SIGNIFICANT REPRESENTATIONS ARE CALLED FOR HEREIN.

SUBSCRIPTION AGREEMENT

and

LETTER OF INVESTMENT INTENT FOR PREFERRED STOCK

WestMountain Gold, Inc.

120 Lake Street, Suite 401

Sandpoint, ID 83864

Gentlemen:

The undersigned (the "Subscriber") hereby tenders this subscription for the purchase of shares of Series A Convertible Preferred Stock (“Shares” or “Securities”) issued by WestMountain Gold, Inc. (the “Company”),  with a 10% annual dividend and which is convertible into the Company’s common stock at $1.00 per share. The Shares are being offered at a price of $50.00 per Share (the “Offering”).  By execution below, the Subscriber acknowledges that the Company is relying upon the accuracy and completeness of the representations and warranties contained herein in complying with its obligations under applicable securities laws.

1.           Subscription Commitment.  The Subscriber hereby subscribes for the purchase of  Shares at an aggregate purchase price of $  as full payment therefor.  The purchase price shall be paid to the Company by cashier’s check made payable to WestMountain Gold, Inc. by wire transfer to the Offering’s account.

2.           Representations and Warranties.  In order to induce the Company to accept this subscription, the Subscriber hereby represents and warrants to, and covenants with, the Company as follows:

(a)           Receipt of Document; Access to Information.  Subscriber has been provided with a copy of the Company’s Confidential Private Placement Memorandum (the “Memorandum”) dated June 1, 2013, and Appendices (collectively, the “Documents”).  The Subscriber has carefully reviewed and is familiar with all of the terms of the Documents, including the Risk Factors contained in the Memorandum.  The Subscriber has been given access to full and complete information regarding the Company and has utilized such access to the Subscriber’s satisfaction for the purpose of obtaining such information regarding the Company as the Subscriber has reasonably requested; and, particularly, the Subscriber has been given reasonable opportunity to ask questions of, and receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Securities and to obtain any additional information, to the extent reasonably available.  The Subscriber acknowledges that the Subscriber has had an opportunity to review all of the Company’s SEC filings, which are publicly available at www.SEC.gov.

(b)           Reliance.  The Subscriber has relied on nothing other than the Documents (including any exhibits thereto) and the Company’s SEC filings in deciding whether to make an investment in the Company.  Except as set forth in the Documents, no representations or warranties have been made to the Subscriber by the Company, any selling agent of the Company, or any agent, employee, or affiliate of the Company or such selling agent.

  

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(c)           Economic Loss.  The Subscriber believes that an investment in the Securities is suitable for the Subscriber based upon the Subscriber’s investment objectives and financial needs.  The Subscriber (i) has adequate means for providing for the Subscriber’s current financial needs and personal contingencies; (ii) has no need for liquidity in this investment; (iii) at the present time, can afford a complete loss of such investment; and (iv) does not have overall commitments to investments which are not readily marketable and disproportionate to the Subscriber's net worth, and the Subscriber's investment in the Securities will not cause such overall commitments to become excessive.

(d)           Sophistication.  The Subscriber, in reaching a decision to subscribe, has such knowledge and experience in financial and business matters that the Subscriber is capable of reading and interpreting financial statements and evaluating the merits and risk of an investment in the Securities and has the net worth to undertake such risks.  The investment contemplated hereby is the result of arm’s length negotiation between the Subscriber and the Company.

(e)           No General Solicitation.  The Subscriber was not offered or sold the Securities, directly or indirectly, by means of any form of general advertising or general solicitation, including, but not limited to, the following:  (1) any advertisement, article, notice or other communication published in any newspaper, magazine, or similar medium of or broadcast over television or radio; or (2) to the knowledge of the undersigned, any seminar or meeting whose attendees had been invited by any general solicitation or general advertising.

(f)           Seek Advice.  The Subscriber has obtained, to the extent the Subscriber deems necessary, the Subscriber’s own personal professional advice with respect to the risks inherent in the investment in the securities, and the suitability of an investment in the Securities in light of the Subscriber's financial condition and investment needs;

(g)           Investment Risks.  The Subscriber recognizes that the Securities as an investment involves a high degree of risk, including those set forth under the risk factors contained in the Documents.

(h)           Effect and Time of Representations.  The information provided by the Subscriber contained in this Subscription Agreement is true, complete and correct in all material respects as of the date hereof.  The Subscriber understands that the Company's determination that the exemption from the registration provisions of the Securities Act of 1933, as amended (the "Securities Act"), which is based upon non-public offerings and applicable to the offer and sale of the Securities, is based, in part, upon the representations, warranties, and agreements made by the Subscriber herein.  The Subscriber consents to the disclosure of any such information, and any other information furnished to the Company, to any governmental authority or self-regulatory organization, or, to the extent required by law, to any other person.

(i)           Restrictions on Transfer; No Market for Securities.  The Subscriber acknowledges that (i) the purchase of the Securities is a long-term investment; (ii) the Subscriber must bear the economic risk of investment for an indefinite period of time because the Securities have not been registered under the Securities Act or under the securities laws of any state and, therefore, the Securities cannot be resold unless an exemption from the registration requirements of such laws are available;  (iii) there will be  no market for the Securities and the Subscriber may be unable to liquidate the Subscriber’s investment in the event of an emergency, or pledge the Securities as collateral for a loan; and (iv) the transferability of the Securities is restricted and (A) requires conformity with the restrictions contained in paragraph 3 below and (B) legends will be placed on the certificate(s) representing the Securities referring to the applicable restrictions on transferability.

  

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(j)           No Backup Withholding.  The Subscriber certifies, under penalties of perjury, that the Subscriber is NOT subject to the backup withholding provisions of Section 3406(a)(i)(C) of the Internal Revenue Code.

(k)           Restrictive Legend.  Stop transfer instructions will be placed with the transfer agent for the Securities, and a legend may be placed on any certificate representing the Securities substantially to the following effect:

THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), IN RELIANCE UPON THE EXEMPTIONS FROM REGISTRATION PROVIDED IN THE ACT AND REGULATION D UNDER THE ACT AND HAVE NOT BEEN REGISTERED UNDER ANY STATE SECURITIES LAWS.  AS SUCH, THE PURCHASE OF THIS SECURITY WAS NECESSARILY WITH THE INTENT OF INVESTMENT AND NOT WITH A VIEW FOR DISTRIBUTION.  THEREFORE, ANY SUBSEQUENT TRANSFER OF THIS SECURITY OR ANY INTEREST THEREIN WILL BE UNLAWFUL UNLESS IT IS REGISTERED UNDER THE ACT AND ANY STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM REGISTRATION IS AVAILABLE. FURTHERMORE, IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS SECURITY OR ANY INTEREST THEREIN, WITHOUT THE OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT THE PROPOSED TRANSFER OR SALE DOES NOT AFFECT THE EXEMPTIONS RELIED UPON BY THE COMPANY IN ORIGINALLY DISTRIBUTING THE SECURITY AND THAT REGISTRATION IS NOT REQUIRED.

 

 (l)           Placement Agent.  The Company is not using a Placement Agent. The Company may pay sales commission and expenses up to 10% of 8% of the gross proceeds of this Offering.

(m)           Notice of Change.  The Subscriber agrees that it will notify the Company in writing promptly (but in all events within thirty (30) days after the applicable change) of any actual or anticipated change in any facts or circumstances, which change would make any of the representations and warranties in this Subscription Agreement untrue if made as of the date of such change (after giving effect thereto).

3.           Restricted Nature of the Securities; Investment Intent. The Subscriber has been advised and understands that (a) the Securities have not been registered under the Securities Act or applicable state securities laws and that the securities are being offered and sold pursuant to exemptions from such laws; (b) the Documents have not been filed with or reviewed by any state securities administrators because of the limited nature of the offering; (c) the Company will not register the Securities under the Act or any state securities laws, or take any action to make any exemption from any such registration provisions available to investors who wish to resell the Securities. The Subscriber represents and warrants that the Securities are being purchased for the Subscriber’s own account and for investment purposes only, and without the intention of reselling or redistributing the same; the Subscriber has made no agreement with others regarding any of the Securities; and the Subscriber’s financial condition is such that it is not likely that it will be necessary to dispose of any of such Securities in the foreseeable future.  The Subscriber is aware that, in the view of the SEC, a purchase of such securities with an intent to resell by reason of any foreseeable specific contingency or anticipated change in market value, or any change in the condition of the Company, or in connection with a contemplated liquidation settlement of any loan obtained for the acquisition of such securities and for which such securities were pledged, would represent an intent inconsistent with the representations set forth above.  The Subscriber further represents and agrees that if, contrary to the foregoing intentions, the Subscriber should later desire to dispose of or transfer any of such Securities in any manner, the Subscriber shall not do so unless and until the Subscriber shall have first delivered to the Company a written notice declaring such holder's intention to effect such transfer and describe in sufficient detail the manner and circumstances of the proposed transfer, which notice shall be accompanied either by a written opinion of legal counsel who shall be reasonably satisfactory to the Company, which opinion shall be addressed to the Company and reasonably satisfactory in form and substance to the Company's counsel, to the effect that the proposed sale or transfer is exempt from the registration provisions of the Act and all applicable state securities laws, or by a "no action" letter from the SEC to the effect that the transfer of the Securities without registration will not result in recommendation by the staff of the Commission that action be taken with respect thereto.

  

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4.           Residence.  The Subscriber represents and warrants that the Subscriber is a bona fide resident of, is domiciled in and received the offer and made the decision to invest in the Securities in the state set forth on the signature page hereof, and the Securities are being purchased by the Subscriber in the Subscriber’s name solely for the Subscriber’s own beneficial interest and not as nominee for, or on behalf of, or for the beneficial interest of, or with the intention to transfer to, any other person, trust or organization, except as specifically set forth in this Subscription Agreement.

 

 

5.           Investor Qualification.  The Subscriber represents and warrants that the Subscriber is an “accredited investor” as that term is defined in Regulation D under the Securities Act because the Subscriber comes within at least one category marked below.  The Subscriber further represents and warrants that the information set forth below is true and correct.  ALL INFORMATION IN RESPONSE TO THIS PARAGRAPH WILL BE KEPT STRICTLY CONFIDENTIAL EXCEPT AS REQUIRED BY LAW.  The Subscriber agrees to furnish any additional information which the Company deems necessary in order to verify the answers set forth below.  (Please check all that apply.)

	
  

	
Category I

	 	
The Subscriber is an individual (not a partnership, corporation, etc.) whose individual net worth, or joint net worth with the Subscriber’s spouse, presently exceeds $1,000,000.

Explanation.  In calculation of net worth the Subscriber may include equity in personal property and real estate, excluding the Subscriber’s principal residence but including any negative net worth related to Subscriber’s principal residence and also including any increase in indebtedness secured by the Subscriber’s principal residence incurred within the preceding 60 days (unless such increase occurred in connection with the purchase of such 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.

	
  

	
Category II

	 	
The Subscriber is an individual (not a partnership, corporation, etc.) who had an individual net income in excess of $200,000 in each of the last two years, or joint income with his/her spouse in excess of $300,000 in each of the last two years, and has a reasonable expectation of reaching the same income level in the current year.

Category III                           The Subscriber is an executive officer or director of the Company.

	
  

	
Category IV

	 	
The Subscriber is a bank as defined in Section 3(a)(2) of the Securities Act; a savings and loan as defined in Section 3(a)(5)(A) of the Securities Act; an insurance company as defined in Section 2(13) of the Securities Act; a broker or dealer registered pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”); an investment company registered under the Investment Company Act of 1940, as amended (the “Investment Company Act”), or a business development company as defined in Section 2(a)(48) of the Investment Company Act; a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000, or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors (this includes IRAs).  (Note: If you check this category, the Company may request additional information regarding investment company and ERISA issues.)

 

	 	 
	 	 

                    (describe entity)

  

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Category V                             The Subscriber is a private business development company as defined inSection 202(a)(22) of the Investment Advisers Act of 1940, as amended.

 

	 	 
	 	 

                 (describe entity)

	
  

	
Category VI

	 	
The Subscriber is an entity with total assets in excess of $5,000,000 which was not formed for the purpose of investing in the Securities and which is one of the following:

a corporation; or

a partnership; or

a business trust; or

a tax-exempt organization described in Section 501(c)(3) ofthe Internal Revenue Code of 1986, as amended.

 

	 	 

                   (describe entity)

	
  

	
Category VII

	 	
The Subscriber is an entity 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 Agreement.

 

	 	 
	 	 

                  (describe entity)

  

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Category VIII

	 	
The Subscriber is a trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Securities, whose purchase is directed by a person who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment.

6.           All investors are required to answer the following questions:

Education and Degrees:                                           

Employer:                                

Employer's Address:                                           

 

Nature of Occupation:                                           

Position and Duties:                                           

Other prior occupations or duties during past five years (indicating employer, title, principal responsibilities and years of service):

 

Professional licenses or registrations held, including bar admissions, accounting certificates, real estate brokerage licenses, and SEC or state broker-dealer registrations:

 

Provide the following information as to any Subscriber that is a partnership, corporation, trust or other entity:

(1)           List name of person(s) making investment decision on behalf of such entity:

 

	
(2)

	
List names of each partner, stockholder or trustee:

 

	
  

	
(3)

	
Indicate date of formation of partnership, corporation or trust and jurisdiction of formation:

	
  

	 

	
  

	
(4)

	
Indicate whether the partnership, corporation or trust was formed to acquire the Securities (please check one):

	 	
Yes

	 	
No

(5)           Federal Tax Identification Number:                                                                

(6)           Nature of business of Subscriber:

  

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Investment Experience.

The undersigned has made the following type of investments in the past five years:

Stock                                            (            )

Bonds                                           (            )

Non-marketable Securities                                           (            )

Limited Partnerships                                                      (           )

Venture Capital Investments                                                      (           )

Speculative Investments                                                      (           )

The undersigned has invested during the past five years in excess of (check the largest applicable):

$     50,000                                (           )

$   100,000                                (           )

$   250,000                                (           )

$   500,000                                (           )

$1,000,000                                (           )

$5,000,000                                (           )

  

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Financial Information

Net Worth.  The undersigned's net worth (or, if a natural person, the joint net worth of the undersigned and his or her spouse) is in excess of:

(           )           $200,000                                (            )           $1,000,000

(            )           $250,000                                (           )           $2,500,000

(            )           $500,000                                (           )           $5,000,000

(            )           $750,000                                (           )           None of the above

For purposes of this question, net worth is defined as the excess of total assets at fair market value over total liabilities, excluding the undersigned’s principal residence.

Income of Subscriber.  The undersigned's income (see Appendix A for the definition of “income”) for the calendar years (or fiscal years, if different) ended in 2011 and 2012, and his, her or its expected income for the calendar year (or fiscal different) ending in 2013, is in excess of:

	
2011

	 	 	
2012

	 	 	
2013 (expected)

	 
	 	 	 	 	 	 	 	 
	 	(	)	 	$	50,000	 	 	 	(­­­	)	 	$	50,000	 	 	 	(	)	 	$	50,000	 
	 	(	)	 	$	100,000	 	 	 	(	)	 	$	100,000	 	 	 	(	)	 	$	100,000	 
	 	(	)	 	$	200,000	 	 	 	(	)	 	$	200,000	 	 	 	(	)	 	$	200,000	 
	 	(	)	 	$	500,000	 	 	 	(	)	 	$	500,000	 	 	 	(	)	 	$	500,000	 
	 	(	)	 	$	1,000,000	 	 	 	(	)	 	$	1,000,000	 	 	 	(	)	 	$	1,000,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

Income of Subscriber and Spouse.  If the Subscriber is an individual, the joint incomes (see Appendix A) of the undersigned and his or her spouse for the calendar years ended in 2011 and 2012, and their expected income for the calendar year 2013, is in excess of:

 

	
2011

	 	 	
2012

	 	 	
2013 (expected)

	 
	 	 	 	 	 	 	 	 
	 	(	)	 	$	50,000	 	 	 	(­­­	)	 	$	50,000	 	 	 	(	)	 	$	50,000	 
	 	(	)	 	$	100,000	 	 	 	(	)	 	$	100,000	 	 	 	(	)	 	$	100,000	 
	 	(	)	 	$	200,000	 	 	 	(	)	 	$	200,000	 	 	 	(	)	 	$	200,000	 
	 	(	)	 	$	500,000	 	 	 	(	)	 	$	500,000	 	 	 	(	)	 	$	500,000	 
	 	(	)	 	$	1,000,000	 	 	 	(	)	 	$	1,000,000	 	 	 	(	)	 	$	1,000,000	 

 

Foreign Investor Status.

To answer this question, please refer to the definition of "U.S. Person" set forth in Appendix A.  The undersigned qualifies as a foreign investor if he is not a U.S. Person.

The undersigned represents that (please initial if applicable):

  

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The undersigned qualifies as a foreign investor as described above in this Section 6.

 

7.           FINRA.

(a) Are you a member of FINRA1, a person associated with a member of FINRA2, or an affiliate of a member?

Yes                      No                      

 

If "Yes," please list any members of FINRA with whom you are associated or affiliated.

 

(b)  If you are a corporation, are any of your officers, directors or 5% shareholders a member of FINRA, a person associated with a member of FINRA, or an affiliate of a member?

Yes                      

No                      

If "Yes," please list the name of the respective officer, director, or 5% shareholder and any members of FINRA with whom they are associated or affiliated.

 

8.           Authority.  The undersigned, if other than an individual, makes the following additional representations:

(a)           The Subscriber was not organized for the specific purpose of acquiring the Securities;

(b)           The Subscriber is fully authorized, empowered and qualified to execute and deliver this Subscription Agreement, to subscribe for and purchase the Securities and to perform its obligations under, and to consummate the transactions that are contemplated by the Subscription Agreement; and

(c)           This Subscription Agreement has been duly authorized by all necessary action on the part of the Subscriber, has been duly executed by an authorized officer or representative of the Subscriber, and is a legal, valid and binding obligation of the Subscriber enforceable in accordance with its terms.

  

	
1

	
FINRA defines a "member" as being either any broker or dealer admitted to membership in FINRA or any officer or partner of such a member, or the executive representative of such a member or the substitute for such representative.

  

	
2

	
FINRA defines a "person associated with a member" as being every sole proprietor, general or limited partner, officer, director or branch manager or such member, or any natural person occupying a similar status or performing similar functions, or any natural person engaged in the investment banking or securities business who is directly or indirectly controlling or controlled by such member (for example, any employee), whether or not any such person is registered or exempt from registration without FINRA.  Thus, "person associated with a member" includes a sole proprietor, general or limited partner, officer, director or branch manager or an organization of any kind (whether a corporation, partnership or other business entity) which itself is a "member" or a "person associated with a member."  In addition, an organization of any kind is a "person associated with a member" if its sole proprietor or anyone of its general or limited partners, officers, director or branch managers is a "member" or "person associated with a member."

  

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9.           Use of Proceeds.  The Subscriber acknowledges that any proceeds from the sale of the Shares will be used by the Company as described in the Memorandum.

10.           Compliance with Laws; No Conflict.  The execution and delivery of the Subscription Agreement by or on behalf of the Subscriber and the performance of the Subscriber’s obligations under, and the consummation of the transactions contemplated by, the Subscription Agreement do not and will not conflict with or result in any violation of, or default under, any provision of any charter, bylaws, trust agreement, partnership agreement or other governing instrument applicable to the Subscriber, or other agreement or instrument to which the Subscriber is a party, or by which the Subscriber is, or any of its assets are, bound, or any permit, franchise, judgment, decree, statute, rule, regulation or other law applicable to the Subscriber or the business or assets of the Subscriber.

11.           Reliance on Representations.  The Subscriber understands the meaning and legal consequences of the representations, warranties, agreements, covenants, and confirmations set out above and agrees that the subscription made hereby may be accepted in reliance thereon.  The Subscriber acknowledges that the Company has relied and will rely upon the representations and warranties of the Subscriber in this Subscription Agreement.  The Subscriber agrees to indemnify and hold harmless the Company and any selling agent (including for this purpose their employees, and each person who controls either of them within the meaning of Section 20 of the Exchange Act) from and against any and all loss, damage, liability or expense, including reasonable costs and attorney's fees and disbursements, which the Company, or such other persons may incur by reason of, or in connection with, any representation or warranty made herein not having been true when made, any misrepresentation made by the Subscriber or any failure by the Subscriber to fulfill any of the covenants or agreements set forth herein, or in any other document provided by the Subscriber to the Company.

12.           Transferability and Assignability.  Neither this Subscription Agreement nor any of the rights of the Subscriber hereunder may be transferred or assigned by the Subscriber.  The Subscriber agrees that the Subscriber may not cancel, terminate, or revoke this Subscription Agreement or any agreement of the Subscriber made hereunder (except as otherwise specifically provided herein) and that this Subscription Agreement shall survive the death or disability of the Subscriber and shall be binding upon the Subscriber's heirs, executors, administrators, successors, and assigns.

13.            Survival.  The representations and warranties of the Subscriber set forth herein shall survive the sale of the Securities pursuant to this Subscription Agreement.

14.           Notices.  All notices or other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered personally or mailed by certified or registered mail, return receipt requested, postage prepaid, as follows:  if to the Subscriber, to the address set forth below; and if to the Company to the address at the beginning of this Subscription Agreement, or to such other address as the Company or the Subscriber shall have designated to the other by like notice.

  

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15.           Counterparts.  This Subscription Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same document.

16.           Governing Law.  This Subscription Agreement shall be governed by and construed in accordance with the internal laws (and not the law of conflicts) of the State of Colorado.  The parties hereby consent to the non-exclusive jurisdiction of the courts of the State of Colorado and any federal or state court located in Denver, Colorado for any action arising out of this Subscription Agreement.

17.           Entire Agreement.  This Agreement, including the appendices hereto, constitutes the entire agreement, and supersedes all prior agreements or understandings, among the parties hereto with respect to the subject matter hereof.

IN NO EVENT WILL THE COMPANY, THE PLACEMENT AGENT, OR ANY OF THEIR AFFILIATES OR THE PROFESSIONAL ADVISORS ENGAGED BY THEM BE LIABLE IF FOR ANY REASON RESULTS OF OPERATIONS OF THE COMPANY ARE NOT AS PROJECTED IN THE MEMORANDUM.  INVESTORS MUST LOOK SOLELY TO, AND RELY ON, THEIR OWN ADVISORS WITH RESPECT TO THE FINANCIAL, TAX AND OTHER CONSEQUENCES OF INVESTING IN THE SECURITIES.

  

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18.           Title.  Manner in Which Title is To Be Held.

Place an “X” in one space below:

(a)           Individual Ownership

(b)           Community Property

(c)           Joint Tenant with Right of Survivorship (both parties must sign)

(d)           Partnership

(e)           Tenants in Common

(f)           Corporation

(g)           Trust

(h)           Other (Describe):

         Please print above the exact name(s) in which the Securities are to be held.

19.           State of Residence.  The Subscriber’s state of residence and the state in which the Subscriber received the offer to invest and made the decision to invest in the Securities is

                                           .

20.           Date of Birth.  (If an individual) The Subscriber’s date of birth is:                                                                                                                     .

21.           Liquidity.  I represent that I have full and a complete understanding that a private placement is an illiquid investment and I have no liquidity needs with regards to this investment. 

Initial                                           

 

SIGNATURES BEGIN ON NEXT PAGE

 

  

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SIGNATURES

The Subscriber hereby represents that it has read this entire Subscription Agreement.

Dated:                                                      

INDIVIDUAL (includes Community Property, Joint Tenants, Tenants-in-Common)

Address to Which Correspondence

Should be Directed

Signature (Individual)

Signature (All record holders should sign)                                                                                     City, State and Zip Code

Name(s) Typed or Printed                                                                           Tax Identification or Social Security Number

(           )                                                      

Telephone Number

Email Address

  

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CORPORATION, PARTNERSHIP, TRUST, RETIREMENT ACCOUNT OR OTHER ENTITY

Name of Entity                                                                                    Address to Which Correspondence Should be Directed

 

By:                                                                

*Signature                                                                           City, State and Zip Code

Its:                                                                     

Title                                                                                      Tax Identification or Social Security Number

 

                              (           )                                                      

Name Typed or Printed                                                                     Telephone Number

                              Email Address

*If Securities are being subscribed for by an entity, the Certificate of Signatory must also be completed.

CERTIFICATE OF SIGNATORY

To be completed if Securities are being subscribed for by an entity.

I,                                                                , am the                                                                   of

(the “Entity”).

I certify that I am empowered and duly authorized by the Entity to execute and carry out the terms of the Subscription Agreement and Letter of Investment Intent and to purchase and hold the Securities, and certify that the Subscription Agreement and Letter of Investment Intent has been duly and validly executed on behalf of the Entity and constitutes a legal and binding obligation of the Entity.

IN WITNESS WHEREOF, I have hereto set may hand this ______ day of _______, 2013.

 

Signature

 

  

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ACCEPTANCE

This Subscription Agreement is accepted as of                                                                                                                     , 2013

WESTMOUNTAIN GOLD, INC.

By:                                                                

Greg Schifrin

Chief Executive Officer

Date:                                                                

  

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APPENDIX A

DEFINITIONS

Affiliate

The term “affiliate” means a company which controls, is controlled by, or is under common control with a member, and is presumed to include:

                a.  a company will be presumed to control a member if the company beneficially owns 10 percent or more of the outstanding voting securities of a member which is a corporation, or beneficially owns a partnership interest in 10 percent or more of the distributable profits or losses of a member which is a partnership;

                b.  a member will be presumed to control a company if the member and persons associated with the member beneficially own 10 percent or more of the outstanding voting securities of a company which is a corporation, or beneficially own a partnership interest in 10 percent or more of the distributable profits or losses of a company which is a partnership;

Immediate family

The term “immediate family” includes your parents, mother-in-law/father-in-law, husband/wife, brother or sister, brother-in-law or sister-in-law, son-in-law or daughter-in-law, and children, and any other person who is supports you, directly or indirectly, to a material extent.

Income

The Securities and Exchange Commission offers the following guidelines in calculating income of individuals:   Proprietorship revenues do not represent income unless operating expenses are deducted; an employee's salary may be a useful figure in determining income provided significant expenses were not incurred in earning the salary.  One possible method of computing income is as follows: individual adjusted gross income as reported on a federal tax return increased by the following amounts: (i) any deduction for long term capital gains under Section 1202 of the Internal Revenue Code (the "Code"), (ii) any deduction for depletion under Section 611 et. seq.  of the Code, (iii) any exclusion for interest under Section 103 of the Code, and (iv) any losses of a partnership allocated to the individual limited partner as reported on Schedule E of Form 1099 (or any successor report). For purposes of question (3b), adjusted gross income should not include amounts attributable to a spouse and should be increased by the amount described above, not including amounts attributable to a spouse.

For partnerships, corporations and trusts and other entities, income means gross revenues less all  expenses, as reported on a federal income tax return.

Member

FINRA defines a "member" as being either any broker or dealer admitted to membership in FINRA or any officer or partner of such a member, or the executive representative of such a member or the substitute for such representative.

  

16

  

Person associated with a member

FINRA defines a "person associated with a member" as being every sole proprietor, general or limited partner, officer, director or branch manager or such member, or any natural person occupying a similar status or performing similar functions, or any natural person engaged in the investment banking or securities business who is directly or indirectly controlling or controlled by such member (for example, any employee), whether or not any such person is registered or exempt from registration without FINRA.  Thus, "person associated with a member" includes a sole proprietor, general or limited partner, officer, director or branch manager or an organization of any kind (whether a corporation, partnership or other business entity) which itself is a "member" or a "person associated with a member."  In addition, an organization of any kind is a "person associated with a member" if its sole proprietor or anyone of its general or limited partners, officers, director or branch managers is a "member" or "person associated with a member."

U.S. Person

"U.S. Person" means: (a) any natural person resident in the United states; (b) any partnership or corporation organized or incorporated under the laws of the United States; (c) any estate of which any executor or administrator is a U.S. person; (d) any trust of which any trustee is a U.S. person; (e) any agency or branch of a foreign entity located in the United States; (f) any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person; (g) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and (h) any partnership or corporation if: (i) organized or incorporated under the laws of any foreign jurisdiction; and (ii) formed by a U.S. person principally for the purpose of investing in securities not registered under the Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a) of Regulation D under the Act) who are not natural persons, estates or trusts. Notwithstanding this definition of U.S. Person, the following shall not be deemed a U.S. Person: (a) any discretionary account or similar account (other than an estate or trust) held for the benefit or account of a non-U.S. Person by a dealer or other professional fiduciary organized, incorporated, or (if an individual) resident in the United States; (b) any estate of which any professional fiduciary acting as executor or administrator is a U.S. Person if: (i) an executor or administrator of the estate who is not a U.S. Person has sole or shared investment discretion with respect to the assets of the estate; and (ii the estate is governed by foreign law; (c) any trust of which any professional fiduciary acting as trustee is a U.S. Person, if a trustee who is not a U.S. Person has sole or shared investment discretion with respect to the trust assets, and no beneficiary of the trust (and no settlor if the trust is revocable) is a U.S. person; (d) an employee benefit plan established and administered in accordance with the law of a country other than the United States and customary practices and documentation of such country; (e) any agency or branch of a U.S. Person located outside the United States if: (i) the agency or branch operates for valid business reasons; and (ii) the agency or branch is engaged in the business of insurance or banking and is subject to substantive insurance or banking regulation, respectively, in the jurisdiction where located; and (f) the International Monetary Fund, the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, the United Nations, and their agencies, affiliates and pension plans. "United States" means the United States of America, its territories and possessions, any State of the United States, and the District of Columbia.

  

17

  

WESTMOUNTAIN GOLD, INC.

 

SUBSCRIPTION INSTRUCTIONS

 

All persons who wish to subscribe for the securities of WestMountain Gold, Inc. (the "Company") in accordance with the terms of the Subscription Agreement (attached) must carefully read and execute the attached documents according to the following instructions and return them to WestMountain Gold, Inc. at 120 Lake Street, Suite 401, Sandpoint, ID 83864, Attention: Gregory Schifrin.

INSTRUCTIONS

1.           Complete and execute the Subscription Agreement as follows:

a.      Complete the information on pages 1, 4-12 if appropriate.

b.      Date and sign in the appropriate spaces on page 13 if subscribing as an individual (includes Community Property, Joint Tenants, Tenants-in-Common) or on page 14 if subscribing as a Corporation, Partnership, Trust, Retirement Account or other entity .

c.      Be sure to complete the information on the signature page, including address, telephone number, and Social Security or Tax Identification Number.

2.           Return the completed documents to the Placement Agent along with your check payable to "WestMountain Gold, Inc.”; or wire your subscription funds as follows:

Direct to: Wire Routing Transit Number (RTN/ABA) 121000248

Bank name: Wells Fargo Bank, N.A.

Bank address, city, state: 420 Montgomery Street

San Francisco, CA 94104 (regardless of where your account is located)

BNF/Field 4200 beneficiary Account number: 8659403789

Beneficiary account name:WESTMOUNTAIN GOLD, INC.

For international transfer only: International SWIFT BIC WFBIUS6S

Derick Driggs

Vice President

Principal Business Relationship Mgr.

Wells Fargo Bank

(208) 255-3891 (Office) 

(208) 304-8624 (Cell)

(208) 265-1631 (Fax)

MAC P1918-011

  

18

  

	
3.

	
ENCLOSE A COPY OF DRIVER’S LICENSE OR PASSPORT,

If you have any questions please call Gregory Schifrin at (208) 265-1717.

19wmtn_ex1021.htm

Exhibit 10.21

 

2186 S Holly Commercial Lease Agreement

 

SECTION ONE:

 

1.1  Date of Lease: August  17, 2012

 

1.2  Landlord:                             (Make checks payable to) ->

 

2186 S Holly St. Suite A 

Denver, Colorado 80222

 

303-95 7-9199

2l86SHolly@gmail.com

1.3  Tenant:  James Baughman

 

1.4  Intended Use: Office for geologist

 

1.5  Leased Premises:

 

Unit(s) 104 & 106 consisting of approximately 

827 rentable square feet

720 usable square feet,

a portion of the land and improvements commonly known and numbered as 2186 S Holly; Denver, CO 802 2 2 ("The Building"), including a non-exclusive right, subject to the provisions hereof and "Building Rules", to use common walkways, hallways and passage ways and other common and public areas within and appurtenances to the Building collectively called "Building Complex".

 

1.6 Lease Term: September 1, 2012 through August 31, 2013 (Office 106 will be available on 9/3/ 12 due to carpet cleaning on 9/1 & 9/2)

 

If Landlord is unable to timely provide the Leased Premises, rent shall abate for the period of de­ lay. Tenant shall make no other claim against Landlord for any such delay.

 

1.7  Rental: The rent shall be $800/month (included conventional electric not WindSource power)

 

The rental payment amount for any partial calendar months included in the lease term shall be prorated on a daily basis. Tenant shall be charged a "late fee" of $20/day for rental installments delivered after the first day of the month. Rent shall be mailed to the address in section 1.2 or placed in the rent drop box located in the break room.

 

1.8  Security Deposit: $ 513 (paid with previous lease)

 

page 1 of 9 

 

  

  

  

 

SECTION  TWO:

 

2.1  Additional Provisions:

 

Thomas Patrick White is a licensed Colorado real estate broker (#2 2 5 571). Wade Travis Green is a licensed Colorado real estate broker (#100024480).

 

A current copy of the Building Rules is attached to and made part of this lease agreement.

2.2  Parking:

 

Tenant shall have the right to use of two space(s) in the Building Complex.

 

2.3  Signs:

 

A door plaque and lobby directory will be created with the following names:

 

104 – West Mountain Gold Corp.

 

106 – Fischer- Watt Corp.

 

2.4_Keys

 

A f ee of $10 per key will be charged for each key not returned except Mail Box Keys. A f ee of $40 per key will be charged for every Mail Box Key that is not returned.

 

By signing this lease you acknowledge the acceptance of the following keys: 

 

Suite 106 Keys: #2

 

Front Door Keys: #2

 

Mail Box Keys: #104-1 #106-1 

 

Trash Bin Keys: #0

 

Also please give a #104 key to Jim Creamer

 

page 2 of 9 

  

  

  

 

	
2.5  

	
5 Cleaning Permission

 

Tenant hereby agrees ------------- OR declinesto allow landlord's designated cleaning service to hold a key to Tenant's suite and to permit access to suite by cleaning service for the purpose of periodic cleaning.

 

Tenant also understands and acknowledges that it is Tenant's sole responsibility to insure said contents of Tenant's suite.

 

Changes to this selection must be delivered to the landlord in writing (including email).

 

	
2.6  

	
Electric Use

 

The allowance for electric use for the space is 60 kW*h/month per 100 square feet of rentable space including lighting or 40 kW*h/month per 100 square feet of rentable space excluding light­ ing. The landlord may bill tenant for use in excess of this amount.

 

The tenant chooses to have their electric allowance be supplied by:

 

Xcel Energy Windsource renewably generated electricity__________________($ 5/month per 100 rentable square f eet cost included in amount 1.7).

 

Conventionally generated electricity_____________________________  INCLUDED___________________________        

	
2.7  

	
7 HVAC comfort range

 

The landlord will make every attempt to provide a comfortable working environment in accor­ dance with generally accepted commercial standards:

 

Cooling operation season (May 15 - September 15): 78 F maximum Heating operation season (Year round): 68 F minimum

 

The tenant may use space heaters, personal heating or cooling devices only with landlord's written permission (this does not include use of fans for ventilation). Landlord may meter the electric use of such personal comfort devices and/or charge an extra f ee for their use.

 

	
2.8  

	
Shared Internet Service

 

	
2.8.1  

	
Terms of Service:

 

	
 

	
 Building shared Internet service "Shared Internet" is provided on a "best effort" basis. No guarantee can be made regarding connection speeds or uptime.

                  

	
  

	
Tenant is responsible for purchasing, installing, configuring, and maintaining the necessary networking equipment for connecting their office to the Shared Internet. Landlord may provide equipment loans, setup advice or assistance; however, the responsibility for con­ necting to the Shared Internet and maintaining a connection to the Shared Internet remains the Tenant's.

         

	
  

	
Tenant is responsible for the security of their own computers, equipment and data. If ten­ ant is not personally knowledgeable about computer security they will consult with a knowledgeable computer security expert about how to best secure their computers and data. Computer security procedures include-but are not necessarily limited to-the follow­ ing:

. Data backup

. Regular operating system updates

. Computer firewalls

. Anti-virus software and virus definition updates

. Office firewalls

 

	
2.8.2  

	
Release of Liability:

 

	
 

	
 
Tenant understands the possibility of the following, but not limited to: loss of data, corrup­ tion of software, loss of privacy and exploitation of resources, infiltration of viruses, Tro­ jans and worms, which may cause the following but not limited to: loss of time, energy,and monetary resources, as well as cause emotional, social, psychological, physical, finan­ cial distress.

 

	
  

	
As part of connecting to the Shared Internet the Tenant releases Landlord for all liability consequent to their use of the service.

page 3 of 9 

 

  

  

  

 

SECTION THREE:

 

	
  

	
This Commercial Lease Agreement ("Lease") is made by and between "Landlord" and "Tenant". Landlord desires to lease the Leased Premises to Tenant, and Tenant desires to lease the Leased Premises from Landlord for the term, at the rental and upon the covenants, conditions and provi­ sions herein set forth.

 

	
  

	
THEREFORE, in consideration of the mutual promises herein, contained and other good and valu­ able consideration, it is agreed:

 

3. Use.

 

Notwithstanding the forgoing, Tenant shall not use the Leased Premises for the purposes of stor­ ing, manufacturing or selling any explosives, flammables or other inherently dangerous substance, chemical, thing or device.

 

The Landlord is leasing the space for the use described in Section 1.4. Use of the space for pur­ poses without the Landlord's written consent is a violation of the terms of this lease following which Landlord can choose to terminate this Lease.

 

If a Colorado or local license is required at the time of this lease, or becomes required during the term of this lease, for the use described in Section 1.4, then the tenant shall obtain the necessary license, maintain it in good standing and provide a copy of this license to the Landlord.

 

	
3.2  

	
Sublease and Assignment.

 

Tenant shall have the right, without Landlord's consent, to assign this Lease to a corporation with which Tenant may merge or consolidate, to any subsidiary of Tenant, to any corporation under common control with Tenant, or to a purchaser of substantially all of Tenant's assets. Except as set forth above, Tenant shall not sublease all or any part of the Leased Premises or assign this Lease in whole or in part without Landlord's consent. Such consent not to be unreasonably with­ held or delayed.

 

	
3.3  

	
Repairs.

 

During the Lease term, Tenant shall make, at Tenant's expense, all necessary repairs to the Leased Premises to the extent the needed repairs are caused by Tenant's occupancy of the Leased Prem­ ises and not by normal wear and tear. Landlord shall be responsible for repairs to all structural elements of the Building and Leased Premises, including without limit major mechanical systems and the roof , as well as for any necessary repairs to the Leased Premises not resulting from Ten­ ant's occupancy of the Premises (e.g., repairs necessitated by flooding or other natural disaster).

 

3.4 Tenant's use.

 

	
  

	
Tenant, at Tenant's expense, shall have the right following Landlord's consent to remodel, redeco­ rate, and make additions, improvements and replacements of and to all or any part of the Leased Premises from time to time as Tenant may deem desirable, provided the same are made in a workmanlike manner and utilizing good quality materials. Tenant shall have the right to place and  install personal property, trade fixtures, equipment and other temporary installations in and upon the Leased Premises, and fasten the same to the premises. All personal property, equipment, ma­ chinery, trade fixtures and temporary installations, whether acquired by Tenant at the com­ mencement of the Lease term or placed or installed on the Leased Premises by Tenant thereafter, shall remain Tenant's property free and clear of any claim by Landlord. Tenant shall have the right to remove the same at any time during the term of this Lease provided that all damage to the Leased Premises caused by such removal shall be repaired by Tenant at Tenant's expense. At the end of the lease term the tenant shall remove the same and repair any damages caused by re­moval.

	
  

	
 

 

	
  

	
Tenant shall keep all portions of the Premises in good order, condition and repair during the Lease Term (excluding normal wear and tear).

 

page 4 of 9 

 

  

  

  

 

3.5 Property Taxes.

 

Landlord shall pay, prior to delinquency, all general real estate taxes and installments of special assessments coming due during the Lease term on the Leased Premises, and all personal property taxes with respect to Landlord's personal property, if any, on the Leased Premises. Tenant shall be responsible for paying all personal property taxes with respect to Tenant's personal property at the Leased Premises.

 

3.6. Insurance.

 

A. If the Leased Premises or any other party of the Building is damaged by fire or other casualty resulting from any act or negligence of Tenant or any of Tenant's agents, employees or invitees, rent shall not be diminished or abated while such damages are under repair, and Tenant shall be responsible for the costs of repair not covered by insurance.

 

B.  Landlord shall maintain fire and extended coverage insurance on the Building and the Leased Premises in such amounts as Landlord shall deem appropriate. Tenant shall be responsible, at its expense, for fire and extended coverage insurance on all of its personal property, including re­ movable trade fixtures, located in the Leased Premises.

 

C. Tenant and Landlord shall, each at its own expense, maintain a policy or policies of comprehen­ sive general liability insurance with respect to the respective activities of each in the Building with the premiums thereon fully paid on or before due date, issued by and binding upon some insur­ ance company approved by Landlord, such insurance to afford minimum protection of not less than $1,000,000 combined single limit coverage of bodily injury, property damage or combination thereof . Landlord shall be listed as an additional insured on Tenant's policy or policies of compre­ hensive general liability insurance, and Tenant shall provide Landlord with current Certificates of Insurance evidencing Tenant's compliance with this Paragraph. Tenant shall obtain the agreement of Tenant's insurers to notify Landlord that a policy is due to expire at least (10) days prior to such expiration. Landlord shall not be required to maintain insurance against thefts within the Leased Premises or the Building.

 

	
3.7  

	
7 Utilities.

 

	
  

	
The landlord shall provide the building with electric service, gas (building heat), water, sewer, and trash and will pay the costs of these utilities.

 

	
  

	
Tenant acknowledges that the Leased Premises are designed to provide standard off ice use electri­ cal facilities and standard office lighting. Tenant shall not use any equipment or devices that util­ ize excessive electrical energy or which may, in Landlord's reasonable opinion, overload the wir­ ing or interfere with electrical services to other tenants.

 

	
3.8  

	
Signs.

 

Following Landlord's consent Tenant shall have the right to place on the Leased Premises, at loca­ tions selected by Tenant, any signs which are permitted by applicable zoning ordinances and pri­ vate restrictions. Landlord may ref use consent to any proposed sign that is in Landlord's opinion too large, deceptive, unattractive or otherwise inconsistent with or inappropriate to the Leased Premises or use of any other tenant. Landlord shall assist and cooperate with Tenant in obtaining any necessary permission from governmental authorities or adjoining owners and occupants for Tenant to place or construct the foregoing signs. Tenant shall repair all damage to the Leased Premises resulting from the removal of signs installed by Tenant.

page 5 of 9 

 

  

  

  

 

3.9 Entry.

 

	
  

	
Landlord shall have the right to enter upon the Leased Premises at reasonable hours to inspect the same, provided Landlord shall not thereby unreasonably interfere with Tenant's business on the Leased Premises.

 

	
3.10  

	
Parking.

 

During the term of this Lease, Tenant shall have the non-exclusive use in common with Landlord, other tenants of the Building, their guests and invitees, of the non-reserved common automobile parking areas, driveways, and footways, subject to rules and regulations for the use thereof as prescribed from time to time by Landlord. Landlord reserves the right to designate parking areas within the Building or in reasonable proximity thereto, for Tenant and Tenant's agents and em­ ployees. Tenant shall provide Landlord with a list of all license numbers for the cars owned by Tenant, its agents and employees.

 

Vehicles shall not be parked on the premises for more than 24-hours consecutively.

 

	
3.11  

	
Building Rules.

 

Tenant will comply with the rules of the Building ("Building Rules") adopted and altered by Land­ lord from time to time and will cause all of its agents, employees, invitees and visitors to do so; all changes to such rules will be sent by Landlord to Tenant in writing. The initial rules for the Build­ ing are attached hereto and incorporated herein for all purposes.

 

	
3.12  

	
Damage and Destruction.

 

Subject to Section 3.6 above, if the Leased Premises or any part thereof or any appurtenance thereto is so damaged by fire, casualty or structural def ects that the same cannot be used for Ten­ ant's purposes, then Tenant shall have the right within ninety (90) days following damage to elect by notice to Landlord to terminate this Lease as of the date of such damage. In the event of minor damage to any part of the Leased Premises, and if such damage does not render the Leased Prem­ ises unusable for Tenant's purposes, Landlord shall promptly repair such damage at the cost of the Landlord. In making the repairs called for in this paragraph, Landlord shall not be liable for any delays resulting from strikes, governmental restrictions, inability to obtain necessary materi­ als or labor or other matters which are beyond the reasonable control of Landlord. Tenant shall be relieved from paying rent and other charges during any portion of the Lease term that the Leased Premises are inoperable or unfit for occupancy, or use, in whole or in part, for Tenant's purposes. Rentals and other charges paid in advance for any such periods shall be credited on the next ensu­ ing payments, if any, but if no further payments are to be made, any such advance payments shall be ref unded to Tenant. The provisions of this paragraph extend not only to the matters aforesaid, but also to any occurrence which is beyond Tenant's reasonable control and which renders the Leased Premises, or any appurtenance thereto, inoperable or unfit for occupancy or use, in whole or in part, for Tenant's purposes.

 

3.13 Default.

 

If default shall at any time be made by Tenant in the payment of rent when due to Landlord as herein provided, and if said default shall continue for fif teen (15) days af ter written notice has been given to Tenant by Landlord-or if default shall be made in any of the other covenants or conditions to be kept, observed and performed by Tenant, and such default shall continue for thirty (30) days af ter notice thereof in writing to Tenant by Landlord without correction there­ of -then having been commenced and thereafter diligently prosecuted, Landlord may declare the term of this Lease ended and terminated by giving Tenant written notice of such intention, and if possession of the Leased Premises is not surrendered, Landlord may reenter said premises. Land­ lord shall have, in addition to the remedy above provided, any other right or remedy available to Landlord on account of any Tenant default, either in law or equity. Landlord shall use reasonable efforts to mitigate its damages.

 

page 6 of 9 

 

  

  

  

 

3.14 Quiet Possession.

 

Landlord covenants and warrants that upon performance by Tenant of its obligations hereunder, Landlord will keep and maintain Tenant in exclusive, quiet, peaceable and undisturbed and unin­ terrupted possession of the Leased Premises during the term of this Lease.

 

3.15 Condemnation.

 

If any legally, constituted authority condemns the Building or such part thereof which shall make the Leased Premises unsuitable for leasing, this Lease shall cease when the public authority takes possession, and Landlord and Tenant shall account for rental as of that date. Such termination shall be without prejudice to the rights of either party to recover compensation from the con­ demning authority for any loss or damage caused by the condemnation. Neither party shall have any rights in or to any award made to the other by the condemning authority.

 

	
3.16  

	
Subordination.

 

Tenant accepts this Lease subject and subordinate to any mortgage, deed of trust or other lien presently existing or hereafter arising upon the Leased Premises, or upon the Building and to any renewals, refinancing and extensions thereof , but Tenant agrees that any such mortgagee shall have the right at any time to subordinate such mortgage, deed of trust or other lien to this Lease on such terms and subject to such conditions as such mortgagee may deem appropriate in its dis­ cretion.

 

Landlord is hereby irrevocably vested with full power and authority to subordinate this Lease to any mortgage, deed of trust or other lien now existing or hereafter placed upon the Leased Prem­ ises of the Building, and Tenant agrees upon demand to execute such further instruments subor­ dinating this Lease or attorning to the holder of any such liens as Landlord may request. In the event that Tenant should fail to execute any instrument of subordination herein required to be executed by Tenant promptly as requested, Tenant hereby irrevocably constitutes Landlord as its attorney-in-fact to execute such instrument in Tenant's name, place and stead, it being agreed that such power is one coupled with an interest.

Tenant agrees that it will from time to time upon request by Landlord execute and deliver to such persons as Landlord shall request a statement in recordable form certifying that this Lease is un­ modified and in full force and effect (or if there have been modifications, that the same is in f ull force and effect as so modified), stating the dates to which rent and other charges payable under this Lease have been paid, stating that Landlord is not in default hereunder (or if Tenant alleges a default stating the nature of such alleged default) and further stating such other matters as Land­ lord shall reasonably require.

 

	
3.17  

	
Security Deposit.

 

The Security Deposit  shall be held by Landlord without  liability for interest and as security for the performance  by Tenant  of  Tenant's covenants and obligations under  this Lease,  it being  expressly understood  that the Security Deposit  shall not be considered an advance payment  of  rental or a measure of Landlord's damages in case of  default by Tenant. Unless otherwise provided by man­ datory non-waivable law or regulation, Landlord may commingle the Security Deposit with Land­ lord's other funds. Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of rent or to satisfy any other covenant or obligation of Tenant hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. If Tenant ·is not in default at the termination of this Lease, the balance of the Security Deposit remaining af ter any such application shall be returned by Landlord to Tenant. If Landlord transfers its interest in the Premises during the term of this Lease, Landlord may assign the Security Deposit to the transferee and thereafter shall have no further liability for the return of such Security Deposit.

 

page 7 of 9 

 

  

  

  

	
3.18  

	
Notice.

 

	
  

	
Any notice required or permitted under this Lease shall be deemed sufficiently given or served if sent by United States certified mail, return receipt requested. Landlord and Tenant shall each have the right from time to time to change the place notice is to be given under this paragraph by writ­ ten notice thereof to the other party.

 

Notice by email is also deemed sufficiently given when a reply message acknowledging receipt has been returned to the original sender.

 

	
3.19  

	
Brokers.

 

	
  

	
Tenant represents that Tenant was not shown the Premises by any real estate broker or agent and that Tenant has not otherwise engaged in, any activity which could form the basis for a claim for real estate commission, brokerage fee, finder's fee or other similar charge, in connection with this Lease.

 

	
3.20  

	
Waiver.

 

No waiver of any default of Landlord or Tenant hereunder shall be implied from any omission to take any action on account of such default if such default persists or is repeated, and no express waiver shall affect any default other than the default specified in the express waiver and that only for the time and to the extent therein stated. One or more waivers by Landlord or Tenant shall not be construed as a waiver of a subsequent breach of the same covenant, term or condition.

 

	
3.21  

	
Memorandum of Lease.

 

	
  

	
The parties  hereto  contemplate that this Lease should not and shall not be filed for record,  but in lieu thereof , at the request  of either party, Landlord and Tenant shall execute a Memorandum  of Lease to be recorded  for the purpose  of giving record notice of  the appropriate  provisions  of  this Lease.

 

	
3.22  

	
Headings.

 

	
  

	
The headings used in this Lease are for convenience of the parties only and shall not be consid­ ered in interpreting the meaning of any provision of this Lease.

 

	
3.23  

	
Successors.

 

The provisions of this Lease shall extend to and be binding upon Landlord and Tenant and their respective legal representatives, successors and assigns.

 

	
3.24  

	
Consent.

 

Landlord shall not unreasonably withhold or delay its consent with respect to any matter for which Landlord's consent is required or desirable under this Lease.

 

page 8 of 9 

 

  

  

  

 

3.2 S Landlord's Services.

 

Landlord shall maintain the Building Complex in good condition and repair. Janitorial service to the Premises three days per week, holidays excluded; water sufficient for normal office use of the Premises. Landlord shall not be liable for damages nor shall any rent be abated for failure to fur­ nish, or delay in furnishing any such service which is occasioned by needed repairs, renewals or improvements, or by any strike or labor controversy, or by any act or default of Tenant, or due to the inability of Landlord to obtain fuel or power from any utility company, or for any cause be­ yond the reasonable control of Landlord.

 

	
3.26  

	
Compliance with Law.

 

Tenant shall comply with all laws, orders, ordinances and other public requirements now or here­ af ter pertaining to Tenant's use of the Leased Premises. Landlord shall comply with all laws, or­ ders, ordinances and other public requirements now or hereafter affecting the Leased Premises.

 

	
3.27  

	
7 Final Agreement.

 

This Agreement terminates and supersedes all prior understandings or agreements on the subject matter hereof. This Agreement may be modified only by a further writing that is duly executed by both parties.

 

	
3.28  

	
Governing Law.

 

This Agreement shall be governed, construed and interpreted by, through and under the Laws of the State of Colorado.

 

	
  

	
IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year first above writ­ ten.

 

       /s/ James Baughman 8/31/12

 

      James Baughman

 

       Authorized signature + date

 

Thomas White, Manager for 2186 S. Holly LLC

 

9/3/12

	
  

	
Tenant contact info: Alternate address

          Street: 

                                    City, State, Zip:

             

	
  

	
Phone: 

Email:

 

page 9 of 9

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