Document:

fluid_8k-ex401.htm

    
      EXHIBIT
        4.1

       

      THIS
        SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
        (THE “1933 ACT”), ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES
        LAW.  NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
        MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
        DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION
        IS
        EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933
        ACT
        AND ANY APPLICABLE STATE SECURITIES LAWS, SUBJECT TO THE COMPANY’S RIGHT PRIOR
        TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION
        OF
        COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO
        IT.

       

      SUBSCRIPTION
        AGREEMENT

      

       

      This
        SUBSCRIPTION AGREEMENT (this “Agreement”) is made by and
        between the investor signatory hereto (the “Investor”) and
        Fluid Media Networks, Inc., a Nevada corporation (the
“Company”).

       

      WHEREAS,
        subject to the terms and conditions in this Agreement, the Investor irrevocably
        agrees to subscribe for and purchase (subject to acceptance of such subscription
        by the Company) the number of shares of Common Stock (the
“Shares”), of the Company set forth on the Investor’s signature
        page hereto (the “Purchase”) for a purchase price in cash equal
        to $0.40 per share of Common Stock (the aggregate amount to be paid by the
        Investor shall be referred to as the “Purchase
        Price”).

       

      NOW,
        THEREFORE, in order to implement the foregoing and in consideration of the
        mutual representations, warranties, covenants and agreements contained herein
        and for other good and valuable consideration, the receipt and adequacy of
        which
        are hereby acknowledged, the parties hereto agree as follows.

       

      1.           SUBSCRIPTION
        FOR AND PURCHASE OF THE SHARES.

       

      1.1           Subscription
        for Shares by the Investor.  Subject to the terms and conditions
        in this Agreement, the Investor hereby irrevocably subscribes for and agrees
        to
        purchase, the Shares.  Simultaneously with the execution of this
        Agreement, the Subscriber is paying and delivering to the Company the Purchase
        Price.  In addition, the Investor is delivering to the Company an
        executed Confidential Investment Qualification Questionnaire.

       

      1.2           Closing.  The
        closing (the “Closing”) of the Purchase and the transactions
        contemplated by this Agreement shall be ______________, 2007 (the
“Closing Date”) and shall take place at the offices of Nixon
        Peabody LLP, 555 West Fifth Street, 46th Floor, Los Angeles, California
        90013.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      1.3           Company
        Deliveries.  At the Closing, the Company shall deliver to the
        Investor stock certificates representing the Shares to be purchased by the
        Investor at the Closing, each of which shall be registered in such Investor’s
        name or its designee, against delivery to the Company of the Purchase
        Price.

       

      2.           REPRESENTATIONS
        AND WARRANTIES OF THE COMPANY.  The Company hereby represents and
        warrants to the Investor as follows.

       

      2.1           Organization.  The
        Company is a corporation duly organized, validly existing and in good standing
        under the laws of the State of Nevada, with the requisite power and authority
        to
        own its properties and to carry on its business as conducted.

       

      2.2           Authority.  The
        Company has the requisite power and authority to execute and deliver this
        Agreement, and perform its obligations herein, and consummate the transactions
        contemplated hereby.  The Company has duly executed and delivered this
        Agreement and has obtained the necessary authorization to execute and deliver
        this Agreement and to perform its obligations herein and to consummate the
        transactions contemplated hereby.  This Agreement is a valid, legal
        and binding obligation of the Company enforceable against the Company in
        accordance with its terms, except to the extent that enforceability may be
        limited by applicable bankruptcy, insolvency or similar laws affecting the
        enforcement of creditors’ rights generally and subject to general principles of
        equity (regardless of whether such enforcement is considered in a proceeding
        at
        law or at equity).

       

      2.3           Shares
        Duly Authorized.  All of the Shares to be issued to the Investor
        pursuant to this Agreement, when issued and delivered in accordance with
        the
        terms of this Agreement, will be duly authorized, validly issued, fully paid
        and
        non-assessable.

       

      3.           REPRESENTATIONS
        AND WARRANTIES OF THE INVESTOR.  The Investor hereby represents
        and warrants to the Company as follows.

       

      3.1           Organization.  The
        Investor, if an entity, is duly organized, validly existing and in good standing
        under the laws of its jurisdiction of incorporation or organization, having
        full
        power and authority to own its properties and to carry on its business as
        conducted.  The Investor, if a natural person, is of legal age,
        competent to enter into a contractual obligation.  The principal place
        of business or principal residence of the Investor is as shown on the signature
        page of this Agreement.

       

      3.2           Authority.  The
        Investor has the requisite power and authority to deliver this Agreement,
        and
        perform his, her or its obligations herein, and consummate the transactions
        contemplated hereby.  The Investor has duly executed and delivered
        this Agreement and has obtained the necessary authorization to execute and
        deliver this Agreement and to perform his, her or its obligations herein
        and to
        consummate the transactions contemplated hereby.  This Agreement is a
        valid, legal and binding obligation of the Investor enforceable against the
        Investor in accordance with its terms, except to the extent that enforceability
        may be limited by applicable bankruptcy, insolvency or similar laws affecting
        the enforcement of creditors’ rights generally and subject to general principles
        of equity (regardless of whether such enforcement is considered in a proceeding
        at law or at equity).

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      3.3           Investor
        Intent.  Unless the Investor is acting in a fiduciary capacity as
        provided in Section 3.4 below, the Investor is
        acquiring the Shares for its own account as principal, for investment purposes
        only, not for any other person or entity and not for the purpose of resale
        or
        distribution.  By executing this Agreement, the Investor further
        represents that the Investor does not have any contract, undertaking, agreement
        or arrangement with any person to sell, transfer or grant participations
        to such
        person or to any third person, with respect to any of the Shares.

       

      3.4           Fiduciary
        Capacity.  If the Investor is subscribing for the Shares in a
        fiduciary capacity, the Investor makes these representations and warranties
        on
        behalf of the person(s) or entity(ies) for whom the Investor will purchase
        the
        Shares.

       

      3.5           Financial
        Status.  The Investor has such knowledge and experience in
        financial and business matters as will enable the Investor to evaluate the
        merits and risks of an investment in the Company.  The Investor, if a
        natural person, has adequate means of providing for his, her or its current
        financial needs and personal contingencies, and has no need for liquidity
        in the
        investment in the Shares, understands that he, she or it may not be able
        to
        liquidate his, her or its investment in the Company in an emergency, if at
        all,
        and can afford a complete loss of the Purchase Price.

       

      3.6           Accredited
        Investor.  The Investor is an Accredited Investor, as defined by
        Rule 501 of Regulation D of the Securities Act of 1933, as amended (the
“1933 Act”).  If the Investor is a corporation,
        partnership, trust or other entity, the Investor was not organized for the
        specific purpose of acquiring the Shares.

       

      3.7           Investor
        is Not a U.S. Person.  The Investor is not a U.S. Person as such
        term is defined by Rule 902 of Regulation S of the 1933 Act and is not acquiring
        the Shares for the account or benefit of any U.S. Person.

       

      3.8           Access
        to Information.  In purchasing the Shares, the Investor is relying
        on its independent investigation of the Company.  The Investor has
        received and reviewed all information the Investor considers necessary or
        appropriate for deciding whether to purchase the Shares.  The Investor
        further represents that the Investor has had an opportunity to ask questions
        and
        receive answers from the Company regarding the terms and conditions of purchase
        of the Shares and regarding the business, financial affairs and other aspects
        of
        the Company and has further had the opportunity to obtain any information
        (to
        the extent the Company possesses or can acquire such information without
        unreasonable effort or expense) which the Investor deems necessary to evaluate
        the investment and to verify the accuracy of information otherwise provided
        to
        the Investor.

       

      3.9           No
        Other Representations; No General Solicitation. Neither the Company nor any
        other person or entity has made any commitment, representation or warranty
        to
        the Investor of any type or manner with respect to the Investor’s investment in
        the Company, and the Investor has not relied on any commitments, representations
        or warranties, except those set forth herein. The Investor also acknowledges
        that it has been advised to consult with its own attorney regarding legal
        matters concerning the Company and to consult with its tax advisor regarding
        the
        tax consequences of acquiring the Shares. The Investor has received no general
        solicitation or general advertisement in connection with the Purchase or
        an
        investment in the Company.  The Investor did not subscribe for the
        Shares as a result of or subsequent to any advertisement, article, notice
        or
        other communication published in any newspaper, magazine, or similar media
        or
        broadcast over television or radio, or presented at any seminar or
        meeting.

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      3.10           Accuracy
        of Information.  The Investor understands and acknowledges that
        the Company is relying on the accuracy, veracity and completeness of the
        information provided by the Investor in this Agreement and otherwise in
        connection with the Purchase with respect to the offer and sale the
        Shares.  As of the date hereof and as of the Closing, the
        representations and warranties of the Investor contained herein and all
        information provided by the Investor to the Company concerning the Investor,
        its
        financial position and its knowledge of financial and business matters with
        respect to Investor’s investment in the Shares under this Agreement, including,
        but not limited to, the information set forth in the Confidential Investment
        Qualification Questionnaire attached hereto and incorporated herein, is correct
        and complete, and if there should be any changes in that information prior
        to
        the Investor purchasing the Shares, the Investor will immediately provide
        the
        Company with the correct information.

       

      4.           AGREEMENTS
        AND ACKNOWLEDGEMENTS OF THE INVESTOR.  The Investor hereby agrees
        and acknowledges to the Company as follows.

       

      4.1           No
        Registration.  The Investor understands that the Shares being
        acquired by the Investor have not been registered under the 1933 Act, in
        reliance on an exemption therefrom for transactions not involving any public
        offering, that the Shares have not been approved or disapproved by the
        Securities and Exchange Commission or by any other federal or state agency,
        and
        that no such agency has passed on the accuracy or adequacy of disclosures
        made
        to the Investor by the Company.  No federal or state governmental
        agency has passed on or made any recommendation or endorsement of the Shares
        or
        an investment in the Company.

       

      4.2           Regulation
        S Conditions. If the Investor attempts to sell, transfer or otherwise
        dispose of the Shares prior to the one-year distribution compliance period
        (as
        described in Regulation S), Investor agrees that:

       

      (a)           The
        offer or sale of the Shares by the Investor, if made prior to the expiration
        of
        a one-year distribution compliance period (which is defined as the period
        which
        begins when the Shares were first offered to persons other than distributors,
        as
        defined in Section 4.4(b)
        herein, in reliance upon Regulation S, or the date of the closing of the
        offering of the Shares, whichever is later, and continuing until one year
        thereafter, except as otherwise provided in Regulation S) shall not be made
        to a
        U.S. Person or for the account of a U.S. Person, other than a
        distributor;

       

      (b)           The
        offer and sale of the Shares by the Investor, if made prior to the expiration
        of
        a one-year distribution compliance period shall also comply with the following
        conditions:

       

      (i)           The
        Investor shall require that prior to the sale or transfer, t he purchaser
        of the
        Shares (other than a distributor) certifies that it is not a U.S. Person
        and is
        not acquiring the Shares for the account or benefit of any U. S. Person or
        is a
        U.S. Person who purchased securities in a transaction that did not require
        registration under the 1933 Act;

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (ii)           The
        Investor shall require that prior to the sale or transfer, the purchaser
        of the
        Shares agrees to resell such securities only in accordance with the provisions
        of Regulation S, pursuant to registration under the 1933 Act, or pursuant
        to an
        available exemption from registration; and agrees not to engage in hedging
        transactions with regard to such securities unless in compliance with the
        1933
        Act; and

       

      (iii)           The
        Investor shall require that prior to the sale or transfer, the securities
        to be
        transferred by Investor contain a legend to the effect that transfer is
        prohibited except in accordance with the provisions of Regulation S, pursuant
        to
        registration under the 1933 Act, or pursuant to an available exemption from
        registration; and that hedging transactions involving those securities may
        not
        be conducted unless in compliance with the 1933 Act;

       

      (c)           The
        Investor understands the Company, to comply with Regulation S, shall refuse
        to
        register any transfer of the securities not made in accordance with the
        provisions of Regulation S, pursuant to registration under the 1933 Act,
        or
        pursuant to an available exemption from registration; provided, however,
        that if
        the securities are in bearer form or foreign law prevents the issuer of the
        securities from refusing to register securities transfers, the Company shall
        be
        entitled to implement such other reasonable procedures as it may elect to
        prevent any transfer of the securities not made in accordance with the
        provisions of Regulation S; and

       

      (d)           Investor
        further agrees to provide written notice to any distributor, wherein the
        distributor agrees, that each distributor selling securities to a distributor,
        a
        dealer (as defined in section 2(12) of the 1933 Act), or a person receiving
        a
        selling concession, fee or other remuneration, prior to the expiration of
        the
        one-year distribution compliance period, shall send a confirmation or other
        notice to the purchaser stating that the purchaser is subject to the same
        restrictions on offers and sales that apply to the distributor.

       

      4.3           Legends.
        Investor understands that the certificates evidencing the Shares bear or
        will
        bear one or all of the following legends: (i) “THESE SECURITIES HAVE NOT BEEN
        REGISTERED UNDER THE 1933 ACT, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED
        FOR
        SALE, PLEDGED OR HYPOTHECATED IN THE UNITED STATES OR TO U.S. PERSONS, OTHER
        THAN DISTRIBUTORS AS DEFINED IN REGULATION S, IN THE ABSENCE OF A REGISTRATION
        STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH 1933 ACT OR
        AN
        OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS
        NOT
        REQUIRED OR PURSUANT TO AN EXEMPTION THEREFROM, AND PRIOR TO THE ONE-YEAR
        DISTRIBUTION COMPLIANCE PERIOD HEDGING TRANSACTIONS IN THE SHARES MAY NOT
        BE
        CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.”; and (ii) any other legend
        required by the laws of the jurisdiction where Investor
        resides.

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      4.4           Limitations
        on Disposition and Resale.

       

      (a)           The
        Investor understands that the Shares cannot be sold, transferred or otherwise
        disposed of unless the Shares have been registered by the Company pursuant
        to
        the 1933 Act and any applicable state securities laws, unless an exemption
        therefrom is available.  The Investor understands that it may not be
        possible for the Investor to liquidate his, her or its investment in the
        Company; and the Investor agrees not to sell, transfer or otherwise dispose
        of
        his, her or its Shares unless such sale, transfer or other disposition is
        in
        accordance with any applicable agreement(s) restricting transfer thereof
        and the
        Shares have been so registered or an exemption from the requirement of
        registration is available under the 1933 Act.  The Investor recognizes
        that there will not be any public trading market for the Shares and, as a
        result, the Investor may be unable to sell or dispose of its interest in
        the
        Company.

       

      (b)           In
        the event the Shares are offered or sold by a distributor (which is defined
        to
        mean any underwriter, dealer or other person who participates, pursuant to
        a
        contractual arrangement, in the distribution of the Shares offered and sold
        pursuant to this Agreement in reliance on Regulation S), the Investor
        represents, warrants and agrees that it shall provide to and require the
        distributor to sign a notice agreeing to comply with the following
        conditions:

       

      (i)           that
        all offers and sales of the Shares prior to the expiration of the one-year
        distribution compliance period shall be made only in accordance with the
        provisions of Rule 903 or 904 of Regulation S, pursuant to registration of
        the
        Shares under the 1933 Act, or pursuant to an available exemption under the
        1933
        Act; and

       

      (ii)           the
        distributor will not engage in hedging transactions with regard to such Shares
        prior to the expiration of the one-year distribution compliance period specified
        in Rule 903 of Regulation S unless in compliance with the 1933 Act.

       

      4.5           High
        Degree of Risk.  The Investor recognizes that the Company has
        generated net losses since inception, and, accordingly, an investment in
        the
        Company is extremely speculative and involves a high degree of
        risk.  The Investor has taken full cognizance of and understands all
        of the risk factors related to the purchase of the Shares.

       

      4.6           Irrevocable
        Subscription and Cancellation.  The Investor understands that this
        subscription is irrevocable, except as otherwise provided in any applicable
        federal or state law governing this Agreement and the transactions contemplated
        herein.

       

      4.7           Confidentiality.  Information
        provided to the Investor by the Company in connection with this Agreement
        (whether oral or written) is confidential and nonpublic, and all such
        information shall be kept in confidence by the Investor and shall neither
        be
        used by the Investor to the Investor’s personal benefit (other than in
        connection with the Investor’s subscription for the Shares) nor disclosed to any
        third party for any reason; provided, that this obligation shall not apply
        to
        any such information that (i) is part of the public knowledge or literature
        and
        readily accessible as of the date hereof, (ii) becomes part of the public
        knowledge or literature and readily accessible by publication (except as
        a
        result of a breach of these provisions); or (iii) is received from third
        parties
        (except third parties who disclose such information in violation of any
        confidentiality agreements including, without limitation, any agreement they
        may
        have with the Company).

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      5.           INDEMNIFICATION.  The
        Investor shall indemnify and hold harmless the Company and its officers,
        employees, directors, agents, affiliates, or control persons of any such
        entity
        who was or is a party or is threatened to be made a party to any threatened,
        pending or completed action, suit or proceeding, whether civil, criminal,
        administrative or investigative, by reason of or arising from any actual
        or
        alleged misrepresentation or misstatement of facts or omission to represent
        or
        state facts made by the Investor to the Company concerning itself or its
        financial position in connection with the offering or sale of the Shares
        against
        losses, liabilities and expenses for which the Company or any of its officers,
        employees, agents, affiliates, directors, or control persons of any such
        entity
        have not otherwise been reimbursed (including attorneys’ fees, judgments, fines
        and amounts paid in settlement) as incurred by such person or entity in
        connection with such action, suit, or proceeding.

       

      6.           ARBITRATION.  Any
        dispute concerning this Agreement (or the investment in the Company) shall
        be
        submitted to binding arbitration before a single arbitrator under the then
        applicable rules of the American Arbitration Association (or any successor
        thereto or any replacement arbitration tribunal as agreed to by the
        parties).  The arbitration hearing will be held in Los Angeles,
        California.  The remedial authority of any arbitrators serving under
        any dispute shall be the same as, but no greater than would be, the remedial
        power of a court having jurisdiction over the parties and their
        dispute.  The prevailing party or parties in any such dispute shall be
        entitled to recover reasonable attorney’s fees and costs as determined by the
        arbitration.

       

      7.           GOVERNING
        LAW; SEVERABILITY.  This Agreement is governed by and shall be
        construed in accordance with the law of the State of California, excluding
        any
        conflict-of-laws rule or principle that might refer the governance or
        construction of this Agreement to the law of another jurisdiction.  If
        any provision of this Agreement or the application thereof to any person
        or
        circumstance is held invalid or unenforceable to any extent, the remainder
        of
        this Agreement and the application of that provision to other persons or
        circumstances is not affected thereby, and that provision shall be enforced
        to
        the greater extent permitted by law.

       

      8.           ASSIGNMENT.  The
        Investor shall have neither the right nor the power to assign or delegate
        any
        provision of this Agreement except with the prior written consent of the
        Company.  Except as provided in the preceding sentence, this Agreement
        shall be binding upon and shall inure to the benefit of the parties’ respective
        successors, assigns, executors and administrators.

       

      9.           COUNTERPARTS.  This
        Agreement may be executed in separate counterparts, each of which shall be
        deemed an original and both of which shall constitute one and the same
        document.  This Agreement may also be executed and delivered by
        facsimile signature, or by e-mail, pdf or other image file, and in two or
        more
        counterparts, each of which shall be deemed an original, but all of which
        together shall constitute one and the same instrument.

       

      10.           ENTIRE
        AGREEMENT.  This Agreement and any agreements referenced herein
        constitute the entire agreement between the parties hereto with respect to
        the
        subject matter hereof and may be amended only in a writing executed by the
        party
        to be bound thereby.

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      11.           FURTHER
        ASSURANCES.  Each of the parties hereto agrees that it will, from
        time to time after the date of this Agreement, execute and deliver such other
        certificates, documents and instruments and take such other action as may
        be
        reasonably requested by the other party to carry out the actions and
        transactions contemplated by this Agreement.

       

      12.           PUBLIC
        ANNOUNCEMENTS.  Subject to any requirement of applicable law, all
        public announcements or similar publicity with respect to this Agreement
        or the
        transactions contemplated hereby shall be made or issued only with the prior
        written consent of the Company.

       

      13.           NOTICES.  All
        notices and other communications hereunder shall be in writing and shall
        be
        deemed to have been duly given (a) when delivered personally, (b) when
        transmitted by facsimile (transmission confirmed), (c) on the fifth business
        following mailing by registered or certified mail (return receipt requested),
        or
        (d) on the next business day following deposit with an overnight delivery
        service of national reputation, to the parties at the following addresses
        and
        facsimile numbers (or at such other address or facsimile number for a party
        as
        may be specified by like notice).

      

      
        	
                If
                  to Investor:  to the Investor’s address and or facsimile
                  

                number
                  appearing on the books of the Company

                 

              	 
	
                If
                  to the Company:

                 

                Fluid
                  Media Networks, Inc.

                5813-A
                  Uplander Way

                Culver
                  City, California 90230

                Attention:  Justin
                  Beckett

                Facsimile:
                  (310) 665-0735

              	
                with
                  a copy to:

                 

                Nixon
                  Peabody, LLP

                The
                  Gas Company Tower

                555
                  West Fifth Street, 46th
                  Floor

                Los
                  Angeles, CA 90013

                Attention:  Jenny
                  Chen-Drake, Esq.

                Facsimile:    (213)
                  629-6001

                 

              

      

       

      [The
        remainder of this page is intentionally left blank]

      
        
          
          

        

        
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      [SIGNATURE
        PAGE FOR INDIVIDUAL SUBSCRIBER]

       

      IN
        WITNESS WHEREOF, the parties have hereby executed this Subscription
        Agreement as of the day set forth above and in the acceptance set forth
        below.

       

      
        	
                 

                ______________________________________________                        
                  

                Number
                  of Shares which Subscriber Desires to
                  Purchase

                 

                ______________________________________________                       
                  

                Dollar
                  Amount of Subscription

                Tendered
                  by Subscriber

              	 	
                SUBSCRIBER
                  NAME

                 

                By:   ________________________________________                                                            

                 

                ___________________________________________

                Signature
                  of Joint Subscriber

                 

                ___________________________________________

                Residence
                  Address

                (Street
                  Address)

                 

                ___________________________________________

                (City
                  and
                  State)                                                   
                  (Zip Code)

                 

                ___________________________________________

                Telephone
                  Number

                 

                ___________________________________________

                Social
                  Security Number or

                Taxpayer
                  Number of Subscriber

                 

              

      

       

      ACCEPTANCE

      The
        foregoing subscription is hereby accepted, subject to the terms and conditions
        hereof, as of __________ ___, 2007.

       

      
        	
                 

                ______________________________________________                       
                  

                Amount
                  of Subscription Accepted

                 

                ______________________________________________                       
                  

                Number
                  of Shares

                 

              	 	
                FLUID
                  MEDIA NETWORKS, INC.

                 

                By:      _______________________________________                                                         

                Name:

                Title:

              

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      [SIGNATURE
        PAGE FOR SUBSCRIBERS WHICH ARE ENTITIES]

      

       

      IN
        WITNESS WHEREOF, the parties have hereby executed this Subscription
        Agreement as of the day set forth above and in the acceptance set forth
        below.

       

      
        	
                 

                ______________________________________________                       
                  

                Number
                  of Shares which Subscriber Desires to Purchase

                 

                ______________________________________________                       
                  

                Dollar
                  Amount of Subscription

                Tendered
                  by Subscriber

              	 	
                 

                Name
                  of Subscriber (Print or Type)

                 

                By:  _______________________________________                                                             

                Signature

                 

                Its: 
                  _______________________________________                                                             

                Title

                 

                ___________________________________________

                Principal
                  Place of Business of Subscriber

                 

                ___________________________________________

                (City
                  and
                  State)                                                    
                  (Zip Code)

                 

                ___________________________________________

                Telephone
                  Number

                 

                ___________________________________________

                Tax
                  Identification Number of Subscriber

                 

              

      

       

      ACCEPTANCE

      The
        foregoing subscription is hereby accepted, subject to the terms and conditions
        hereof, as of __________ ___, 2007.

       

      
        	
                 

                ______________________________________________                       
                  

                Amount
                  of Subscription Accepted

                 

                ______________________________________________                       
                  

                Number
                  of Shares

                 

              	 	
                FLUID
                  MEDIA NETWORKS, INC.

                 

                 

                By:    _____________________________________                                                           

                Name:

                Title:

              

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      CONFIDENTIAL
        INVESTMENT QUALIFICATION QUESTIONNAIRE

      

       

      FLUID
        MEDIA NETWORKS, INC.

      

      a
        Nevada corporation

       

      SPECIAL
        INSTRUCTIONS

      In
        order
        to establish the availability under federal and state securities laws of
        an
        exemption from registration or qualification requirements for the proposed
        offering, you are required to represent and warrant, and by executing and
        delivering this questionnaire will be deemed to have represented and warranted,
        that the information stated herein is true, accurate and complete to the
        best of
        your knowledge and belief, and may be relied on by the
        Company.  Further, by executing and delivering this questionnaire you
        agree to notify the Company and supply corrective information promptly if,
        prior
        to the consummation of your purchase of the Shares, any such information
        becomes
        inaccurate or incomplete.  Your execution of this questionnaire does
        not constitute any indication of your intent to subscribe for the
        Shares.

       

      A
        subscriber who is a naturalperson must complete each Question
except for 2 and 5.

       

      A
        subscriber that is an entity other than a trust must complete each
        Question except for 3 and 5.

       

      A
        subscriber that is a trust must complete each Question except for
        3.

       

       

      GENERAL
        INFORMATION

       

      1.           All
        Subscribers.

       

      a.           Name(s)
        of prospective
        investor(s):  ______________________________________________

       

      b.           Address:  __________________________________________________________________

       

      c.           Tel.
        No.: (____) ____________

       

      2.           Subscribers
        That Are Entities.

       

      a.           Type
        of entity:

       

      ___           Trust

      ___           Company

      ___           Partnership

      ___           Other:

       

      b.           State
        and date of legal
        formation:   _______________________________________________

       

      c.           Nature
        of
        Business: __________________________________________________________

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      d.           Was
        the entity organized for the specific purpose of acquiring the Shares in
        this
        offering?

       

      Yes
        ____                      No
        ____

       

      e.           Federal
        tax identification
        number: _______________________________________________________________

       

      3.           Subscribers
        Who Are Individuals.

       

      a.           State
        where registered to
        vote:   ________________________________________________________________

       

      b.           Social
        Security
        Number:   _____________________________________________________________________

       

      c.           Please
        state the subscriber’s education and degrees earned:

       

      Degree                      School                                                                                     Year

      _________    
        ___________________________________    _____

      
        _________    
          ___________________________________    _____

         

      

       

      d.           Current
        occupation (if retired, describe last occupation):

       

      Employer:   ______________________________________________________________________________________

       

      Nature
        of
        Business:   _______________________________________________________________________________

       

      Position:   _______________________________________________________________________________________

       

      Business
        Address:   ________________________________________________________________________________

       

      Tel.
        No.:
        (___) ____________

       

      4.           Accreditation.  Does
        the subscriber satisfy one or more of the following accredited investor
        requirements?  Contact the Company if none of the following is
        applicable.

       

      Investor
        is:

       

      
        	
                £

              	
                A
                  natural person whose net worth (or joint net worth with my spouse)
                  is in
                  excess of $1,000,000 as of the date
                  hereof.

              

      

       

      
        	
                £

              	
                A
                  natural person whose income in each of the two preceding calendar
                  years
                  was, and whose income in the current calendar year is, reasonably
                  expected
                  to be in excess of $200,000 or joint income with my spouse in each
                  of the
                  two preceding calendar years was, and in the current calendar year
                  is,
                  reasonably expected to be in excess of
                  $300,000.

              

      

       

      
        	
                £

              	
                A
                  director or executive officer of the
                  Company.

              

      

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      
        	
                £

              	
                A
                  trust with total assets in excess of $5,000,000, not formed for
                  the
                  specific purpose of investing in the Stock of the Company, whose
                  purchases
                  are directed by a sophisticated person, who has such knowledge
                  and
                  experience in financial and business matters that he or she is
                  capable of
                  evaluating the merits and risks of an investment in the Stock of
                  the
                  Company.

              

      

       

      
        	
                £

              	
                A
                  “bank”, “savings and loan association”, or “insurance company” as defined
                  in the 1933 Act.

              

      

       

      
        	
                £

              	
                A
                  broker/dealer registered pursuant to Section 15 of the Securities
                  Exchange
                  Act of 1934, as amended.

              

      

       

      
        	
                £

              	
                An
                  investment company registered under, or a “business development company”
                  as defined in Section 2(a)(48) of the Investment Company Act of
                  1940.

              

      

       

      
        	
                £

              	
                A
                  Small Business Investment Company licensed by the U.S. Small Business
                  Administration under 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 and having total assets in excess
                  of
                  $5,000,000.

              

      

       

      
        	
                £

              	
                An
                  “employee benefit plan” as defined in the Employee Retirement Income
                  Security Act of 1974 (a “Plan”) which has total assets in excess of
                  $5,000,000.

              

      

       

      
        	
                £

              	
                A
                  Plan whose investment decisions, including the decision to subscribe
                  for
                  the Stock of the Company, are made solely by (i) a “plan fiduciary” as
                  defined in Section 3(21) of the Employee Retirement Income Security
                  Act of
                  1974, which includes a bank, a savings and loan association, an
                  insurance
                  company or a registered investment adviser, or (ii) an “accredited
                  investor” as defined under Rule 501 (a) of the 1933
                  Act.

              

      

       

      
        	
                £

              	
                A
                  private business development company as defined in Section 202(a)(22)
                  of
                  the Investment Advisers Act of
                  1940.

              

      

       

      
        	
                £

              	
                Any
                  organization described in Section 501(c)(3) of the Internal Revenue
                  Code,
                  corporation, Massachusetts or similar business Trust, or partnership,
                  not
                  formed for the specific purpose of investing in the Shares and
                  having
                  total assets in excess of
                  $5,000,000.

              

      

       

      
        	
                £

              	
                Any
                  entity in which all of the equity owners meet one of the above
                  descriptions.

              

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      5.           Trusts.

      Does
        the
        trust meet the following tests:

       

       

      a.           Has
        total assets in excess of $5,000,000?

       

      Yes
        ____                      No
        ____

       

      b.           Was
        formed for the purpose of the Investment in the Shares in this
        offering?

       

      Yes
        ____                      No
        ____

       

      c.           Are
        the purchases by the Trust directed by a sophisticated investor who, alone
        or
        with his or her subscriber representative, understands the merits and risks
        of
        the Investment in the Shares?

       

      Yes
        ____                      No
        ____

       

       

      [The
        remainder of this page is intentionally left blank]

       

       

      14fluid_8k-ex1001.htm

    EXHIBIT
      10.1

     

    THIS
      PURCHASE AGREEMENT made as of the 6th day of September,
      2007

     

    BETWEEN:

    FLUID
      MEDIA NETWORKS, INC., a corporation existing under the laws of the
      State of Nevada

    (the
      "Company") 

     

    -
      and -

     

    PFH
      INVESTMENTS LIMITED, a corporation existing under the laws of the
      Province of Ontario

    (the
      "Lender")

     

    WHEREAS,
      pursuant to a convertible debenture and security agreement dated May
      29, 2006 (the "Debenture") between Fluid Audio Network, Inc.
      ("FAN") and the Lender, FAN is indebted to the Lender
      thereunder (the "Indebtedness");

    

    AND
      WHEREAS the Indebtedness consists, as at and including the date hereof,
      of US$27,945 of interest and US$ 1,000,000 of principal;

    

    AND
      WHEREAS, in connection with the issuance of the Debenture, FAN granted
      to the Lender warrants (the "Initial Warrants").to acquire up
      to 166,667 shares of common stock of FAN at an original exercise price of
      US$3.00 per share at any time and from time to time until May 29,
      2009;

    

    AND
      WHEREAS the Company is the successor by way of merger to
      FAN;

    

    AND
      WHEREAS the Debenture does not provide for the right of the Company to
      prepay the Indebtedness;

    

    AND
      WHEREAS the Lender and the Company have agreed that the Company will
      purchase the Debenture and the Indebtedness evidenced thereby, on the terms
      and
      conditions hereinafter set forth;

     

    NOW
      THEREFORE, for valuable consideration, the receipt and sufficiency of
      which are hereby acknowledged, the parties hereby agree as follows:

     

    
      	
            	
              1.

            	
              In
                full and complete satisfaction of any and all Obligations (as such
                term is
                defined in the Debenture), on the date of completion of the Company's
                initial public offering of shares in Canada (provided that such date
                occurs no later than October 31, 2007) (the "IPO Date"),
                the Company shall:

            

    

    

    
      	
               

            	
              (a)

            	
              purchase
                the Debenture and the Indebtedness evidenced thereby for an aggregate
                purchase price of US$1,368,000, inclusive of any and all accrued
                and
                outstanding interest, in immediately available funds to the Lender
                (or to
                whomever the Lender directs);

            

    

     

    
      	
               

            	
               (b)

            	
              grant
                to the Lender warrants to acquire up to 125,000 shares of common
                stock of
                the Company at an exercise price of US$3.00 per share at any time
                and from
                time to time until the date which is four years following the IPO
                Date.
                Such warrants shall be in the form annexed hereto as Schedule "A"
                and, for
                greater certainty, are in addition to the Initial Warrants referred
                to in
                the third recital hereof; and

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
               (c)

            	
              pay
                the Lender's actual legal fees and disbursements, not to exceed $5,000,
                within 10 business days of receipt of an invoice
                therefor.

            

    

     

    
      	
            	
              2.

            	
              Upon
                receipt of the payment referred to in paragraph 1(a) and the original
                certificate representing the additional warrants referred to in paragraph
                1(b) hereof, the Lender shall deliver up to the Company the original
                Debenture and shall, at the expense of the Company, promptly deliver
                to
                the Company upon request all instruments necessary in order to cancel
                and
                discharge any and all registrations of the security constituted by
                the
                Debenture.

            

    

     

    
      	
            	
              3.

            	
              The
                parties hereby confirm that the Initial Warrants are in full force
                and
                effect, unamended and that the exercise price for the Initial Warrants
                is
                US$2.00 per share.

            

    

     

    
      	
            	
              4.

            	
              Each
                of the parties shall execute and deliver to the other such documents
                and
                take such other actions as the other may reasonably request in order
                to
                consummate the transactions contemplated
                hereby.

            

    

    

    
      	
            	
              5.

            	
              This
                Purchase Agreement shall be governed by and interpreted and enforced
                in
                accordance with the laws of the Province of Ontario and the federal
                laws
                of Canada applicable therein.

            

    

    

    
      	
            	
              6.

            	
              This
                Purchase Agreement may be executed in any number of counterparts
                (including counterparts by facsimile or pdf) and all such counterparts
                taken together shall be deemed to constitute one and the same
                instrument.

            

    

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Purchase
      Agreement as of the date first above written.

    

    

    FLUID
      MEDIA NETWORKS, INC.

    

    Per: 
      /s/ Justin F. Beckett            

    Authorized
      Signatory

     

    PFH
      INVESTMENTS LIMITED

    

    Per: /s/
      James Penturn                 
      

    Authorized
      Signatory

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