Document:

EX-10.1

 Exhibit 10.1 

Execution Copy 

AMENDMENT NO. 2 
 TO THE

 SECURITIES PURCHASE AGREEMENT 

July 14, 2016 

EnteroMedics Inc., a Delaware corporation (the “Company”), and the undersigned investor (the
“Investor”), together with certain other Investors listed on the Schedule of Buyers attached to the Purchase Agreement (as defined below) (individually, a “Buyer” and collectively, the “Buyers,” or
in reference to Notes (as defined), individually a “Holder” or collectively “Holders”), are parties to that certain Securities Purchase Agreement dated November 4, 2015, as amended by Amendment No. 1 thereto dated
May 2, 2016 (collectively, the “Original Agreement”, as amended hereby, the “Amended Purchase Agreement”) pursuant to which the Company has issued and sold, and will issue and sell, certain senior convertible
notes (the “Notes”) to the Buyers. All capitalized terms not defined herein shall have the meanings ascribed to them in the Original Agreement. Effective as of the time (the “Effective Time”) the Required Holders
shall have executed amendments to the Original Agreement in the form of this Amendment No. 2 with the Company (other than the identity of such Buyer and any provisions with respect to legal fees reimbursement) (such other agreements, the
“Other Amendment Agreements” and together with this Amendment No. 2, the “Amendment Agreements”), the parties, intending to be legally bound, hereby agrees to the following: 

 

	1.	Consent under Section 7(g) of the Notes. Pursuant to Section 7(g) of the Notes, the Holder hereby irrevocably consents to the Company, at any time and from time to time during the term of the Notes,
reducing the then current Conversion Price (as defined in the Notes) of any or all of the Notes, now or hereafter issued, to any amount, for any period of time and for all or any portion of the principal amount thereof and accrued interest thereon
as set forth in one or more written notices delivered by the Company to each holder of Notes then outstanding from time to time. Such written notices to each holder of Notes shall not be delivered during any time that an Eligible Market or OTC
Market is open for trading. Holder and the Company agree that any reduced Conversion Price may be established at a fixed price or by reference to a formula that may be determined at the time of first offer of the reduced Conversion Price or may not
be determinable until a future time and that any such reduced Conversion Price may be at such discount to any closing price for the Common Stock or any formula for averaging such closing price or VWAP with respect to the Common Stock as the Company
shall determine. 

  

	2.	Amendments to Original Agreement. The parties hereto hereby agree to the following amendments to the Original Agreement, effective as of the Effective Time: 

(a) Amendment to Recital F. Recital F of the Original Agreement is hereby amended and restated as follows: 

	 	“F.	During the period from July 1, 2016 through, and including, the sixth (6th) Trading Day immediately prior to the Fourth Closing Date (as defined below)
(such period shall be referred to herein as the “Conversion Period”), the Conversion Price (as defined in the Notes) may be lowered, from time to time, by the Company below the Conversion Price then in effect pursuant to Section 7(g)
of the Notes for such period of time and to such conversion price(s) as specified in one or more written notices by the Company to each Holder of Notes (each, a “Voluntary Adjustment”, and the sum of such portion of the aggregate
principal amount of any Notes converted into shares of Common Stock at a conversion price lowered in a Voluntary Adjustment with respect to any given Holder of Notes, in the aggregate, plus the aggregate principal amount of Notes with respect to any
given Holder of Notes converted into shares of Common Stock pursuant to Section 8 of the Notes during the Conversion Period the “Adjustment Note Amount”). On the Fourth Closing Date, each Buyer wishes to purchase, and the
Company wishes to sell, upon the terms and conditions stated in this Agreement, at the Fourth Closing (as defined below): (i) a Note in such aggregate original principal amount (each, a “Fourth Closing Note Amount”) as set
forth in the Fourth Closing Notice (as defined below) of such Buyer, which shall not be less than fifty percent (50%) of the Adjustment Note Amount of such Buyer and shall not exceed the aggregate original principal amount set forth opposite
such Buyer’s name in column (5) on the Schedule of Buyers (which aggregate principal amount for all Buyers shall not exceed $6,250,000)(each, a “Fourth Note”, and collectively, the “Fourth Notes”)(as
converted, collectively, the “Fourth Conversion Shares”) and (ii) a Warrant to initially acquire up to 1,175.2416 shares of Common Stock (as adjusted for any stock dividend, stock split, stock combination, reclassification or
similar transaction occurring after July 14, 2016) for each $1,000 of aggregate original principal amount of Fourth Notes to be purchased by such Buyer in the Fourth Closing (such aggregate number of Warrant Shares with respect to such Buyer,
the “Fourth Closing Warrant Amount”, and such Warrants, the “Fourth Warrants”) (as exercised, collectively, the “Fourth Warrant Shares”). ” 

(b) Amendment to Section 1(a)(iv). Section 1(a)(iv) of the Original Agreement is hereby amended and restated
as follows: 
 “(iv) Fourth Closing. 

(A) General. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6(d), 7(d) below and this
Section 1(a)(iv), the Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly, shall purchase from the Company on the Fourth Closing Date, a Fourth Note in the original principal amount equal to the Fourth Closing
Note Amount along with Fourth Warrants to initially acquire up to such aggregate number of Fourth Warrant Shares equal to the Fourth Closing Warrant Amount of such Buyer (the “Fourth Closing”). 

  
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 (B) Mechanics. On or prior to the fifth (5th) Trading Day immediately prior to the Fourth Closing Date (the “Fourth Closing Notice Date”), each Buyer shall deliver a written notice to the Company (each, a “Fourth
Closing Notice”) electing to purchase in the Fourth Closing, subject to the satisfaction (or waiver) of the conditions set forth in Sections 6(d), 7(d) below and this Section 1(a)(iv), (x) such aggregate principal amount of Fourth
Notes as set forth in the Fourth Closing Notice, which shall not be less than fifty percent (50%) of the Adjustment Note Amount of such Buyer and shall not be greater than such aggregate original principal amount of Fourth Notes as set forth
opposite such Buyer’s name in column (5) on the Schedule of Buyers and (y) Fourth Warrants to initially acquire up to such aggregate number of Fourth Warrant Shares equal to the Fourth Closing Warrant Amount of such Buyer, which,
shall not exceed such aggregate number of Fourth Warrant Shares as set forth opposite such Buyer’s name in column (6) on the Schedule of Warrants. If a Buyer fails to deliver a Fourth Closing Notice to the Company on or prior to the Fourth
Closing Notice Date, such Buyer shall be deemed to have elected to purchase, subject to the satisfaction (or waiver) of the conditions set forth in Sections 6(d), 7(d) below and this Section 1(a)(iv), (x) such aggregate principal amount of
Fourth Notes equal to fifty percent (50%) of the Adjustment Note Amount of such Buyer and (y) Fourth Warrants to initially acquire up to such aggregate number of Fourth Warrant Shares equal to the Fourth Closing Warrant Amount of such
Buyer.” 
 (c) Amendment to Section 1(b)(iv). Section 1(b)(iv) of the Original Agreement is hereby
amended and restated as follows: 
 “(iv) Fourth Closing. The date and time of the Fourth Closing (the “Fourth Closing
Date,” and together with the First Closing Date, the Second Closing Date, and the Third Closing Date, each, a “Closing Date”) shall be December 1, 2016 or such earlier date as the Buyers and the Company shall agree
(or, if such date is not a Trading Day, the immediately succeeding Trading Day), subject to the satisfaction or waiver of the conditions to the Fourth Closing set forth in Section 1(a)(iv) above and Section 6(d), Section 7(d) below
(or such other date as is mutually agreed to by the Company and each Buyer), as evidenced by the Fourth Closing Notice (or by a notice delivered by the Company to such Buyer if such Buyer fails to timely deliver such Fourth Closing Notice). For the
avoidance of doubt (x) the Company shall not be entitled to effect a Fourth Closing if on the Fourth Closing Date there is an Equity Conditions Failure (as defined in the First Notes) (unless such Equity Conditions Failure has been waived in
writing by the Buyers) and (y) if some, but not all, of the Buyers waive an applicable Equity Conditions Failure or other condition to the Fourth Closing, the Fourth Closing shall occur solely with respect to such waiving Buyers. If the Fourth
Closing has not occurred on or prior to December 30, 2016, no Fourth Closing shall occur hereunder.” 
 (d)
Amendment to Section 1(c)(iv). Section 1(c)(iv) of the Original Agreement is hereby amended and restated as follows: 

  
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 “(iv) Fourth Purchase Price. The aggregate purchase price for the Fourth Notes and
the Fourth Warrants to be purchased by each Buyer at the Fourth Closing (the “Fourth Purchase Price”, and together with the First Purchase Price, the Second Purchase Price, and the Fourth Purchase Price, the “Purchase
Price”) shall be an aggregate cash amount equal to $1,000 per each $1,000 of aggregate original principal amount of Notes to be purchased by such Buyer at the Fourth Closing, but in no event greater than the amount set forth opposite such
Buyer’s name in column (9) on the Schedule of Buyers.” 
 (e) Amendment to Section 1(d)(iv).
Section 1(d)(iv) of the Original Agreement is hereby amended and restated as follows: 
 “(iv) On the Fourth Closing Date,
(A) each Buyer shall pay its respective Fourth Purchase Price (less, in the case of CVI, the amounts withheld pursuant to Section 4(j)) to the Company for the Fourth Notes and the Fourth Warrants to be issued and sold to such Buyer at the
Fourth Closing, by wire transfer of immediately available funds in accordance with the Fourth Flow of Funds Letter (as defined below) and (B) the Company shall deliver to each Buyer a Fourth Note in the original principal amount equal to the
Fourth Closing Note Amount along with Fourth Warrants to initially acquire up to such aggregate number of Fourth Warrant Shares equal to the Fourth Closing Warrant Amount of such Buyer, in each case, duly executed on behalf of the Company and
registered in the name of such Buyer or its designee.” 
 (f) Amendment to Section 7(d)(i).
Section 7(d)(i) of the Original Agreement is hereby amended and restated as follows: 
 “(i) The Company shall have duly executed
and delivered to such Buyer each of the Transaction Documents and the Company shall have duly executed and delivered to such Buyer a Fourth Note in the original principal amount equal to the Fourth Closing Note Amount along with Fourth Warrants to
initially acquire up to such aggregate number of Fourth Warrant Shares equal to the Fourth Closing Warrant Amount of such Buyer being purchased by such Buyer at the Fourth Closing pursuant to this Agreement.” 

 

	3.	Waivers. 

 (a) Equity Conditions Waiver. Effective as of the Effective Time,
solely for purposes of satisfying the conditions to the Fourth Closing set forth in Sections 1(a)(iv), 6(d) and 7(d) of the Amended Purchase Agreement (and not with respect to any term or condition of any Note), the Investor hereby waives, in part,
(x) any Volume Failure, solely to the extent the definition of Volume Failure in the Notes would be satisfied with “$100,000” replacing “125,000” therein and (y) any Price Failure, solely to the extent the definition of
Price Failure in the Notes would be satisfied with “$0.20” replacing “$1.24995” therein. 

  
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 (b) Pre-Delivery Waiver. With respect to each Installment Date (as defined in the Notes),
the Investor hereby waives (each, a “Pre-Delivery Waiver”) the Company’s obligation to deliver Pre-Installment Conversion Shares (as defined in the Notes) to the Investor, solely to the extent of such aggregate number of
Pre-Installment Conversion Shares (collectively, the “Blocked Pre-Installment Conversion Shares”) that upon issuance to the Investor would otherwise result in a breach Section 3(d) of the Notes then held by the Investor as of
the date the Company is required to deliver such Pre-Installment Conversion Shares to the Investor in accordance with the terms of the Notes (each, a “Pre-Installment Share Delivery Date”) (as designated in writing by the Investor
to the Company on or prior to the applicable Pre-Installment Share Delivery Date); provided, that, the Investor may withdraw any given Pre-Delivery Waiver (in increments not less than the lesser of (x) 250,000 shares of Common Stock (as adjusted for
stock splits, stock dividends, stock combinations, recapitalizations and similar events) and (y) the aggregate number of Blocked Pre-Installment Conversion Shares then remaining for such Installment Date), in whole in part, by delivery of a
subsequent written notice to the Company (each, a “Withdrawal Notice”, and the date thereof, a “Withdrawal Notice Date”), which Withdrawal Notice shall specify: (x) the number of additional Blocked
Pre-Installment Conversion Shares (the “Withdrawal Shares”) that may, as of the applicable Withdrawal Notice Date, be issued and delivered to the Investor without breaching Section 3(d) of the Notes of the Investor and
(y) the date such Withdrawal Notice shall be deemed effective and that the Company shall be required to deliver such Withdrawal Shares to the Investor (or its designee), which shall be the third (3rd) Trading Day after the applicable
Withdrawal Notice Date (each, a “Withdrawal Share Delivery Date”); provided, further, that the waiver set forth in this Section 3(b) shall not (I) waive the Company’s obligation to deliver Pre-Installment Conversion
Shares related to any Installment Date to the Investor that are not Blocked Pre-Installment Conversion Shares, (II) constitute a Deferral (as defined in the Notes) or (III) reduce or otherwise limit the number of Post-Installment Conversion Shares
(as defined in the Notes) required to be delivered to the Investor pursuant to Section 8 of the Notes on the applicable Installment Date: and provided, further that Investor may not request a Withdrawal Share Delivery Date during the five
(5) consecutive Trading Period ending on and including the Trading Day immediately preceding the delivery or deemed delivery of the applicable Installment Notice. The Company hereby acknowledges and agrees to this Section 3(b) and agrees
to deliver the applicable Withdrawal Shares to the Investor by the applicable Withdrawal Share Delivery Date in accordance with the conversion procedures set forth in Section 3 hereunder, mutatis mutandis. 

(c) Acceleration Waiver. The Company hereby waives all restrictions to the occurrences of Accelerations set forth in the last sentence
of Section 8(e) of the Notes. 
 (d) Waiver of Event of Default. The Investor hereby waives each Event of Default due to an
occurrence of the events set forth in Section 4(a)(i) of the Notes as a consequence of any suspension of trading or failure of the Common Stock to be trading or listed on an Eligible Market so long as the Comon Stock is trading or listed on one
of the OTC Markets. 

  
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	4.	Disclosure of Transactions and Other Material Information. The Company shall, on or before 8:30 a.m., New York City Time, on the first Business Day after the date of this Amendment No. 2, publicly file a
Current Report on Form 8-K disclosing all material terms of this Amendment No. 2 and attaching the form of this Amendment No. 2 as an exhibit to such filing. As of the date of the issuance of the Form 8-K, the Investor shall not be in
possession of any material, nonpublic information received from the Company, any of its Subsidiaries or any of its respective officers, directors, employees, affiliates or agents, that is not disclosed in the Form 8-K. In addition, effective upon
the issuance of the Form 8-K, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers,
directors, affiliates, employees or agents, on the one hand, and the Investor or any of its affiliates, on the other hand, shall terminate and be of no force or effect. The Company shall not, and shall cause each of its Subsidiaries and each of
their respective officers, directors, employees, affiliates and agents, not to, provide the Investor with any material, nonpublic information regarding the Company or any of its Subsidiaries from and after the date hereof without the express prior
written consent of the Investor. To the extent that the Company delivers any material, non-public information to the Investor without the Investor’s express prior written consent, the Company hereby covenants and agrees that the Investor shall
not have any duty of confidentiality to the Company, any of its Subsidiaries or any of their respective officers, directors, employees, affiliates or agents with respect to, or a duty to the Company, any of its Subsidiaries or any of their
respective officers, directors, employees, affiliates or agents not to trade on the basis of, such material, non-public information. The Company understands and confirms that the Investor will rely on the foregoing in effecting transactions in
securities of the Company. 

  

	5.	Entire Agreement; Amendment; Severability. This Amendment No. 2 together with the Original Agreement constitutes the entire agreement and supersedes all other prior and contemporaneous agreements and
undertakings, both written and oral, among the parties hereto with regard to the subject matter hereof. All references in the Original Agreement to the “Agreement” shall mean the Original Agreement as amended by this Amendment No. 2;
provided, however, that all references to “date of this Agreement” in the Original Agreement shall continue to refer to the date of the Original Agreement, and the reference to “time of execution of this Agreement” set
forth in Section 13(a) shall continue to refer to the time of execution of the Original Agreement. 

  

	6.	 Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement
and interpretation of Amendment No. 2 shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of
Manhattan, for the adjudication of any dispute hereunder or in connection herewith or 

  
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under any of the other Transaction Documents or with any transaction contemplated hereby or thereby, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any
claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Amendment No. 2 and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate
to preclude any Buyer from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s obligations to such Buyer or to enforce a judgment or other court ruling in favor of such Buyer.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS AMENDMENT
NO. 2, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. 

  

	7.	Counterparts. This Amendment No. 2 may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been
signed by each party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such signature page
shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof. 

 

	8.	 Most Favored Nation. The Company hereby represents and warrants as of the date hereof and covenants
and agrees from and after the date hereof that none of the terms offered to any Person with respect to any consent, release, amendment, settlement or waiver relating to the terms, conditions and transactions contemplated hereby (each a
“Settlement Document”), is or will be more favorable to such Person than those of the Investor and this Amendment No. 2. If, and whenever on or after the date hereof, the Company enters into a Settlement Document, then
(i) the Company shall provide notice thereof to the Investor immediately following the occurrence thereof and (ii) the terms and conditions of this Amendment No. 2 shall be, without any further action by the Investor or the Company,
automatically amended and modified in an economically and legally equivalent manner such that the Investor shall receive the benefit of the more favorable terms and/or conditions (as the case may be) set forth in such Settlement Document, provided
that upon written notice to the Company at any time the Investor may elect not to accept the benefit of any such amended or modified term or condition, in which event the term or condition contained in this Amendment No. 2 shall apply to the
Investor as it was in effect immediately prior to such amendment or modification as if such amendment 

  
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or modification never occurred with respect to the Investor. The provisions of this Section 8 shall apply similarly and equally to each Settlement Document. 

 

	9.	Independent Nature of Buyers’ Obligations and Rights. The obligations of the Investor under this Amendment No. 2 and the other Buyers under any Other Amendment Agreement are several and not joint with
the obligations of any other Buyer, and the Investor shall not be responsible in any way for the performance of the obligations of any other Buyer under any Other Amendment Agreement. Nothing contained herein or in any Other Amendment Agreement, and
no action taken by the Investor pursuant hereto or any other Buyer pursuant to thereto, shall be deemed to constitute the Investors as, and the Company acknowledges that the Investors do not so constitute, a partnership, an association, a joint
venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a group, and the Company shall not assert any such claim with respect to such obligations or the transactions contemplated by this
Amendment No. 2 or any Other Amendment Agreement and the Company acknowledges that the Investors are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Amendment No. 2 and any
Other Amendment Agreement. The Company acknowledges and the Investor confirms that it has independently participated in the negotiation of the transaction contemplated hereby with the advice of its own counsel and advisors. The Investor shall be
entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Amendment No. 2, and it shall not be necessary for any other Buyer to be joined as an additional party in any proceeding for
such purpose. 

  

	10.	Fees and Expenses. The Company shall reimburse counsel to the lead Buyer for its legal fees and expenses in connection with the preparation and negotiation of this Amendment No. 2 and transactions
contemplated thereby, by paying on or prior to the fifth (5th) Business Day immediately following the date hereof any such amount to Kelley Drye & Warren LLP (the “Counsel
Expense”) by wire transfer of immediately available funds in accordance with the written instructions of Kelley Drye & Warren LLP delivered to the Company in an amount not to exceed $10,000. The Counsel Expense shall be paid by the
Company whether or not the transactions contemplated by this Amendment No. 2 are consummated. Except as otherwise set forth above, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and
all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Amendment No. 2. The Company shall pay all stamp and other taxes and duties levied in connection with the
transactions contemplated hereby, if any. 

 [Remainder of Page Intentionally Blank; Signature Page Follows] 

  
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 IN WITNESS WHEREOF, the Investor and the Company have caused their respective signature
page to this Amendment No. 2 to be duly executed as of the date first written above. 
  

			
	COMPANY:
	
	ENTEROMEDICS INC.
		
	By: 	 	  

		 	Name:
		 	Title:

 IN WITNESS WHEREOF, the Investor and the Company have caused their respective signature
page to this Amendment No. 2 to be duly executed as of the date first written above. 
  

			
	INVESTOR:
	
	CVI INVESTMENTS, INC.
		
	By: 	 	  

		 	Name:
		 	Title:

 IN WITNESS WHEREOF, the Investor and the Company have caused their respective signature
page to Amendment No. 2 to be duly executed as of the date first written above. 
  

			
	INVESTOR:
	
	HUDSON BAY MASTER FUND LTD.
		
	By: 	 	  

		 	Name:
		 	Title:

 IN WITNESS WHEREOF, the Investor and the Company have caused their respective signature
page to this Amendment No. 2 to be duly executed as of the date first written above. 
  

			
	INVESTOR:
	
	SABBY HEALTHCARE MASTER FUND, LTD. 
		
	By: 	 	  

		 	Name:
		 	Title:

 IN WITNESS WHEREOF, the Investor and the Company have caused their respective signature
page to this Amendment No. 2 to be duly executed as of the date first written above. 
  

			
	INVESTOR:
	
	SABBY VOLATILITY WARRANT MASTER FUND, LTD. 
		
	By: 	 	  

		 	Name:
		 	Title:

 IN WITNESS WHEREOF, the Investor and the Company have caused their respective signature
page to this Amendment No. 2 to be duly executed as of the date first written above. 
  

			
	INVESTOR:
	
	ALTO OPPORTUNITY MASTER FUND, SPC 
		
	By: 	 	  

		 	Name:
		 	Title:Exhibit 10.1

  

NABUFIT GLOBAL, INC.

COMMON STOCK SUBSCRIPTION AGREEMENT

The undersigned (the "Investor") hereby confirms its agreement with NABUfit Global, Inc., a Delaware corporation (the "Company") as follows:

1. This Subscription Agreement, including the Terms and Conditions For Purchase of Shares attached hereto as Annex I (collectively, (this "Agreement") is made as of the date set forth below between the Company and the Investor.

2. The Company has authorized the sale and issuance to certain investors of up to an aggregate of 5,000,000 shares of its common stock, par value $0.0001 per share (the "Common Stock"), of the Company (the "Shares"). The purchase price per Share shall be $0.92 (the "Share Purchase Price"). The Shares will be certificated and the Shares shall be immediately transferable upon issuance.

3. The offering and sale of the Shares (the "Offering") are being made pursuant to (1) an effective Registration Statement on Form S-1, File No. 333-210325 (including any additional registration statement filed with respect thereto pursuant to Rule 462(b) under the Shares Act (as defined below) the "Registration Statement") filed by the Company with the Shares and Exchange Commission (the "Commission") (including the prospectus contained therein (the "Prospectus") and (2) if applicable, certain "free writing prospectuses" (as that term is defined in Rule 405 under the Shares Act of 1933, as amended (the "Shares Act")), that have been or will be filed with the Commission and delivered to the Investor on or prior to the date hereof (the "Issuer Free Writing Prospectus"), containing certain supplemental information regarding the Shares, the terms of the Offering and the Company.

4. The Company and the Investor agree that the Investor will purchase from the Company and the Company will issue and sell to the Investor the Shares set forth below for the aggregate Purchase Price set forth below. The Shares shall be purchased pursuant to the Terms and Conditions for Purchase of Shares attached hereto as Annex I and incorporated herein by this reference as if fully set forth herein. The Investor acknowledges that the Offering is not being underwritten by an underwriter or placement agent and that there is no minimum offering amount.

5. The Shares shall be settled as follows:

A. Cash Settlement.  Investor shall pay to the firm of NÉMETH & SIGETTY A/S ("Escrow Agent") via direct wire transfer, cash or other immediately available funds an amount equal to the aggregate purchase price for the Shares being purchased by the Investor to the following account designated by the Company:

[To be separately provided to the Investor.]

Upon receipt of the Purchase Price, the Escrow Agent shall provide a copy of this Agreement to the Company's Transfer Agent with instructions to deliver a certificate representing the Shares ("Certificate").  Upon receipt of the Certificate, the Escrow Agent shall deliver the Certificate to the Investor and the funds to the Company.

IF THE INVESTOR DOES NOT DELIVER THE AGGREGATE PURCHASE PRICE FOR THE SHARES OR DOES NOT MAKE PROPER ARRANGEMENTS FOR SETTLEMENT IN A TIMELY MANNER, THE CERTIFICATE FOR THE SHARES MAY NOT BE DELIVERED AT CLOSING TO THE INVESTOR OR THE INVESTOR MAY BE EXCLUDED FROM THE CLOSING ALTOGETHER.

6. The Investor represents that, except as set forth below, (a) it has had no position, office or other material relationship within the past three years with the Company or persons known to it to be affiliates of the Company, (b) it is not a member of the Financial Industry Regulatory Authority, Inc. ("FINRA") or an Associated Person (as such term is defined under the FINRA's NASD Membership and Registration Rules Section 1011) as of the Closing, and (c) neither the Investor nor any group of Investors (as identified in a public filing made with the Commission) of which the Investor is a part in connection with the Offering, acquired, or obtained the right to acquire, 20% or more of the Common Stock (or securities convertible into or exercisable for Common Stock) or the voting power of the Company on a post-transaction basis. Exceptions:

a. _________________________________________________

b. _________________________________________________ 

 (If no exceptions, write "none." If left blank, response will be deemed to be "none.")

7. The Investor represents that it has received (or otherwise had made available to it by the filing by the Company of an electronic version thereof with the Commission) the Prospectus, filed June 6, 2016 which is a part of the Company's Registration Statement, the documents incorporated by reference therein and any free writing prospectus (collectively, the "Disclosure Package"), prior to or in connection with the receipt of this Agreement. The Investor acknowledges that, prior to the delivery of this Agreement to the Company, the Investor will receive certain additional information regarding the Offering, including pricing information (the "Offering Information"). Such information may be provided to the Investor by any means permitted under the Shares Act, including a free writing prospectus and oral communications.

8. No offer by the Investor to buy Shares will be accepted and no part of the Purchase Price will be delivered to the Company until the Investor has received the Offering Information and the Company has accepted such offer by countersigning a copy of this Agreement, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to the Company sending (orally, in writing or by electronic mail) notice of its acceptance of such offer. An indication of interest will involve no obligation or commitment of any kind until the Investor has been delivered the Offering Information and this Agreement is accepted and countersigned by or on behalf of the Company.

9. The Company acknowledges that the only material, non-public information relating to the Company or its subsidiaries that the Company, its employees or agents has provided to the Investor in connection with the Offering prior to the date hereof are the material pricing terms of the Offering.

Number of Shares:

Purchase Price per Share: USD $0.92

Aggregate Purchase Price: USD $

[Signature Page Follows]

Please confirm that the foregoing correctly sets forth the agreement between us by signing in the space provided below for that purpose.

 

	
 

	 Dated as of: 29 June, 2016
	
 

	 	
 

	
 

	 INVESTOR
	
 

	 	
 

	
 

	 	
 

	
 

	
By: 

	
 

	
 

	
Print Name: 

	
 

	
 

	Title: 	
 

	
 

	Address: 	
 

	
 

	 	
 

	
 

	 	
 

	
 

	Agreed and Accepted 
	
 

	this 29 day of June, 2016: 
	
 

	NABUFIT GLOBAL, INC. 
	
 

	By: 	
 

	 	Title: 	 

 

 

  

ANNEX I

TERMS AND CONDITIONS FOR PURCHASE OF SECURITIES

1. Authorization and Sale of the Shares. Subject to the terms and conditions of this Agreement, the Company has authorized the sale of the Shares.

2. Agreement to Sell and Purchase the Shares;

2.1 At the Closing (as defined in Section 3.1), the Company will sell to the Investor, and the Investor will purchase from the Company, upon the terms and conditions set forth herein, the number of Shares set forth on the last page of the Agreement to which these Terms and Conditions for Purchase of Shares are attached as Annex I (the "Signature Page") for the aggregate purchase price therefor set forth on the Signature Page.

2.2 The Company proposes to enter into substantially this same form of Subscription Agreement with certain other investors (or, alternatively, sell Shares pursuant to the Prospectus without any Subscription Agreement) (the "Other Investors") and expects to complete sales of Shares to them. The Investor and the Other Investors are hereinafter sometimes collectively referred to as the "Investors," and this Agreement and the Subscription Agreements executed by the Other Investors are hereinafter sometimes collectively referred to as the "Agreements."

2.3 Investor represents and acknowledges that the no placement agent or other person is owed any commissions or other amounts related to the sale of the Shares to the Investor.

2.4 The Company confirms that neither it nor any other person acting on its behalf has provided the Investor or their agents or counsel with any information that constitutes or could reasonably be expected to constitute material, nonpublic information, except as will be disclosed in the Prospectus and/or in the Company's Form 8-K to be filed with the Commission in connection with the Offering. The Company understands and confirms that the Investor will rely on the foregoing representations in effecting transactions in securities of the Company.

3. Closings and Delivery of the Shares and Funds.

3.1 Closing.  The completion of the purchase and sale of the Shares (the "Closing") shall occur at a place and time (the "Closing Date") as agreed upon by the Company and the Investors. At the Closing, the Company shall deliver the Company's transfer agent a copy of this Agreement and instructions to issue a certificate evidencing the Shares set forth on the Signature Page registered in the name of the Investor or, if so indicated on the Investor Questionnaire attached hereto as Exhibit A, in the name of a nominee designated by the Investor.

3.2 Conditions to the Obligations of the Parties.

(a) Conditions to the Company's Obligations. The Company's obligation to issue and sell the Shares to the Investor shall be subject to: (i) the receipt by the Company of the purchase price for the Shares being purchased hereunder as set forth on the Signature Page and (ii) the accuracy of the representations and warranties made by the Investor and the fulfillment of those undertakings of the Investor to be fulfilled prior to the Closing Date.

(b) Conditions to the Investor's Obligations. The Investor's obligation to purchase the Shares will be subject to the accuracy of the representations and warranties made by the Company and the fulfillment of those undertakings of the Company to be fulfilled prior to the Closing Date. The Investor's obligations are expressly not conditioned on the purchase by any or all of the Other Investors of the Shares that they have agreed to purchase from the Company.

3.3 Delivery of Funds.  Payment for the Shares shall be made as follows:

(a) Cash Settlement.  Investor shall pay via direct wire transfer an amount equal to the aggregate purchase price for the Shares being purchased by the Investor to the following account designated by the Company:

[To be separately provided to the Investor]

3.5 Delivery of Shares.

(a) Cash Settlement:  If the Investor elects to have a cash settlement, the Investor shall wire or provide other immediately available funds to the Escrow Agent and the Escrow Agent shall deliver a copy of the Agreement to the transfer agent and instructions regarding the issuance of a certificate to the Investor representing the Shares.

4. Representations, Warranties and Covenants of the Investor.

The Investor acknowledges, represents and warrants to, and agrees with, the Company that:

4.1 The Investor (a) is knowledgeable, sophisticated and experienced in making, and is qualified to make decisions with respect to, investments in securities presenting an investment decision like that involved in the purchase of the Shares, including investments in securities issued by the Company and investments in comparable companies, (b) has answered all questions on the Signature Page and the Investor Questionnaire and the answers thereto are true and correct as of the date hereof and will be true and correct as of the Closing Date and (c) in connection with its decision to purchase the Shares set forth on the Signature Page, has received and is relying only upon the Disclosure Package and the documents incorporated by reference therein and the Offering Information.

4.2 (a) No action has been or will be taken in any jurisdiction outside the United States by the Company that would permit an offering of the Shares, or possession or distribution of offering materials in connection with the issue of the Shares in any jurisdiction outside the United States where action for that purpose is required and (b) if the Investor is outside the United States, it will comply with all applicable laws and regulations in each foreign jurisdiction in which it purchases, offers, sells or delivers Shares or has in its possession or distributes any offering material, in all cases at its own expense.

4.3 (a) The Investor has full right, power, authority and capacity to enter into this Agreement and to consummate the transactions contemplated hereby and has taken all necessary action to authorize the execution, delivery and performance of this Agreement, and (b) this Agreement constitutes a valid and binding obligation of the Investor enforceable against the Investor in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors' and contracting parties' rights generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and except as to the enforceability of any rights to indemnification or contribution that may be violative of the public policy underlying any law, rule or regulation (including any federal or state securities law, rule or regulation).

4.4 The Investor understands that nothing in this Agreement, the Prospectus, the Disclosure Package, the Offering Information or any other materials presented to the Investor in connection with the purchase and sale of the Shares constitutes legal, tax or investment advice. The Investor has consulted such legal, tax and investment advisors and made such investigation as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of Shares.

4.5 The Investor will maintain the confidentiality of all information acquired as a result of the transactions contemplated hereby prior to the public disclosure of that information by the Company in accordance with Section 13 of this Annex.

4.6 Investor has not engaged in any purchases or sales of the securities of the Company (including, without limitation, any Short Sales (as defined herein) involving the Company's securities). The Investor covenants that it will not engage in any purchases or sales of the securities of the Company (including Short Sales) from the time the Investor received material pricing information regarding the offering until the time that the transactions contemplated by this Agreement are publicly disclosed. The Investor agrees that it will not use any of the Shares acquired pursuant to this Agreement to cover any short position in the Common Stock if doing so would be in violation of applicable securities laws. For purposes hereof, "Short Sales" include, without limitation, all "short sales" as defined in Rule 200 promulgated under Regulation SHO under the Exchange Act, whether or not against the box, and all types of direct and indirect stock pledges, forward sales contracts, options, puts, calls, short sales, swaps, "put equivalent positions" (as defined in Rule 16a-1(h) under the Exchange Act) and similar arrangements (including on a total return basis), and sales and other transactions through non-U.S. broker dealers or foreign regulated brokers.

4.7 The Investor has been afforded, (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the Offering and the merits and risks of investing in the Shares; (ii) access to information about the Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.

5. Survival of Representations, Warranties and Agreements; Third Party Beneficiary. Notwithstanding any investigation made by any party to this Agreement, all covenants, agreements, representations and warranties made by the Company and the Investor herein will survive the execution of this Agreement, the delivery to the Investor of the Shares being purchased and the payment therefor.

6.  Notices.  All notices, requests, consents and other communications hereunder will be in writing, will be delivered (a) if within the domestic United States by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or by facsimile or (b) if delivered from outside the United States, by International Federal Express or facsimile, and will be deemed given (i) if delivered by first-class registered or certified mail domestic, three business days after so mailed, (ii) if delivered by nationally recognized overnight carrier, one business day after so mailed, (iii) if delivered by International Federal Express, two business days after so mailed, and (iv) if delivered by email attachment or facsimile number, upon the date of transmission, and will be delivered and addressed as follows:

(a) if to the Company:

626 East 1820 North

Orem, Utah 84097

Attention: Bob Bench

with a copy to:

Carman Lehnhof Israelsen, LLP

299 South Main Street, Suite 1300

Salt Lake City, Utah 84111

Attention: J. Martin Tate

Email: mtate@clilaw.com

(b) if to the Investor, at its address on the Signature Page hereto, or at such other address or addresses as may have been furnished to the Company in writing.

7. Changes. This Agreement may not be modified or amended except pursuant to an instrument in writing signed by the Company and Investor.

8.  Headings. The headings of the various sections of this Agreement have been inserted for convenience of reference only and will not be deemed to be part of this Agreement.

9. Severability. In case any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein will not in any way be affected or impaired thereby.

10. Governing Law.   This Agreement will be governed by, and construed in accordance with, the internal laws of the State of Delaware, without giving effect to the principles of conflicts of law that would require the application of the laws of any other jurisdiction.

11. Counterparts. This Agreement may be executed in two or more counterparts, each of which will constitute an original, but all of which, when taken together, will constitute but one instrument, and will become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties. The Company and the Investor acknowledge and agree that the Company shall deliver its counterpart to the Investor along with the Prospectus (or the filing by the Company of an electronic version thereof with the Commission).

12. Confirmation of Sale. The Investor acknowledges and agrees that such Investor's receipt of the Company's signed counterpart to this Agreement, together with the Prospectus (or the filing by the Company of an electronic version thereof with the Commission), shall constitute written confirmation of the Company's sale of the Shares to such Investor.

13.  Press Release; Disclosure. The Company and the Investor agree that the Company shall (a) prior to the opening of the financial markets in New York City on July 1, 2016 issue a press release announcing the Offering and disclosing all material information, including, without limitation, the material terms, regarding the Offering, not previously disclosed, permitted under existing SEC rules applicable to press releases, and (b) as promptly as practicable on July 1, 2016 file a current report on Form 8-K with the Shares and Exchange Commission. From and after the issuance of such press release, the Company represents to the Investor that it shall have publicly disclosed all material, non-public information delivered to the Investor by the Company or any of its subsidiaries, or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by this Agreement. In addition, effective upon the issuance of such press release, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its subsidiaries or any of their respective officers, directors, agents, employees or affiliates on the one hand, and the Investor or any of their affiliates on the other hand, shall terminate. Except with respect to the material terms and conditions of the transactions contemplated by this Agreement, which shall be disclosed pursuant to the press release required above, the Company covenants and agrees that neither it, nor any other person acting on its behalf will provide Investor or its agents or counsel with any information that constitutes, or the Company reasonably believes constitutes, material non-public information, unless prior thereto the Investor shall have consented to the receipt of such information and agreed with the Company to keep such information confidential. To the extent that the Company delivers any material, non-public information to an Investor without the Investor's consent, the Company hereby covenants and agrees that the Investor shall not have any duty of confidentiality to the Company, any of its subsidiaries, or any of their respective officers, directors, agents, employees or affiliates, or a duty to the Company, any of its subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis of, such material, non-public information, provided that the Investor shall remain subject to applicable law. To the extent that any notice provided pursuant to this Agreement constitutes, or contains, material, non-public information regarding the Company or any subsidiaries, the Company shall simultaneously file such notice with the SEC pursuant to a Current Report on Form 8-K. The Company understands and confirms that the Investor shall be relying on the provisions of this Section 13 in effecting transactions in securities of the Company.

14. Representations and Warranties of the Company. The Company hereby represents and warrants to the Investor that:

14.1 The Registration Statement and any prospectus included therein, including the Prospectus and any supplement thereto, complies in all material respects with the requirements of the Exchange Act and the rules and regulations of the Shares and Exchange Commission (the "Commission") promulgated thereunder and all other applicable laws and regulations. At the time the Registration Statement and any amendments thereto becomes effective (or became effective, as applicable), at the date of this Agreement and at each deemed effective date thereof pursuant to Rule 430B(f)(2) of the Shares Act, the Registration Statement and any amendments thereto complied and will comply in all material respects with the requirements of the Shares Act and did not and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading. The Prospectus and any amendments or supplements thereto, at the time the Prospectus or any amendment or supplement thereto was issued and at the Closing Date, complied, and will comply, in all material respects with the requirements of the Shares Act and did not, and will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

14.2 As of their respective dates, all reports, schedules, forms, statements and other documents filed by the Company with the Commission pursuant to the reporting requirements of the Exchange Act during the two (2) years prior to the date hereof (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements, notes and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the "SEC Documents") complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the Commission promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the Commission, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto as in effect as of the time of filing. The Company is not currently contemplating to amend or restate any of the financial statements (including without limitation, any notes or any letter of the independent accountants of the Company with respect thereto) included in the SEC Documents (the "Financial Statements"), nor is the Company currently aware of facts or circumstances which would require the Company to amend or restate any of the Financial Statements, in each case, in order for any of the Financials Statements to be in compliance with generally accepted accounting principles and the rules and regulations of the Commission. The Company has not been informed by its independent accountants that they recommend that the Company amend or restate any of the Financial Statements or that there is any need for the Company to amend or restate any of the Financial Statements.

15. Equal Treatment of Purchasers. No consideration (including any modification of any subscription agreement executed pursuant to the Offering each a "Transaction Document")) shall be offered or paid to any person to amend or consent to a waiver or modification of any provision of any Transaction Document unless the same consideration is also offered to the each investor party to the Offering pursuant to this Agreement or other Subscription Agreements, including the Investor. For clarification purposes, this provision constitutes a separate right granted to the Investor by the Company and negotiated separately by the Investor, and is intended for the Company to treat the investors party to the Offering as a class and shall not in any way be construed as any of the investors party to the Offering acting in concert or as a group with respect to the purchase, disposition or voting of Shares or otherwise.

16. USA PATRIOT Act.  To comply with applicable laws, rules and regulations designed to combat money laundering or terrorism, Investor shall provide the information on Exhibit B hereto.

EXHIBIT A

NABUFIT GLOBAL, INC.

INVESTOR QUESTIONNAIRE

Pursuant to Section 3 of Annex I to the Agreement, please provide us with the following information:

	
1.

	
The exact name that your Shares are to be registered in. You may use a nominee name if appropriate:

           ____________________________________________________________________________

 

	
2.

	
The relationship between the Investor and the registered holder listed in response to item 1 above:

  

           ____________________________________________________________________________

 

3.      The mailing address of the registered holder listed in response to item 1 above:

 

         ____________________________________________________________________________

4.      The Social Security Number or Tax Identification Number of the registered holder listed in the response to item 1 above:

 

         ____________________________________________________________________________

  

EXHIBIT B

USA PATRIOT ACT COMPLIANCE

	
i.

	
Name of the bank from which the Investor's payment to the Company is being wired (the "Wiring Bank"):

____________________________________________________________________________

	
ii.

	
Is the Wiring Bank located in the United States or another "FATF Country"1?

☐Yes

☐No

	
iii.

	
If the Investor answered "Yes," is the Investor a customer of the Wiring Bank?

☐Yes

☐No

If the Investor answered "No" to questions 2 or 3 above, the Investor may be required, if the Investor is an individual, to produce a copy of a passport or identification card, together with any evidence of the Investor address, such as a utility bill or bank statement, and date of birth.  If the Investor is an entity, the Investor may be required to produce a certified copy of the Investor's certificate of incorporation, articles of association (or the equivalent) or certificate of formation or limited partnership (or the equivalent), and the names, occupations, dates of birth and residential and business addresses of all directors.

1 As of the date hereof, countries that are members of the Financial Action Task Force on Money Laundering (each an "FATF Country") are:  Argentina, Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Iceland, Ireland, Italy, Japan, Luxembourg, Mexico, Kingdom of the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, Turkey, United Kingdom, and the United States.  The list of FATF Countries may be expanded to include future FATF members and FATF compliant countries, as appropriate.

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