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Instructions for selling your stock
under SEC Rule 144
Enclosed are the forms that you’ll need to sell securities if you’re a “control” (or “affiliated”) person of the
company (the “issuer”) whose securities you plan to sell, as defined by Rule 144 of the Securities Act of
1933 (SEC Rule 144). The forms can also be used if you’re selling unrestricted stock or stock that includes
restrictions, such as holding period or volume requirements. To sell securities, you must have a approved
MKG Enterprises Corp Brokerage Account.
Control persons include, but are not necessarily limited to, 10% shareholders, policymaking executives, and
members of the board of directors. Because Rule 144 is complex, MKG Enterprises Corp strongly urges you
to contact the corporate counsel of the issuer as soon as possible to confirm whether or not you’re an
affiliated person.
This kit contains the following documents, including forms that the issuer’s corporate counsel may be able to
assist you with completing:
• Seller’s representation letter. Detach, complete, and send with original signatures to MKG Enterprises Corp
and its affiliates.
• SEC Form 144. Detach, complete, and send with original signatures to MKG Enterprises Corp.
• SEC Rule 144. Please read carefully and retain for your records.
After we receive these forms from you, we’ll review them to see if they’re in good order, as required by
Rule 144’s due diligence requirements for broker-dealers. This process may include calling you to request
additional information. In addition, we may contact the issuer and the issuer’s transfer agent. Because of
this, the issuer and transfer agent may request additional documentation from you and MKG Enterprises
Corp.
Note: Processing your sale under SEC Rule 144 may take a few weeks.
If you have any questions, please call us at 866-675-3933 Monday through Friday from 10 a.m. to 6 p.m.,
Pacific Standard Time.
Mailing information
Mail your completed form in the enclosed postage-paid envelope. If you don’t have a postage-paid envelope,
mail to:
MKG Enterprises Corp
4974 N Fresno Street 627
Fresno, CA 93726
For overnight delivery, mail to:
MKG Enterprises Corp
1328 N Wishon Ave
Fresno, CA 93728
THE EXEMPT SECURITY OFFERING
The Company intends to raise a minimum of $100,000.00 and a maximum of $99,000,000.00 in this Offering to
fund the continued growth of our business. The Common Stock will be offered in a private placement offering
pursuant to an exemption from registration under Rule 506 (c ) of Regulation D promulgated under the Securities
Act of 1933, as amended, under exemptions under applicable state securities laws, and in reliance upon the
representations and warranties of each of the purchasers that they are purchasing the Common Stock for investment
purposes and not with a view to any resale or distribution thereof.
Upon completion of the Offering between 625,000 and 99,000,000 Shares will be outstanding. Each purchaser must
execute a Subscription Agreement making certain representations and warranties to the Company, including such
purchaser’s qualifications as an Accredited Investor as defined by the Securities and Exchange Commission in Rule
501(a) of Regulation D promulgated, or Accredited Investors that may be allowed to purchase Shares in this
offering. See “REQUIREMENTS FOR PURCHASERS” section.
The Offering is being made on an "minimum or maximum basis until the Minimum Offering Amount
of,$100,000.00 is raised. Proceeds received prior to raising the Minimum Offering Amount will be held in an escrow
account with the Company's bank. Upon raising the Minimum Offering Amount, these proceeds will be released for
use by the Company and, thereafter, 100% of the proceeds raised in the Offering, up to the Maximum Offering
Amount of $99,000,000.00, the company will keep funds in an impound or escrow account throughout the entire
offering.
MKG Enterprises Corp is a licensed California Finance Lender issued by the State of California Department of
Business Oversight California Finance Lender License 60DB0-45224.
ABS Fund I Mortgage Backed Securities
ABS Fund II Private Equity, Corporate Bonds
ABS Fund III Auto Loans
ABS Fund IV IRA / HSA Private Lending
Our schemes are both Fettered and Unfettered investments in Asset-Backed Security, Corporate Bonds,
Commercial, Residential Real Estate Mortgage-Backed Securities, Auto Equity Loans, Refund Anticipation Loans
(RAL's), Prepaid Debit Cards loan portfolios containing assets and funds managed by MKG Enterprises Corp and
external funds controlled by other private lenders, and banking partners managers from other companies, this
combined private equity (FOF) Fund-Of-Fund strategy aims to achieve broad diversification and appropriate asset
allocation with investments in a variety of fund categories that are all wrapped into one fund that features a annual
point to point interest rate.
Investor’s hypothetical ABS Fund performance interest rates
3% ABS Fund II
4.5% ABS Fund IV
6% ABS Multi-Blend 2 year Fund
7.5% ABS Multi-Blend 3 year Fund
8.99% ABS Fund I
24% ABS Fund III
ABS Fund hypothetical performance interest rates
Pursuant to California Financial Code §22004 Finance Lender/ Broker
Tranche 1: $225 monthly interest rate 2.5% APR 30%
Tranche 2: $225-$900 monthly interest rate 2.0% APR 24%
Tranche 3: $900- $1,650 monthly interest rate 1.5% APR 18%
Tranche 4: $1,650-$2,500 monthly interest rate 1% APR 12%
Tranche 5: $2,510 monthly interest rate 8% APR 96%
Disclosures
IMPORTANT: The projections or other information generated by MKG Enterprises Corp and its subsidiaries
regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment
results, and are not guarantees of future results. The guidance is educational in nature, is not fully individualized,
and is not intended to serve as the primary or sole basis for your investment or private placement offering decisions.
The return assumptions are not reflective of any specific product, and do not include any fees or expenses that may
be incurred by investing in specific products. The actual returns of a specific product may be more or less than the
returns used. It is not possible to directly invest in an fund. Financial forecasts, rates of return, risk, inflation, and
other assumptions may be used as the basis for illustrations. They should not be considered a guarantee of future
performance or a guarantee of achieving overall financial objectives. Past performance is not a guarantee or a
predictor of future results of either the indices or any particular investment.
Results may vary with each use and over time.
Form S144RLC
Seller’s representation letter
under SEC Rule 144
Use this form to sell securities if you’re a “control” (or “affiliated”) person of the company (the “issuer”) whose
securities you plan to sell, as defined by Rule 144 of the Securities Act of 1933 (SEC Rule 144).
Print in capital letters and use black ink.
In connection with my request that, as broker for my account, you sell:
Number of shares or units
of Describe type of security, such as common stock, preferred stock, or debt security
issued by Name of company
in the manner permitted by Rule 144 of the Securities Act of 1933, I represent to you that:
1. As the term “affiliate” is defined in Rule 144:
Check one.
I am an affiliate of the company.
I am not an affiliate of the company, but I have been an affiliate within the past three months.
2. During the three months prior to the date of this letter, a total of ____________shares or units of such security have
been sold by me and/or by any person whose sales must be aggregated with mine, as provided in paragraphs (a) and
(e) of Rule 144.
3. The number of shares that I’ve requested you to sell as broker for my account, together with the number of shares stated
in paragraph number 2, doesn’t exceed the greater of:
(a) The average weekly reported volume of trading in such security on all national securities exchanges and the
Nasdaq Stock Market during the four calendar weeks preceding the filing of SEC Form 144 as required under Rule
144 or preceding the receipt of this sell order if SEC Form 144 isn’t required to be filed; or
(b) 1% of the outstanding shares of the security, as shown in the most recent report or statement published by the company.
4. I’ve made no payment to any person in connection with your execution of my order, and I won’t do so; and I haven’t
solicited, or arranged for the solicitation of, orders to buy in anticipation of, or in connection with, the proposed sale, and I
won’t do so. I have no sell orders open in the above security with any other broker, market maker, bank, or other person,
and I won’t sell additional securities of the same class pending execution of my order.
5. My order isn’t part of a distribution of any securities of the issuer on my behalf, and I’m not an underwriter with
respect to these securities.
6. If the securities being sold are restricted securities, as defined in paragraph (a)(3) of Rule 144, at least six months
have elapsed since the date such securities were acquired from the issuer or an affiliate, whichever was later,
computed as provided in paragraph (d) of Rule 144.
7. I acquired the securities that I’m selling in the following transaction(s):
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Form S144RLC
8. I hereby return to you, and request you to file with the Securities and Exchange Commission (SEC), a completed Form 144 with
original signatures. I hereby represent and warrant that the Form 144 completed by me is true and accurate in all respects.
9. It is my bona fide intention to sell my shares within a reasonable time after the filing of Form 144 and/or the date of this sell
order. If the shares haven’t been sold within 90 days of the filing, I understand a new filing or sell order will be required.
10.
11.
Name of company
has filed with the SEC the reports required by Rule 144(c) and has been subject to such filing requirements for a period
of at least 90 days, as set forth in the company’s statement to such effect that is contained in its most recent annual or
quarterly report.
11.
Name of company
is a reporting issuer under the Securities Exchange Act of 1934 of the securities that I’m selling.
12. I know of no important development affecting the company or its business or products that hasn’t been made public.
I confirm that I’ve requested you to sell such shares for personal reasons and not because of any information that I may
have with respect to the company or its current operations.
13. I’ve seen and carefully reviewed a copy of Rule 144 and advise you that you may rely upon the statements made herein
and in the attached Form 144 to execute this sale. If and when any such statements become inaccurate or incomplete,
I’ll notify you immediately.
14. I authorize you and your agents, and their representatives, to make any inquiry of the issuer, the company’s transfer agent,
and/or the company’s counsel that you deem advisable in connection with this sale. The company and its transfer agent,
and their agents and representatives, may rely on this seller’s representation.
15. I understand that the proceeds from this sale won’t be released to me, or swept automatically to my money market
settlement fund, until you’ve received the securities in negotiable form. In the event the transfer agent will transfer the
securities only with a legal opinion acceptable to it, I agree to obtain such an opinion without cost or expense to you.
16. I understand that you’ll rely on the foregoing representations in executing my order, and I’ll undertake to hold you harmless
against any and all loss, damage, liability, and expense (including reasonable counsel fees) arising, or resulting, from the
breach of any of such representations or arising from my sale or other disposition of such securities.
Name of account owner first, middle initial, last
Signature of account owner Date mm/dd/yyyy
X
Name of account owner first, middle initial, last
Signature of account owner Date mm/dd/yyyy
X
S144RLC 102014
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 144
NOTICE OF PROPOSED SALE OF SECURITIES
PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OF 1933
ATTENTION: Transmit for filing 3 copies of this form concurrently with either placing an order with a broker to execute sale or executing
a sale directly with a market maker.
1(a) NAME OF ISSUER (Please type or print)
(b)
IRS IDENT. NO. S.E(c).C. FILE NO.
1(d) ADDRESS OF ISSUER STREET CITY STATE ZIP CODE
(b)
OMB APPROVAL
OMB Number: 3235-0101
Expires:, June 30 2020
Estimated average burden
hours per response ........... 1.00
SEC USE ONLY
DOCUMENT SEQUENCE NO.
CUSIP NUMBER
WORK LOCATION
(e) TELEPHONE NO.
AREA CODE NUMBER
2 (a) NAME OF PERSON FOR WHOSE ACCOUNT THE SECURITIES RELATIONSHIP TO (c) ADDRESS STREET CITY STATE ZIP CODE
ARE TO BE SOLD ISSUER
INSTRUCTION: The person filing this notice should contact the issuer to obtain the I.R.S. Identification Number and the S.E.C. File Number.
3 (a)
Title of the
(b) SEC USE ONLY (c) (d) (e) (f) (g)
Number of Shares Aggregate Number of Shares Approximate Name of Each
Class of Name and Address of Each Broker Through Whom the Broker-Dealer or Other Units Market or Other Units Date of Sale Securities
Securities Securities are to be Offered or Each Market Maker File Number To Be Sold Value Outstanding (See instr. 3(f)) Exchange
To Be Sold who is Acquiring the Securities (See instr. 3(c)) (See instr. 3(d)) (See instr. 3(e)) (MO. DAY YR.) (See instr. 3(g))
INSTRUCTIONS: 3. (a) Title of the class of securities to be sold
1. (a) Name of issuer (b) Name and address of each broker through whom the securities are intended to be sold
(b) Issuer’s I.R.S. Identification Number (c) Number of shares or other units to be sold (if debt securities, give the aggregate face amount)
(c) Issuer’s S.E.C. file number, if any (d) Aggregate market value of the securities to be sold as of a specified date within 10 days prior to the filing of this notice
(d) Issuer’s address, including zip code (e) Number of shares or other units of the class outstanding, or if debt securities the face amount thereof outstanding, as show
(e) Issuer’s telephone number, including area code by the most recent report or statement published by the issuer
(f) Approximate date on which the securities are to be sold
2. (a) Name of person for whose account the securities are to be sold (g) Name of each securities exchange, if any, on which the securities are intended to be sold
(b) Such person’s relationship to the issuer (e.g., officer, director, 10%
stockholder, or member of immediate family of any of the foregoing)
(c) Such person’s address, including zip code
Potential persons who are to respond to the collection of information contained in this form are not
required to respond unless the form displays a currently valid OMB control number. SEC 1147 (08-07)
Title of Date you
the Class Acquired
TABLE I –– SECURITIES TO BE SOLD
Furnish the following information with respect to the acquisition of the securities to be sold
and with respect to the payment of all or any part of the purchase price or other consideration therefor:
Nature of Acquisition Transaction
Name of Person from Whom Acquired Amount of Date of
Nature of Payment
(If gift, also give date donor acquired) Securities Acquired Payment
INSTRUCTIONS: If the securities were purchased and full payment therefor was not made in cash at the time
of purchase, explain in the table or in a note thereto the nature of the consideration given.
If the consideration consisted of any note or other obligation, or if payment was made in
installments describe the arrangement and state when the note or other obligation was
discharged in full or the last installment paid.
TABLE II –– SECURITIES SOLD DURING THE PAST 3 MONTHS
Furnish the following information as to all securities of the issuer sold during the past 3 months by the person for whose account the securities are to be sold.
Amount of
Name and Address of Seller Title of Securities Sold Date of Sale Securities Sold Gross Proceeds
REMARKS:
INSTRUCTIONS:
See the definition of “person” in paragraph (a) of Rule 144. Information is to be given not only as
to the person for whose account the securities are to be sold but also as to all other persons
included in that definition. In addition, information shall be given as to sales by all persons whose
sales are required by paragraph (e) of Rule 144 to be aggregated with sales for the account of the
person filing this notice.
ATTENTION: The person for whose account the securities to which this notice relates are to be sold hereby
represents by signing this notice that he does not know any material adverse information in regard to the current and
prospective operations of the Issuer of the securities to be sold which has not been publicly disclosed. If such person has
adopted a written trading plan or given trading instructions to satisfy Rule 10b5-1 under the Exchange Act, by signing
the form and indicating the date that the plan was adopted or the instruction given, that person makes such
representation as of the plan adoption or instruction date.
DATE OF NOTICE (SIGNATURE)
DATE OF PLAN ADOPTION OR GIVING OF INSTRUCTION, IF
RELYING ON RULE 10B5-1
The notice shall be signed by the person for whose account the securities are to be sold. At least one copy of the notice shall be
manually signed.Any copies not manually signed shall bear typed or printed signatures.
ATTENTION: Intentional misstatements or omission of facts constitute Federal Criminal Violations (See 18 U.S.C. 1001)
SEC 1147 (02-08)
Rule 144
Persons deemed not to be engaged in a distribution and therefore not underwriters.
Preliminary Note: Certain basic principles are essential to an understanding of the registration requirements in the Securities Act of
1933 (the Act or the Securities Act) and the purposes underlying Rule 144:
1. If any person sells a non-exempt security to any other person, the sale must be registered unless an exemption can be found for the
transaction.
2. Section 4(1) of the Securities Act provides one such exemption for a transaction “by a person other than an issuer, underwriter, or
dealer.” Therefore, an understanding of the term “underwriter” is important in determining whether or not the Section 4(1) exemption
from registration is available for the sale of the securities.
The term “underwriter” is broadly defined in Section 2(a)(11) of the Securities Act to mean any person who has purchased from an issuer
with a view to, or offers or sells for an issuer in connection with, the distribution of any security, or participates, or has a direct or indirect
participation in any such undertaking, or participates or has a participation in the direct or indirect underwriting of any such undertaking. The
interpretation of this definition traditionally has focused on the words “with a view to” in the phrase “purchased from an issuer with a view to *
* * distribution.” An investment banking firm which arranges with an issuer for the public sale of its securities is clearly an “underwriter” under
that section. However, individual investors who are not professionals in the securities business also may be “underwriters” if they act as links
in a chain of transactions through which securities move from an issuer to the public.
Since it is difficult to ascertain the mental state of the purchaser at the time of an acquisition of securities, prior to and since the adoption
of Rule 144, subsequent acts and circumstances have been considered to determine whether the purchaser took the securities “with a
view to distribution” at the time of the acquisition. Emphasis has been placed on factors such as the length of time the person held the
securities and whether there has been an unforeseeable change in circumstances of the holder. Experience has shown, however, that
reliance upon such factors alone has led to uncertainty in the application of the registration provisions of the Act.
The Commission adopted Rule 144 to establish specific criteria for determining whether a person is not engaged in a distribution. Rule
144 creates a safe harbor from the Section 2(a)(11) definition of “underwriter.” A person satisfying the applicable conditions of the Rule
144 safe harbor is deemed not to be engaged in a distribution of the securities and therefore not an underwriter of the securities for
purposes of Section 2(a)(11). Therefore, such a person is deemed not to be an underwriter when determining whether a sale is eligible
for the Section 4(1) exemption for “transactions by any person other than an issuer, underwriter, or dealer.” If a sale of securities
complies with all of the applicable conditions of Rule 144:
1. Any affiliate or other person who sells restricted securities will be deemed not to be engaged in a distribution and therefore not an
underwriter for that transaction;
2. Any person who sells restricted or other securities on behalf of an affiliate of the issuer will be deemed not to be engaged in a
distribution and therefore not an underwriter for that transaction; and
3. The purchaser in such transaction will receive securities that are not restricted securities.
Rule 144 is not an exclusive safe harbor. A person who does not meet all of the applicable conditions of Rule 144 still may claim any
other available exemption under the Act for the sale of the securities. The Rule 144 safe harbor is not available to any person with
respect to any transaction or series of transactions that, although in technical compliance with Rule 144, is part of a plan or scheme to
evade the registration requirements of the Act.
(a) Definitions. The following definitions shall apply for the purposes of this section.
(1) An affiliate of an issuer is a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is
under common control with, such issuer.
(2) The term person when used with reference to a person for whose account securities are to be sold in reliance upon this section
includes, in addition to such person, all of the following persons:
(i) Any relative or spouse of such person, or any relative of such spouse, any one of whom has the same home as such person;
(ii) Any trust or estate in which such person or any of the persons specified in paragraph (a)(2)(i) of this section collectively own 10
percent or more of the total beneficial interest or of which any of such persons serve as trustee, executor or in any similar
capacity; and
(iii) Any corporation or other organization (other than the issuer) in which such person or any of the persons specified in paragraph
(a)(2)(i) of this section are the beneficial owners collectively of 10 percent or more of any class of equity securities or 10
percent or more of the equity interest.
(3) The term restricted securities means:
(i) Securities acquired directly or indirectly from the issuer, or from an affiliate of the issuer, in a transaction or chain of
transactions not involving any public offering;
(ii) Securities acquired from the issuer that are subject to the resale limitations of §230.502(d) under Regulation D or §230.701(c);
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(iii) Securities acquired in a transaction or chain of transactions meeting the requirements of §230.144A;
(iv) Securities acquired from the issuer in a transaction subject to the conditions of Regulation CE (§230.1001);
(v) Equity securities of domestic issuers acquired in a transaction or chain of transactions subject to the conditions of §230.901 or
§230.903 under Regulation S (§230.901 through §230.905, and Preliminary Notes);
(vi) Securities acquired in a transaction made under §230.801 to the same extent and proportion that the securities held by the
security holder of the class with respect to which the rights offering was made were, as of the record date for the rights
offering, “restricted securities” within the meaning of this paragraph (a)(3);
(vii) Securities acquired in a transaction made under §230.802 to the same extent and proportion that the securities that were
tendered or exchanged in the exchange offer or business combination were “restricted securities” within the meaning of this
paragraph (a)(3); and
(viii) Securities acquired from the issuer in a transaction subject to an exemption under section 4(6) (15 U.S.C. 77d(6)) of the Act.
(4) The term debt securities means:
(i) Any security other than an equity security as defined in §230.405;
(ii) Non-participatory preferred stock, which is defined as non-convertible capital stock, the holders of which are entitled to a
preference in payment of dividends and in distribution of assets on liquidation, dissolution, or winding up of the issuer, but are
not entitled to participate in residual earnings or assets of the issuer; and
(iii) Asset-backed securities, as defined in §229.1101 of this chapter.
(b) Conditions to be met. Subject to paragraph (i) of this section, the following conditions must be met:
(1) Non-affiliates.
(i) If the issuer of the securities is, and has been for a period of at least 90 days immediately before the sale, subject to the reporting
requirements of section 13 or 15(d) of the Securities Exchange Act of 1934 (the Exchange Act), any person who is not an affiliate
of the issuer at the time of the sale, and has not been an affiliate during the preceding three months, who sells restricted securities
of the issuer for his or her own account shall be deemed not to be an underwriter of those securities within the meaning of section
2(a)(11) of the Act if all of the conditions of paragraphs (c)(1) and (d) of this section are met. The requirements of paragraph (c)(1)
of this section shall not apply to restricted securities sold for the account of a person who is not an affiliate of the issuer at the time
of the sale and has not been an affiliate during the preceding three months, provided a period of one year has elapsed since the
later of the date the securities were acquired from the issuer or from an affiliate of the issuer.
(ii) If the issuer of the securities is not, or has not been for a period of at least 90 days immediately before the sale, subject to the
reporting requirements of section 13 or 15(d) of the Exchange Act, any person who is not an affiliate of the issuer at the time of
the sale, and has not been an affiliate during the preceding three months, who sells restricted securities of the issuer for his or
her own account shall be deemed not to be an underwriter of those securities within the meaning of section 2(a)(11) of the Act if
the condition of paragraph (d) of this section is met.
(2) Affiliates or persons selling on behalf of affiliates. Any affiliate of the issuer, or any person who was an affiliate at any time during
the 90 days immediately before the sale, who sells restricted securities, or any person who sells restricted or any other securities
for the account of an affiliate of the issuer of such securities, or any person who sells restricted or any other securities for the
account of a person who was an affiliate at any time during the 90 days immediately before the sale, shall be deemed not to be an
underwriter of those securities within the meaning of section 2(a)(11) of the Act if all of the conditions of this section are met.
(c) Current public information. Adequate current public information with respect to the issuer of the securities must be available. Such
information will be deemed to be available only if the applicable condition set forth in this paragraph is met:
(1) Reporting issuers. The issuer is, and has been for a period of at least 90 days immediately before the sale, subject to the reporting
requirements of section 13 or 15(d) of the Exchange Act and has filed all required reports under section 13 or 15(d) of the Exchange
Act, as applicable, during the 12 months preceding such sale (or for such shorter period that the issuer was required to file such
reports), other than Form 8–K reports (§249.308 of this chapter); or
(2) Non-reporting issuers. If the issuer is not subject to the reporting requirements of section 13 or 15(d) of the Exchange Act, there is
publicly available the information concerning the issuer specified in paragraphs (a)(5)(i) to (xiv), inclusive, and paragraph (a)(5)(xvi) of
§240.15c2–11 of this chapter, or, if the issuer is an insurance company, the information specified in section 12(g)(2)(G)(i) of the
Exchange Act (15 U.S.C. 78 l (g)(2)(G)(i)).
Note to §230.144(c). With respect to paragraph (c)(1), the person can rely upon:
1. A statement in whichever is the most recent report, quarterly or annual, required to be filed and filed by the issuer that such issuer has filed
all reports required under section 13 or 15(d) of the Exchange Act, as applicable, during the preceding 12 months (or for such shorter
period that the issuer was required to file such reports), other than Form 8–K reports (§249.308 of this chapter), and has been subject to
such filing requirements for the past 90 days; or
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2. A written statement from the issuer that it has complied with such reporting requirements.
3. Neither type of statement may be relied upon, however, if the person knows or has reason to believe that the issuer has not complied
with such requirements.
(d) Holding period for restricted securities. If the securities sold are restricted securities, the following provisions apply:
(1) General rule.
(i) If the issuer of the securities is, and has been for a period of at least 90 days immediately before the sale, subject to the
reporting requirements of section 13 or 15(d) of the Exchange Act, a minimum of six months must elapse between the later
of the date of the acquisition of the securities from the issuer, or from an affiliate of the issuer, and any resale of such
securities in reliance on this section for the account of either the acquiror or any subsequent holder of those securities.
(ii) If the issuer of the securities is not, or has not been for a period of at least 90 days immediately before the sale, subject to
the reporting requirements of section 13 or 15(d) of the Exchange Act, a minimum of one year must elapse between the
later of the date of the acquisition of the securities from the issuer, or from an affiliate of the issuer, and any resale of such
securities in reliance on this section for the account of either the acquiror or any subsequent holder of those securities.
(iii) If the acquiror takes the securities by purchase, the holding period shall not begin until the full purchase price or other
consideration is paid or given by the person acquiring the securities from the issuer or from an affiliate of the issuer.
(2) Promissory notes, other obligations or installment contracts. Giving the issuer or affiliate of the issuer from whom the securities
were purchased a promissory note or other obligation to pay the purchase price, or entering into an installment purchase contract
with such seller, shall not be deemed full payment of the purchase price unless the promissory note, obligation or contract:
(i) Provides for full recourse against the purchaser of the securities;
(ii) Is secured by collateral, other than the securities purchased, having a fair market value at least equal to the purchase price of
the securities purchased; and
(iii) Shall have been discharged by payment in full prior to the sale of the securities.
(3) Determination of holding period. The following provisions shall apply for the purpose of determining the period securities have
been held:
(i) Stock dividends, splits and recapitalizations. Securities acquired from the issuer as a dividend or pursuant to a stock split,
reverse split or recapitalization shall be deemed to have been acquired at the same time as the securities on which the
dividend or, if more than one, the initial dividend was paid, the securities involved in the split or reverse split, or the securities
surrendered in connection with the recapitalization.
(ii) Conversions and exchanges. If the securities sold were acquired from the issuer solely in exchange for other securities of the
same issuer, the newly acquired securities shall be deemed to have been acquired at the same time as the securities
surrendered for conversion or exchange, even if the securities surrendered were not convertible or exchangeable by their terms.
Note to §230.144(d)(3)(ii). If the surrendered securities originally did not provide for cashless conversion or exchange by their terms and
the holder provided consideration, other than solely securities of the same issuer, in connection with the amendment of the surrendered
securities to permit cashless conversion or exchange, then the newly acquired securities shall be deemed to have been acquired at the
same time as such amendment to the surrendered securities, so long as, in the conversion or exchange, the securities sold were acquired
from the issuer solely in exchange for other securities of the same issuer.
(iii) Contingent issuance of securities. Securities acquired as a contingent payment of the purchase price of an equity interest in a
business, or the assets of a business, sold to the issuer or an affiliate of the issuer shall be deemed to have been acquired at
the time of such sale if the issuer or affiliate was then committed to issue the securities subject only to conditions other than
the payment of further consideration for such securities. An agreement entered into in connection with any such purchase to
remain in the employment of, or not to compete with, the issuer or affiliate or the rendering of services pursuant to such
agreement shall not be deemed to be the payment of further consideration for such securities.
(iv) Pledged securities. Securities which are bona-fide pledged by an affiliate of the issuer when sold by the pledgee, or by a
purchaser, after a default in the obligation secured by the pledge, shall be deemed to have been acquired when they were
acquired by the pledgor, except that if the securities were pledged without recourse they shall be deemed to have been
acquired by the pledgee at the time of the pledge or by the purchaser at the time of purchase.
(v) Gifts of securities. Securities acquired from an affiliate of the issuer by gift shall be deemed to have been acquired by the
donee when they were acquired by the donor.
(vi) Trusts. Where a trust settlor is an affiliate of the issuer, securities acquired from the settlor by the trust, or acquired from the
trust by the beneficiaries thereof, shall be deemed to have been acquired when such securities were acquired by the settlor.
(vii) Estates. Where a deceased person was an affiliate of the issuer, securities held by the estate of such person or acquired
from such estate by the estate beneficiaries shall be deemed to have been acquired when they were acquired by the
deceased person, except that no holding period is required if the estate is not an affiliate of the issuer or if the securities are
sold by a beneficiary of the estate who is not such an affiliate.
3 of 7
Note to §230.144(d)(3)(vii). While there is no holding period or amount limitation for estates and estate beneficiaries which are not
affiliates of the issuer, paragraphs (c) and (h) of this section apply to securities sold by such persons in reliance upon this section.
(viii) Rule 145(a) transactions. The holding period for securities acquired in a transaction specified in §230.145(a) shall be deemed to
commence on the date the securities were acquired by the purchaser in such transaction, except as otherwise provided in
paragraphs (d)(3)(ii) and (ix) of this section.
(ix) Holding company formations. Securities acquired from the issuer in a transaction effected solely for the purpose of forming a
holding company shall be deemed to have been acquired at the same time as the securities of the predecessor issuer exchanged
in the holding company formation where:
(A) The newly formed holding company’s securities were issued solely in exchange for the securities of the predecessor
company as part of a reorganization of the predecessor company into a holding company structure;
(B) Holders received securities of the same class evidencing the same proportional interest in the holding company as they held
in the predecessor, and the rights and interests of the holders of such securities are substantially the same as those they
possessed as holders of the predecessor company’s securities; and
(C) Immediately following the transaction, the holding company has no significant assets other than securities of the
predecessor company and its existing subsidiaries and has substantially the same assets and liabilities on a consolidated
basis as the predecessor company had before the transaction.
(x) Cashless exercise of options and warrants. If the securities sold were acquired from the issuer solely upon cashless exercise of
options or warrants issued by the issuer, the newly acquired securities shall be deemed to have been acquired at the same time
as the exercised options or warrants, even if the options or warrants exercised originally did not provide for cashless exercise by
their terms.
Note 1 to §230.144(d)(3)(x). If the options or warrants originally did not provide for cashless exercise by their terms and the holder provided
consideration, other than solely securities of the same issuer, in connection with the amendment of the options or warrants to permit
cashless exercise, then the newly acquired securities shall be deemed to have been acquired at the same time as such amendment to the
options or warrants so long as the exercise itself was cashless.
Note 2 to §230.144(d)(3)(x). If the options or warrants are not purchased for cash or property and do not create any investment risk to the
holder, as in the case of employee stock options, the newly acquired securities shall be deemed to have been acquired at the time the
options or warrants are exercised, so long as the full purchase price or other consideration for the newly acquired securities has been paid
or given by the person acquiring the securities from the issuer or from an affiliate of the issuer at the time of exercise.
(e) Limitation on amount of securities sold. Except as hereinafter provided, the amount of securities sold for the account of an affiliate of
the issuer in reliance upon this section shall be determined as follows:
(1) If any securities are sold for the account of an affiliate of the issuer, regardless of whether those securities are restricted, the amount
of securities sold, together with all sales of securities of the same class sold for the account of such person within the preceding three
months, shall not exceed the greatest of:
(i) One percent of the shares or other units of the class outstanding as shown by the most recent report or statement published
by the issuer; or
(ii) The average weekly reported volume of trading in such securities on all national securities exchanges and/or reported through
the automated quotation system of a registered securities association during the four calendar weeks preceding the filing of
notice required by paragraph (h), or if no such notice is required the date of receipt of the order to execute the transaction by
the broker or the date of execution of the transaction directly with a market maker; or
(iii) The average weekly volume of trading in such securities reported pursuant to an effective transaction reporting plan or an
effective national market system plan as those terms are defined in §242.600 of this chapter during the four-week period
specified in paragraph (e)(1)(ii) of this section.
(2) If the securities sold are debt securities, then the amount of debt securities sold for the account of an affiliate of the issuer, regardless
of whether those securities are restricted, shall not exceed the greater of the limitation set forth in paragraph (e)(1) of this section or,
together with all sales of securities of the same tranche (or class when the securities are non-participatory preferred stock) sold for the
account of such person within the preceding three months, ten percent of the principal amount of the tranche (or class when the
securities are non-participatory preferred stock) attributable to the securities sold.
(3) Determination of amount. For the purpose of determining the amount of securities specified in paragraph (e)(1) of this section and,
as applicable, paragraph (e)(2) of this section, the following provisions shall apply:
(i) Where both convertible securities and securities of the class into which they are convertible are sold, the amount of convertible
securities sold shall be deemed to be the amount of securities of the class into which they are convertible for the purpose of
determining the aggregate amount of securities of both classes sold;
4 of 7
(ii) The amount of securities sold for the account of a pledgee of those securities, or for the account of a purchaser of the
pledged securities, during any period of three months within six months (or within one year if the issuer of the securities is
not, or has not been for a period of at least 90 days immediately before the sale, subject to the reporting requirements of
section 13 or 15(d) of the Exchange Act) after a default in the obligation secured by the pledge, and the amount of securities
sold during the same three-month period for the account of the pledgor shall not exceed, in the aggregate, the amount
specified in paragraph (e)(1) or (2) of this section, whichever is applicable;
Note to §230.144(e)(3)(ii). Sales by a pledgee of securities pledged by a borrower will not be aggregated under paragraph (e)(3)(ii) with
sales of the securities of the same issuer by other pledgees of such borrower in the absence of concerted action by such pledgees.
(iii) The amount of securities sold for the account of a donee of those securities during any three-month period within six months
(or within one year if the issuer of the securities is not, or has not been for a period of at least 90 days immediately before the
sale, subject to the reporting requirements of section 13 or 15(d) of the Exchange Act) after the donation, and the amount of
securities sold during the same three-month period for the account of the donor, shall not exceed, in the aggregate, the
amount specified in paragraph (e)(1) or (2) of this section, whichever is applicable;
(iv) Where securities were acquired by a trust from the settlor of the trust, the amount of such securities sold for the account of
the trust during any three-month period within six months (or within one year if the issuer of the securities is not, or has not
been for a period of at least 90 days immediately before the sale, subject to the reporting requirements of section 13 or 15(d)
of the Exchange Act) after the acquisition of the securities by the trust, and the amount of securities sold during the same
three-month period for the account of the settlor, shall not exceed, in the aggregate, the amount specified in paragraph (e)(1)
or (2) of this section, whichever is applicable;
(v) The amount of securities sold for the account of the estate of a deceased person, or for the account of a beneficiary of such
estate, during any three-month period and the amount of securities sold during the same three-month period for the account
of the deceased person prior to his death shall not exceed, in the aggregate, the amount specified in paragraph (e)(1) or (2) of
this section, whichever is applicable: Provided, that no limitation on amount shall apply if the estate or beneficiary of the
estate is not an affiliate of the issuer;
(vi) When two or more affiliates or other persons agree to act in concert for the purpose of selling securities of an issuer, all
securities of the same class sold for the account of all such persons during any three-month period shall be aggregated for
the purpose of determining the limitation on the amount of securities sold;
(vii) The following sales of securities need not be included in determining the amount of securities to be sold in reliance upon
this section:
(A) Securities sold pursuant to an effective registration statement under the Act;
(B) Securities sold pursuant to an exemption provided by Regulation A (§230.251 through §230.263) under the Act;
(C) Securities sold in a transaction exempt pursuant to section 4 of the Act (15 U.S.C. 77d) and not involving any public
offering; and
(D) Securities sold offshore pursuant to Regulation S (§230.901 through §230.905, and Preliminary Notes) under the Act.
(f) Manner of sale.
(1) The securities shall be sold in one of the following manners:
(i) Brokers’ transactions within the meaning of section 4(4) of the Act;
(ii) Transactions directly with a market maker, as that term is defined in section 3(a)(38) of the Exchange Act; or
(iii) Riskless principal transactions where:
(A) The offsetting trades must be executed at the same price (exclusive of an explicitly disclosed markup or markdown,
commission equivalent, or other fee);
(B) The transaction is permitted to be reported as riskless under the rules of a self-regulatory organization; and
(C) The requirements of paragraphs (g)(2) (applicable to any markup or markdown, commission equivalent, or other fee), (g)(3),
and (g)(4) of this section are met.
Note to §230.144(f)(1): For purposes of this paragraph, a riskless principal transaction means a principal transaction where, after having
received from a customer an order to buy, a broker or dealer purchases the security as principal in the market to satisfy the order to buy
or, after having received from a customer an order to sell, sells the security as principal to the market to satisfy the order to sell.
(2) The person selling the securities shall not:
(i) Solicit or arrange for the solicitation of orders to buy the securities in anticipation of or in connection with such transaction; or
(ii) Make any payment in connection with the offer or sale of the securities to any person other than the broker or dealer who
executes the order to sell the securities.
5 of 7
(3) Paragraph (f) of this section shall not apply to:
(i) Securities sold for the account of the estate of a deceased person or for the account of a beneficiary of such estate provided
the estate or estate beneficiary is not an affiliate of the issuer; or
(ii) Debt securities.
(g) Brokers’ transactions. The term brokers’ transactions in section 4(4) of the Act shall for the purposes of this rule be deemed to include
transactions by a broker in which such broker:
(1)Does no more than execute the order or orders to sell the securities as agent for the person for whose account the securities are sold;
(2) Receives no more than the usual and customary broker’s commission;
(3) Neither solicits nor arranges for the solicitation of customers’ orders to buy the securities in anticipation of or in connection with the
transaction; Provided, that the foregoing shall not preclude:
(i) Inquiries by the broker of other brokers or dealers who have indicated an interest in the securities within the preceding 60 days;
(ii) Inquiries by the broker of his customers who have indicated an unsolicited bona fide interest in the securities within the
preceding 10 business days;
(iii) The publication by the broker of bid and ask quotations for the security in an inter-dealer quotation system provided that such quotations
are incident to the maintenance of a bona fide inter-dealer market for the security for the broker’s own account and that the broker has
published bona fide bid and ask quotations for the security in an inter-dealer quotation system on each of at least twelve days within the
preceding thirty calendar days with no more than four business days in succession without such two-way quotations; or
(iv) The publication by the broker of bid and ask quotations for the security in an alternative trading system, as defined in §242.300
of this chapter, provided that the broker has published bona fide bid and ask quotations for the security in the alternative trading
system on each of the last twelve business days; and
Note to §230.144(g)(3)(ii). The broker should obtain and retain in his files written evidence of indications of bona fide unsolicited interest by
his customers in the securities at the time such indications are received.
(4) After reasonable inquiry is not aware of circumstances indicating that the person for whose account the securities are sold is an
underwriter with respect to the securities or that the transaction is a part of a distribution of securities of the issuer. Without limiting
the foregoing, the broker shall be deemed to be aware of any facts or statements contained in the notice required by paragraph (h) of
this section.
Notes: (i) The broker, for his own protection, should obtain and retain in his files a copy of the notice required by paragraph (h) of this section.
(ii) The reasonable inquiry required by paragraph (g)(3) of this section should include, but not necessarily be limited to, inquiry as
to the following matters:
(a) The length of time the securities have been held by the person for whose account they are to be sold. If practicable, the
inquiry should include physical inspection of the securities;
(b) The nature of the transaction in which the securities were acquired by such person;
(c) The amount of securities of the same class sold during the past 3 months by all persons whose sales are required to be
taken into consideration pursuant to paragraph (e) of this section;
(d) Whether such person intends to sell additional securities of the same class through any other means;
(e) Whether such person has solicited or made any arrangement for the solicitation of buy orders in connection with the
proposed sale of securities;
(f) Whether such person has made any payment to any other person in connection with the proposed sale of the securities; and
(g) The number of shares or other units of the class outstanding, or the relevant trading volume.
(h) Notice of proposed sale.
(1) If the amount of securities to be sold in reliance upon this rule during any period of three months exceeds 5,000 shares or other
units or has an aggregate sale price in excess of $50,000, three copies of a notice on Form 144 (§239.144 of this chapter) shall be
filed with the Commission. If such securities are admitted to trading on any national securities exchange, one copy of such notice
also shall be transmitted to the principal exchange on which such securities are admitted.
(2) The Form 144 shall be signed by the person for whose account the securities are to be sold and shall be transmitted for filing
concurrently with either the placing with a broker of an order to execute a sale of securities in reliance upon this rule or the execution
directly with a market maker of such a sale. Neither the filing of such notice nor the failure of the Commission to comment on such
notice shall be deemed to preclude the Commission from taking any action that it deems necessary or appropriate with respect to the
sale of the securities referred to in such notice. The person filing the notice required by this paragraph shall have a bona fide intention
to sell the securities referred to in the notice within a reasonable time after the filing of such notice.
6 of 7
(i) Unavailability to securities of issuers with no or nominal operations and no or nominal non-cash assets.
(1) This section is not available for the resale of securities initially issued by an issuer defined below:
(i) An issuer, other than a business combination related shell company, as defined in §230.405, or an asset-backed issuer, as
defined in Item 1101(b) of Regulation AB (§229.1101(b) of this chapter), that has:
(A) No or nominal operations; and
(B) Either:
(1) No or nominal assets;
(2) Assets consisting solely of cash and cash equivalents; or
(3) Assets consisting of any amount of cash and cash equivalents and nominal other assets; or
(ii) An issuer that has been at any time previously an issuer described in paragraph (i)(1)(i).
(2) Notwithstanding paragraph (i)(1), if the issuer of the securities previously had been an issuer described in paragraph (i)(1)(i) but has
ceased to be an issuer described in paragraph (i)(1)(i); is subject to the reporting requirements of section 13 or 15(d) of the
Exchange Act; has filed all reports and other materials required to be filed by section 13 or 15(d) of the Exchange Act, as applicable,
during the preceding 12 months (or for such shorter period that the issuer was required to file such reports and materials), other than
Form 8-K reports (§249.308 of this chapter); and has filed current “Form 10 information” with the Commission reflecting its status as
an entity that is no longer an issuer described in paragraph (i)(1)(i), then those securities may be sold subject to the requirements of
this section after one year has elapsed from the date that the issuer filed “Form 10 information” with the Commission.
(3) The term “Form 10 information” means the information that is required by Form 10 or Form 20-F (§249.210 or §249.220f of this
chapter), as applicable to the issuer of the securities, to register under the Exchange Act each class of securities being sold under
this rule. The issuer may provide the Form 10 information in any filing of the issuer with the Commission. The Form 10 information
is deemed filed when the initial filing is made with the Commission.
[37 FR 596, Jan. 14, 1972, as amended at 39 FR 6071, Feb. 19, 1974; 39 FR 8914, Mar. 7, 1974; 43 FR 43711, Sept. 27, 1978; 43 FR
54230, Nov. 21, 1978; 44 FR 15612, Mar. 14, 1979; 45 FR 12391, Feb. 28, 1980; 46 FR 12197, Feb. 12, 1981; 47 FR 11261, Mar. 16,
1982; 53 FR 12921, Apr. 20, 1988; 55 FR 17944, Apr. 30, 1990; 58 FR 67312, Dec. 21, 1993; 61 FR 21359, May 9, 1996; 62 FR 9244,
Feb. 28, 1997; 63 FR 9642, Feb. 25, 1998; 64 FR 61400, Nov. 10, 1999; 69 FR 15617, Mar. 25, 2004; 70 FR 37617, June 29, 2005; 72 FR
71566, Dec. 17, 2007]
7 of 7
This Confidential Private Placement Memorandum (the "Memorandum") has been prepared in connection with an
offering (the "Offering") of up to 31,250,000 shares of Common Stock, $.001 par value (the "Shares") of MKG
ENTERPRISES CORP (the "Company"). The minimum offering amount is $10,000 ("Minimum Offering
Amount"), and the maximum offering amount is $99,000,000 ("Maximum Offering Amount"). The minimum
purchase per investor is 62,500 shares, or $10,000, and the maximum purchase per investor is 3,125,000 shares, or
$500,000.00. Officers and directors of the Company will make offers and sales of the Shares; however, the
Company retains the right to utilize any broker-dealers registered with the National Association of Securities
Dealers, Inc. ("NASD") and applicable state securities authorities to sell all or any portion of the Shares. If the
Company so elects, it may pay such broker-dealers a commission in the amount of up to 10% and a non-accountable
expense allowance of up to 3% of the proceeds they have sold. Offers and sales of the Shares will be made only to
"Accredited Investors" as such term is defined in Rule 501 of Regulation D promulgated under the Securities Act of
1933, as amended (the "Act"), which includes the Company's officers, directors and affiliates.
The Offering is scheduled to terminate on May 31, 2023. The Company reserves the right, however, to extend the
term of this Offering for a period of up to 30 days. See "The Offering." This Memorandum may not be reproduced
in whole or in part without the express prior written consent of the Company.
The date of this Confidential Private Placement Memorandum is May 16, 2018.
THIS MEMORANDUM IS FOR CONFIDENTIAL USE AND MAY NOT BE REPRODUCED. DISTRIBUTION
THAT IS NOT APPROVED BY THE COMPANY
MAY RESULT IN A VIOLATION OF FEDERAL AND STATE SECURITIES REGULATIONS. THIS
MEMORANDUM AND ALL ACCOMPANYING MATERIALS SHALL BE RETURNED TO AN
AUTHORIZED OFFICER OF THE COMPANY UPON REQUEST.
THE SECURITIES HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF
1933 (THE "ACT") OR THE SECURITIES LAWS OF ANY STATE, IN RELIANCE UPON ONE OR MORE
SPECIFIC EXEMPTIONS FROM REGISTRATION OR QUALIFICATION REQUIREMENTS. SUCH
EXEMPTIONS LIMIT THE NUMBER AND TYPES OF INVESTORS TO WHICH THE OFFERING WILL BE
MADE. AS A RESULT, THE SECURITIES OFFERED HEREBY ARE OFFERED ONLY TO "ACCREDITED
INVESTORS" AS SUCH TERM IS DEFINED IN RULE 501 OF REGULATION D OF THE SECURITIES ACT
OF 1933, AS AMENDED.
THE SECURITIES OFFERED HEREBY ARE HIGHLY SPECULATIVE AND INVOLVE A HIGH DEGREE OF
RISK, AND SHOULD NOT BE PURCHASED BY ANYONE WHO CANNOT AFFORD THE LOSS OF HIS OR
HER ENTIRE INVESTMENT. NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY
STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR
DETERMINED IF THIS MEMORANDUM IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND
MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER FEDERAL AND
APPLICABLE STATE SECURITIES LAWS. THERE IS CURRENTLY NO PUBLIC MARKET FOR THE
SECURITIES, AND INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE
FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.
THE STATEMENTS CONTAINED HEREIN ARE BASED ON INFORMATION BELIEVED BY THE
COMPANY TO BE RELIABLE. NO WARRANTY CAN BE MADE THAT CIRCUMSTANCES HAVE NOT
CHANGED SINCE THE DATE SUCH INFORMATION WAS SUPPLIED. THERE CAN BE NO ASSURANCE
THAT THE COMPANY WILL BE ABLE TO SUCCESSFULLY IMPLEMENT ANY OF ITS PLANS, OR THAT
ACTUAL FUTURE PLANS AND PERFORMANCE WILL NOT BE MATERIALLY DIFFERENT FROM THE
COMPANY'S PRESENT EXPECTATIONS.
ANY INFORMATION OR REPRESENTATIONS CONTAINED IN THE COMPANY'S PROMOTIONAL OR
MARKETING SOURCES OTHER THAN THIS MEMORANDUM MAY NOT BE AS CURRENT OR
ACCURATE AS INFORMATION OR REPRESENTATIONS CONTAINED IN THIS MEMORANDUM, AND
THEIR CONTENTS ARE EXCLUDED FROM THIS MEMORANDUM.
THIS OFFERING IS SUBJECT TO WITHDRAWAL, CANCELLATION OR MODIFICATION BY THE
COMPANY WITHOUT NOTICE. THE COMPANY
RESERVES THE RIGHT, IN ITS SOLE DISCRETION, TO REJECT ANY SUBSCRIPTION IN WHOLE OR IN
PART FOR ANY REASON OR TO ALLOT TO ANY SUBSCRIBER LESS THAN THE NUMBER OF SHARES
SUBSCRIBED FOR OR TO WAIVE CONDITIONS TO THE PURCHASE OF THE SHARES.
PROSPECTIVE INVESTORS ARE NOT TO CONSTRUE THE CONTENTS OF THIS MEMORANDUM AS
LEGAL, INVESTMENT OR TAX ADVICE. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST
RELY ON THEIR OWN EXAMINATION OF THE COMPANY AND THE TERMS OF THE OFFERING,
INCLUDING THE MERITS AND RISKS INVOLVED.
THIS MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN
OFFER TO BUY ANY SECURITY OTHER THAN THE SECURITIES OFFERED HEREBY, NOR DOES IT
CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY SUCH SECURITIES BY
ANYONE IN ANY JURISDICTION IN WHICH SUCH OFFER OF SOLICITATION IS NOT AUTHORIZED,
OR IN WHICH THE PERSON MAKING SUCH OFFER OR SOLICITATION IS NOT QUALIFIED TO DO SO.
IN ADDITION, THE OFFERING MATERIALS CONSTITUTE AN OFFER ONLY IF A NAME AND
IDENTIFICATION NUMBER APPEAR IN THE APPROPRIATE SPACES PROVIDED ON THE COVER PAGE
AND CONSTITUTE AN OFFER ONLY TO THE PERSON WHOSE NAME APPEARS IN THOSE SPACES.

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Instructions for Selling Stock Under SEC Rule 144

  • 1. Instructions for selling your stock under SEC Rule 144 Enclosed are the forms that you’ll need to sell securities if you’re a “control” (or “affiliated”) person of the company (the “issuer”) whose securities you plan to sell, as defined by Rule 144 of the Securities Act of 1933 (SEC Rule 144). The forms can also be used if you’re selling unrestricted stock or stock that includes restrictions, such as holding period or volume requirements. To sell securities, you must have a approved MKG Enterprises Corp Brokerage Account. Control persons include, but are not necessarily limited to, 10% shareholders, policymaking executives, and members of the board of directors. Because Rule 144 is complex, MKG Enterprises Corp strongly urges you to contact the corporate counsel of the issuer as soon as possible to confirm whether or not you’re an affiliated person. This kit contains the following documents, including forms that the issuer’s corporate counsel may be able to assist you with completing: • Seller’s representation letter. Detach, complete, and send with original signatures to MKG Enterprises Corp and its affiliates. • SEC Form 144. Detach, complete, and send with original signatures to MKG Enterprises Corp. • SEC Rule 144. Please read carefully and retain for your records. After we receive these forms from you, we’ll review them to see if they’re in good order, as required by Rule 144’s due diligence requirements for broker-dealers. This process may include calling you to request additional information. In addition, we may contact the issuer and the issuer’s transfer agent. Because of this, the issuer and transfer agent may request additional documentation from you and MKG Enterprises Corp. Note: Processing your sale under SEC Rule 144 may take a few weeks. If you have any questions, please call us at 866-675-3933 Monday through Friday from 10 a.m. to 6 p.m., Pacific Standard Time. Mailing information Mail your completed form in the enclosed postage-paid envelope. If you don’t have a postage-paid envelope, mail to: MKG Enterprises Corp 4974 N Fresno Street 627 Fresno, CA 93726 For overnight delivery, mail to: MKG Enterprises Corp 1328 N Wishon Ave Fresno, CA 93728
  • 2. THE EXEMPT SECURITY OFFERING The Company intends to raise a minimum of $100,000.00 and a maximum of $99,000,000.00 in this Offering to fund the continued growth of our business. The Common Stock will be offered in a private placement offering pursuant to an exemption from registration under Rule 506 (c ) of Regulation D promulgated under the Securities Act of 1933, as amended, under exemptions under applicable state securities laws, and in reliance upon the representations and warranties of each of the purchasers that they are purchasing the Common Stock for investment purposes and not with a view to any resale or distribution thereof. Upon completion of the Offering between 625,000 and 99,000,000 Shares will be outstanding. Each purchaser must execute a Subscription Agreement making certain representations and warranties to the Company, including such purchaser’s qualifications as an Accredited Investor as defined by the Securities and Exchange Commission in Rule 501(a) of Regulation D promulgated, or Accredited Investors that may be allowed to purchase Shares in this offering. See “REQUIREMENTS FOR PURCHASERS” section. The Offering is being made on an "minimum or maximum basis until the Minimum Offering Amount of,$100,000.00 is raised. Proceeds received prior to raising the Minimum Offering Amount will be held in an escrow account with the Company's bank. Upon raising the Minimum Offering Amount, these proceeds will be released for use by the Company and, thereafter, 100% of the proceeds raised in the Offering, up to the Maximum Offering Amount of $99,000,000.00, the company will keep funds in an impound or escrow account throughout the entire offering. MKG Enterprises Corp is a licensed California Finance Lender issued by the State of California Department of Business Oversight California Finance Lender License 60DB0-45224. ABS Fund I Mortgage Backed Securities ABS Fund II Private Equity, Corporate Bonds ABS Fund III Auto Loans ABS Fund IV IRA / HSA Private Lending Our schemes are both Fettered and Unfettered investments in Asset-Backed Security, Corporate Bonds, Commercial, Residential Real Estate Mortgage-Backed Securities, Auto Equity Loans, Refund Anticipation Loans (RAL's), Prepaid Debit Cards loan portfolios containing assets and funds managed by MKG Enterprises Corp and external funds controlled by other private lenders, and banking partners managers from other companies, this combined private equity (FOF) Fund-Of-Fund strategy aims to achieve broad diversification and appropriate asset allocation with investments in a variety of fund categories that are all wrapped into one fund that features a annual point to point interest rate. Investor’s hypothetical ABS Fund performance interest rates 3% ABS Fund II 4.5% ABS Fund IV 6% ABS Multi-Blend 2 year Fund 7.5% ABS Multi-Blend 3 year Fund 8.99% ABS Fund I 24% ABS Fund III
  • 3. ABS Fund hypothetical performance interest rates Pursuant to California Financial Code §22004 Finance Lender/ Broker Tranche 1: $225 monthly interest rate 2.5% APR 30% Tranche 2: $225-$900 monthly interest rate 2.0% APR 24% Tranche 3: $900- $1,650 monthly interest rate 1.5% APR 18% Tranche 4: $1,650-$2,500 monthly interest rate 1% APR 12% Tranche 5: $2,510 monthly interest rate 8% APR 96% Disclosures IMPORTANT: The projections or other information generated by MKG Enterprises Corp and its subsidiaries regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. The guidance is educational in nature, is not fully individualized, and is not intended to serve as the primary or sole basis for your investment or private placement offering decisions. The return assumptions are not reflective of any specific product, and do not include any fees or expenses that may be incurred by investing in specific products. The actual returns of a specific product may be more or less than the returns used. It is not possible to directly invest in an fund. Financial forecasts, rates of return, risk, inflation, and other assumptions may be used as the basis for illustrations. They should not be considered a guarantee of future performance or a guarantee of achieving overall financial objectives. Past performance is not a guarantee or a predictor of future results of either the indices or any particular investment. Results may vary with each use and over time.
  • 4. Form S144RLC Seller’s representation letter under SEC Rule 144 Use this form to sell securities if you’re a “control” (or “affiliated”) person of the company (the “issuer”) whose securities you plan to sell, as defined by Rule 144 of the Securities Act of 1933 (SEC Rule 144). Print in capital letters and use black ink. In connection with my request that, as broker for my account, you sell: Number of shares or units of Describe type of security, such as common stock, preferred stock, or debt security issued by Name of company in the manner permitted by Rule 144 of the Securities Act of 1933, I represent to you that: 1. As the term “affiliate” is defined in Rule 144: Check one. I am an affiliate of the company. I am not an affiliate of the company, but I have been an affiliate within the past three months. 2. During the three months prior to the date of this letter, a total of ____________shares or units of such security have been sold by me and/or by any person whose sales must be aggregated with mine, as provided in paragraphs (a) and (e) of Rule 144. 3. The number of shares that I’ve requested you to sell as broker for my account, together with the number of shares stated in paragraph number 2, doesn’t exceed the greater of: (a) The average weekly reported volume of trading in such security on all national securities exchanges and the Nasdaq Stock Market during the four calendar weeks preceding the filing of SEC Form 144 as required under Rule 144 or preceding the receipt of this sell order if SEC Form 144 isn’t required to be filed; or (b) 1% of the outstanding shares of the security, as shown in the most recent report or statement published by the company. 4. I’ve made no payment to any person in connection with your execution of my order, and I won’t do so; and I haven’t solicited, or arranged for the solicitation of, orders to buy in anticipation of, or in connection with, the proposed sale, and I won’t do so. I have no sell orders open in the above security with any other broker, market maker, bank, or other person, and I won’t sell additional securities of the same class pending execution of my order. 5. My order isn’t part of a distribution of any securities of the issuer on my behalf, and I’m not an underwriter with respect to these securities. 6. If the securities being sold are restricted securities, as defined in paragraph (a)(3) of Rule 144, at least six months have elapsed since the date such securities were acquired from the issuer or an affiliate, whichever was later, computed as provided in paragraph (d) of Rule 144. 7. I acquired the securities that I’m selling in the following transaction(s): 1 of 2
  • 5. Form S144RLC 8. I hereby return to you, and request you to file with the Securities and Exchange Commission (SEC), a completed Form 144 with original signatures. I hereby represent and warrant that the Form 144 completed by me is true and accurate in all respects. 9. It is my bona fide intention to sell my shares within a reasonable time after the filing of Form 144 and/or the date of this sell order. If the shares haven’t been sold within 90 days of the filing, I understand a new filing or sell order will be required. 10. 11. Name of company has filed with the SEC the reports required by Rule 144(c) and has been subject to such filing requirements for a period of at least 90 days, as set forth in the company’s statement to such effect that is contained in its most recent annual or quarterly report. 11. Name of company is a reporting issuer under the Securities Exchange Act of 1934 of the securities that I’m selling. 12. I know of no important development affecting the company or its business or products that hasn’t been made public. I confirm that I’ve requested you to sell such shares for personal reasons and not because of any information that I may have with respect to the company or its current operations. 13. I’ve seen and carefully reviewed a copy of Rule 144 and advise you that you may rely upon the statements made herein and in the attached Form 144 to execute this sale. If and when any such statements become inaccurate or incomplete, I’ll notify you immediately. 14. I authorize you and your agents, and their representatives, to make any inquiry of the issuer, the company’s transfer agent, and/or the company’s counsel that you deem advisable in connection with this sale. The company and its transfer agent, and their agents and representatives, may rely on this seller’s representation. 15. I understand that the proceeds from this sale won’t be released to me, or swept automatically to my money market settlement fund, until you’ve received the securities in negotiable form. In the event the transfer agent will transfer the securities only with a legal opinion acceptable to it, I agree to obtain such an opinion without cost or expense to you. 16. I understand that you’ll rely on the foregoing representations in executing my order, and I’ll undertake to hold you harmless against any and all loss, damage, liability, and expense (including reasonable counsel fees) arising, or resulting, from the breach of any of such representations or arising from my sale or other disposition of such securities. Name of account owner first, middle initial, last Signature of account owner Date mm/dd/yyyy X Name of account owner first, middle initial, last Signature of account owner Date mm/dd/yyyy X S144RLC 102014 2 of 2
  • 6. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 144 NOTICE OF PROPOSED SALE OF SECURITIES PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OF 1933 ATTENTION: Transmit for filing 3 copies of this form concurrently with either placing an order with a broker to execute sale or executing a sale directly with a market maker. 1(a) NAME OF ISSUER (Please type or print) (b) IRS IDENT. NO. S.E(c).C. FILE NO. 1(d) ADDRESS OF ISSUER STREET CITY STATE ZIP CODE (b) OMB APPROVAL OMB Number: 3235-0101 Expires:, June 30 2020 Estimated average burden hours per response ........... 1.00 SEC USE ONLY DOCUMENT SEQUENCE NO. CUSIP NUMBER WORK LOCATION (e) TELEPHONE NO. AREA CODE NUMBER 2 (a) NAME OF PERSON FOR WHOSE ACCOUNT THE SECURITIES RELATIONSHIP TO (c) ADDRESS STREET CITY STATE ZIP CODE ARE TO BE SOLD ISSUER INSTRUCTION: The person filing this notice should contact the issuer to obtain the I.R.S. Identification Number and the S.E.C. File Number. 3 (a) Title of the (b) SEC USE ONLY (c) (d) (e) (f) (g) Number of Shares Aggregate Number of Shares Approximate Name of Each Class of Name and Address of Each Broker Through Whom the Broker-Dealer or Other Units Market or Other Units Date of Sale Securities Securities Securities are to be Offered or Each Market Maker File Number To Be Sold Value Outstanding (See instr. 3(f)) Exchange To Be Sold who is Acquiring the Securities (See instr. 3(c)) (See instr. 3(d)) (See instr. 3(e)) (MO. DAY YR.) (See instr. 3(g)) INSTRUCTIONS: 3. (a) Title of the class of securities to be sold 1. (a) Name of issuer (b) Name and address of each broker through whom the securities are intended to be sold (b) Issuer’s I.R.S. Identification Number (c) Number of shares or other units to be sold (if debt securities, give the aggregate face amount) (c) Issuer’s S.E.C. file number, if any (d) Aggregate market value of the securities to be sold as of a specified date within 10 days prior to the filing of this notice (d) Issuer’s address, including zip code (e) Number of shares or other units of the class outstanding, or if debt securities the face amount thereof outstanding, as show (e) Issuer’s telephone number, including area code by the most recent report or statement published by the issuer (f) Approximate date on which the securities are to be sold 2. (a) Name of person for whose account the securities are to be sold (g) Name of each securities exchange, if any, on which the securities are intended to be sold (b) Such person’s relationship to the issuer (e.g., officer, director, 10% stockholder, or member of immediate family of any of the foregoing) (c) Such person’s address, including zip code Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 1147 (08-07)
  • 7. Title of Date you the Class Acquired TABLE I –– SECURITIES TO BE SOLD Furnish the following information with respect to the acquisition of the securities to be sold and with respect to the payment of all or any part of the purchase price or other consideration therefor: Nature of Acquisition Transaction Name of Person from Whom Acquired Amount of Date of Nature of Payment (If gift, also give date donor acquired) Securities Acquired Payment INSTRUCTIONS: If the securities were purchased and full payment therefor was not made in cash at the time of purchase, explain in the table or in a note thereto the nature of the consideration given. If the consideration consisted of any note or other obligation, or if payment was made in installments describe the arrangement and state when the note or other obligation was discharged in full or the last installment paid. TABLE II –– SECURITIES SOLD DURING THE PAST 3 MONTHS Furnish the following information as to all securities of the issuer sold during the past 3 months by the person for whose account the securities are to be sold. Amount of Name and Address of Seller Title of Securities Sold Date of Sale Securities Sold Gross Proceeds REMARKS: INSTRUCTIONS: See the definition of “person” in paragraph (a) of Rule 144. Information is to be given not only as to the person for whose account the securities are to be sold but also as to all other persons included in that definition. In addition, information shall be given as to sales by all persons whose sales are required by paragraph (e) of Rule 144 to be aggregated with sales for the account of the person filing this notice. ATTENTION: The person for whose account the securities to which this notice relates are to be sold hereby represents by signing this notice that he does not know any material adverse information in regard to the current and prospective operations of the Issuer of the securities to be sold which has not been publicly disclosed. If such person has adopted a written trading plan or given trading instructions to satisfy Rule 10b5-1 under the Exchange Act, by signing the form and indicating the date that the plan was adopted or the instruction given, that person makes such representation as of the plan adoption or instruction date. DATE OF NOTICE (SIGNATURE) DATE OF PLAN ADOPTION OR GIVING OF INSTRUCTION, IF RELYING ON RULE 10B5-1 The notice shall be signed by the person for whose account the securities are to be sold. At least one copy of the notice shall be manually signed.Any copies not manually signed shall bear typed or printed signatures. ATTENTION: Intentional misstatements or omission of facts constitute Federal Criminal Violations (See 18 U.S.C. 1001) SEC 1147 (02-08)
  • 8. Rule 144 Persons deemed not to be engaged in a distribution and therefore not underwriters. Preliminary Note: Certain basic principles are essential to an understanding of the registration requirements in the Securities Act of 1933 (the Act or the Securities Act) and the purposes underlying Rule 144: 1. If any person sells a non-exempt security to any other person, the sale must be registered unless an exemption can be found for the transaction. 2. Section 4(1) of the Securities Act provides one such exemption for a transaction “by a person other than an issuer, underwriter, or dealer.” Therefore, an understanding of the term “underwriter” is important in determining whether or not the Section 4(1) exemption from registration is available for the sale of the securities. The term “underwriter” is broadly defined in Section 2(a)(11) of the Securities Act to mean any person who has purchased from an issuer with a view to, or offers or sells for an issuer in connection with, the distribution of any security, or participates, or has a direct or indirect participation in any such undertaking, or participates or has a participation in the direct or indirect underwriting of any such undertaking. The interpretation of this definition traditionally has focused on the words “with a view to” in the phrase “purchased from an issuer with a view to * * * distribution.” An investment banking firm which arranges with an issuer for the public sale of its securities is clearly an “underwriter” under that section. However, individual investors who are not professionals in the securities business also may be “underwriters” if they act as links in a chain of transactions through which securities move from an issuer to the public. Since it is difficult to ascertain the mental state of the purchaser at the time of an acquisition of securities, prior to and since the adoption of Rule 144, subsequent acts and circumstances have been considered to determine whether the purchaser took the securities “with a view to distribution” at the time of the acquisition. Emphasis has been placed on factors such as the length of time the person held the securities and whether there has been an unforeseeable change in circumstances of the holder. Experience has shown, however, that reliance upon such factors alone has led to uncertainty in the application of the registration provisions of the Act. The Commission adopted Rule 144 to establish specific criteria for determining whether a person is not engaged in a distribution. Rule 144 creates a safe harbor from the Section 2(a)(11) definition of “underwriter.” A person satisfying the applicable conditions of the Rule 144 safe harbor is deemed not to be engaged in a distribution of the securities and therefore not an underwriter of the securities for purposes of Section 2(a)(11). Therefore, such a person is deemed not to be an underwriter when determining whether a sale is eligible for the Section 4(1) exemption for “transactions by any person other than an issuer, underwriter, or dealer.” If a sale of securities complies with all of the applicable conditions of Rule 144: 1. Any affiliate or other person who sells restricted securities will be deemed not to be engaged in a distribution and therefore not an underwriter for that transaction; 2. Any person who sells restricted or other securities on behalf of an affiliate of the issuer will be deemed not to be engaged in a distribution and therefore not an underwriter for that transaction; and 3. The purchaser in such transaction will receive securities that are not restricted securities. Rule 144 is not an exclusive safe harbor. A person who does not meet all of the applicable conditions of Rule 144 still may claim any other available exemption under the Act for the sale of the securities. The Rule 144 safe harbor is not available to any person with respect to any transaction or series of transactions that, although in technical compliance with Rule 144, is part of a plan or scheme to evade the registration requirements of the Act. (a) Definitions. The following definitions shall apply for the purposes of this section. (1) An affiliate of an issuer is a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such issuer. (2) The term person when used with reference to a person for whose account securities are to be sold in reliance upon this section includes, in addition to such person, all of the following persons: (i) Any relative or spouse of such person, or any relative of such spouse, any one of whom has the same home as such person; (ii) Any trust or estate in which such person or any of the persons specified in paragraph (a)(2)(i) of this section collectively own 10 percent or more of the total beneficial interest or of which any of such persons serve as trustee, executor or in any similar capacity; and (iii) Any corporation or other organization (other than the issuer) in which such person or any of the persons specified in paragraph (a)(2)(i) of this section are the beneficial owners collectively of 10 percent or more of any class of equity securities or 10 percent or more of the equity interest. (3) The term restricted securities means: (i) Securities acquired directly or indirectly from the issuer, or from an affiliate of the issuer, in a transaction or chain of transactions not involving any public offering; (ii) Securities acquired from the issuer that are subject to the resale limitations of §230.502(d) under Regulation D or §230.701(c); 1 of 7
  • 9. (iii) Securities acquired in a transaction or chain of transactions meeting the requirements of §230.144A; (iv) Securities acquired from the issuer in a transaction subject to the conditions of Regulation CE (§230.1001); (v) Equity securities of domestic issuers acquired in a transaction or chain of transactions subject to the conditions of §230.901 or §230.903 under Regulation S (§230.901 through §230.905, and Preliminary Notes); (vi) Securities acquired in a transaction made under §230.801 to the same extent and proportion that the securities held by the security holder of the class with respect to which the rights offering was made were, as of the record date for the rights offering, “restricted securities” within the meaning of this paragraph (a)(3); (vii) Securities acquired in a transaction made under §230.802 to the same extent and proportion that the securities that were tendered or exchanged in the exchange offer or business combination were “restricted securities” within the meaning of this paragraph (a)(3); and (viii) Securities acquired from the issuer in a transaction subject to an exemption under section 4(6) (15 U.S.C. 77d(6)) of the Act. (4) The term debt securities means: (i) Any security other than an equity security as defined in §230.405; (ii) Non-participatory preferred stock, which is defined as non-convertible capital stock, the holders of which are entitled to a preference in payment of dividends and in distribution of assets on liquidation, dissolution, or winding up of the issuer, but are not entitled to participate in residual earnings or assets of the issuer; and (iii) Asset-backed securities, as defined in §229.1101 of this chapter. (b) Conditions to be met. Subject to paragraph (i) of this section, the following conditions must be met: (1) Non-affiliates. (i) If the issuer of the securities is, and has been for a period of at least 90 days immediately before the sale, subject to the reporting requirements of section 13 or 15(d) of the Securities Exchange Act of 1934 (the Exchange Act), any person who is not an affiliate of the issuer at the time of the sale, and has not been an affiliate during the preceding three months, who sells restricted securities of the issuer for his or her own account shall be deemed not to be an underwriter of those securities within the meaning of section 2(a)(11) of the Act if all of the conditions of paragraphs (c)(1) and (d) of this section are met. The requirements of paragraph (c)(1) of this section shall not apply to restricted securities sold for the account of a person who is not an affiliate of the issuer at the time of the sale and has not been an affiliate during the preceding three months, provided a period of one year has elapsed since the later of the date the securities were acquired from the issuer or from an affiliate of the issuer. (ii) If the issuer of the securities is not, or has not been for a period of at least 90 days immediately before the sale, subject to the reporting requirements of section 13 or 15(d) of the Exchange Act, any person who is not an affiliate of the issuer at the time of the sale, and has not been an affiliate during the preceding three months, who sells restricted securities of the issuer for his or her own account shall be deemed not to be an underwriter of those securities within the meaning of section 2(a)(11) of the Act if the condition of paragraph (d) of this section is met. (2) Affiliates or persons selling on behalf of affiliates. Any affiliate of the issuer, or any person who was an affiliate at any time during the 90 days immediately before the sale, who sells restricted securities, or any person who sells restricted or any other securities for the account of an affiliate of the issuer of such securities, or any person who sells restricted or any other securities for the account of a person who was an affiliate at any time during the 90 days immediately before the sale, shall be deemed not to be an underwriter of those securities within the meaning of section 2(a)(11) of the Act if all of the conditions of this section are met. (c) Current public information. Adequate current public information with respect to the issuer of the securities must be available. Such information will be deemed to be available only if the applicable condition set forth in this paragraph is met: (1) Reporting issuers. The issuer is, and has been for a period of at least 90 days immediately before the sale, subject to the reporting requirements of section 13 or 15(d) of the Exchange Act and has filed all required reports under section 13 or 15(d) of the Exchange Act, as applicable, during the 12 months preceding such sale (or for such shorter period that the issuer was required to file such reports), other than Form 8–K reports (§249.308 of this chapter); or (2) Non-reporting issuers. If the issuer is not subject to the reporting requirements of section 13 or 15(d) of the Exchange Act, there is publicly available the information concerning the issuer specified in paragraphs (a)(5)(i) to (xiv), inclusive, and paragraph (a)(5)(xvi) of §240.15c2–11 of this chapter, or, if the issuer is an insurance company, the information specified in section 12(g)(2)(G)(i) of the Exchange Act (15 U.S.C. 78 l (g)(2)(G)(i)). Note to §230.144(c). With respect to paragraph (c)(1), the person can rely upon: 1. A statement in whichever is the most recent report, quarterly or annual, required to be filed and filed by the issuer that such issuer has filed all reports required under section 13 or 15(d) of the Exchange Act, as applicable, during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), other than Form 8–K reports (§249.308 of this chapter), and has been subject to such filing requirements for the past 90 days; or 2 of 7
  • 10. 2. A written statement from the issuer that it has complied with such reporting requirements. 3. Neither type of statement may be relied upon, however, if the person knows or has reason to believe that the issuer has not complied with such requirements. (d) Holding period for restricted securities. If the securities sold are restricted securities, the following provisions apply: (1) General rule. (i) If the issuer of the securities is, and has been for a period of at least 90 days immediately before the sale, subject to the reporting requirements of section 13 or 15(d) of the Exchange Act, a minimum of six months must elapse between the later of the date of the acquisition of the securities from the issuer, or from an affiliate of the issuer, and any resale of such securities in reliance on this section for the account of either the acquiror or any subsequent holder of those securities. (ii) If the issuer of the securities is not, or has not been for a period of at least 90 days immediately before the sale, subject to the reporting requirements of section 13 or 15(d) of the Exchange Act, a minimum of one year must elapse between the later of the date of the acquisition of the securities from the issuer, or from an affiliate of the issuer, and any resale of such securities in reliance on this section for the account of either the acquiror or any subsequent holder of those securities. (iii) If the acquiror takes the securities by purchase, the holding period shall not begin until the full purchase price or other consideration is paid or given by the person acquiring the securities from the issuer or from an affiliate of the issuer. (2) Promissory notes, other obligations or installment contracts. Giving the issuer or affiliate of the issuer from whom the securities were purchased a promissory note or other obligation to pay the purchase price, or entering into an installment purchase contract with such seller, shall not be deemed full payment of the purchase price unless the promissory note, obligation or contract: (i) Provides for full recourse against the purchaser of the securities; (ii) Is secured by collateral, other than the securities purchased, having a fair market value at least equal to the purchase price of the securities purchased; and (iii) Shall have been discharged by payment in full prior to the sale of the securities. (3) Determination of holding period. The following provisions shall apply for the purpose of determining the period securities have been held: (i) Stock dividends, splits and recapitalizations. Securities acquired from the issuer as a dividend or pursuant to a stock split, reverse split or recapitalization shall be deemed to have been acquired at the same time as the securities on which the dividend or, if more than one, the initial dividend was paid, the securities involved in the split or reverse split, or the securities surrendered in connection with the recapitalization. (ii) Conversions and exchanges. If the securities sold were acquired from the issuer solely in exchange for other securities of the same issuer, the newly acquired securities shall be deemed to have been acquired at the same time as the securities surrendered for conversion or exchange, even if the securities surrendered were not convertible or exchangeable by their terms. Note to §230.144(d)(3)(ii). If the surrendered securities originally did not provide for cashless conversion or exchange by their terms and the holder provided consideration, other than solely securities of the same issuer, in connection with the amendment of the surrendered securities to permit cashless conversion or exchange, then the newly acquired securities shall be deemed to have been acquired at the same time as such amendment to the surrendered securities, so long as, in the conversion or exchange, the securities sold were acquired from the issuer solely in exchange for other securities of the same issuer. (iii) Contingent issuance of securities. Securities acquired as a contingent payment of the purchase price of an equity interest in a business, or the assets of a business, sold to the issuer or an affiliate of the issuer shall be deemed to have been acquired at the time of such sale if the issuer or affiliate was then committed to issue the securities subject only to conditions other than the payment of further consideration for such securities. An agreement entered into in connection with any such purchase to remain in the employment of, or not to compete with, the issuer or affiliate or the rendering of services pursuant to such agreement shall not be deemed to be the payment of further consideration for such securities. (iv) Pledged securities. Securities which are bona-fide pledged by an affiliate of the issuer when sold by the pledgee, or by a purchaser, after a default in the obligation secured by the pledge, shall be deemed to have been acquired when they were acquired by the pledgor, except that if the securities were pledged without recourse they shall be deemed to have been acquired by the pledgee at the time of the pledge or by the purchaser at the time of purchase. (v) Gifts of securities. Securities acquired from an affiliate of the issuer by gift shall be deemed to have been acquired by the donee when they were acquired by the donor. (vi) Trusts. Where a trust settlor is an affiliate of the issuer, securities acquired from the settlor by the trust, or acquired from the trust by the beneficiaries thereof, shall be deemed to have been acquired when such securities were acquired by the settlor. (vii) Estates. Where a deceased person was an affiliate of the issuer, securities held by the estate of such person or acquired from such estate by the estate beneficiaries shall be deemed to have been acquired when they were acquired by the deceased person, except that no holding period is required if the estate is not an affiliate of the issuer or if the securities are sold by a beneficiary of the estate who is not such an affiliate. 3 of 7
  • 11. Note to §230.144(d)(3)(vii). While there is no holding period or amount limitation for estates and estate beneficiaries which are not affiliates of the issuer, paragraphs (c) and (h) of this section apply to securities sold by such persons in reliance upon this section. (viii) Rule 145(a) transactions. The holding period for securities acquired in a transaction specified in §230.145(a) shall be deemed to commence on the date the securities were acquired by the purchaser in such transaction, except as otherwise provided in paragraphs (d)(3)(ii) and (ix) of this section. (ix) Holding company formations. Securities acquired from the issuer in a transaction effected solely for the purpose of forming a holding company shall be deemed to have been acquired at the same time as the securities of the predecessor issuer exchanged in the holding company formation where: (A) The newly formed holding company’s securities were issued solely in exchange for the securities of the predecessor company as part of a reorganization of the predecessor company into a holding company structure; (B) Holders received securities of the same class evidencing the same proportional interest in the holding company as they held in the predecessor, and the rights and interests of the holders of such securities are substantially the same as those they possessed as holders of the predecessor company’s securities; and (C) Immediately following the transaction, the holding company has no significant assets other than securities of the predecessor company and its existing subsidiaries and has substantially the same assets and liabilities on a consolidated basis as the predecessor company had before the transaction. (x) Cashless exercise of options and warrants. If the securities sold were acquired from the issuer solely upon cashless exercise of options or warrants issued by the issuer, the newly acquired securities shall be deemed to have been acquired at the same time as the exercised options or warrants, even if the options or warrants exercised originally did not provide for cashless exercise by their terms. Note 1 to §230.144(d)(3)(x). If the options or warrants originally did not provide for cashless exercise by their terms and the holder provided consideration, other than solely securities of the same issuer, in connection with the amendment of the options or warrants to permit cashless exercise, then the newly acquired securities shall be deemed to have been acquired at the same time as such amendment to the options or warrants so long as the exercise itself was cashless. Note 2 to §230.144(d)(3)(x). If the options or warrants are not purchased for cash or property and do not create any investment risk to the holder, as in the case of employee stock options, the newly acquired securities shall be deemed to have been acquired at the time the options or warrants are exercised, so long as the full purchase price or other consideration for the newly acquired securities has been paid or given by the person acquiring the securities from the issuer or from an affiliate of the issuer at the time of exercise. (e) Limitation on amount of securities sold. Except as hereinafter provided, the amount of securities sold for the account of an affiliate of the issuer in reliance upon this section shall be determined as follows: (1) If any securities are sold for the account of an affiliate of the issuer, regardless of whether those securities are restricted, the amount of securities sold, together with all sales of securities of the same class sold for the account of such person within the preceding three months, shall not exceed the greatest of: (i) One percent of the shares or other units of the class outstanding as shown by the most recent report or statement published by the issuer; or (ii) The average weekly reported volume of trading in such securities on all national securities exchanges and/or reported through the automated quotation system of a registered securities association during the four calendar weeks preceding the filing of notice required by paragraph (h), or if no such notice is required the date of receipt of the order to execute the transaction by the broker or the date of execution of the transaction directly with a market maker; or (iii) The average weekly volume of trading in such securities reported pursuant to an effective transaction reporting plan or an effective national market system plan as those terms are defined in §242.600 of this chapter during the four-week period specified in paragraph (e)(1)(ii) of this section. (2) If the securities sold are debt securities, then the amount of debt securities sold for the account of an affiliate of the issuer, regardless of whether those securities are restricted, shall not exceed the greater of the limitation set forth in paragraph (e)(1) of this section or, together with all sales of securities of the same tranche (or class when the securities are non-participatory preferred stock) sold for the account of such person within the preceding three months, ten percent of the principal amount of the tranche (or class when the securities are non-participatory preferred stock) attributable to the securities sold. (3) Determination of amount. For the purpose of determining the amount of securities specified in paragraph (e)(1) of this section and, as applicable, paragraph (e)(2) of this section, the following provisions shall apply: (i) Where both convertible securities and securities of the class into which they are convertible are sold, the amount of convertible securities sold shall be deemed to be the amount of securities of the class into which they are convertible for the purpose of determining the aggregate amount of securities of both classes sold; 4 of 7
  • 12. (ii) The amount of securities sold for the account of a pledgee of those securities, or for the account of a purchaser of the pledged securities, during any period of three months within six months (or within one year if the issuer of the securities is not, or has not been for a period of at least 90 days immediately before the sale, subject to the reporting requirements of section 13 or 15(d) of the Exchange Act) after a default in the obligation secured by the pledge, and the amount of securities sold during the same three-month period for the account of the pledgor shall not exceed, in the aggregate, the amount specified in paragraph (e)(1) or (2) of this section, whichever is applicable; Note to §230.144(e)(3)(ii). Sales by a pledgee of securities pledged by a borrower will not be aggregated under paragraph (e)(3)(ii) with sales of the securities of the same issuer by other pledgees of such borrower in the absence of concerted action by such pledgees. (iii) The amount of securities sold for the account of a donee of those securities during any three-month period within six months (or within one year if the issuer of the securities is not, or has not been for a period of at least 90 days immediately before the sale, subject to the reporting requirements of section 13 or 15(d) of the Exchange Act) after the donation, and the amount of securities sold during the same three-month period for the account of the donor, shall not exceed, in the aggregate, the amount specified in paragraph (e)(1) or (2) of this section, whichever is applicable; (iv) Where securities were acquired by a trust from the settlor of the trust, the amount of such securities sold for the account of the trust during any three-month period within six months (or within one year if the issuer of the securities is not, or has not been for a period of at least 90 days immediately before the sale, subject to the reporting requirements of section 13 or 15(d) of the Exchange Act) after the acquisition of the securities by the trust, and the amount of securities sold during the same three-month period for the account of the settlor, shall not exceed, in the aggregate, the amount specified in paragraph (e)(1) or (2) of this section, whichever is applicable; (v) The amount of securities sold for the account of the estate of a deceased person, or for the account of a beneficiary of such estate, during any three-month period and the amount of securities sold during the same three-month period for the account of the deceased person prior to his death shall not exceed, in the aggregate, the amount specified in paragraph (e)(1) or (2) of this section, whichever is applicable: Provided, that no limitation on amount shall apply if the estate or beneficiary of the estate is not an affiliate of the issuer; (vi) When two or more affiliates or other persons agree to act in concert for the purpose of selling securities of an issuer, all securities of the same class sold for the account of all such persons during any three-month period shall be aggregated for the purpose of determining the limitation on the amount of securities sold; (vii) The following sales of securities need not be included in determining the amount of securities to be sold in reliance upon this section: (A) Securities sold pursuant to an effective registration statement under the Act; (B) Securities sold pursuant to an exemption provided by Regulation A (§230.251 through §230.263) under the Act; (C) Securities sold in a transaction exempt pursuant to section 4 of the Act (15 U.S.C. 77d) and not involving any public offering; and (D) Securities sold offshore pursuant to Regulation S (§230.901 through §230.905, and Preliminary Notes) under the Act. (f) Manner of sale. (1) The securities shall be sold in one of the following manners: (i) Brokers’ transactions within the meaning of section 4(4) of the Act; (ii) Transactions directly with a market maker, as that term is defined in section 3(a)(38) of the Exchange Act; or (iii) Riskless principal transactions where: (A) The offsetting trades must be executed at the same price (exclusive of an explicitly disclosed markup or markdown, commission equivalent, or other fee); (B) The transaction is permitted to be reported as riskless under the rules of a self-regulatory organization; and (C) The requirements of paragraphs (g)(2) (applicable to any markup or markdown, commission equivalent, or other fee), (g)(3), and (g)(4) of this section are met. Note to §230.144(f)(1): For purposes of this paragraph, a riskless principal transaction means a principal transaction where, after having received from a customer an order to buy, a broker or dealer purchases the security as principal in the market to satisfy the order to buy or, after having received from a customer an order to sell, sells the security as principal to the market to satisfy the order to sell. (2) The person selling the securities shall not: (i) Solicit or arrange for the solicitation of orders to buy the securities in anticipation of or in connection with such transaction; or (ii) Make any payment in connection with the offer or sale of the securities to any person other than the broker or dealer who executes the order to sell the securities. 5 of 7
  • 13. (3) Paragraph (f) of this section shall not apply to: (i) Securities sold for the account of the estate of a deceased person or for the account of a beneficiary of such estate provided the estate or estate beneficiary is not an affiliate of the issuer; or (ii) Debt securities. (g) Brokers’ transactions. The term brokers’ transactions in section 4(4) of the Act shall for the purposes of this rule be deemed to include transactions by a broker in which such broker: (1)Does no more than execute the order or orders to sell the securities as agent for the person for whose account the securities are sold; (2) Receives no more than the usual and customary broker’s commission; (3) Neither solicits nor arranges for the solicitation of customers’ orders to buy the securities in anticipation of or in connection with the transaction; Provided, that the foregoing shall not preclude: (i) Inquiries by the broker of other brokers or dealers who have indicated an interest in the securities within the preceding 60 days; (ii) Inquiries by the broker of his customers who have indicated an unsolicited bona fide interest in the securities within the preceding 10 business days; (iii) The publication by the broker of bid and ask quotations for the security in an inter-dealer quotation system provided that such quotations are incident to the maintenance of a bona fide inter-dealer market for the security for the broker’s own account and that the broker has published bona fide bid and ask quotations for the security in an inter-dealer quotation system on each of at least twelve days within the preceding thirty calendar days with no more than four business days in succession without such two-way quotations; or (iv) The publication by the broker of bid and ask quotations for the security in an alternative trading system, as defined in §242.300 of this chapter, provided that the broker has published bona fide bid and ask quotations for the security in the alternative trading system on each of the last twelve business days; and Note to §230.144(g)(3)(ii). The broker should obtain and retain in his files written evidence of indications of bona fide unsolicited interest by his customers in the securities at the time such indications are received. (4) After reasonable inquiry is not aware of circumstances indicating that the person for whose account the securities are sold is an underwriter with respect to the securities or that the transaction is a part of a distribution of securities of the issuer. Without limiting the foregoing, the broker shall be deemed to be aware of any facts or statements contained in the notice required by paragraph (h) of this section. Notes: (i) The broker, for his own protection, should obtain and retain in his files a copy of the notice required by paragraph (h) of this section. (ii) The reasonable inquiry required by paragraph (g)(3) of this section should include, but not necessarily be limited to, inquiry as to the following matters: (a) The length of time the securities have been held by the person for whose account they are to be sold. If practicable, the inquiry should include physical inspection of the securities; (b) The nature of the transaction in which the securities were acquired by such person; (c) The amount of securities of the same class sold during the past 3 months by all persons whose sales are required to be taken into consideration pursuant to paragraph (e) of this section; (d) Whether such person intends to sell additional securities of the same class through any other means; (e) Whether such person has solicited or made any arrangement for the solicitation of buy orders in connection with the proposed sale of securities; (f) Whether such person has made any payment to any other person in connection with the proposed sale of the securities; and (g) The number of shares or other units of the class outstanding, or the relevant trading volume. (h) Notice of proposed sale. (1) If the amount of securities to be sold in reliance upon this rule during any period of three months exceeds 5,000 shares or other units or has an aggregate sale price in excess of $50,000, three copies of a notice on Form 144 (§239.144 of this chapter) shall be filed with the Commission. If such securities are admitted to trading on any national securities exchange, one copy of such notice also shall be transmitted to the principal exchange on which such securities are admitted. (2) The Form 144 shall be signed by the person for whose account the securities are to be sold and shall be transmitted for filing concurrently with either the placing with a broker of an order to execute a sale of securities in reliance upon this rule or the execution directly with a market maker of such a sale. Neither the filing of such notice nor the failure of the Commission to comment on such notice shall be deemed to preclude the Commission from taking any action that it deems necessary or appropriate with respect to the sale of the securities referred to in such notice. The person filing the notice required by this paragraph shall have a bona fide intention to sell the securities referred to in the notice within a reasonable time after the filing of such notice. 6 of 7
  • 14. (i) Unavailability to securities of issuers with no or nominal operations and no or nominal non-cash assets. (1) This section is not available for the resale of securities initially issued by an issuer defined below: (i) An issuer, other than a business combination related shell company, as defined in §230.405, or an asset-backed issuer, as defined in Item 1101(b) of Regulation AB (§229.1101(b) of this chapter), that has: (A) No or nominal operations; and (B) Either: (1) No or nominal assets; (2) Assets consisting solely of cash and cash equivalents; or (3) Assets consisting of any amount of cash and cash equivalents and nominal other assets; or (ii) An issuer that has been at any time previously an issuer described in paragraph (i)(1)(i). (2) Notwithstanding paragraph (i)(1), if the issuer of the securities previously had been an issuer described in paragraph (i)(1)(i) but has ceased to be an issuer described in paragraph (i)(1)(i); is subject to the reporting requirements of section 13 or 15(d) of the Exchange Act; has filed all reports and other materials required to be filed by section 13 or 15(d) of the Exchange Act, as applicable, during the preceding 12 months (or for such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports (§249.308 of this chapter); and has filed current “Form 10 information” with the Commission reflecting its status as an entity that is no longer an issuer described in paragraph (i)(1)(i), then those securities may be sold subject to the requirements of this section after one year has elapsed from the date that the issuer filed “Form 10 information” with the Commission. (3) The term “Form 10 information” means the information that is required by Form 10 or Form 20-F (§249.210 or §249.220f of this chapter), as applicable to the issuer of the securities, to register under the Exchange Act each class of securities being sold under this rule. The issuer may provide the Form 10 information in any filing of the issuer with the Commission. The Form 10 information is deemed filed when the initial filing is made with the Commission. [37 FR 596, Jan. 14, 1972, as amended at 39 FR 6071, Feb. 19, 1974; 39 FR 8914, Mar. 7, 1974; 43 FR 43711, Sept. 27, 1978; 43 FR 54230, Nov. 21, 1978; 44 FR 15612, Mar. 14, 1979; 45 FR 12391, Feb. 28, 1980; 46 FR 12197, Feb. 12, 1981; 47 FR 11261, Mar. 16, 1982; 53 FR 12921, Apr. 20, 1988; 55 FR 17944, Apr. 30, 1990; 58 FR 67312, Dec. 21, 1993; 61 FR 21359, May 9, 1996; 62 FR 9244, Feb. 28, 1997; 63 FR 9642, Feb. 25, 1998; 64 FR 61400, Nov. 10, 1999; 69 FR 15617, Mar. 25, 2004; 70 FR 37617, June 29, 2005; 72 FR 71566, Dec. 17, 2007] 7 of 7
  • 15. This Confidential Private Placement Memorandum (the "Memorandum") has been prepared in connection with an offering (the "Offering") of up to 31,250,000 shares of Common Stock, $.001 par value (the "Shares") of MKG ENTERPRISES CORP (the "Company"). The minimum offering amount is $10,000 ("Minimum Offering Amount"), and the maximum offering amount is $99,000,000 ("Maximum Offering Amount"). The minimum purchase per investor is 62,500 shares, or $10,000, and the maximum purchase per investor is 3,125,000 shares, or $500,000.00. Officers and directors of the Company will make offers and sales of the Shares; however, the Company retains the right to utilize any broker-dealers registered with the National Association of Securities Dealers, Inc. ("NASD") and applicable state securities authorities to sell all or any portion of the Shares. If the Company so elects, it may pay such broker-dealers a commission in the amount of up to 10% and a non-accountable expense allowance of up to 3% of the proceeds they have sold. Offers and sales of the Shares will be made only to "Accredited Investors" as such term is defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended (the "Act"), which includes the Company's officers, directors and affiliates. The Offering is scheduled to terminate on May 31, 2023. The Company reserves the right, however, to extend the term of this Offering for a period of up to 30 days. See "The Offering." This Memorandum may not be reproduced in whole or in part without the express prior written consent of the Company. The date of this Confidential Private Placement Memorandum is May 16, 2018. THIS MEMORANDUM IS FOR CONFIDENTIAL USE AND MAY NOT BE REPRODUCED. DISTRIBUTION THAT IS NOT APPROVED BY THE COMPANY MAY RESULT IN A VIOLATION OF FEDERAL AND STATE SECURITIES REGULATIONS. THIS MEMORANDUM AND ALL ACCOMPANYING MATERIALS SHALL BE RETURNED TO AN AUTHORIZED OFFICER OF THE COMPANY UPON REQUEST. THE SECURITIES HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933 (THE "ACT") OR THE SECURITIES LAWS OF ANY STATE, IN RELIANCE UPON ONE OR MORE SPECIFIC EXEMPTIONS FROM REGISTRATION OR QUALIFICATION REQUIREMENTS. SUCH EXEMPTIONS LIMIT THE NUMBER AND TYPES OF INVESTORS TO WHICH THE OFFERING WILL BE MADE. AS A RESULT, THE SECURITIES OFFERED HEREBY ARE OFFERED ONLY TO "ACCREDITED INVESTORS" AS SUCH TERM IS DEFINED IN RULE 501 OF REGULATION D OF THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES OFFERED HEREBY ARE HIGHLY SPECULATIVE AND INVOLVE A HIGH DEGREE OF RISK, AND SHOULD NOT BE PURCHASED BY ANYONE WHO CANNOT AFFORD THE LOSS OF HIS OR HER ENTIRE INVESTMENT. NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THIS MEMORANDUM IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER FEDERAL AND APPLICABLE STATE SECURITIES LAWS. THERE IS CURRENTLY NO PUBLIC MARKET FOR THE SECURITIES, AND INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE STATEMENTS CONTAINED HEREIN ARE BASED ON INFORMATION BELIEVED BY THE COMPANY TO BE RELIABLE. NO WARRANTY CAN BE MADE THAT CIRCUMSTANCES HAVE NOT CHANGED SINCE THE DATE SUCH INFORMATION WAS SUPPLIED. THERE CAN BE NO ASSURANCE THAT THE COMPANY WILL BE ABLE TO SUCCESSFULLY IMPLEMENT ANY OF ITS PLANS, OR THAT ACTUAL FUTURE PLANS AND PERFORMANCE WILL NOT BE MATERIALLY DIFFERENT FROM THE COMPANY'S PRESENT EXPECTATIONS. ANY INFORMATION OR REPRESENTATIONS CONTAINED IN THE COMPANY'S PROMOTIONAL OR MARKETING SOURCES OTHER THAN THIS MEMORANDUM MAY NOT BE AS CURRENT OR ACCURATE AS INFORMATION OR REPRESENTATIONS CONTAINED IN THIS MEMORANDUM, AND THEIR CONTENTS ARE EXCLUDED FROM THIS MEMORANDUM.
  • 16. THIS OFFERING IS SUBJECT TO WITHDRAWAL, CANCELLATION OR MODIFICATION BY THE COMPANY WITHOUT NOTICE. THE COMPANY RESERVES THE RIGHT, IN ITS SOLE DISCRETION, TO REJECT ANY SUBSCRIPTION IN WHOLE OR IN PART FOR ANY REASON OR TO ALLOT TO ANY SUBSCRIBER LESS THAN THE NUMBER OF SHARES SUBSCRIBED FOR OR TO WAIVE CONDITIONS TO THE PURCHASE OF THE SHARES. PROSPECTIVE INVESTORS ARE NOT TO CONSTRUE THE CONTENTS OF THIS MEMORANDUM AS LEGAL, INVESTMENT OR TAX ADVICE. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THIS MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITY OTHER THAN THE SECURITIES OFFERED HEREBY, NOR DOES IT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY SUCH SECURITIES BY ANYONE IN ANY JURISDICTION IN WHICH SUCH OFFER OF SOLICITATION IS NOT AUTHORIZED, OR IN WHICH THE PERSON MAKING SUCH OFFER OR SOLICITATION IS NOT QUALIFIED TO DO SO. IN ADDITION, THE OFFERING MATERIALS CONSTITUTE AN OFFER ONLY IF A NAME AND IDENTIFICATION NUMBER APPEAR IN THE APPROPRIATE SPACES PROVIDED ON THE COVER PAGE AND CONSTITUTE AN OFFER ONLY TO THE PERSON WHOSE NAME APPEARS IN THOSE SPACES.