EX1A-1 UNDR AGMT 3 tm2318795d3_ex1-1.htm EXHIBIT 1.1

 

Exhibit 1.1

 

DEALMAKER ORDER FORM

Regulation A Offerings (each, an “Offering”)

 

Customer:. Knightscope Contact: William Santana Li
Address: 1070 Terra Bella Avenue, Mountain View, CA 94043 Phone: (650) 669-9020
Commencement Date (optional): Aug 1, 2023 E-Mail: wsl@knightscope.com

 

This Order Form sets forth the terms of service by which a number of separate DealMaker affiliates are engaged to provide services to Customer (collectively, the “Services”). By its signature below in each applicable section, Customer hereby agrees to the terms of service of each company referenced in such section. Unless otherwise specified above, the Services shall commence on the date hereof.

 

By preceding with its order, Customer agrees to be bound contractually with each respective company. The Applicable Terms of Service include and contain. among other things. warranty disclaimers, liability limitations and use limitations.

 

There shall be no force or effect to any different terms other than as described or referenced herein (including all terms included or incorporated by reference) except as entered into by one of the companies referenced herein and Customer in writing.

 

A summary of Services purchased is described on Schedule A attached. The applicable Terms of Service are described on the Schedules thereafter, and are incorporated herein.

 

Services NEVER include providing any investment advice nor any investment recommendations to any investor.

 

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Schedule “A”
Summary of Fees

A.Regulation A Offering Fees

 

·$60,000 Advance (an advance against accountable expenses anticipated to be incurred, and refunded to extent not actually incurred)

 

This advance fee includes

i.         $22,500 prepaid to DealMaker Securities LLC for Pre-Offering Analysis

ii.        $7,500 prepaid to Novation Solutions Inc. O/A DealMaker for infrastructure for self-directed electronic roadshow

iii.       $30,000 prepaid to DealMaker Reach LLC for consulting and developing materials for self-directed electronic roadshow

 

Payment Schedule:

 

oJun 5, 2023 : $10,000 (Tech set up & TTW with Reach
oJun 22, 2023 : $10,000 ((DMS engaged to start due diligence)
  o Jun 22, 2023 : $10,000 (2nd Reach installment to start campaign buildout)
  o Aug 10, 2023 : $10,000 (4th set up installment)
  o Aug 24, 2023 : $10,000 (5th set up installment)
  o Sep 7, 2023 : $10,000 (final set up installment, commencement of monthly fees)

 

·$10,000 monthly account management fees.

 

oMonthly account management fees commence on the first month following the Commencement Date.
oTo the extent services are commenced in advance of a FINRA no objection letter being received, such amounts shall be considered an advance against accountable expenses anticipated to be incurred, and fully refunded to extent not actually incurred). A maximum of $30,000 or three months of account management fees are payable prior to a no objection letter being received.
oMonthly fees include:
 $2,000 account maintenance fees payable to DealMaker (up to a maximum of $24,000 during the Offering)
 $8,000 marketing advisory fees payable to Reach (up to a maximum of $96,000 during the Offering)

 

·6.5% Cash Fees From All Proceeds:

 

·$2,000 in Corporate Filing Fees (payable to FINRA)

 

Fair Compensation

 

To ensure adherence to fair compensation guidelines, DealMaker Securities will ensure that, in any scenario, the aggregate fees payable to DealMaker Securities and its affiliates in respect of Services related to the Offering shall never exceed the amounts set forth in the table below (the column entitled “Maximum Compensation”).

 

Total Offering Amount   Maximum Compensation 
$2,500,000   $250,000 
$5,000,000   $450,000 
$7,500,000   $637,500 
$10,000,000   $830,000 

 

If the Offering is fully subscribed, the maximum amount of underwriting compensation will be $830,000

 

*In the event that the Financial Industry Regulatory Authority (“FINRA”) Department of Corporate Finance does not issue a no objection letter for the Offering, all DMS Fees are fully refundable other than services actually rendered.

 

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B.Non-Regulation A Offering Fees

 

·$2,500 Transfer Agent account setup, including upload of existing shareholder list and general review and compliance (Directors’ resolutions, etc.)

 

·$1,000 monthly subscription fee for DealMaker Engage shareholder management portal, commencing on the first month after which securities are issued by DealMaker Transfer Agent.

 

·$2,000 monthly consulting fees to DealMaker Reach for branding and marketing services unrelated to the Offering.

 

Fees for additional services are listed on the DMTA Rate card here and are subject to regular update in the ordinary course.

 

Note: Prices are standard base fees and subject to additional customization fees. A condition of the use of DealMaker Transfer Agent LLC services is that Customer continue to pay any and all outstanding fees owing to DealMaker, including software fees for use of the DealMaker Engage software portal on a monthly basis, on the fees and terms established in the Order Form entered into between Issuer and DealMaker.

 

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Schedule “B”

DealMaker Securities Services

Pre-Offering Analysis

 

·Reviewing Customer, its affiliates, executives and other parties as described in Rule 262 of Regulation A, and consulting with Customer regarding same.

 

Pre-Offering Consulting for Self-Directed Electronic Roadshow

 

·Consulting with Customer on best business practices regarding raise in light of current market conditions and prior self-directed capital raises

 

·Consulting with Customer on question customization for investor questionnaire, selection of webhosting services, and template for campaign page

 

·Advising Customer on compliance of marketing material and other communications with the public with applicable legal standards and requirements

 

·Providing advice to Customer on content of Form 1A and Revisions

 

·Provide extensive, review, training, and advice to Customer and Customer personnel on how to configure and use electronic platform powered by DealMaker.tech

 

·Assisting in the preparation of SEC and FINRA filings

 

·Working with the Client’s SEC counsel in providing information to the extent necessary

 

Advisory, Compliance and Consulting Services During the Offering

 

·Reviewing investor information, including identity verification, performing AML (Anti-Money Laundering) and other compliance background checks, and providing Customer with information on an investor in order for Customer to determine whether to accept such investor into the Offering;

 

·If necessary, discussions with the Customer regarding additional information or clarification on an Customer-invited investor;

 

·Coordinating with third party agents and vendors in connection with performance of services;

 

·Reviewing each investor’s subscription agreement to confirm such investor’s participation in the offering and provide a recommendation to the company whether or not to accept the subscription agreement for the investor’s participation;

 

·Contacting and/or notifying the company, if needed, to gather additional information or clarification on an investor;

 

·Providing ongoing advice to Customer on compliance of marketing material and other communications with the public, including with respect to applicable legal standards and requirements;

 

·Consulting with Customer regarding any material changes to the Form 1A which may require an amended filing; and

 

·Reviewing third party provider work-product with respect to compliance with applicable rules and regulations.

 

Customer hereby engages and retains DealMaker Securities LLC, a registered Broker-Dealer, to provide the applicable services described above. Customer hereby agrees to the terms set forth in the DealMaker Securities Terms linked here, with fees described on Schedule A hereto.

 

/s/ William Santana Li   
Customer Representative  

 

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Schedule “C”

DealMaker Reach Services

 

Pre-Offering Marketing & Advisory Services

 

(1)Website design and development

 

·Copywriting, wireframing, and website design
·Website development in Webflow
·Integration of tracking, analytics, and pixels
·Ongoing upkeep and management of website content

 

(2)Audience-Building Infrastructure

 

·Audience building via email capture on landing page
·Copywriting and design for investor educational series (4 to 6-part email series delivered to emails are captured on the website)
·Ongoing email list nurturing via updates repurposed from the Customer’s campaign-wide announcements, other relevant news, and webinars
·Design and implement email capture in Klaviyo
·Integrate DealMaker webhooks to build investor funnel and tracking of investor progress/status

 

(3)Video production

 

Pre-production:

·Custom Working Scripts for campaign video and 3 social ads
·Call Sheet and shooting script for production day

 

Production

·One (1) full day of video shooting with crew of 1-4 people, potentially including director of photography, gaffer, sound recorder, production assistant
·Remote performance coach (producer of the project)
·Transportation and crafty for crew
·Two cameras with basic grip and lighting package

 

Post-production

·Up to three (3) revisions on final campaign video
·One(1) 1.5-2.5 minute campaign hero video for fundraising campaign
·Three (3) 15-30 second social ads

 

Add ons available at an additional charge:

·Location rental
·Additional crew
·Additional days of filming
·On site director / producer
·Additional gear
·Actors
·Photography

 

Ongoing Marketing & Advisory Services During the Offering

 

(1) Conversion rate optimization

·Continuous website content testing to improve conversion rate

 

(2) Email marketing

·Ongoing email list nurturing via updates repurposed from the Customer’s campaign-wide announcements, other relevant news, and webinars

 

(3) Google Ads

·Search, Display, Google Discovery, and YouTube
·Creation of ad designs, copy, and audience targeting across Google Ads platform
·Ongoing testing of ad copy and creative

 

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(4) Paid Social
  · Facebook and Instagram prospecting and retargeting
  · Creation of ad designs, copy, and audience targeting
  · Ongoing testing of ad copy and creative
     
(5) Partnerships
  · Source and negotiate private ad placements with relevant publishers and email newsletters
     
(6) Reporting:
  · Regular calls weekly for month one after launch and 2/month thereafter
  · Strategic planning, implementation, and execution of the marketing budget
  · Coordinating with third party agents in connection with performance of services

 

Marketing Services are provided by DealMaker Reach LLC. Customer hereby agrees to the terms set forth in the DealMaker Reach Terms of Service linked [here], with fees described on Schedules A and B hereto.  

 

/s/ William Santana Li    
Customer Representative  

 

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Schedule “D”

DealMaker.tech Subscription Platform and Shareholder Engagement Online Portal

 

During the Offering, Subscription Processing and Payments Functionality

 

·Creation and maintenance of deal portal powered by DealMaker.tech software with fully-automated tracking, signing, and reconciliation of investment transactions
·Full analytics suite to track all aspects of the offering and manage the conversion of prospective investors into actual investors.

 

Apart from the Offering, Shareholder Management via DealMaker Engage

 

·Shareholder management software to provide corporate updates, announce additional financings, and track engagement
·Document-sharing functionality to disseminate share certificates, tax documentation, and other files to investors
·Monthly fee is payable to DealMaker.tech while the client has engaged DealMaker Transfer Agent

 

Subscription Management and Shareholder Engagement Technology is provided by Novation Solutions Inc. O/A DealMaker. Customer hereby agrees to the terms set forth in the DealMaker Terms of Service linked [here] with fees described on Schedules A and B hereto.

 

/s/ William Santana Li     
Customer Representative  

 

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