NanoTech Entertainment Inc (NTEK)

[shajandr]

In re the NTEK claim that Mitch Lowe is a co-founder of Netflix, which is likely based solely on representations made by Mitch Lowe, I submit the following information:

"Netflix was founded in 1997 in Scotts Valley, California by Marc Randolph[16][17] and Reed Hastings, who previously had worked together at Pure Software."

http://en.wikipedia.org/wiki/Netflix

"Netflix was founded in Scotts Valley, California, in August of 1997 by Reed Hastings and Marc Randolph, both veteran "new technology" entrepreneurs, to rent and sell DVDs over the Internet."

http://www.fundinguniverse.com/company-histories/netflix-inc-history/


"Netflix: The Company and Its Founders

Marcia Amidon Lüsted

ABDO Publishing Company, Aug 1, 2012 - Juvenile Nonfiction - 112 pages

This title examines the remarkable lives of Reed Hastings and Marc Randolph and their work building the groundbreaking company Netflix. Readers will learn about each founder's background and education, as well as his early career.

http://books.google.com/books/about/Netflix.html?id=TzaItgAACAAJ

From official Netflix Wiki:

"History
Netflix headquarters in Los Gatos

Netflix was founded in 1997 in Scotts Valley, California by Marc Randolph[15][16] and Reed Hastings, who previously had worked together at Pure Software. Randolph was a co-founder of a computer mail order company by the name of MicroWarehouse. Later he was employed by Borland International as vice-president of marketing. Hastings, once a math teacher, had founded Pure Software, which he had recently sold for $700 million. Hastings invested $2.5 million in start up cash for Netflix.[17] The idea of Netflix came to Hastings when he was forced to pay $40 in overdue fines after returning Apollo 13 well past its due date.[18] The Netflix website was launched on August 29, 1997[19] with only 30 employees and 925 works available for rent and brought a more traditional, online pay-per-rental model (US $4 per rental plus US $2 in postage; late fees applied).[20] Netflix introduced the monthly subscription concept in September 1999,[21] and then dropped the single-rental model in early 2000. Since that time the company has built its reputation on the business model of flat-fee unlimited rentals without due dates, late fees, shipping and handling fees, or per title rental fees."

Not a peep about any "Mitch Lowe" in the Netflix history.

Netflix S-1 (IPO)

Mitch Lowe is NO co-founder of Netflix based on the S-1. From their IPO S-1:


Netflix management at the IPO - founders are in bold

MANAGEMENT

Executive Officers and Directors

The following table sets forth certain information with respect to our executive officers and directors as of March 31, 2000.

Name Age Position
- ---- --- --------
Reed Hastings............ 39 Chief Executive Officer, President and Chairman of the Board
Marc B. Randolph......... 41 Executive Producer and Director
Thomas R. Dillon......... 56 Vice President of Operations
Neil Hunt................ 38 Vice President of Internet Engineering
Leslie J. Kilgore........ 34 Vice President of Marketing
J. Mitchell Lowe......... 47 Vice President of Business Development
W. Barry McCarthy, Jr. .. 46 Chief Financial Officer
Patty McCord............. 46 Vice President of Human Resources
Eric P. Meyer............ 35 Vice President of Database Systems
Deborah J. Pinkston...... 38 Vice President of Sales
Timothy M. Haley......... 45 Director
Jay C. Hoag.............. 41 Director
Samir P. Master.......... 31 Director
Michael N. Schuh......... 56 Director


Mitch Lowe DID NOT GET ANY FOUNDER STOCK!

Employment Agreements and Change in Control Arrangements

In October 1997, Reed Hastings purchased 500,000 shares of our common stock under a founder's restricted stock purchase agreement. This agreement contains vesting provisions that give us the option to repurchase unvested shares at the original purchase price if Mr. Hastings' service with us is terminated. Each
month, 1/48 of the total shares purchased by Mr. Hastings becomes vested. All of Mr. Hastings' shares will be fully vested on October 20, 2001, subject to Mr. Hastings continuing to be our employee through that date. Under an amendment to this agreement entered into in June 1998, upon a change of control of NetFlix, 50% of his shares that have not yet vested will vest and will no longer be subject to repurchase by us. In addition, if Mr. Hastings' employment with the surviving corporation is terminated without cause within twelve months following the change of control, then all of his shares that have not yet vested will vest and will no longer be subject to repurchase.

In October 1997, Marc B. Randolph purchased 2,700,000 shares of our common stock under a founder's restricted stock purchase agreement. This agreement contains vesting provisions that give us the option to repurchase unvested shares at the original purchase price if Mr. Randolph's service to us is terminated. Under an amendment to this agreement entered into in June 1998, upon a change of control of NetFlix, 50% of his shares that have not yet vested will vest and will no longer be subject to repurchase by us. In addition, if Mr. Randolph's employment with the surviving corporation is terminated without cause within twelve months following the change of control, then all of his shares that havenot yet vested will vest and will no longer be subject to repurchase. Under an agreement entered into in October 1998, in connection with his resignation as our chief executive officer, Mr. Randolph returned 650,000 of his unvested shares to us. Immediately following this contribution, Mr. Randolph held 675,000 vested and 1,375,000 unvested shares of common stock of NetFlix. Each month, 1/36 of the unvested shares held by Mr. Randolph following this
contribution of shares to the company becomes vested. All of Mr. Randolph's shares will be fully vested on October 8, 2001, subject to Mr. Randolph continuing to be our employee through that date.

In April 1999, our board of directors awarded W. Barry McCarthy, Jr. an option to purchase 330,000 shares of our common stock under a stock option agreement. One-quarter of the shares underlying Mr. McCarthy's options will vest in April 2000, and 1/48 of the total shares will vest each month thereafter. Pursuant to an offer letter from us to Mr. McCarthy, upon a change of control of NetFlix, the vesting schedule will accelerate with respect to an amount of shares equal to the number of shares that would otherwise vest over the following twelve months or 50% of the unvested options, whichever is greater. All of the shares underlying Mr. McCarthy's option will be fully vested on April 14, 2003, subject to Mr. McCarthy continuing to be our employee through that date.

NO FOUNDER STOCK FOR MITCH LOWE - BECAUSE HE WAS NOT A FOUNDER!

HE WAS NOT EVEN A MAJOR STOCKHOLDER! (see below)

Principal Stockholders Table

Percent of Shares
Outstanding
-----------------
Number of
Shares
Beneficially Before After
Name and Address Owned Offering Offering
- ---------------- ------------ -------- --------
<S> <C> <C> <C>
Entities affiliated with Technology Crossover 6,997,461 22.5%
Ventures(1)....................................
575 High Street, Suite 400
Palo Alto, CA 94301
Entities affiliated with Institutional Venture 4,620,840 14.9
Partners(2)....................................
3000 Sand Hill Road
Building 2, Suite 290
Menlo Park, CA 94025
Europ@web B.V.(3)............................... 4,432,930 14.3
Locatellikade 1
Parnassustoren
1076 AZ Amsterdam
The Netherlands
Entities affiliated with Foundation Capital(4) 2,340,049 7.5
...............................................
70 Willow Road, Suite 200
Menlo Park, CA 94025
Reed Hastings................................... 7,577,572 24.4
Marc B. Randolph(5)............................. 2,042,500 6.6
Omer Malchin.................................... 106,250 *
W. Barry McCarthy, Jr.(6)....................... 89,375 *
Neil Hunt....................................... 210,000 *
Eric P. Meyer................................... 325,000 1.0
Samir P. Master(7).............................. 4,432,930 14.3
Michael N. Schuh(8)............................. 2,340,049 7.5
Jay C. Hoag(9).................................. 6,997,461 22.5
Timothy M. Haley(10)............................ 4,620,840 14.9



Not even a blip mention of Mitch Lowe in the stock table