Exhibit
10.1
SECURITIES PURCHASE
AGREEMENT
This Securities Purchase
Agreement (this “Agreement”) is dated as of September
18, 2009, among Total Nutraceutical Solutions, Inc., a Nevada
corporation (the “ Seller”), and Philip Sobol, an
individual (the “Buyer”); and
WHEREAS, subject to the
terms and conditions set forth in this Agreement and pursuant to
Section 4(2) of the Securities Act and Rule 506 promulgated
thereunder, the Company desires to issue and sell to the Purchaser,
and the Purchaser desires to purchase from the Company $25,000 of
shares of Common Stock on the Closing Date.
NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement,
and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and each
Purchaser agrees as follows:
ARTICLE
1
PURCHASE AND SALE
OF COMMON STOCK
1.1
Sale of Common
Stock .
Upon the terms set forth herein, on the date on which Buyer
and Seller shall mutually agree (the "Closing Date"), Seller shall
sell, convey, transfer, assign, and deliver to Buyer, and Buyer
shall purchase from Seller, the number of shares of Common Stock of
the Company set forth on Schedule 1 attached hereto.
ARTICLE
2
CLOSING
2.1
Closing
Date .
The Closing shall be consummated in accordance with
Section 1.1 above.
2.2
Purchase
Price .
The purchase price for the Common Stock (the "Purchase
Price") shall be equal to Twenty-Five Thousand Dollars ($25,000) or
100,000 shares of restricted common stock at $.25 per share.
2.3
Seller's
Deliveries .
Prior to Closing or shortly thereafter, Seller shall at the
option of the Buyer, deliver all the following:
(1)
Stock certificate(s)
representing 100,000 shares of Common Stock.
(2)
If so requested by
Buyer, an opinion of counsel from the attorney for the Seller in
form to be agreed upon by Buyer and Seller;
(3)
A Certificate of Good
Standing issued by the Secretary of State of the state of
Nevada;
(4)
Certificates of Good
Standing from the Secretaries of State of any other states in which
the Company is required to register as a foreign corporation;
and
(5)
Any and all other
instruments, agreements or certificates contemplated by this
Agreement or otherwise requested by Buyer.
(6)
A copy of the most
recent 10-K for the period ending December 31, 2008 and a copy of
the most recent 10-Q for the period ending June 30,
2009.
ARTICLE
3
REPRESENTATIONS
AND WARRANTIES
3.1
Representations of
the Seller .
The Seller hereby represents and warrants to Buyer as
follows:
(1)
Corporate
Status .
The Company is a corporation duly organized, validly existing
and in good standing under the laws of the State of Nevada.
The Company has the requisite power and authority to carry on
the business as now being conducted. The Company is legally
qualified to transact business as a foreign corporation in all
jurisdictions where failure to be so qualified would have a
material adverse effect on its business. There is no pending
or, to the Company's knowledge, threatened, proceeding for the
dissolution, liquidation, insolvency or rehabilitation of the
Company.
(2)
Power and
Authority .
The Company has the power and authority to execute and
deliver this Agreement, to perform its obligations hereunder and to
consummate the transactions contemplated hereby. The Company
has taken all action necessary to authorize its execution and
delivery of this Agreement, the performance of its obligations
hereunder and the consummation of the transactions contemplated
hereby. This Stock Purchase Agreement has been approved by
the Board of Directors of the Company, pursuant to a unanimous
written consent.
(3)
Enforceability
. This Agreement
has been duly executed and delivered by the Company and constitutes
its legal, valid and binding obligation, enforceable against it in
accordance with its terms.
(4)
Capitalization
. All of the
51,912,470 issued and outstanding shares of common capital stock of
the Company (i) have been duly authorized and validly issued and
are fully paid and non-assessable, (ii) were issued in compliance
with all applicable state and federal securities laws, and (iii)
were not issued in violation of any preemptive rights or rights of
first refusal. No preemptive rights or rights of first
refusal exist with respect to the shares of capital stock of the
Company and no such rights arise by virtue of or in connection with
the transactions contemplated hereby.
The following table
summarizes information concerning outstanding and exercisable
warrants as of June 30, 2009:
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Warrants Outstanding
(*)
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Warrants Exercisable
(*)
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Range of
Exercise Prices
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Number Outstanding
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Average Remaining Contractual
Life (in years)
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Weighted Average Exercise
Price
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Number Exercisable
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Average Remaining Contractual
Life (in years)
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Weighted Average Exercise
Price
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$0.50 – 1.00
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2,573,700
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3.00
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$
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0.85
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2,573,700
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3.00
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$
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0.85
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$0.25
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50,000
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5.00
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0.25
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50,000
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5.00
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0.25
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$0.25
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50,000
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3.00
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0.25
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50,000
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3.00
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0.25
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$0.25 – 1.00
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2,673,700
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4.00
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$
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0.84
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2,673,700
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4.00
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$
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0.84
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In connection with the
private placement stock offering now open, the Company issued
warrants to purchase common stock to the investors as part of the
investment, and as a fee to the placement consultants. At
June 30, 2009, warrants for 2,573,700 shares were issued as part of
the equity sale.
Under separate
consulting agreements with two individuals, the Company issued a
five year warrant on February 3, 2009 and a five year warrant on
April 1, 2009 as compensation. Upon execution of the
contracts 50,000 shares of those warrants are exercisable at $.025
per share for a service period ending December 31, 2009.
Besides these
outstanding warrants, there are no outstanding or authorized
rights, options, warrants, convertible securities, subscription
rights, conversion rights, exchange rights or other agreements or
commitments of any kind that could require the