Exhibit 10.0
STOCK PURCHASE AGREEMENT
THIS STOCK PURCHASE
AGREEMENT (the "Agreement") is
entered into as of this 12th day of October, 2009 between and
among
TOMI Environmental Solutions, Inc., a Florida corporation with
principal
offices at 9454 Wilshire Blvd., Penthouse, Beverly Hills, CA
90212
("TOMI" or "Purchaser"), Advanced Disinfectant Technologies, LLC,
an
Ohio Limited Liability Company with offices at 2696 Henkle
Drive,
Lebanon, OH 45036 ("ADTEC" or the "Company"), and Jeff Szekely
at
2696 Henkle Drive, Lebanon, OH 45036 ("Szekely").
R E C I T A L S
WHEREAS, Szekely owns
92% of the issued and outstanding
member interests of the Company (the "Member Interests"); and
WHEREAS, Szekely desires
to sell to the Purchaser and the
Purchaser desires to purchase from Szekely Nineteen (19%) Percent
of the
Member Interests in accordance with and subject to the terms
and
conditions of this Agreement; and
WHEREAS, TOMI and ADTEC
have entered into a Letter of
Intent related to the purchase by TOMI of all ADTEC assets subject
to a
separate Asset Purchase Agreement that shall include an
independent
appraisal of ADTEC and appropriate financial statements; and the
parties
agree that the appraisal and financial statements will determine
the final
purchase price for the assets;
NOW, THEREFORE, in
consideration of the preceding recitals
and the mutual representations, warranties, covenants and
agreements set
forth herein, and for other good and valuable consideration, the
receipt and
adequacy of which are hereby acknowledged, the parties hereto agree
as
follows:
I. SALE AND PURCHASE OF MEMBER INTEREST
1.1
Agreement to Sell and Purchase Member Interest. For the
consideration hereinafter provided and subject to the terms and
conditions
of this Agreement, at the Closing (as defined in Section 1.3
below)
Szekely shall sell, assign, transfer, convey and deliver to the
Purchaser,
free and clear of all liens, charges, claims or encumbrances, and
the
Purchaser shall purchase and acquire from Szekely, Nineteen
(19%)
Percent of the Company's Member Interests. At the Closing,
Szekely
shall cause to be delivered to the Purchaser certificates
representing the
purchased Member Interest, together with accompanying signed
stock
power or instrument of assignment, duly endorsed in blank for the
transfer
of the Member Interest to the Purchaser with all necessary transfer
taxes
paid or other revenue stamps affixed thereto.
1.2
Purchase Price. At the Closing, subject to the terms and
conditions of this Agreement, the Purchaser agrees to pay to
Szekely, the
purchase price for the Member Interest, as follows:
(a) One Hundred Ninety Thousand (190,000) Shares
of
TOMI Common Stock;
1.3
Closing. The closing of the sale and purchase of the
Member Interest under and in accordance with this Agreement
(the
"Closing") shall take place at a mutually agreed upon location on
or before
October 19, 2009 or such later date as may be mutually agreed to
in
writing by the parties hereto (the "Closing Date"). Each
party shall be
responsible for its own attorneys' fees, accountants' and other
advisory
fees associated with the Closing.
II.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND SZEKELY
As an inducement to the
Purchaser to enter into this Agreement
and to purchase the Member Interest, Szekely solely with respect to
the
matters set forth in Sections 2.1, 2.5, and 2.14 through 2.17 and
the
Company jointly and severally represent and warrant to the
Purchaser as
set forth in this Article II. The representations and
warranties provided in
Sections 2.1, 2.5 and 2.14 through 2.17 which are made without
limitation,
shall be limited to the knowledge of Szekely after reasonable
inquiry.
2.1
Ownership of Company Member Interest. Szekely is the
owner of all right, title and interest (legal, record and
beneficial) in and to
the Member Interest described in Schedule 2.1 of the disclosure
schedules
attached to this Agreement (the "Disclosure Schedules"), free and
clear of
any and all liens, charges, claims, encumbrances or restrictions of
any
nature whatsoever (except for any restrictions on transfer imposed
by any
federal securities laws or state blue sky laws). The delivery
to the
Purchaser of the Member Interest pursuant to and in accordance with
the
provisions of this Agreement will transfer to the Purchaser good
and
marketable title in and to all such Member Interest free and clear
of any
and all liens, charges, claims encumbrances or restrictions of any
kind or
nature whatsoever. Except for warrants to purchase 3.5 Member
Interests
from Szekely by two unaffiliated third parties, which has been
disclosed to
Purchaser, no person has the right to purchase any Member
Interest.
2.2
Transactions in Capital Stock. The Company has no
obligation (contingent or otherwise) to purchase, redeem or
otherwise
acquire any of its equity securities or any interests therein or to
pay any
dividend or make any distribution in respect thereof.
2.3
Organization and Good Standing: Qualification. The
Company is a corporation duly organized, validly existing and in
good
standing under the laws of its state of incorporation, with all
requisite
corporate power and authority to own, operate and lease its assets
and
properties and to carry on its business as currently
conducted. The
Company is in good standing in each jurisdiction where the
character of
the property owned or leased by it or the nature of its activities
makes such
qualification necessary. Copies of the Articles of
Organization of the
Company, as amended or restated, and the Bylaws of the Company,
as
amended or restated, and copies of the corporate minutes of the
Company,
all of which have been or will be made available to the Purchaser
for
review, are true and complete as in effect on the date of this
Agreement
and the Closing Date, and in the case of the corporate minutes,
accurately
reflect all material proceedings of Directors of the Company (and
all
committees thereof). The member interest record books of the
Company,
which have been or will be made available to the Purchaser for
review,
contain true, complete and accurate records of the member
interest
ownership of record of the Company and the transfer record for all
of its
member interest.
2.4
Authorization and Validity. The Company and Szekely
have all requisite power and authority to enter into this Agreement
and all
other agreements entered into in connection with the
transactions
contemplated hereby and to consummate the transactions
contemplated
hereby and thereby. The execution, delivery and performance
by the
Company of this Agreement and the transactions contemplated herein
are
within the Company's respective corporate powers and have been
duly
authorized by all necessary action on the part of the Company's
Board of
Directors. This Agreement has been duly executed by the
Company and
Szekely, and this Agreement and all other agreements and
obligations
entered into and undertaken in connection with the transactions
contemplated hereby to which the Company or Szekely is a party
constitute, or upon execution will constitute, valid and binding
agreements
of such parties, enforceable against such parties in accordance
with their
respective terms, except as enforceability may be limited by
bankruptcy or
other laws affecting the enforcement of creditors' rights
generally, or by
general equity principles, or by public policy.
2.5
Absence of Conflicting Agreements or Required Consents.
Except as set forth on Schedule 2.5, the execution, delivery
and
performance of this Agreement by the Company and Szekely and
any
other documents contemplated hereby (with or without the giving
of
notice, the lapse of time, or both): (i) does not require the
consent of any
governmental or regulatory body or authority or any other third
party; (ii)
will not conflict with any provision of the Company's Articles
of
Organization, as amended or restated, or Bylaws, as amended or
restated;
(iii) will not conflict with result in a violation of, or
constitute a default
under any law, ordinance, regulation, ruling, judgment, order or
injunction
of any court or governmental instrumentality to which the Company
or
Szekely is a party or by which the Company or Szekely or any of
their
properties are subject or bound; (iv) will not conflict with,
constitute
grounds for termination of, result in a breach of, constitute a
default under,
require any notice under, or accelerate or permit the acceleration
of any
performance required by the terms of any agreement, instrument,
license
or permit, material to this transaction, to which the Company or
Szekely
are a party or by which the Company or Szekely or any of their
properties
are bound; and (v) will not create any encumbrance or restriction
upon any
of the assets or properties of the Company or Szekely.
2.6
Absence of Changes. Except as permitted or contemplated
by this Agreement, the Company has conducted its business only in
the
ordinary course and has not:
(a) suffered any changes in its working
capital,
condition (financial or otherwise), assets, liabilities, reserves,
business or
operations (whether or not covered by insurance) that individually
or in
the aggregate has had or could reasonably be expected to have a
material
adverse effect on the Company's business, prospects or results
of
operations ("Material Adverse Effect");
(b) paid, discharged or satisfied any material
liability,
other than the payment, discharge or satisfaction of liabilities in
the
ordinary course of business;
(c) written off as uncollectible any receivable,
except
for write-offs in the ordinary course of business;
(d) except in the ordinary course of business
and
consistent with past practice, canceled or compromised any debts
or
waived or permitted to lapse any claims or rights or sold,
transferred or
otherwise disposed of any of its properties or assets;
(e) entered into any commitment or transaction
not in
the ordinary course of business that is material to the Company,
taken as a
whole, or made any capital expenditure or commitment in excess
of
$25,000;
(f) made any material changes in any method
of
accounting or accounting practice, credit practices, collection
policies, or
payment policies;
(g) except in the ordinary course of business
consistent
with past practice, incurred any liabilities or obligations
(absolute, accrued
or contingent) in excess of $25,000;
(h) mortgaged, pledged, subjected or agreed to
subject,
any of its assets, tangible or intangible, to any claim or
encumbrance,
except for liens for current personal property taxes not yet due
and payable
for mechanics, landlords, materialmen, and other statutory liens,
purchase
money security interests, sale-leaseback interests granted
and all other
encumbrances granted in similar transactions;
(i) sold, redeemed, acquired or otherwise
transferred
any equity or other interest in itself;
(j) increased any salaries, wages or any
employee
benefits for any employee of the Company, except in the ordinary
course
of business and consistent with past practice;
(k) hired, committed to hire or terminated
any
employee except in the ordinary course of business;
(l) declared, set aside or made any payments,
dividends
or other distributions to any Unit Holders, employee,
independent
contractor or any other holder of capital stock of the Company
other than
in accordance with customary and past practices pursuant to
existing
agreements; or
(m) agreed, whether in writing or otherwise, to
take any
action described in this Section.
2.7
Litigation and Claims. There are no claims, lawsuits,
actions, arbitrations, administrative or other proceedings,
governmental
investigations or inquiries pending or, to the knowledge of the
Company
or Szekely, threatened against, or affecting the Company, Szekely,
any
Company employee or any other individual affiliated with the
Company
affecting or that would reasonably be likely to affect the Company,
the
value of the Member Interest of the operations, business
condition,
(financial or otherwise), results of operations or prospects of the
Company.
2.8
Environmental Matters. Except as set forth on Schedule
2.8:
(a) the Company has not within the five years
preceding the date hereof, through the Closing Date, received from
any
federal, state or local governmental body, agency, authority or
entity, or
any other person, any written notice, demand, citation,
summons,
complaint or order or any notice of any penalty, lien or
assessment, and to
the knowledge of the Company or Szekely no investigation or review
is
pending by any governmental entity, with respect to any (i)
alleged
violation by the Company of any Environmental Law (as defined
below);
(ii) alleged failure by the Company to have any environmental
permit,
certificate, license, approval, registration or authorization
required
pursuant to any Environmental Law in connection with the conduct of
its
business, or (iii) alleged illegal Regulated Activity (as defined
below) by
the Company;
(b) the Company has not engaged in any activity
or
failed to undertake any activity which action or failure to act has
given, or
would reasonably be likely to give, rise to any Environmental
Liabilities
or enforcement action by any federal, state or local regulatory
agency or
authority, or has resulted, or would reasonably be likely to
result, in any
fine or penalty imposed pursuant to any Environmental Law;
(c) to the knowledge of the Company or Szekely,
there
is no friable asbestos in or on the Company's owned or leased
premises;
(d) to the knowledge of the Company or Szekely,
no
soil or water in or under any assets currently or formerly held for
use or
sale by the Company is or has been contaminated by any
Hazardous
Substance (as defined below) while such assets or premises were
owned,
leased or operated, directly or indirectly by the Company, where
such
contamination had, or would be reasonably likely to have, a
Material
Adverse Effect; and
(e) there have been no environmental audits and
other
similar reports which have been prepared by, for or, to the
knowledge of
the Company or Szekely, concerning the Company within the five
years
preceding the date hereof through the Closing Date with respect to
any
real property now or previously owned or leased by the Company or
any
of its predecessors.
For the purpose of this
Section 2.8 the following terms have the
following meanings:
"Environmental Laws"
shall mean any federal, state or local laws,
ordinances, codes, regulations, rules, policies and orders that are
intended
to assure the protection of the environment, or that classify,
regulate, call
for the remediation of, require reporting with respect to, or list
or define
air, water, groundwater, solid waste, hazardous, toxic, or
radioactive
substances, materials, wastes, pollutants or contaminants, or which
are
intended to assure the safety of employees, workers or other
persons,
including the public in each case as in effect on the date
hereof;
"Environmental
Liabilities" shall mean all liabilities of the
Company, whether contingent or fixed, which (i) have arisen, or
would
reasonably be likely to arise, under Environmental Laws and (ii)
relate to
actions occurring or conditions existing on or prior to the date
hereof or
the Closing Date;
"Hazardous Substances"
shall mean any toxic or hazardous
substances, material or waste or any pollutant or contaminant,
or
infectious or radioactive substance or material, including
without
limitation, those substances, materials and wastes defined in or
regulated
under any Environmental Laws; and
"Regulated Activity"
shall mean any generation, treatment, storage,
recycling, transportation, disposal or release of any Hazardous
Substances.
2.9
Licenses and Authorizations. The Company and each of its
employees or independent contractors is the holder of all valid
licenses,
approvals, orders, consents, permits, registrations, qualifications
and other
rights and authorizations required by law, ordinance, regulation or
ruling
of any governmental regulatory authority necessary to operate
its/his/her
business. A true, correct and complete list of such licenses,
permits and
other authorizations (if any), is set forth on Schedule 2.9, true,
complete
and correct copies of which have been provided to the
Purchaser. No
violation, default, order or deficiency exists with respect to any
of the
items listed on Schedule 2.9.
2.10
Proprietary Rights and Information.
(a) Set forth on Schedule 2.10 is a complete
and
accurate list and summary description of the following: (i) all
trademarks
(registered and unregistered), trade-names, service marks and other
trade
designations, including common law rights, registrations and
applications
therefor, currently owned in whole or part, or used by the Company,
(ii)
all patents and applications therefor and inventions and
discoveries that
may be patentable currently owned, in whole or in part, or used by
the
Company, (iii) all licenses, royalties, and assignments thereof to
which the
Company is a party (iv) all copyrights (for published and
unpublished
works) currently owned in whole or part, or used by the Company and
(v)
other similar agreements relating to the foregoing to which the
Company
is a party (including expiration date if applicable) (collectively,
the
"Proprietary Rights").
(b) Set forth on Schedule 2.10 is a complete
and
accurate list and summary description of all agreements relating
to
technology, trade secrets, know-how or processes that the Company
is
licensed or authorized to use by others (other than technology,
know-how
or processes that are generally available) or which it licenses or
authorizes
others to use, true, correct and complete copies of which have
been
provided to the Purchaser. Except as set forth on Schedule
2.10, there are
no outstanding and, to the Company's knowledge or knowledge of
Szekely, any threatened disputes or disagreements with respect to
any
such agreement.
(c) Except as set forth on Schedule 2.10 (i)
the
Company owns or has the legal right to use the Proprietary Rights
without
conflicting with, infringing or violating the rights of any other
person; (ii)
no consent of any person will be required for the use thereof by
the
Purchaser upon consummation of the transactions contemplated
hereby
and the Proprietary Rights are freely transferable; (iii) to the
knowledge of
the Company or Szekely, no claim has been asserted by any person to
the
ownership of or for infringement by the Company of any
Proprietary
Right of any other person and neither the Company nor Szekely is
aware
of any valid basis for any such claim; (iv) to the knowledge of
the
Company or Szekely, no proceedings have been threatened
which
challenge the Proprietary Rights of the Company; and (v) the
Company
has the right to use, free and clear of any adverse claims or
rights of others,
all trade secrets, customer lists and proprietary information
required for
the performance and marketing of its business.
2.11
Agreements in Full Force and Effect. All contracts,
agreements, plans, leases, policies and licenses referred to, or
required to
be referred to, in the Disclosure Schedules are valid and binding,
and are
in full force and effect and are enforceable in accordance with
their terms,
except to the extent that the validity or enforceability thereof
may be
limited by bankruptcy or other laws affecting the enforcement of
creditors'
rights generally, or by general equity principles, or by public
policy.
Except as set forth on Schedule 2.11, there is no pending or, to
the
knowledge of the Company and Szekely, threatened bankruptcy,
insolvency or similar proceeding with respect to any other party to
such
agreements, and no event has occurred which (whether with or
without
notice, lapse of time or the happening or occurrence of any other
ev