UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):

March 14, 2019

 

Commission File #: 000-53723

 

TAURIGA SCIENCES, INC.

(Exact name of registrant as specified in its charter)

 

Florida

(State or other jurisdiction of incorporation)

 

30-0791746

(IRS Employer Identification Number)

 

555 Madison Avenue, 5 th Floor

New York, NY

(Address of principal executive office)

 

Tel: (917) 796-9926

(Registrant’s telephone number)

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

 

[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)
   
[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))
   
[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))

 

 

 

     

 

 

ITEM 1.01 Entry into a Material Definitive Agreement

 

E&M Distribution Agreement

 

On April 1, 2019, Tauriga Sciences, Inc. (OTCQB stock symbol: TAUG, the “Company”) entered into a comprehensive distribution agreement (the “Agreement”) with E&M Ice Cream Co. (“E&M”), an established direct store delivery food distribution company with thousands of end-use buyers through its chain of customers to which it distributes, including supermarkets, chain convenience stores, delis, pharmacies, specialty stores and the like in the New York City (“NYC”) metropolitan area marketplace (the “NYC Market”).

 

The thrust of the Agreement is to establish the Company’s Tauri-Gum TM CBD (or cannabidiol) infused chewing gum brand in the NYC Market, with an initial penetration into 300-500 NYC based retail store locations beginning in April-May of 2019 (period: April 1, 2019 thru May 31, 2019). The Company has recently established an internal Projection, such that the expectation is that Tauri-Gum™ NYC Distribution will range between 200-250 Distinct Retail Locations by May 1, 2019. The Company has made the strategic decision to focus its initial commercialization efforts on the NYC Market because of: (a) its large population of health-conscious potential customers positioned squarely in Taur-Gum TM prime target demographic, and (b) its excellent distribution relationship which, together, the Company believes will maximize its efforts to achieve a successful launch of its Tauri-Gum TM brand in an efficient and cost-effective manner.

 

In connection with the E&M Agreement, the Company has agreed to issue a one-time issuance of 1,000,000 restricted shares the Company’s common stock, and to tender a one-time cash payment of $125,000 to E&M. This $125,000 cash component was paid in full to E&M on April 1, 2019. The foregoing equity issuance to E&M shall be completed in a prompt manner upon receipt by the Company of issuance instructions from E&M.

 

South Florida Region Distribution Agreement

 

On April 8, 2019, the Company entered into a non-exclusive distribution agreement with IRM Management Corporation (“IRM”), an established medical practice management firm (the “IRM Distribution Agreement”). The purpose of the IRM Distribution Agreement is to target our Tauri-Gum™ product to the South Florida based medical market, including chiropractors, orthopedists, as well as prospective retail customers in this geographic area.

 

Under terms of this IRM Distribution Agreement, the Company will work closely with IRM to promote Tauri-Gum™. In connection with this IRM Distribution Agreement, the Company has also agreed to a one-time issuance of 450,000 shares of the Company’s restricted common stock and a cash stipend of $10,000 to IRM. As of the date of this Current Report, this $10,000 cash stipend has not yet been paid.

 

     

 

 

2019 GS Capital Debenture

 

On March 14, 2019, the Company entered into a 12-month $300,000 principal face value 8.0% (per annum) convertible debenture (“GS Capital Note”) with GS Capital Partners, LLC (the “Holder”), with a maturity date of March 13, 2020. The GS Capital Note carries $20,000 original issue discount (OID) and, as such, the initial net proceeds to the Company was $280,000. The Holder is entitled, at its option, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company’s common stock at a price for each share of Common Stock equal to 68% of the lowest daily VWAP of the Common Stock as reported on the National Quotations Bureau OTC Markets exchange for the fifteen (15) prior trading days. The GS Capital Note may be redeemed by the Company during the first six months from execution, as follows: (i) if the redemption is within the first 90 days, then for an amount equal to 120% of the unpaid principal amount, with any accrued interest; (ii) if the redemption is after the 91st day, but less than the 180th day, then for an amount equal to 133% of the unpaid principal amount, with any accrued interest. The GS Capital Note may not be redeemed after 180 days from the date of execution.

 

The Company entered into the GS Capital Note in lieu of accepting additional private placement capital at lower valuations. In addition, the Company believes that this debt transaction has the potential to be less dilutive to shareholders in the long term than accepting additional equity private placement capital at the time of execution.

 

The foregoing descriptions of the E&M Agreement, the IRM Distribution Agreement and the GS Capital Note and the Securities Purchase Agreement (under which the GS Capital Note was issued) are not complete and are qualified in their entirety by reference to the provisions of the E&M Agreement, the IRM Distribution Agreement and the GS Capital Note and the Securities Purchase Agreement, filed as Exhibits 4.1, 4.2, 4.3 and 4.4, respectively, to this Current Report on Form 8-K, which are incorporated herein by reference.

 

Item 1.02 Termination of a Material Definitive Agreement.

 

As previously disclosed on the Company’s Quarterly Report on Form 10-Q (filed on January 29, 2019), on January 23, 2019, the Company and Eagle Equities, LLC (“Eagle Equities”) consummated entry into a securities purchase agreement whereby the Company borrowed $62,000 under a one-year term convertible note (“Note”). The Note was convertible into restricted stock of the Company by Eagle Equities at a conversion price for each share of Common Stock equal to 65% of the average of the two lowest closing bid prices of the Common Stock as reported on the National Quotations Bureau OTC Markets exchange. The Company was also permitted to repay the Note in cash, plus interest and a prepayment premium, at any time within the first 180 days of entry into the Note. On March 25, 2019, the Company attempted to prepay the Note in cash (with a 25% premium and interest - as required under the Note – for a total of $78,550.55); however, Eagle Equities declined the offer and converted its entire Note into an aggregate of 1,391,045 shares of restricted common stock of the Company (which shall remain restricted under Rule 144 for six months from January 23, 2019). As a result, the Note is now fully repaid and retired and no further obligations or remuneration is due and owing thereunder.

 

     

 

 

Item 3.02 Unregistered Sales of Equity Securities

 

During late February of 2019, the Company commenced a strategic private placement, the primary purpose of which was intended finance the following operational matters related to our Tauri-Gum™ product: increasing production of our product inventory, funding of research & development initiatives, entering into distribution agreements, augmenting our digital artwork and graphic design projects, formulating a special miniaturized airport version of Tauri-Gum™, and for general corporate and working capital purposes. On April 12, 2019, the Company executed a Securities Purchase Agreement (the private placement “SPA”) with a number of individual and institutional “accredited investors” (within the meaning of Rule 501 of Regulation D under the Securities Act of 1933, as amended, the “Act”) to consummate the private placement resulting in aggregate gross proceeds to the Company of $335,200. A number of the investors include an owner of a Northeastern supermarket chain, as well as executives in the food distribution and medical practice management networks. Pursuant to the terms of the SPA, the Company is contractually obligated to issue 4,366,667 shares of its restricted common stock pursuant to Regulation D of the Act (these shares will be issued in the very near term). No warrants were offered or issued in connection with this above-referenced private placement. While the Company had been offered greater aggregate gross proceeds on the same foregoing terms, it determined to accept only the private placement capital noted above, being mindful of dilution and maintaining shareholder value through the execution of its business plan and initiatives.

 

The foregoing descriptions of the SPA is qualified in its entirety by reference to the provisions of the SPA, filed as Exhibit 4.5 to this Current Report on Form 8-K, which is incorporated herein by reference.

 

In connection with the entry into the Agreement with E&M, the Company agreed to issue 1,000,000 shares of restricted common stock to E&M. The relevant description of such issuance set forth in Item 1.01 of this Current Report is hereby incorporated by reference in this Item 3.02.

 

In connection with the entry into the IRM Distribution Agreement, the Company agreed to issue 450,000 shares of restricted common stock of the Company to IRM. The relevant description of the IRM Distribution Agreement and share issuance description set forth in Item 1.01 of this Current Report is hereby incorporated by reference in this Item 3.02.

 

In connection with the conversion and retirement of the Eagle Equities Note, the Company issued an aggregate of 1,391,045 shares of restricted common stock of the Company, the description of which is incorporated herein by reference into this Item 3.02.

 

In connection with the GS Capital Note and the securities purchase agreement related thereto, the Company issued a debenture convertible into unregistered shares of the Company’s Common Stock. The description of the GS Capital Note set forth in Item 1.01, and the complete terms of the debenture and the securities purchase agreement, each annexed as exhibits hereto, are incorporated by reference into this Item 3.02.

 

     

 

 

Item 7.01 Regulation FD Disclosure.

 

Fulfillment of Initial Distributor Order

 

As noted in the Company’s March 18, 2019 press release, the Company had received payment of $54,000 on March 25, 2019 from E&M in connection with the purchase order received by the Company on March 15, 2019. The Company has since delivered its Tauri-Gum™ product pursuant to this purchase order of 600 retail boxes (or 6,000 blister packs). The performance obligations, pursuant to revenue recognition (as defined in: ASC 606 in the Regulations), were all satisfied prior to March 31, 2019 (the end of the Company’s Fiscal Year 2019). Therefore, this $54,000 of revenue was realized by the Company during its 4th Fiscal Quarter of 2019, as will be set forth in the Company Annual Report on Form 10-K for the fiscal year ended March 31, 2019.

 

Independent Laboratory Testing

 

The Company, following extensive discussions with its contract manufacturer, continues to retain an independent laboratory to confirm the THC content (inclusive of microbiology) and composition of each production batch of its CBD infused Tauri-Gum™ chewing gum product line. Tetrahydrocannabinol, or THC, is the main active ingredient of cannabis.

 

The Company strives to consistently manufacture and package its production batch(es) of Tauri-Gum™ for sale to the retail marketplace and, in so doing, requires that the following is confirmed with each production batch:

 

1. Each piece of chewing gum must contain 10 milligrams (“mg”) of CBD Isolate;
2. THC Content of 0% ; and
3. Clear for all microbiology.

 

As a result of the above, as well as the other components of the Tauri-Gum™ manufacturing process, the Company’s cost of production (for each Tauri-Gum™ blister pack) is approximately $6.00 per blister pack, excluding one-time initial costs that were requisite for the formulation, production calibration, and packaging of the product/product line (in terms of graphic artwork and design).

 

Additional Manufacturing Order of Tauri-Gum™ Placed

 

On April 8, 2019, the Company ordered its fourth production batch (8,750 blister packs) of Tauri-Gum™, for which the Company has already paid 50% of the contract cost to its manufacturer (Per Os Bio, LLC). Following completion of this latest production batch, the Company will have 26,250 blister packs of inventory on hand (which may be less based on customer orders placed between the date of this Current Report and the completion of this latest order). As of April 10, 2019, the Company has fully paid for the entirety of its first three production runs (or 26,200 units), as well as the first half of this latest batch, as noted above.

 

Like all product related companies, the Company is mindful of balancing its responsibility to produce sufficient inventory for near term order delivery, while not over-producing to the extent that it could be detrimental financially in the near term. The product expiration date for the Company’s initial three production tranches: February 28, 2021.

 

     

 

 

“Airport” Version of Tauri-Gum™

 

In connection with the Company’s recent announcement of an increased research development budget aimed at continually enhancing its Tauri-Gum™ product line, the Company announced on April 9, 2019 that it is developing a special miniaturized version of Tauri-Gum™ for sale at airport retail stores. The Company envisions this Airport version consisting of a miniaturized blister pack (containing three pieces of its CBD Infused gum), with an anticipated retail price of $6.99 per unit. The Company is in the process of miniaturizing the graphic design and label wording, to correlate with this newest proposed product version. The Company believes that the airport market segment represents a potentially lucrative opportunity for the Company because of the well-known benefits of chewing gum while flying on airplanes. The act of chewing gum (any type of gum) equalizes the air pressure in the middle ear, thereby helping to alleviate the intensity of headaches and ear related discomfort (often experienced by air travelers).

 

The information in Sections 7 and 9 of this Current Report on Form 8-K, including the information set forth in the Exhibits furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section. As such, this information shall not be incorporated by reference into any of the Company’s reports or other filings made with the Securities and Exchange Commission.

 

The April 1, 2019 press release announcing entry into the E&M distribution agreement, the April 9, 2019 Press Release announcing the Company’s increased research and development budget, and the March 18, 2019 press release announcing the $54,000 purchase order are furnished as Exhibits 99.1, 99.2 and 99.3, respectively, to this Current Report on Form 8-K.

 

Item 9.01 Exhibits Statements and Exhibits

 

(d)   Exhibits

 

  Exhibit Number   Description
       
  4.1   Distribution Agreement between the Company and E&M Ice Cream Co., dated April 1, 2019
  4.2   Distribution Agreement between the Company and IRM Management Corporation, dated April 8, 2019
  4.3   GS Capital Note, dated March 14, 2019
  4.4   Securities Purchase Agreement (GS Capital Note), dated March 14, 2019
  4.5   Securities Purchase Agreement (Form of Private Placement), dated April 12, 2019
  99.1   Press Release, dated April 1, 2019
  99.2   Press Release, dated April 9, 2019
  99.3   Press Release, dated March 18, 2019

 

     

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: April 15, 2019

 

TAURIGA SCIENCES, INC.  
     
By: /s/ Seth M. Shaw  
  Seth M. Shaw  
  Chief Executive Officer  

 

     

 

 

 

COMPREHENSIVE DISTRIBUTION AGREEMENT

—BETWEEN —

 

DATED: March 20, 2019

 

Tauriga Sciences Inc. (OTCQB: TAUG) (“TAUG” or “Tauriga”) 555 Madison Avenue, 5th Floor

New York, NY 10022

 

And

 

E & M Ice Cream Co. (“E & M”)

701 Zerega Avenue

Bronx, NY 10473

 

Re: Distribution of Tauriga’s CBD Infused Chewing Gum Product Line (Branded as Tauri-Gum™) focusing on the New York City Metropolitan Area Retail Marketplace.

 

WHEREAS, Tauri-Gum™ is a Brand owned by Tauriga Sciences Inc. (“TAUG”) — Trademark Protection filed for by TAUG with the USPTO during December 2018

 

WHEREAS, E& M Ice Cream Co. (“E & M”) is a major ice cream distribution Company with a substantial presence in the New York City Metropolitan Area; and currently distributes product(s) to thousands of stores in the above-referenced marketplace

 

     
 

 

Tauriga Sciences Inc. has made an important corporate decision to largely focus its ongoing (March 2019) Tauri-Gum™ commercial product launch on the New York City Metropolitan Retail Marketplace. The Company believes that its relationship(s) with NYC based distribution firm(s), is a true competitive advantage. The Company also believes that the high income/ large population of Manhattan (and the New York City Metropolitan Area) combined with the fact that there are many convenient stores and up-scale specialty stores – renders this market as desirable.

 

Tauriga believes firmly that in a nascent, complex, and fast-growing industry (such as the legal CBD Infused edible products industry), distribution in and of itself is the best type of marketing (initially). The ability for Tauri-Gum™ to be placed into a large number of New York City Metropolitan Area stores (in a minimal duration of time), represents a major competitive advantage for Tauriga – and one that it wishes to exploit to its fullest.

 

Terms of this Distribution Agreement: RESPONSIBILTIES of TAURIGA SCIENCES INC.

 

  1) Tauriga Sciences Inc. shall tender a one-time cash payment of $125,000 US to E & M, within 5 business days of the execution of this Distribution Agreement (the “Agreement”)
     
  2) Tauriga Sciences Inc. shall issue to E & M, a one-time stock issuance of 1,000,0000 shares of TAUG (rule 144 issuance – 6 month restriction from date that this Agreement is mutually executed). E & M shall reserve the right to subjugate this issuance into smaller issuances (aggregating 1,000,000 TAUG shares), to any 3rd parties (individual or corporate that it sees fit). This share issuance shall occur within 15 days from date of execution of this Agreement (however for the purpose of Rule 144, shall revert to or tack back to the date at which this Agreement is mutually executed and deemed “Effective”).

 

     
 

 

  3) Tauriga Sciences Inc. agrees to obtain approval from E & M, prior to disseminating any public news or information about this Distribution relationship or business activities/event(s) that derive from such relationship.
     
  4) Tauriga Sciences Inc. is amenable to increase its allocation of resources (i.e. cash contributions), should E & M believe that such allocation of additional resources could be in the best interest of enhancing the Tauri-Gum TM brand and or its market share.

 

ABOUT TAURIGA SCIENCES INC.

 

Tauriga Sciences, Inc. ( TAUG ) is engaged in building business through the development, distribution, and licensing of proprietary products as well as the evaluation of potential acquisition opportunities. One such opportunity on which the Company has acted, involves the Company having entered into the cannabidiol (or “CBD”) infused chewing gum product business, as more fully described above and in prior press releases. This CBD infused chewing gum product has been branded under the following name: Tauri-Gum TM . See also our periodic reports filed by us with the SEC for a more complete description of our business and material agreements that we have entered into. Further, the Company continues to identify and evaluate additional potential opportunities to generate revenue, as well as shareholder value, and leverage its resources and expertise to build a diversified and sustainable business model. Please visit our corporate website at www.tauriga.com .

 

In addition, on March 11, 2019, the Company announced the official launch of its E-Commerce site - as part of its Tauri-Gum TM commercialization strategy. This site can be accessed by visiting the following URL address: www.taurigum.com

 

     
 

 

RESPONSBILITES of E & M Ice Cream Co.

 

  1) E & M will establish distribution strategy and infrastructure to Support Tauri-Gum TM commercial launch, with respect to the New York City Metropolitan Area (with a primary focus on Manhattan).
     
  2) E & M will assemble an inventory tracking system, personnel who shall both deliver Tauri-Gum TM to the physical stores and provide maintenance services (such as deliver more inventory, if Tauri- Gum TM product has sold out at a store location or store locations).
     
  3) Provide TAUG with marketing advice or marketing strategies with the goal to further strengthen Tauri-Gum TM as a brand as it attempts to penetrate and gain market shares in the New York City Metropolitan Area Marketplace.
     
  4) Assist Tauriga Sciences in placing its Tauri-Gum TM product in 300- 500 New York City Metropolitan area stores/retail locations (between now & end of April 2019).
     
  5) Best efforts to assist Tauriga Sciences Inc. in placing its product/product line in 1,000+ stores in New York City Metropolitan Area over the period of the next 12 months. Tauriga fully acknowledges that this expansion of Tauri-Gum TM market presence will fully depend on strong indications of market acceptance (and consumer demand) during the first “roll out phase” (as defined by the placement of Tauri-Gum TM in these initial 300-500 stores, as refenced above).

 

ABOUT E & M ICE CREAM Co.

 

E & M Ice Cream Co. is a Bronx, NY headquartered diversified ice cream distribution company (also distributes non frozen goods) that focus its efforts mainly on the New York City Metropolitan Area marketplace. Founded in the year 2003, E & M distributes its products to many thousands of stores (convenient stores, delis, pharmacies, supermarkets, specialty stores, etc.) and generates annual revenue well in excess of $100,000,000. E & M also owns the hundreds of trucks that comprise its distribution infrastructure as well as many thousands of freezers that are placed, physically, within the NYC Metro area stores and shops.

 

     
 

 

Signed on Behalf of Tauriga Sciences Inc.

 

/s/ Seth M. Shaw 03/17/2019  
Chief Executive Officer Date:  
     
/s/ Thomas J. Graham 03/17/2019  
Board Member, Chair of Audit Committee Date:  
     
/s/ David L. Wolitzky 03/17/2019  
Board Member, Independent Member Date:  
     
Signed on Behalf of E & M Ice Cream Co.    
     
/s/ Martin T. Kelly    
Founder, President & Managing Director Date:04/01/2019  

 

     
 

 

 

NON-EXCLUSIVE DISTRIBUTION AGREEMENT FOR REGION OF SOUTH FLORIDA

 

This Amended and Restated Comprehensive Distribution Agreement (this “Agreement”) is made effective as of April 8, 2019 by and between Tauriga Sciences Inc. (OTCQB: TAUG) (“TAUG” or “Tauriga”), a Florida corporation, with a principal address of 555 Madison Avenue, 5th Floor New York, NY 10022 and IRM Management Corporation (“IRM”), a Florida Corporation, with its mailing address at 1818 South Australian Ave, Ste. 104 // West Palm Beach, FL, 33409.

 

W I T N E S S E T H:

 

WHEREAS, Tauriga is engaged in the manufacture, sale and distribution of a CBD Infused Chewing Sum Product Line (branded as Tauri-Gum TM ) (the “Products”) initially focusing on the South Florida Medical Market (specifically: Chiropractors and Orthopedists) (as defined below),

 

WHEREAS, Tauriga is the owner or exclusive United States licensee, with authority to sublicense, of the trademarks listed on Exhibit A hereto, and all service marks, designs, logos, trade names, advertising, commercial symbols and slogans used in connection with Products (as defined below) (collectively or separately, the “Trademarks”) for the Products and/or such other products that may become subject to this Agreement;

 

WHEREAS, IRM is engaged in the management of a large number (more than 50 in total) of medical practices, with a focus on Chiropractors and Orthopedists, primarily in the U.S. region of Southern Florida (“South FLA”).

 

WHEREAS, Tauriga and IRM have agreed that the Date of Execution shall be defined as: April 8, 2019.

 

In consideration of the matters described above, and of the mutual benefits and obligations set forth in this agreement, the parties agree as follows:

 

I. RIGHT TO DISTRIBUTE.

 

1. Tauriga, as the owner and/or exclusive licensee of the Trademarks and all of the other proprietary trade dress, package, designs, logos related there to (the “Other IP” Inclusive “USPTO filed Trademark for Tauri-Gum TM filed for by Tauriga Sciences Inc. during December 2018) in and to the Products and Tauriga hereby grants to IRM a non-exclusive right to distribute the Products under the terms of this Agreement in the South FLA Market.

 

2. Tauriga will contemplate granting to IRM an exclusive license to IRM to market and distribute its Tauri-Gum TM product line — for the South FLA Market — at a later time, should both parties deem it in the best interests of all parties (by mutual Agreement).

 

3. Tauriga shall make inventory available to IRM, as requested by IRM to fulfill orders. All net revenue earned & realized by Tauriga shall be deposited into Tauriga’s dedicated Revenue Intake ACCT at TD Bank.

 

4. The parties acknowledge and agree that the initial target customers shall be medical practices that believe that a legal CBD Infused Supplement Gum may be a desirable option for some patients. Tauriga makes the following point(s) clear: The Company shall NOT EVER make any medical claims or treatment claims with respect to this product — it is simply characterized and classified as a SUPPLEMENT CHEWING GUM containing 1 Omg of CBD Isolate per serving (1 serving = 1 piece of Gum).

 

     
 

 

II. IRM’S OBLIGATIONS

 

1. IRM shall use reasonable efforts to promote the sale of Products in the South FLA Market and to maintain a business organization and equipment necessary to function properly in the manufacture (Tauriga’s responsibility), sale and distribution of Products. IRM may engage such subdistributors, agents or other third parties to assist it in the performance of this Agreement as IRM deems appropriate; provided that IRM shall be responsible for the conduct and cost of the same.

 

2. IRM will provide to Tauriga detailed sales reports showing, by customer on a monthly basis: monthly depletions by Product, sales by channel/accounts and monthly ending inventory,

 

3. IRM will store, transport and deliver Products at appropriate temperatures in the IRM storage facility, so as to maintain the high quality of the Products.

 

4. IRM will provide supplemental material to potential customers — so long as such material(s) are approved by Tauriga (as well as Tauriga’s specialized CBD Counsel) for the legal protection of all parties.

 

5. IBM shall maintain inventory levels of Products reasonably necessary to satisfy expected demand.

 

6. IRM shall materially comply with all laws, rules, regulations, requirements, orders and ordinances now in effect or which may hereafter be enacted or promulgated applicable to its operations or obligations under this Agreement.

 

7. IRM covenants, warrants and represents to Tauriga that it is free to enter into this Agreement and is not and shall not be under any obligation, written or otherwise, to any other party which would prevent IRM from complying with all the terms and conditions of this Agreement.

 

III. TAURIGA OBLIGATIONS.

 

1. Marketing Support. IRM and Tauriga shall from time to time during the term of this Agreement, no less frequently as annually, mutually determine promotional and marketing programs and expenditures to be undertaken by Tauriga to service and support the growth and maintenance of sales in the South FLA Market (each, a “Support Budget”). In this regard, the parties covenant, agree and acknowledge that the cost of any marketing, advertising and promotional fees incurred by IRM on behalf of Tauriga shall be split as follows:

 

(a) Fixed fees, i.e., advertising, circular fees — To be Mutually Agreed Upon;

 

(b) all reset costs — 100% to IRM;

 

(c) all variable fees and any other costs, including all off-invoice, promos and bill-backs — To be Mutually Agreed Upon.

 

2. Materials to be Furnished by Tauriga. Tauriga shall furnish to IRM technical and sales promotional materials, brochures, bulletins, and specification data on products from time to time. Such materials will be furnished in reasonable quantities at no cost to IRM.

 

3. Training. IRM agrees to make available to Tauriga appropriate personnel at reasonable times and places for training on the Products and distribution techniques preferred by Tauriga. Such training will be provided by Tauriga at Tauriga’s expense, to assist IRM to fulfill its obligations under this Agreement.

 

4. Intellectual Property. During the Term, Tauriga hereby grants to IRM a limited, non-transferrable, non-exclusive license to use the Trademarks and Other IP to IRM solely for use on and in connection with the advertising, promotion, sale and distribution of the Products in the South FLA Market. Tauriga shall have the right to use IRM’s name and logo on Tauriga’s website for the purpose of identifying IRM as a distributor of the Products.

 

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5. Tauriga shall fill promptly all orders from IRM for Products and for other items to be provided by Tauriga hereunder.

 

6. Tauriga shall promptly pay or credit to IRM’s account, when due, not less frequently than monthly, all approved and verified credits, discounts, allowances, incentive payments, bill backs or other reimbursements due IRM pursuant to any program to which the parties may agree.

 

7. Tauriga represents and warrants that:

 

(a) the Products upon delivery to IRM,

 

(i) shall be pure and wholesome, fit for human use, merchantable and free from all defects,

 

(ii) shall, in all instances, comply with all applicable Federal, state or local laws and regulations, in all respects, including without limitation, beverage quality, labeling, identity, quantity, packaging, and returnable container or deposit requirements;

 

(iii) shall not be adulterated and misbranded within the meaning of those terms under the Federal Food, Drug and Cosmetic Act, as amended, and shall not be an article or articles which may not, under the provisions, of said Act, be introduced into interstate commerce;

 

(iv) shall not be adulterated or misbranded within the meaning of the Federal Insecticide, Fungicide, and Rodenticide Act, the Federal Hazardous Substances Act, or any applicable state act or any other applicable Federal, state, or local law or regulation; and

 

(v) when delivered to IRM, shall have a remaining shelf life of not less than twelve (12) months, the expiration of which shall be clearly marked on the outside of all cartons and pallets;

 

(b) it is the owner or exclusive U.S. licensee of the Trademarks and Other IP, that it has the right to license the Trademarks and Other IP to IRM throughout the Term of this Agreement, and that IRM’s use of the Trademarks and Other IP as provided by this Agreement will not infringe or violate the rights of any third party; and

 

(c) it is free to enter into this Agreement and is not under any obligation, written or otherwise, to any other party which would prevent Tauriga from complying with all the terms and conditions of this Agreement

 

(d) Tauriga shall replace all Products that, at the time and place of delivery, do not meet the requirements of Section III(7) above, at Tauriga’s expense, including the amount of IRM’s laid-in cost, at IRM’s option. Tauriga shall also reimburse IRM for all of IRM’s incidental expenses incurred as a consequence of such Products failure to comply with Section III(7) above (including but not limited to Products in the hands of IRM or of the retail trade that have purchased such product from IRM if such Products did not conform to the requirements of Section III(7)) or as a consequence of any other fault of Tauriga; provided that Tauriga shall not be liable for any of the same to the extent they arise for the actions or inactions of IRM or the retail trade. The foregoing shall not be construed to entitle IRM to recover lost profits or other consequential damages resulting from the failure of Products to conforms to the requirements of Section III(7) other than as expressly set forth above,

 

  - 3 -  
 

 

(e) Tauriga shall materially comply with all laws, rules, regulations, requirements, orders and ordinances now in effect or which may hereafter he enacted or promulgated applicable to its operations or obligations under this Agreement.

 

IV. CONSIDERATION. In addition to any other amounts due to IRM hereunder, Tauriga shall pay and/or deliver the following:

 

1. Marketing Payment. In consideration for the inherent market leverage afforded by IRM’s extensive existing relationships with dozens of Chiropractor and Orthopedist firm in the South FLA Market, Tauriga has agreed to make available to IRM (up to $10,000 in cash), as requested either in partial or one-time cash stipend/payment(s) — whenever requested by IRM. All cash payment(s) to IRM shall be made via wire transfer(s).

 

2. Restricted Stock. Tauriga shall issue and deliver Four Hundred and Fifty Thousand (450,000) shares of its unregistered, common stock (the “TAUG Shares”) to Eric Weinberger. Though some shares of Tauriga’s common stock (the “Float”) are publicly tradable on the OTCQB under the symbol “TAUG”, these TAUG Shares to be issued hereunder are not registered for resale and thus the transferability of such shares is “restricted” to certain “exempt transactions” under the Securities Act of 1933, as amended (the “Securities Act”), including, most notably the safe harbor sale requirements set forth in Rule 144 promulgated under the Securities Act. IRM, represents and warrant that it is an “accredited investor” as such term is defined by the Securities Act. These 450,000 Restricted TAUG shares are Fully earned and vested upon the Execution of this Agreement.

 

IRM reserves the right to subjugate this issuance into smaller issuances (aggregating 450,000 TAUG Shares), to any 3rd parties (individual or corporate that it sees fit). This share issuance shall occur within thirty (30) days from date of execution of this Agreement (however for the purpose of Rule 144, shall revert to or take back to the date at which this Agreement is mutually executed and deemed “Effective as of that date”). If the Subjugation Instructions or Specific Issuance Instructions have not been provided to Tauriga within thirty (30) days from date of execution, then the Tauriga commits to issue these 1,000,000 shares within ten (10) business days of the date on which it RECEIVES the specific issuance instructions from IRM.

 

V. PRODUCT COST — ORDERING PROCEDURES

 

1. Tauriga has the absolute right to determine what IRM will be charged for each SITU of Product. Tauriga agrees that such pricing will also be fair and ethical — comparatively to other concurrent business (being transacted in other Markets) by the Company.

 

2. Tauriga will give IRM no less than sixty (60) days prior written notice of its intention to change the Cost of any individual SKU of Products.

 

3. The payment tends are: IRM has 30 days (from the receipt of customer payment) to transfer all appropriate revenue (portion contractually owed to Tauriga) to the Company — to its dedicated TD Bank Revenue Intake ACCT.

 

4. IRM shall order Products from Tauriga from time to time using the purchase order form (to be sent to IRM via email), or such other form acceptable to the parties. Tauriga shall pay all freight charges for the sale of Products that are delivered to IRM storage facility in South FLA, FLA or at any other location it may designate within or without the IRM Market.

 

5. Orders may be placed by fax or by telephone; however, if by telephone, a confirming fax must be sent within 24 hours and referencing the prior telephone call so as to avoids duplicate orders. All orders placed by IRM for Products during the term of this Agreement s 1 be subject to Tauriga’s acceptance and the terms of this Agreement. Orders cannot be altered by a different purchase order form used by IRM or any other party.

 

  - 4 -  
 

 

VI. TERMINATION

 

1. Subject to Section VI(5) below, either party shall have the right to terminate this Agreement upon the other party’s failure to perform any of its material obligations contained in this Agreement, provided however that the non-breaching party shall first give notice to the breaching party (within ten (10) days of knowledge of the breach) of each such failure and the breaching party shall have twenty (20) days after receipt of each such notice to cure such failure. If such breach is not cured within such period, the non-breaching party may terminate this Agreement and seem any other remedies available to it under law or equity. Notwithstanding the foregoing, in the case of a breach in the payment for Products (not in reasonable dispute by IRM), IRM shall have only five (5) days after receipt of notice to cure such failure, provided, that, IRM will only be afforded a maximum of two (2) opportunities to cure payment defaults during each calendar year of the term of this Agreement.

 

2. In addition, if either Party shall file a voluntary petition in bankruptcy, be declared bankrupt, make an assignment for the benefit of creditors, or suffer the appointment of a receiver or trustee of its assets or is declared insolvent, that party shall be in breach of a material obligation of this Agreement, and the non-breaching Party may immediately terminate this Agreement upon written notice to the breaching Party.

 

3. Except for Section VI(5) below, nothing contained herein shall be deemed to limit either Party’s right to obtain damages or equitable relief if either Party shall breach its obligations under this Agreement. All remedies shall be cumulative and are intended to be, and shall be non- exclusive.

 

4. Subject to Section VI(5) below, Tauriga may terminate this Agreement without cause, in its sole discretion, at any time upon sixty (60) days advanced written notice to IRM.

 

5. Payout.

 

(i) The Payout shall be due within ninety (90) days of the effective date of such termination. The Payout shall be net of any sums due to Tauriga as of the effective date of the termination of the Agreement.

 

(ii) The parties agree that in the event of such a termination, it would be difficult to calculate IRM’s damages and the liquidated damages set forth in this Section VI(5) are reasonable and do not constitute a penalty. IRM hereby waives to the fullest extent permitted by law, any and all other claims for damages with respect to the termination of this Agreement subject to this Section VI(5) of any nature whatsoever, in consideration for the receipt of the Payout.

 

6. The parties acknowledge and agree that this Agreement may be terminated only in accordance with the terms of this Section VI and Section XII. Any termination not permitted hereunder or under Section XII shall be deemed null and void.

 

  - 5 -  
 

 

VII. IRM AS AN INDEPENDENT CONTRACTOR. IRM and Tauriga shall remain independent contractors and nothing herein shall be interpreted as the parties hereto acting in concert or as joint ventures or partners. Except as specifically set forth herein, IRM and Tauriga do not convey to each other any property interest in the other’s corporate name, Trademarks or intellectual property. IRM has not paid nor agreed to pay any fee or other consideration for the rights conferred on it hereby, and agrees that it is not a franchisee within the meaning of, and hereby expressly waives, to the fullest extent permitted by law, the benefits of and any claim under, any statute or rule regulating franchises, distribution agreements or similar hatters, or any so- called franchisee or distributor protection, or business opportunity or dealership, laws.

 

VIII. ASSIGNMENT . This Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of each party. This Agreement is not assignable by either party without the prior express written consent of the other party, and any purported assignment without such consent shall be null and void, Notwithstanding the foregoing, IRM may assign this Agreement to a subsidiary of or other affiliated entity in common control with IRM without Tauriga’s consent upon written notice to Tauriga of such assignment, so long as IRM remains primarily liable for its obligations.

 

IX. INDEMNIFICATION

 

1. IRM shall indemnify, hold harmless and defend Tauriga, its affiliates and their respective officers, directors and employees from any and all loss, liability, claim, damage, including but not limited to, claims of injury or death to person or damage to property, and expenses (including reasonable attorney’s fees) which they, or any of them, may suffer or incur as a result or arising out of the distribution or other activities of IRM under this Agreement including any intentional or negligent act/or omission to act by IRM or any of its employees, agents officers or directors.

 

2. Tauriga shall indemnify, hold harmless and defend IRM, its affiliates and their respective officers, directors and employees from any and all loss, liability, claim, damage, including but not limited to, claims of injury or death to person or damage to property, and expenses (including reasonable attorney’s fees) which they, or any of them, may suffer or incur as a result or arising out of the breach of any representation or obligation under this Agreement, and/or with respect to the Products, or the manufacturing, distribution or other activities of Tauriga under this Agreement, including any intentional or negligent act/or omission to act by Tauriga or any of its employees, agents, officer or directors.

 

3 . In any claim for indemnification under this Agreement, the party seeking indemnification (the “Indemnitee”) shall give written notice to the other party against which such indemnification is sought (the “Indemnitor”) with reasonable promptness after notice of any claim or suit involving, or which could involve, an indemnifiable claim under this Agreement. Notwithstanding anything to the contrary provided in this Agreement, in any action in which such third party claims are asserted against the Indemnitee (whether or not such claim is covered by insurance), the Indemnitee shall assert his, her or its right of indemnification against the Indemnitor in that action, by whatever procedural options are available to the Indemnitee. If the Indemnitor has acknowledged in writing its obligation to indemnify the Indemnitee in respect of third party claim, the Indemnitee shall not settle or otherwise compromise such claim without the prior written consent of the Indemnitor, which consent shall not be unreasonably withheld, unless this condition violates the provisions of the Indemnitor’s liability insurance policy. The parties shall cooperate with one another in the defense of any indemnifiable claim.

 

  - 6 -  
 

 

X. INSURANCE. During the term of this Agreement Tauriga shall provide, and keep in force, at its sole expense, a product liability insurance policy, with limits of liability of not less than $2,000,000 and not more than $5,000,000 for product liability claims, which shall name the other party as an additional insured. Such policy shall provide that it may not be cancelled without at least thirty (30) days prior written notice to each party as the case may be, if at any point in this Agreement, said policies lapses on with respect to any Products manufactured or supplied to IRM for distribution, the lapse will be considered a material breach.

 

XI. AUTHORITY. The undersigned persons executing this Agreement hereby certify that they are duly authorized and empowered by the governing board of their respective company or corporation, and the articles and bylaws and/or operating agreement, as applicable, thereof, to execute and deliver this Agreement.

 

XII. FORCE MAJEURE

 

1. A party’s obligation hereunder shall be suspended if such party is prevented from performing its obligations as a result of fire, flood, explosion, accident, breakdown of machinery, product tampering by third parties, governmental acts, laws or regulations (other than government action in response to public health violations by such party), war, terrorism, labor difficulties, any act of God or any other cause not within such party’s control, which, by the exercise of reasonable due diligence, such party is not able to avoid or overcome within a reasonable period of time (each, a “Force Majeure”).

 

2. If IRM is the party that is unable to perform its obligations under this Agreement during the event of Force Majeure, upon the occurrence of a Force Majeure event, IRM shall assess in good faith, the projected duration of the Force Majeure event. If IRM reasonably anticipates the duration will be sixty (60) days or less, IRM will notify Tauriga in writing of the anticipated duration, and Tauriga may distribute its products through another distribution channel. Tauriga shall be required to resume distribution of its products through IRM seven (7) days after IRM notifies Tauriga in writing that IRM is able to commence its distribution operations.

 

3. Notwithstanding any other provision of this Agreement, if a Force Majeure event continues for more than ninety (90) days, the party whose performance is not impaired by such Force Majeure event may terminate this Agreement upon written notice to the other party, and 5uch termination shall be with cause.

 

XIII. WAIVER. Failure of either party at any time to require performance by the other party of any provision of this agreement shall in no way affect the full right to require such performance at any time thereafter. The waiver of either party to any provision of this Agreement shall not be taken or held to be a waiver of any succeeding breach of such provisions or as a waiver of the provision itself.

 

XIV. GOVERNING LAW, JURISDICTION. The parties agree that this Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of New York, without regard to principles of conflicts of laws. EACH OF THE PARTIES CONSENTS THAT ANY LEGAL ACTION OR PROCEEDING AGAINST IT UNDER, ARISING OUT OF OR IN ANY MANNER RELATING TO THIS AGREEMENT, SHALL BE BROUGHT EXCLUSIVELY IN ANY COURT OF THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE, IN THE COUNTY OF NEW YORK. EACH OF THE PARTIES EXPRESSLY AND IRREVOCABLY CONSENTS AND SUBMITS TO THE PERSONAL JURISDICTION OF ANY OF SUCH COURTS IN ANY SUCH ACTION OR PROCEEDINGS. EACH OF THE PARTIES AGREES THAT PERSONAL JURISDICTION OVER IT MAY BE OBTAINED BY THE DELIVERY OF A SUMMONS (POSTAGE PREPAID) IN ACCORDANCE WITH THE PROVISIONS OF SECTION XX OF THIS AGREEMENT, ASSUMING DELIVERY OF THE SUMMONS IN ACCORDANCE WITH THE PROVISIONS OF SECTION 19 OF THIS AGREEMENT, EACH OF THE PARTIES HEREBY EXPRESSLY AND IRREVOCABLY WAIVES ANY ALLEGED LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OF FORUM NON CONVENIENS OR ANY SIMILAR BASIS. EACH PARTY WAIVES TRIAL BY JURY IN ANY PROCEEDING HEREUNDER.

 

  - 7 -  
 

 

XV. ARBITRATION. All disputes under this Agreement that cannot be resolved by the parties shall be submitted to arbitration under the rules and regulations of the American Arbitration Association. Either party may invoke this paragraph after providing thirty (30) days’ written notice to the other party. All costs of arbitration shall be divided equally between the parties. Any award may be enforced by a court of law.

 

XVI. PRESS RELEASES . IRM acknowledges that Tauriga may be required to issue press releases from time to time as a reporting company subject to the requirements of the Securities Exchange Act of 1934 Act (the “34 Act”) regarding material events relating to any matter directly or indirectly pertaining to the Agreement, the results therefrom and/or the course of conduct of the Parties relating thereto. In this regard, Tauriga acknowledges and agrees that it shall not issue any press release referring, directly or indirectly, to the Agreement, IRM and/or any of its affiliates, without the prior written approval of IRM.

 

XVII. ENTIRE AGREEMENT. This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any hind preceding the date of this agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

 

XVIII. MODIFICATION OF AGREEMENT. Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if evidenced in writing and signed by each party or an authorized representative of each party.

 

XIX. EFFECT OF PARTIAL INVALIDITY. The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. In the event that any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

 

XX . NOTICES. Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent a nationally recognized overnight courier service to the persons and address as set forth below:

 

For E&M: IRM Management LLC  
  1818 South Australian Ave, Ste. 104  
  West Palm Beach, FLA 33409  
  Attn: Eric Weinberger  
     
For Tauriga: Tauriga Sciences Inc.  
  555 Madison Avenue, 5th Floor  
  New York, NY 10022  
  Attn: Seth M. Shaw, CEO  

 

XXI. PARAGRAPH HEADINGS. The titles to the paragraphs of this Agreement are solely for the convenience of the parties and shall not be used to explain, modify, simplify, or aid in the interpretation of the provisions of this Agreement.

 

XXII. COUNTERPARTS AND FAX SIGNATURES. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, and all such counterparts shall constitute a single instrument. The parties agree that a facsimile or digital signature of a party hereto shall be deemed to be as legally effective and binding as a signed original; provided, however, any party providing a fax or digital signature shall be required to promptly forward a signed original to any requesting party.

 

  - 8 -  
 

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement the day and year first above written.

 

  Tauriga Sciences Inc.
     
  By:  
  Name: Seth M. Shaw
  Title: Chief Executive Officer,
     
  IRM Management Corporation
     
  By:  
  Name: Eric Weinberger
  Title: President

 

  - 9 -  
 

 

PEROSNAL BIO for Mr. Eric Weinberger (PRESIDENT of IRM):

 

Eric Weinberger was raised in South Florida. He is the son of a cardiothoracic surgeon and has been involved in healthcare ever since lie was a young boy. He graduated from the Benjamin School in 1993 and then went on to James Madison University on tennis scholarship. Eric graduated with a B.S. in health services administration in 1997 and was recruited by HCA to world in the administrative department at JFI€ Medical Center. In 1999, Eric transitioned into physician practice management and marketing where he could use his relationships with physicians, who he had grown up with, along with its college degree to help physicians improve the overall efficiency and profitability. Eric has worked with outpatient imaging center as well and developed a strong network of physicians, hospitals, ambulatory surgery centers, outpatient imaging center and chiropractors. In 2006, he obtained his MBA from the University of Miami and was recruited to work with an orthopedic and neurosurgical group in South Florida. Eric has since grown this practice to 5 locations in South Florida, 2 in Central Florida and 2 in South Carolina.

 

TRADEMARKS

 

“Tauri-Gum” and all associated trademarks

 

  - 10 -  
 

 

 

THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER (THE “1933 ACT”)

 

US $300,000.00

 

TAURIGA SCIENCES, INC.

8% CONVERTIBLE REDEEMABLE NOTE

DUE MARCH 14, 2020

 

FOR VALUE RECEIVED, Tauriga Sciences, Inc. (the “Company”) promises to pay to the order of GS CAPITAL PARTNERS, LLC and its authorized successors and permitted assigns (“ Holder ”), the aggregate principal face amount of Three Hundred Thousand Dollars exactly (U.S. $300,000.00) on March 14, 2020 (“ Maturity Date ”) and to pay interest on the principal amount outstanding hereunder at the rate of 8% per annum commencing on March 14, 2019. The Company acknowledges this Note was issued with a $20,000 original issue discount (OID) and as such the purchase price was $280,000.00. The interest will be paid to the Holder in whose name this Note is registered on the records of the Company regarding registration and transfers of this Note. The principal of, and interest on, this Note are payable at 30 Broad Street, Suite 1201 New York, NY 10004, initially, and if changed, last appearing on the records of the Company as designated in writing by the Holder hereof from time to time. The Company will pay each interest payment and the outstanding principal due upon this Note before or on the Maturity Date, less any amounts required by law to be deducted or withheld, to the Holder of this Note by check or wire transfer addressed to such Holder at the last address appearing on the records of the Company. The forwarding of such check or wire transfer shall constitute a payment of outstanding principal hereunder and shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented by such check or wire transfer. Interest shall be payable in Common Stock (as defined below) pursuant to paragraph 4(b) herein.

 

This Note is subject to the following additional provisions:

 

1. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same.

 

     
 

 

No service charge will be made for such registration or transfer or exchange, except that Holder shall pay any tax or other governmental charges payable in connection therewith.

 

2. The Company shall be entitled to withhold from all payments any amounts required to be withheld under applicable laws.

 

3. This Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended (“ Act ”) and applicable state securities laws. Any attempted transfer to a non-qualifying party shall be treated by the Company as void. Prior to due presentment for transfer of this Note, the Company and any agent of the Company may treat the person in whose name this Note is duly registered on the Company’s records as the owner hereof for all other purposes, whether or not this Note be overdue, and neither the Company nor any such agent shall be affected or bound by notice to the contrary. Any Holder of this Note electing to exercise the right of conversion set forth in Section 4(a) hereof, in addition to the requirements set forth in Section 4(a), and any prospective transferee of this Note, also is required to give the Company written confirmation that this Note is being converted (“ Notice of Conversion ”) in the form annexed hereto as Exhibit A . The date of receipt (including receipt by telecopy) of such Notice of Conversion shall be the Conversion Date.

 

4. (a) The Holder of this Note is entitled, at its option, at any time after cash payment, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company’s common stock (the “ Common Stock ”) at a price (“ Conversion Price ”) for each share of Common Stock equal to 68% of the lowest daily VWAP of the Common Stock (32% discount) as reported on the National Quotations Bureau OTC Markets exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future (“ Exchange ”), for the fifteen prior trading days including the day upon which a Notice of Conversion is received by the Company or its transfer agent (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company or its transfer agent after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price). If the shares have not been delivered within 3 business days, the Notice of Conversion may be rescinded. Such conversion shall be effectuated by the Company delivering the shares of Common Stock to the Holder within 3 business days of receipt by the Company of the Notice of Conversion. Accrued but unpaid interest shall be subject to conversion. No fractional shares or scrip representing fractions of shares will be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share . To the extent the Conversion Price of the Company’s Common Stock closes below the par value per share, the Company will take all steps necessary to solicit the consent of the stockholders to reduce the par value to the lowest value possible under law. The Company agrees to honor all conversions submitted pending this increase. In the event the Company experiences a DTC “Chill” on its shares, the conversion price shall be decreased to 58% instead of 68% while that “Chill” is in effect. In no event shall the Holder be allowed to effect a conversion if such conversion, along with all other shares of Company Common Stock beneficially owned by the Holder and its affiliates would exceed 9.9% of the outstanding shares of the Common Stock of the Company.

 

     
 

 

(b) Interest on any unpaid principal balance of this Note shall be paid at the rate of 8% per annum. Interest shall be paid by the Company in Common Stock (“Interest Shares”). Holder may, at any time, send in a Notice of Conversion to the Company for Interest Shares based on the formula provided in Section 4(a) above. The dollar amount converted into Interest Shares shall be all or a portion of the accrued interest calculated on the unpaid principal balance of this Note to the date of such notice.

 

(c) During the first six months this Note is in effect, the Company may redeem this Note by paying to the Holder an amount as follows: (i) if the redemption is within the first 90 days this Note is in effect, then for an amount equal to 120% of the unpaid principal amount of this Note along with any interest that has accrued during that period, (ii) if the redemption is after the 91st day this Note is in effect, but less than the 180th day this Note is in effect, then for an amount equal to 133% of the unpaid principal amount of this Note along with any accrued interest. This Note may not be redeemed after 180 days. The redemption must be closed and paid for within 3 business days of the Company sending the redemption demand or the redemption will be invalid and the Company may not redeem this Note. Such redemption must be closed and funded within 3 days of giving notice of redemption of the right to redeem shall be null and void.

 

(d) Upon (i) a transfer of all or substantially all of the assets of the Company to any person in a single transaction or series of related transactions, (ii) a reclassification, capital reorganization or other change or exchange of outstanding shares of the Common Stock, other than a forward or reverse stock split or stock dividend, or (iii) any consolidation or merger of the Company with or into another person or entity in which the Company is not the surviving entity (other than a merger which is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares of Common Stock) (each of items (i), (ii) and (iii) being referred to as a “Sale Event”), then, in each case, the Company shall, upon request of the Holder, redeem this Note in cash for 150% of the principal amount, plus accrued but unpaid interest through the date of redemption, or at the election of the Holder, such Holder may convert the unpaid principal amount of this Note (together with the amount of accrued but unpaid interest) into shares of Common Stock immediately prior to such Sale Event at the Conversion Price.

 

(e) In case of any Sale Event (not to include a sale of all or substantially all of the Company’s assets) in connection with which this Note is not redeemed or converted, the Company shall cause effective provision to be made so that the Holder of this Note shall have the right thereafter, by converting this Note, to purchase or convert this Note into the kind and number of shares of stock or other securities or property (including cash) receivable upon such reclassification, capital reorganization or other change, consolidation or merger by a holder of the number of shares of Common Stock that could have been purchased upon exercise of the Note and at the same Conversion Price, as defined in this Note, immediately prior to such Sale Event. The foregoing provisions shall similarly apply to successive Sale Events. If the consideration received by the holders of Common Stock is other than cash, the value shall be as determined by the Board of Directors of the Company or successor person or entity acting in good faith.

 

     
 

 

5. No provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.

 

6. The Company hereby expressly waives demand and presentment for payment, notice of non-payment, protest, notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, and diligence in taking any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all sums owing and to be owing hereto.

 

7. The Company agrees to pay all costs and expenses, including reasonable attorneys’ fees and expenses, which may be incurred by the Holder in collecting any amount due under this Note.

 

8. If one or more of the following described “Events of Default” shall occur:

 

(a) The Company shall default in the payment of principal or interest on this Note or any other note issued to the Holder by the Company; or

 

(b) Any of the representations or warranties made by the Company herein or in any certificate or financial or other written statements heretofore or hereafter furnished by or on behalf of the Company in connection with the execution and delivery of this Note, or the Securities Purchase Agreement under which this note was issued shall be false or misleading in any respect; or

 

(c) The Company shall fail to perform or observe, in any respect, any covenant, term, provision, condition, agreement or obligation of the Company under this Note or any other note issued to the Holder; or

 

(d) The Company shall (1) become insolvent; (2) admit in writing its inability to pay its debts generally as they mature; (3) make an assignment for the benefit of creditors or commence proceedings for its dissolution; (4) apply for or consent to the appointment of a trustee, liquidator or receiver for its or for a substantial part of its property or business; (5) file a petition for bankruptcy relief, consent to the filing of such petition or have filed against it an involuntary petition for bankruptcy relief, all under federal or state laws as applicable; or

 

(e) A trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without its consent and shall not be discharged within sixty (60) days after such appointment; or

 

(f) Any governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or control of the whole or any substantial portion of the properties or assets of the Company; or

 

 
     

 

(g) One or more money judgments, writs or warrants of attachment, or similar process, in excess of fifty thousand dollars ($50,000) in the aggregate, shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed for a period of fifteen (15) days or in any event later than five (5) days prior to the date of any proposed sale thereunder; or

 

(h) The Company shall have defaulted on or breached any term of any other note of similar debt instrument into which the Company has entered and failed to cure such default within the appropriate grace period; or

 

(i) The Company shall have its Common Stock delisted from an exchange (including the OTC Market Exchange) or, if the Common Stock trades on an exchange, then trading in the Common Stock shall be suspended for more than 10 consecutive days or ceases to file its 1934 act reports with the SEC;

 

(j) If a majority of the members of the Board of Directors of the Company on the date hereof are no longer serving as members of the Board;

 

(k) The Company shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein without restrictive legend within 3 business days of its receipt of a Notice of Conversion; or

 

(l) The Company shall not replenish the reserve set forth in Section 12, within 3 business days of the request of the Holder.

 

(m) The Company shall not be “current” in its filings with the Securities and Exchange Commission;

 

(n) The Company shall lose the “bid” price for its stock in a market (including the OTC marketplace or other exchange); or

 

Then, or at any time thereafter, unless cured within 5 days, and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder’s sole discretion, the Holder may consider this Note immediately due and payable, without presentment, demand, protest or (further) notice of any kind (other than notice of acceleration), all of which are hereby expressly waived, anything herein or in any note or other instruments contained to the contrary notwithstanding, and the Holder may immediately, and without expiration of any period of grace, enforce any and all of the Holder’s rights and remedies provided herein or any other rights or remedies afforded by law. Upon an Event of Default, interest shall accrue at a default interest rate of 24% per annum or, if such rate is usurious or not permitted by current law, then at the highest rate of interest permitted by law. In the event of a breach of Section 8(k) the penalty shall be $250 per day the shares are not issued beginning on the 4th day after the conversion notice was delivered to the Company. This penalty shall increase to $500 per day beginning on the 10th day. The penalty for a breach of Section 8(n) shall be an increase of the outstanding principal amounts by 20%. In case of a breach of Section 8(i), the outstanding principal due under this Note shall increase by 50%. If this Note is not paid at maturity, the outstanding principal due under this Note shall increase by 10%. Further, if a breach of Section 8(m) occurs or is continuing after the 6 month anniversary of the Note, then the Holder shall be entitled to use the lowest closing bid price during the delinquency period as a base price for the conversion. For example, if the lowest closing bid price during the delinquency period is $0.01 per share and the conversion discount is 50% the Holder may elect to convert future conversions at $0.005 per share.

 

     
 

 

If the Holder shall commence an action or proceeding to enforce any provisions of this Note, including, without limitation, engaging an attorney, then if the Holder prevails in such action, the Holder shall be reimbursed by the Company for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

Make-Whole for Failure to Deliver Loss. At the Holder’s election, if the Company fails for any reason to deliver to the Holder the conversion shares by the by the 3rd business day following the delivery of a Notice of Conversion to the Company and if the Holder incurs a Failure to Deliver Loss, then at any time the Holder may provide the Company written notice indicating the amounts payable to the Holder in respect of the Failure to Deliver Loss and the Company must make the Holder whole as follows:

 

Failure to Deliver Loss = [(High trade price at any time on or after the day of exercise) x (Number of conversion shares)]

 

The Company must pay the Failure to Deliver Loss by cash payment, and any such cash payment must be made by the third business day from the time of the Holder’s written notice to the Company.

 

9. In case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.

 

10. Neither this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the Company and the Holder.

 

11. The Company represents that it is not a “shell” issuer and has never been a “shell” issuer or that if it previously has been a “shell” issuer that at least 12 months have passed since the Company has reported form 10 type information indicating it is no longer a “shell issuer. Further. The Company will instruct its counsel to either (i) write a 144 opinion to allow for salability of the conversion shares or (ii) accept such opinion from Holder’s counsel.

 

     
 

 

12. The Company shall issue irrevocable transfer agent instructions reserving 8,000,000 shares of its Common Stock for conversions under this Note equal to one and a half times the discounted value of the Note (the “Share Reserve”) within 5 days from the date of execution . Upon full conversion of this Note, any shares remaining in the Share Reserve shall be cancelled. The Company shall pay all transfer agent costs associated with issuing and delivering the share certificates to Holder. If such amounts are to be paid by the Holder, it may deduct such amounts from the Conversion Price. The company should at all times reserve a minimum of one and a half times the amount of shares required if the note would be fully converted. The Holder may reasonably request increases from time to time to reserve such amounts. The Company will instruct its transfer agent to provide the outstanding share information to the Holder in connection with its conversions.

 

13. The Company will give the Holder direct notice of any corporate actions, including but not limited to name changes, stock splits, recapitalizations etc. This notice shall be given to the Holder as soon as possible under law.

 

14. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable provision shall automatically be revised to equal the maximum rate of interest or other amount deemed interest permitted under applicable law. The Company covenants (to the extent that it may lawfully do so) that it will not seek to claim or take advantage of any law that would prohibit or forgive the Company from paying all or a portion of the principal or interest on this Note.

 

15. This Note shall be governed by and construed in accordance with the laws of New York applicable to contracts made and wholly to be performed within the State of New York and shall be binding upon the successors and assigns of each party hereto. The Holder and the Company hereby mutually waive trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of New York or in the Federal courts sitting in the county or city of New York. This Agreement may be executed in counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall be effective as an original.

     
 

 

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by an officer thereunto duly authorized.

 

Dated: 03/13/2019

 

    TAURIGA SCIENCES, INC.
     
  By:  

 

     
 

 

 

S ECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of March 14, 2019, by and between Tauriga Sciences, Inc. , a Florida corporation, with headquarters located at 39 Old Ridgebury Road, Danbury, CT 06180 (the “Company”), and GS CAPITAL PARTNERS, LLC , with its address at 30 Broad Street, Suite 1201, New York, NY 10004 (the “Buyer”).

 

WHEREAS :

 

A. The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “1933 Act”);

 

B. Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement an 8% convertible note of the Company, in the form attached hereto as Exhibit A in the aggregate principal amount of $300,000.00 (together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the terms thereof, the “Note”), convertible into shares of common stock, of the Company (the “Common Stock”), upon the terms and subject to the limitations and conditions set forth in such Note. The Note shall contain a $20,000.00 original issue discount (OID) such that the purchase price for each note shall be $280,000.00.

 

C. The Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of Note as is set forth immediately below its name on the signature pages hereto; and

 

NOW THEREFORE , the Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1. Purchase and Sale of Note.

 

a. Purchase of Note . On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase from the Company such principal amount of Note as is set forth immediately below the Buyer’s name on the signature pages hereto.

 

b. Form of Payment . On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note to be issued and sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available funds to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Note in the principal amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the signature pages hereto, and (ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against delivery of such Purchase Price.

 

     

 

 

c. Closing Date . The date and time of the first issuance and sale of the Note pursuant to this Agreement (the “Closing Date”) shall be on or about March 14, 2019, or such other mutually agreed upon time. The closing of the transactions contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties.

 

2. Buyer’s Representations and Warranties. The Buyer represents and warrants to the Company that:

 

a. Investment Purpose . As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable upon conversion of or otherwise pursuant to the Note, such shares of Common Stock being collectively referred to herein as the “Conversion Shares” and, collectively with the Note, the “Securities”) for its own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act; provided , however , that by making the representations herein, the Buyer does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act.

 

b. Accredited Investor Status . The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D (an “Accredited Investor”).

 

c. Reliance on Exemptions . The Buyer understands that the Securities are being offered and sold to it in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the Buyer to acquire the Securities.

 

d. Information . The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue to be, furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Securities which have been requested by the Buyer or its advisors. The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue to be, afforded the opportunity to ask questions of the Company. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and will not disclose such information unless such information is disclosed to the public prior to or promptly following such disclosure to the Buyer. Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives shall modify, amend or affect Buyer’s right to rely on the Company’s representations and warranties contained in Section 3 below. The Buyer understands that its investment in the Securities involves a significant degree of risk. The Buyer is not aware of any facts that may constitute a breach of any of the Company’s representations and warranties made herein.

 

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e. Governmental Review . The Buyer understands that no United States federal or state agency or any other government or governmental agency has passed upon or made any recommendation or endorsement of the Securities.

 

f. Transfer or Re-sale . The Buyer understands that (i) the sale or re- sale of the Securities has not been and is not being registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an exemption from such registration, which opinion shall be accepted by the Company, (c) the Securities are sold or transferred to an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”) of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited Investor, (d) the Securities are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S under the 1933 Act (or a successor rule) (“Regulation S”), and the Buyer shall have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate transactions, which opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral in connection with a bona fide margin account or other lending arrangement.

 

g. Legends . The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the 1933 Act may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular date that can then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for such Securities):

 

“NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

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The legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities, including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, within 2 business days, it will be considered an Event of Default under the Note.

 

h. Authorization; Enforcement . This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.

 

i. Residency . The Buyer is a resident of the jurisdiction set forth immediately below the Buyer’s name on the signature pages hereto.

 

j. No Short Sales . Buyer/Holder, its successors and assigns, agree that so long as the Note remains outstanding, the Buyer/Holder shall not enter into or effect “short sales” of the Common Stock or hedging transaction which establishes a short position with respect to the Common Stock of the Company. The Company acknowledges and agrees that upon delivery of a Conversion Notice by the Buyer/Holder, the Buyer/Holder immediately owns the shares of Common Stock described in the Conversion Notice and any sale of those shares issuable under such Conversion Notice would not be considered short sales.

 

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3. Representations and Warranties of the Company . The Company represents and warrants to the Buyer that:

 

a. Organization and Qualification . The Company and each of its subsidiaries, if any, is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted.

 

b. Authorization; Enforcement . (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement, the Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance and reservation for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized by the Company’s Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its shareholders is required, (iii) this Agreement has been duly executed and delivered by the Company by its authorized representative, and such authorized representative is the true and official representative with authority to sign this Agreement and the other documents executed in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms.

 

c. Issuance of Shares . The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note in accordance with its respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

d. Acknowledgment of Dilution . The Company understands and acknowledges the potentially dilutive effect to the Common Stock upon the issuance of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation to issue Conversion Shares upon conversion of the Note in accordance with this Agreement, the Note is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

e. No Conflicts . The execution, delivery and performance of this Agreement, the Note by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company or any of its subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company or its securities are subject) applicable to the Company or any of its subsidiaries or by which any property or asset of the Company or any of its subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a material adverse effect). All consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof. The Company is not in violation of the listing requirements of the OTC marketplace (the “OTC MARKETS”) and does not reasonably anticipate that the Common Stock will be delisted by the OTC Markets in the foreseeable future, nor are the Company’s securities “chilled” by DTC. The Company and its subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

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f. Absence of Litigation . Except as disclosed in the Company’s public filings, there is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its subsidiaries, threatened against or affecting the Company or any of its subsidiaries, or their officers or directors in their capacity as such, that could have a material adverse effect. Schedule 3(f) contains a complete list and summary description of any pending or, to the knowledge of the Company, threatened proceeding against or affecting the Company or any of its subsidiaries, without regard to whether it would have a material adverse effect. The Company and its subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

g. Acknowledgment Regarding Buyer’ Purchase of Securities . The Company acknowledges and agrees that the Buyer is acting solely in the capacity of arm’s length purchasers with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer or any of its respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is not advice or a recommendation and is merely incidental to the Buyer’ purchase of the Securities. The Company further represents to the Buyer that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation of the Company and its representatives.

 

h. No Integrated Offering . Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that would require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the Buyer will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes of any shareholder approval provisions applicable to the Company or its securities.

 

i. Title to Property . The Company and its subsidiaries have good and marketable title in fee simple to all real property and good and marketable title to all personal property owned by them which is material to the business of the Company and its subsidiaries, in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 3(i) or such as would not have a material adverse effect. Any real property and facilities held under lease by the Company and its subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as would not have a material adverse effect.

 

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j. Bad Actor . No officer or director of the Company would be disqualified under Rule 506(d) of the Securities Act as amended on the basis of being a “bad actor” as that term is established in the September 19, 2013 Small Entity Compliance Guide published by the Securities and Exchange Commission.

 

k. Breach of Representations and Warranties by the Company . If the Company breaches any of the representations or warranties set forth in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an Event of default under the Note.

 

4. COVENANTS .

 

a. Expenses . At the Closing, the Company shall reimburse Buyer for expenses incurred by them in connection with the negotiation, preparation, execution, delivery and performance of this Agreement and the other agreements to be executed in connection herewith (“Documents”), including, without limitation, reasonable attorneys’ and consultants’ fees and expenses, transfer agent fees, fees for stock quotation services, fees relating to any amendments or modifications of the Documents or any consents or waivers of provisions in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs of restructuring the transactions contemplated by the Documents. When possible, the Company must pay these fees directly, otherwise the Company must make immediate payment for reimbursement to the Buyer for all fees and expenses immediately upon written notice by the Buyer or the submission of an invoice by the Buyer.

 

b. Listing . The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange or automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and, so long as the Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so listed, such listing of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain and, so long as the Buyer owns any of the Securities, maintain the listing and trading of its Common Stock on the OTC MARKETS or any equivalent replacement market, the Nasdaq stock market (“Nasdaq”), the New York Stock Exchange (“NYSE”), or the American Stock Exchange (“AMEX”) and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”) and such exchanges, as applicable. The Company shall promptly provide to the Buyer copies of any notices it receives from the OTC MARKETS and any other markets on which the Common Stock is then listed regarding the continued eligibility of the Common Stock for listing on such markets.

 

c. Corporate Existence . So long as the Buyer beneficially owns any Note, the Company shall maintain its corporate existence and shall not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or sale of all or substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i) assumes the Company’s obligations hereunder and under the agreements and instruments entered into in connection herewith and (ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTC MARKETS, Nasdaq, NYSE or AMEX.

 

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d. No Integration . The Company shall not make any offers or sales of any security (other than the Securities) under circumstances that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval provision applicable to the Company or its securities.

 

e. Restricted Shares. The Company shall issue 750,000 of restricted Common Stock to the Buyer as additional consideration for the purchase of the Note.

 

f. Breach of Covenants . If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an event of default under the Note.

 

5. Governing Law; Miscellaneous .

 

a. Governing Law . This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the state and county of New York. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens . The Company and Buyer waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

b. Counterparts; Signatures by Facsimile . This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

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c. Headings . The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation of, this Agreement.

 

d. Severability . In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.

 

e. Entire Agreement; Amendments . This Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest of the Buyer.

 

f. Notices . All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, (iv) via electronic mail or (v) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received) or delivery via electronic mail, or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

 

If to the Company, to:

Tauriga Sciences, Inc.

39 Old Ridgebury Road

Danbury, CT 06180

Attn: Seth M. Shaw, CEO

 

If to the Buyer:

GS CAPITAL PARTNERS, LLC

30 Broad Street, Suite 1201

New York, NY 10004

Attn: Gabe Sayegh

 

Each party shall provide notice to the other party of any change in address.

 

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g. Successors and Assigns . This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written consent of the other. Notwithstanding the foregoing, the Buyer may assign its rights hereunder to any person that purchases Securities in a private transaction from the Buyer or to any of its “affiliates,” as that term is defined under the 1934 Act, without the consent of the Company.

 

h. Third Party Beneficiaries . This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

i. Survival . The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they are incurred.

 

j. Further Assurances . Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

k. No Strict Construction . The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

 

l. Remedies . The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required.

 

  10  

 

 

IN WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

 

Tauriga Sciences, Inc .  
     
By:    
Name: Seth M. Shaw  
Title: CEO  
     
GS CAPITAL PARTNERS, LLC.  
     
By:    
Name: Gabe Sayegh  
Title: Manager  

 

  11  

 

 

AGGREGATE SUBSCRIPTION AMOUNT:

 

Aggregate Principal Amount of Note: $300,000.00
Aggregate Purchase Price:  
Note 1: $300,000.00 less $20,000.00 in OID  

 

  12  

 

 

 

 

SECURITIES PURCHASE AGREEMENT

 

Tauriga Sciences Inc. (OTCQB: TAUG)

 

555 Madison Avenue, 5 th Floor

 

New York, NY 10022

 

Attn: Seth M. Shaw, Chief Executive Officer. DATE: March ____, 2019

 

THIS SECURITIES PURCHASE AGREEMENT (this “ Agreement ”), dated as of March _____, 2019, by and among Tauriga Sciences, Inc., a Florida corporation (the “ Company ”), and the Subscriber identified on the signature pages hereto (the “ Subscriber ”).

 

WHEREAS , the Company and the Subscriber are executing and delivering this Agreement in reliance upon an exemption from securities registration afforded by the provisions of Section 4(2), Section 4(6) and/or Regulation D (“ Regulation D ”) as promulgated by the United States Securities and Exchange Commission (the “ Commission ”) under the Securities Act of 1933, as amended (the “ 1933 Act ”).

 

WHEREAS , the parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the Subscriber, as provided herein, and the Subscriber shall purchase ______________ shares (the “ Purchased Shares ”) of the Company’s common stock, $.00001 par value (the “ Common Stock ”) at a per shares price of $0.06 (“Six Cents”) for an aggregate purchase price of $____________ (the “ Purchase Price ”).

 

NOW, THEREFORE , in consideration of the mutual covenants and other agreements contained in this Agreement, the Company and the Subscriber hereby agree as follows:

 

1. Closing . On the Closing Date (as defined below), the Subscriber shall purchase and the Company shall sell to the Subscriber the Purchased Shares. The Closing Date shall be the date the Subscriber funds the Purchase Price by wire transfer to the benefit of the Company pursuant to the instructions set forth on Exhibit A hereto (the “ Closing Date ”).

 

 
     

 

2. Subscriber’s Representations and Warranties . The Subscriber hereby represents and warrants to and agrees with the Company as to such Subscriber that:

 

(a) Information on Company . The Subscriber has received in writing from the Company such public information concerning its operations, financial condition and other matters as the Subscriber has requested in writing, and considered all factors the Subscriber deems material in deciding on the advisability of investing in the Securities.

 

(b) Information on Subscriber . The Subscriber is as of the date hereof an “accredited investor”, as such term is defined in Regulation D promulgated by the Commission under the 1933 Act, is experienced in investments and business matters, has made investments of a speculative nature and has purchased securities of United States publicly-owned companies in private placements in the past and, with its representatives, has such knowledge and experience in financial, tax and other business matters as to enable the Subscriber to utilize the information made available by the Company to evaluate the merits and risks of, and to make an informed investment decision with respect to, the proposed purchase. The Subscriber acknowledges that an investment in the Securities represents a speculative investment. The Subscriber has the authority and is duly and legally qualified to purchase and own the Securities. The Subscriber is able to bear the risk of such investment for an indefinite period and to afford a complete loss of the investment. The information set forth on the signature page hereto regarding the Subscriber is true and correct.

 

(c) Compliance with Securities Act . The Subscriber understands and agrees that the Securities have not been registered under the 1933 Act or any applicable state securities laws, and are being issued in a transaction that does not require registration under the 1933 Act (based in part on the accuracy of the representations and warranties of Subscriber contained herein), and that such Securities must be held indefinitely unless the Securities are subsequently registered for resale under the 1933 Act or any applicable state securities laws or is exempt from such registration.

 

(d) Shares Legend . Upon issuance, the Purchased Shares shall bear the following or similar legend:

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAW. NO TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE SHALL BE VALID OR EFFECTIVE UNLESS SUCH TRANSFER IS MADE (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR (B) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE OR LOCAL SECURITIES LAW (INCLUDING WITHOUT LIMITATION THE DELIVERY OF A LEGAL OPINION FROM COUNSEL TO THE TRANSFEROR, REASONABLY SATISFACTORY, IF REQUESTED BY THE COMPANY).”

 

(e) Communication of Offer . The offer to sell the Securities was directly communicated to the Subscriber by the Company. At no time was the Subscriber presented with or solicited by any leaflet, newspaper or magazine article, radio or television advertisement, or any other form of general advertising or solicited or invited to attend a promotional meeting otherwise than in connection and concurrently with such communicated offer.

 

- 2 -
     

 

(f) Authority; Enforceability . This Agreement and the other agreements delivered in connection with this Agreement have been duly authorized, executed and delivered by the Subscriber and are valid and binding agreements enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights generally and to general principles of equity, Subscriber has full corporate power and authority necessary to enter into this Agreement and such other agreements and to perform its obligations hereunder and under all other agreements entered into by the Subscriber relating hereto.

 

(g) Correctness of Representations . The Subscriber represents as to such Subscriber that the foregoing representations and warranties are true and correct as of the date hereof and will be true and correct as of the Closing Date. The foregoing representations and warranties shall survive the Closing Date for a period of three years.

 

(h) Survival . The foregoing representations and warranties of the Subscriber shall survive the Closing Date for a period of two years.

 

3. Company Representations and Warranties . The Company represents and warrants to and agrees with the Subscriber that, except as set forth in the Reports:

 

(a) Due Incorporation . The Company and each of its subsidiaries is a corporation duly organized, validly existing and in good standing under the laws of the respective jurisdictions of their incorporation and have the requisite corporate power to own their properties and to carry on their business as now being conducted. The Company and each of its subsidiaries is duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction where the nature of the business conducted or property owned by it makes such qualification necessary, other than those jurisdictions in which the failure to so qualify would not have a material adverse effect on the business, operations or financial condition of the Company.

 

(b) Outstanding Stock . All issued and outstanding shares of capital stock of the Company and each of its subsidiaries has been duly authorized and validly issued and are fully paid and non-assessable.

 

(c) Authority; Enforceability . This Agreement and any other agreements delivered in connection herewith (collectively “ Transaction Documents ”) have been duly authorized, executed and delivered by the Company and are valid and binding agreements enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights generally and to general principles of equity. The Company has full corporate power and authority necessary to enter into and deliver the Transaction Documents and to perform its obligations thereunder.

 

- 3 -
     

 

(d) The Securities . The Securities upon issuance:

 

(i) are, or will be, free and clear of any security interests, liens, claims or other encumbrances, subject to restrictions upon transfer under the 1933 Act and any applicable state securities laws; and

 

(ii) have been, or will be, duly and validly authorized and as of the Closing Date, the Securities will be duly and validly issued, fully paid and nonassessable (and if registered pursuant to the 1933 Act, and if resold pursuant to an effective registration statement will be free trading and unrestricted, provided that the Subscriber complies with the prospectus delivery requirements of the 1933 Act);

 

(e) Reporting Company . The Company is a publicly-held company subject to reporting obligations pursuant to Sections 15(d) and 13 of the Securities Exchange Act of 1934, as amended (the “ 1934 Act ”) and has a class of common stock registered pursuant to Section 12(g) of the 1934 Act. The Company is Current and is a fully reporting U.S. based public Company which has its securities listed on the OTCQB Tier of OTC Markets.

 

(f) No Market Manipulation . The Company has not taken, and will not take, directly or indirectly, any action designed to, or that might reasonably be expected to, cause or result in stabilization or manipulation of the price of the Common Stock to facilitate the sale or resale of the Securities or affect the price at which the Securities may be issued or resold.

 

(g) Stop Transfer . The Securities, when issued, will be “restricted” securities, as that term is defined under Rule 144 of the 1933 Act. The Company will not issue any stop transfer order or other order impeding the sale, resale or delivery of any of the Securities, except as may be required by any applicable federal or state securities laws and unless contemporaneous notice of such instruction is given to the Subscriber.

 

(h) No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly or indirectly made any offers or sales of any security or solicited any offers to buy any security under circumstances that would cause the offer of the Securities pursuant to this Agreement to be integrated with prior offerings by the Company for purposes of the 1933 Act or any applicable stockholder approval provisions, including, without limitation, under the rules and regulations of the Bulletin Board. The Company or any of its affiliates or subsidiaries will not take any action or steps that would cause the offer of the Securities to be integrated with other offerings. The Company will not conduct any offering other than the transactions contemplated hereby that will be integrated with the offer or issuance of the Securities.

 

(i) No General Solicitation . Neither the Company, nor any of its affiliates, nor to its knowledge, any person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the 1933 Act) in connection with the offer or sale of the Securities.

 

(j) Dilution . The Company’s executive officers and directors have studied and fully understand the nature of the Securities being sold hereby and recognize that they have a potential dilutive effect on the equity holdings of other holders of the Company’s equity or rights to receive equity of the Company. The board of directors of the Company has concluded, in its good faith business judgment, that such issuance is in the best interests of the Company.

 

- 4 -
     

 

(k) Going Concern: There can be no guaranty that the Company will be successful in its business initiatives and there is the possibility that the Company will not be in business at some point in the future.

 

(l) Survival . The foregoing representations and warranties shall survive the Closing Date for a period of six months.

 

4. Regulation D Offering . The offer and issuance of the Securities to the Subscriber is being made pursuant to the exemption from the registration provisions of the 1933 Act afforded by Section 4(2) or Section 4(6) of the 1933 Act and/or Rule 506 of Regulation D promulgated thereunder. .

 

5. Covenants of the Company and Subscriber Regarding Indemnification.

 

(a) The Company agrees to indemnify, hold harmless, reimburse and defend the Subscriber, the Subscriber’ officers, directors, agents, affiliates, control persons, and principal shareholders, against any claim, cost, expense, liability, obligation, loss or damage (including reasonable legal fees) of any nature, incurred by or imposed upon the Subscriber or any such person which results, arises out of or is based upon (i) any material misrepresentation by Company or breach of any warranty by Company in this Agreement or in any Exhibits or Schedules attached hereto, or other agreement delivered pursuant hereto; or (ii) after any applicable notice and/or cure periods, any breach or default in performance by the Company of any covenant or undertaking to be performed by the Company hereunder, or any other agreement entered into by the Company and Subscriber relating hereto.

 

(b) The Subscriber agrees to indemnify, hold harmless, reimburse and defend the Company and each of the Company’s officers, directors, agents, affiliates, control persons against any claim, cost, expense, liability, obligation, loss or damage (including reasonable legal fees) of any nature, incurred by or imposed upon the Company or any such person which results, arises out of or is based upon (i) any material misrepresentation by such Subscriber in this Agreement or in any Exhibits or Schedules attached hereto, or other agreement delivered pursuant hereto; or (ii) after any applicable notice and/or cure periods, any breach or default in performance by such Subscriber of any covenant or undertaking to be performed by such Subscriber hereunder, or any other agreement entered into by the Company and Subscribers relating hereto.

 

(c) In no event shall the liability of any Subscriber or permitted successor hereunder or under any other agreement delivered in connection herewith be greater in amount than the dollar amount of the net proceeds received by such Subscriber upon the sale of Registrable Securities (as defined herein) giving rise to such indemnification obligation.

 

- 5 -
     

 

6. Miscellaneous .

 

(a) Notices . All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: (i) if to the Company, to: Tauriga Sciences, Inc., 39 Old Ridgebury Road, Danbury Connecticut 06180, and (ii) if to the Subscriber, to the address and telecopier number indicated on the signature page hereto.

 

(b) Closing . The consummation of the transactions contemplated herein (“ Closing ”) shall take place at the offices of the Company or via email upon the satisfaction of all conditions to Closing set forth in this Agreement.

 

(c) Entire Agreement; Assignment . This Agreement and other documents delivered in connection herewith represent the entire agreement between the parties hereto with respect to the subject matter hereof and may be amended only by a writing executed by both parties. Neither the Company nor the Subscriber have relied on any representations not contained or referred to in this Agreement and the documents delivered herewith. No right or obligation of either party shall be assigned by that party without prior notice to and the written consent of the other party.

 

(d) Counterparts . This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

 

(e) Law Governing this Agreement . This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the state of New York. The parties and the individuals executing this Agreement and other agreements referred to herein or delivered in connection herewith on behalf of the Company agree to submit to the jurisdiction of such courts and waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform to such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.

 

(f) Specific Enforcement, Consent to Jurisdiction . The Company and Subscriber acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof or thereof, this being in addition to any other remedy to which any of them may be entitled by law or equity. Each of the Company and Subscriber hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper. Nothing in this Section shall affect or limit any right to serve process in any other manner permitted by law.

 

[SIGNATURE PAGE FOLLOWS]

 

- 6 -
     

 

SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT

 

Please acknowledge your acceptance of the foregoing Securities Purchase Agreement by signing and returning a copy to the undersigned whereupon it shall become a binding agreement between us.

 

  TAURIGA SCIENCES, INC.
  a Florida Corporation
     
  By:  
  Name: Seth M. Shaw
  Title: CEO/Chairman
  FORMAL ACCEPTANCE DATE: 04/12/2019

 

SUBSCRIBER

 

Name: _________________________

 

Address: _____________________________________________________

 

If Subscriber is an entity:

 

Form of Entity: _____________________________________________

(i.e., corporation, partnership, etc.)

 

Laws under which Entity is formed: ____________________________

 

Principal jurisdiction in which business is conducted: ____ ____________

 

Social Security or

Tax Identification Number: ____________

 

___________________________________

Signature

(If signing as officer or partner, please give title)

 

 
     

 

 

New York, NY, Jan. 14, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Tauriga Sciences, Inc. (OTCQB:  TAUG ) (“Tauriga” or the “Company”), engaged in building its business through the development, distribution, and licensing of proprietary products as well as the evaluation of potential acquisition opportunities and equity investments, today announced that it has reached an agreement to extinguish the $75,000 contingent liability that originated from its December 2016 sale (the “Sale”) of Pilus Energy LLC (“Pilus Energy”) to Open Therapeutics LLC (“Open Therapeutics”).

 

Please see below link to December 2016 press release disclosing the Sale:

 

Link: http://www.marketwired.com/press-release/tauriga-sciences-inc-sells-majority-stake-pilus-energy-subsidiary-open-therapeutics-pinksheets-taug-2185449.htm

 

Accordingly, this $75,000 contingent liability will be removed from the Company’s balance sheet during this current quarter (4 th Fiscal Quarter of 2019).  This balance sheet adjustment will be reflected in the Company’s Form 10-K for its Fiscal Year 2019 (as this Agreement occurred post December 31, 2018).  To extinguish this contingent liability, The Company agreed to a one-time restricted stock issuance of 500,000 TAUG shares; payable to Open Therapeutics LLC.  

 

ABOUT:    TAURIGA SCIENCES INC.

 

Tauriga Sciences, Inc. ( TAUG ) is engaged in building business through the development, distribution, and licensing of proprietary products as well as the evaluation of potential acquisition opportunities/equity investments. The Company is currently evaluating potential acquisition candidates, as previously disclosed, to create lasting shareholder value. Additionally, the Company is working diligently to identify potential opportunities to generate revenue and leverage its considerable resources and expertise to build a diversified and sustainable business model.  The Company has disclosed to shareholders that it is launching a Cannabis/CBD Chewing Gum product line, branded under the name Tauri-Gum™, and expects the launch to occur on or around March 1, 2019; the Company executed a comprehensive manufacturing agreement (for the production of its CBD Gum) on December 28, 2018.    Please visit our corporate website at  www.tauriga.com

 

Forward-Looking Statements

 

This press release contains certain “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 which represent management’s beliefs and assumptions concerning future events. These forward-looking statements are often indicated by using words such as “may,” “will,” “expects,” “anticipates,” believes, “hopes,” “believes,” or plans, and may include statements regarding corporate objectives as well as the attainment of certain corporate goals and milestones. Forward-looking statements are based on present circumstances and on management’s present beliefs with respect to events that have not occurred, that may not occur, or that may occur with different consequences or timing than those now assumed or anticipated. Actual results may differ materially from those expressed in forward looking statements due to known and unknown risks and uncertainties, such as are not guarantees of general economic and business conditions, the ability to successfully develop and market products, consumer and business consumption habits, the ability to consummate successful acquisition and licensing transactions, fluctuations in exchange rates, and other factors over which Tauriga has little or no control. Many of these risks and uncertainties are discussed in greater detail in the “Risk Factors” section of Tauriga’s Form 10-K and other filings made from time to time with the Securities and Exchange Commission. Such forward-looking statements are made only as of the date of this release, and Tauriga assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. You should not place undue reliance on these forward-looking statements.

 

CONTACT INFORMATION

 

Tauriga Sciences, Inc.
555 Madison Avenue, 5th Floor
New York, NY  10022
Chief Executive Officer
Mr. Seth M. Shaw
Email:  sshaw@tauriga.com
cell # (917) 796 9926
www.tauriga.com

 

     

 

 

NEW YORK, NY, April 09, 2019 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE – Tauriga Sciences, Inc. (OTCQB: TAUG ) (“Tauriga” or the “Company”), a revenue generating Company that operates through the development, distribution, and licensing of proprietary products as well as the evaluation of potential acquisition opportunities and equity investments, today announced that it is developing a special miniaturized Airport version of its CBD Infused chewing gum (branded as: Tauri-Gum TM ). The Company recently announced an increase in its Research & Development (“R & D”) budget, aimed at continually enhancing its Tauri-Gum TM product line. Tauriga envisions this Airport version consisting of a miniaturized blister pack, containing three pieces of its CBD Infused gum (anticipated retail price of $6.99 per unit). The Company is in the process of miniaturizing the graphic design and label wording, to correlate with this newest proposed product version.

 

"100+ DPI IMAGE FOR APRIL 9, 2019 PR:ARTIST???S RENDITION OF TAURI-GUM TM AIRPORT VERSION"

 

     

 

 

100+ DPI Image for April 9, 2019 PR:Artist’s Rendition of Tauri-Gum™ Airport Version

More

 

The Company believes that the Airport market segment represents a potentially lucrative opportunity for the Company, because of the well-known benefits of chewing gum while flying on airplanes. The act of chewing gum (any type of gum) equalizes the air pressure in the middle ear, thereby helping to alleviate the intensity of headaches and ear related discomfort (often experienced by air travelers).

 

Tauriga’s CEO, Mr. Seth M. Shaw, expressed, “The Company believes that an Airport version of Tauri-Gum TM has the potential to unlock a major future business opportunity. Chewing gums, of all type, sell extremely well at airports and this plays into one of the Company’s strengths. Tauriga formulated Tauri-Gum TM in a manner that is fully compliant with the prevailing U.S. Federal laws and regulations that govern this sector. Therefore, the Company feels confident that it can proceed with this above-mentioned corporate initiative and legally sell its product(s) at U.S. based airports.”

 

ABOUT TAURIGA SCIENCES, INC.

 

Tauriga Sciences, Inc. ( TAUG ) is a revenue generating Company that operates through the development, distribution, and licensing of proprietary products as well as the evaluation of potential acquisition opportunities. One such opportunity on which the Company has acted, involves the Company having entered into the cannabidiol (or “CBD”) infused chewing gum product business, as more fully described above and in prior press releases. This CBD infused chewing gum product has been branded under the following name: Tauri-Gum TM . See also our periodic reports filed by us with the SEC for a more complete description of our business and material agreements that we have entered into. Further, the Company continues to identify and evaluate additional potential opportunities to generate revenue, as well as shareholder value, and leverage its resources and expertise to build a diversified and sustainable business model. Please visit our corporate website at www.tauriga.com.

 

In addition, on March 11, 2019, the Company announced the official launch of its E-Commerce site - as part of its Tauri-Gum TM commercialization strategy. This site can be accessed by visiting the following URL address: www.taurigum.com

 

     

 

 

Forward-Looking Statements

 

This press release contains certain “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 which represent management’s beliefs and assumptions concerning future events. These forward-looking statements are often indicated by using words such as “may,” “will,” “expects,” “anticipates,” believes, “hopes,” “believes,” or plans, and may include statements regarding corporate objectives as well as the attainment of certain corporate goals and milestones. Forward-looking statements are based on present circumstances and on management’s present beliefs with respect to events that have not occurred, that may not occur, or that may occur with different consequences or timing than those now assumed or anticipated. Actual results may differ materially from those expressed in forward looking statements due to known and unknown risks and uncertainties, such as are not guarantees of general economic and business conditions, the ability to successfully develop and market products, consumer and business consumption habits, the ability to consummate successful acquisition and licensing transactions, fluctuations in exchange rates, and other factors over which Tauriga has little or no control. Many of these risks and uncertainties are discussed in greater detail in the “Risk Factors” section of Tauriga’s Form 10-K and other filings made from time to time with the Securities and Exchange Commission. Such forward-looking statements are made only as of the date of this release, and Tauriga assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. You should not place undue reliance on these forward-looking statements.

 

Additional Disclaimer Specific to this Press Release:

 

There can be no guaranty that the Company will ultimately be successful in developing this Tauri-Gum TM Airport version or bringing it to market.

 

Attachment

 

100+ DPI Image for April 9, 2019 PR

 

CONTACT INFORMATION:

 

Tauriga Sciences, Inc.

555 Madison Avenue, 5th Floor

New York, NY 10022

Chief Executive Officer

Mr. Seth M. Shaw

Email: sshaw@tauriga.com

cell # (917) 796 9926

www.tauriga.com

 

     

 

 

 

NEW YORK, NY, March 18, 2019 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE – Tauriga Sciences, Inc. (OTCQB: TAUG ) (“Tauriga” or the “Company”), engaged in building its business through the development, distribution, and licensing of proprietary products as well as the evaluation of potential acquisition opportunities and equity investments, today announced that it received an initial $54,000 Tauri-Gum™ purchase order from a major New York City based distribution company (the “Distributor”). This purchase order is for a total of 6,000 individual Tauri-Gum™ blister packs or 600 retail boxes. Within the next few days, the Distributor will send a truck to Tauriga’s fulfillment facility and take possession of the above-mentioned product. The Distributor has a major presence throughout the New York City Metropolitan area (“NYC Metro area”) and generates annual revenue well in excess of $100,000,000.

 

Tauri-Gum™:3-Dimensional Computer Generated Image of Tauri-Gum™ Blister Pack (“Individual Pack”)

 

The Company has made the strategic decision to largely focus its ongoing commercial launch on the New York City (“NYC”) retail marketplace. The reasons for this, are that: The Company has excellent NYC distribution relationships and the Company believes that it can launch its brand in NYC in an efficient and cost-effective manner. Besides this $54,000 purchase order, the Company has already received orders through its E-Commerce site ( www.taurigum.com ), which has been processing transactions since last week.

 

     

 

 


The Company is currently negotiating a comprehensive 12-month distribution agreement with the above-referenced Distributor and believes that it will be successful in consummating this agreement (within the very near term). The Company’s first major corporate goal is to place Tauri-Gum™ in 300-500 select NYC Metro area stores, during the month of April 2019. Should the product prove to be successful in this first phase of its roll-out, the Company will allocate the requisite resources for additional expansion in NYC as well as the Northeastern United States.

 

ABOUT: TAURIGA SCIENCES, INC.

 

Tauriga Sciences, Inc. ( TAUG ) is engaged in building business through the development, distribution, and licensing of proprietary products as well as the evaluation of potential acquisition opportunities. One such opportunity on which the Company has acted, involves the Company having entered into the cannabidiol (or “CBD”) infused chewing gum product business, as more fully described above and in prior press releases. This CBD infused chewing gum product has been branded under the following name: Tauri-Gum TM . See also our periodic reports filed by us with the SEC for a more complete description of our business and material agreements that we have entered into. Further, the Company continues to identify and evaluate additional potential opportunities to generate revenue, as well as shareholder value, and leverage its resources and expertise to build a diversified and sustainable business model. Please visit our corporate website at www.tauriga.com.

 

In addition, on March 11, 2019, the Company announced the official launch of its E-Commerce site - as part of its Tauri-Gum TM commercialization strategy. This site can be accessed by visiting the following URL address: www.taurigum.com

 

     

 

 

Forward-Looking Statements

 

This press release contains certain “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 which represent management’s beliefs and assumptions concerning future events. These forward-looking statements are often indicated by using words such as “may,” “will,” “expects,” “anticipates,” believes, “hopes,” “believes,” or plans, and may include statements regarding corporate objectives as well as the attainment of certain corporate goals and milestones. Forward-looking statements are based on present circumstances and on management’s present beliefs with respect to events that have not occurred, that may not occur, or that may occur with different consequences or timing than those now assumed or anticipated. Actual results may differ materially from those expressed in forward looking statements due to known and unknown risks and uncertainties, such as are not guarantees of general economic and business conditions, the ability to successfully develop and market products, consumer and business consumption habits, the ability to consummate successful acquisition and licensing transactions, fluctuations in exchange rates, and other factors over which Tauriga has little or no control. Many of these risks and uncertainties are discussed in greater detail in the “Risk Factors” section of Tauriga’s Form 10-K and other filings made from time to time with the Securities and Exchange Commission. Such forward-looking statements are made only as of the date of this release, and Tauriga assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. You should not place undue reliance on these forward-looking statements.

 

     

 

 

Attachment

 

Tauri-Gum™

 

Contact:

 

CONTACT INFORMATION

 

Tauriga Sciences, Inc.

555 Madison Avenue, 5th Floor

New York, NY 10022 Chief Executive Officer

Mr. Seth M. Shaw

Email: sshaw@tauriga.com

cell # (917) 796 9926

www.tauriga.com