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Securities Purchase Agreement

 

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Title:

Securities Purchase Agreement

Entities:

Date:

2000

Size:

Preview shows 8KB of 70KB total

Price:

$49

ID:

#912945

 

 

► Purchase & Sale ► Purchase ► Stock ► Securities Purchase Agreements

 

 

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SECURITIES PURCHASE AGREEMENT

THIS SECURITIES PURCHASE AGREEMENT (this "Agreement"), is made as of
February 8, 2000, by and between Nurescell Inc., a corporation organized under
the laws of the State of Nevada, U.S.A., with headquarters located at 1400
Bristol Street North, Suite 240, Newport Beach, California 92660 (the "Company")
and the buyer set forth on the execution page hereof (the "Buyer").

RECITALS

A. The Company and the Buyer are executing and delivering this Agreement
in reliance upon the exemption from securities registration afforded by the
provisions of Regulation D ("Regulation D") as promulgated by the United States
Securities and Exchange Commission (the "SEC") under the Securities Act of 1933,
as amended (the "1933 Act") and Section 4(2) under the 1933 Act;

B. The Buyer desires to purchase from the Company, and the Company
desires to sell to the Buyer, for the amounts and upon the terms and conditions
stated in this Agreement, in a closing (the "Closing") as herein described,
certain of the Company's convertible notes as listed and described in Recital
B(i) immediately below, and certain warrants as listed and described in Recital
B(ii) below.

(i) At the Closing (the "Closing"), the Company's Series 2000-A Eight
Percent (8%) Convertible Notes, the form of which is attached
hereto as Exhibit A (the "Notes"), which may be converted into
common stock of the Company, $.0001 par value per share ("Common
Stock"), upon the terms and conditions hereof and upon the terms
and conditions of the Notes. The purchase price for the Notes
sold pursuant to this Agreement shall be as stated in Section
1(a) below. The total aggregate face amount of the Notes to be
issued and sold by the Company at the Closing is Three Hundred
Eighty Five Thousand and no/100 United States Dollars
($385,000.00), all in accordance with the terms of this Agreement
and of the Notes.

(ii) At the Closing, as additional consideration for Buyer's purchase
of the Notes a warrant (the "Warrants") to purchase 75,000 shares
of Common Stock at a purchase price of $4.00 per share, which
Warrants must be exercised if at all within three (3) years after
the date of issuance. The Warrants shall be substantially in the
form attached hereto as Exhibit B.

The Common Stock into which the Notes may (in accordance with their terms)
be convertible shall be collectively referred to herein as the "Conversion
Shares." Certain shares of Common Stock may (at the Company's option as
described in the Notes) be issued to the Buyer in payment of interest (the
"Interest Shares"). The Common Stock received upon exercise of the Warrants
shall be referred


1
<PAGE>


to as the "Warrant Shares." The Notes, the Conversion Shares, the Interest
Shares (if any), the Warrants and the Warrant Shares may be collectively
referred to herein as the "Securities."

C. Contemporaneously with the execution and delivery of this Agreement,
the parties hereto are executing and delivering a Registration Rights Agreement
(the "Registration Rights Agreement") substantially in the form of Exhibit C
attached hereto pursuant to which the Company has agreed to provide certain
registration rights under the 1933 Act and the rules and regulations promulgated
thereunder, and applicable state securities laws.

AGREEMENTS

NOW, THEREFORE, in consideration of their respective promises contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by the parties, the Company and the Buyer hereby
agree as follows:

1. PURCHASE AND SALE OF SECURITIES.

a. PURCHASE. The Buyer hereby agrees to purchase from the Company, and
the Company agrees to sell to the Buyer, $385,000.00 in aggregate principal
amount of Notes at the Closing. The purchase price (the "Purchase Price") for
the Notes purchased at the Closing shall be $250,000.00.

b. THE CLOSING. The date of the Closing (the "Closing Date") shall be
February 8, 2000. The Purchase Price for the Notes being purchased at the
Closing shall be delivered to the Escrow Agent (as defined in the Escrow
Agreement substantially in the form of Exhibit D attached hereto (the "Escrow
Agreement")) on behalf of the Company on or before the Closing Date. On or
before the Closing Date, the Company shall deliver the original Notes and
Warrants being purchased at the Closing, duly issued, authorized and executed by
the authorized officers on behalf of the Company, to the Escrow Agent (as
defined in the Escrow Agreement) on behalf of the Buyer.

c. FORM OF PAYMENT. The Buyer shall pay the Purchase Price for the
Securities purchased at the Closing by wire transfer of immediately available
funds in United States Dollars, to be deposited into the Escrow Account as
defined in the Escrow Agreement, against delivery to the Escrow Agent of duly
executed Notes and Warrants being purchased by the Buyer hereunder at such
Closing. The Escrow Agent shall be responsible for delivery of the Purchase
Price to the Company and the Notes and Warrants to the Buyer in accordance with
the terms of the Escrow Agreement and with the instructions of the said parties.

2. BUYER'S REPRESENTATIONS AND WARRANTIES.

The Buyer understands, agrees with, and represents and warrants to the
Company with respect to its purchase hereunder, that:


2
<PAGE>



a. INVESTMENT PURPOSES; COMPLIANCE WITH 1933 ACT. The Buyer is purchasing
the Securities for its own account for investment only and not with a view
towards, or in connection with, the public sale or distribution thereof, except
pursuant to sales registered under or exempt from the 1933 Act and applicable
state securities laws. The Buyer is not purchasing the Securities for the
purpose of covering short sale positions in the Common Stock established on or
prior to the Closing Date. The Buyer agrees to offer, sell or otherwise transfer
the Securities only (i) in accordance with the terms of this Agreement, the
Notes and the Warrants, as applicable, and (ii) pursuant to registration under
the 1933 Act or to an exemption from registration under the 1933 Act and any
other applicable securities laws. The Buyer does not by its representations
contained in this Section 2(a) agree to hold the Securities for any minimum or
other specific term and reserves the right to dispose of the Securities at any
time pursuant to a registration statement or in accordance with an exemption
from registration under the 1933 Act, in all cases in accordance with applicable

 

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