Document:

Exhibit 10.1

Exhibit 10.1

AMENDMENT TO 

STOCK PURCHASE AGREEMENT

THIS AMENDMENT TO STOCK PURCHASE AGREEMENT (this “Amendment”) is made and entered into as of
March 19, 2010 by and between Supplemental Manufacturing & Ingredients, LLC, an Arizona limited
liability company (“Investor”) and HealthSport, Inc. a Delaware corporation (the “Company”).

RECITALS

WHEREAS, Investor has purchased stock in the Company pursuant to that certain Stock Purchase
Agreement dated November 6, 2009 by and between the parties (the “Stock Purchase Agreement”). In
connection therewith, Investor and the Company executed that certain Promissory Note dated as of
December 1, 2009 (the “Note”), as well as that certain Stock Pledge Agreement dated as of December
1, 2009 (the “Pledge”) and that certain Escrow Agreement dated as of December 1, 2009
(collectively, all such documents, the “Stock Purchase Documents”);

WHEREAS, in connection with the execution of Amendments to each of the Note and the Pledge of
even date herewith, Investor and the Company desire to amend the terms of the Stock Purchase
Agreement as set forth herein;

NOW, THEREFORE, in consideration of the covenants set forth herein, and for other good and
valuable consideration, intending to be legally bound hereby, the parties agree as follows:

1. Definitions. Capitalized terms not otherwise defined in this Amendment shall
have the respective meanings ascribed to them in the Stock Purchase Agreement.

2. Additional Rights of Investor. The following is hereby added as Section 16 to the
Stock Purchase Agreement:

Section 16. Additional Rights of Investor.

In fulfilling its obligations under Section 2A of the Note, as amended, Investor is hereby

authorized to do the following:

(a) Negotiate and settle Company obligations toward third parties, including
without limitation those to the Company’s vendors and debt holders, provided
that, at the time thereof, any such settlement or payment is reasonable, is in
the best interests of the Company and conforms to the Use of Proceeds schedule
attached as Exhibit C to the Stock Purchase Agreement; and

 

 

 

(b) Make payments directly to third party creditors of the Company which payments
shall be offset against those required under Section 2A of the Note, as amended. In
such event, Investor shall notify the Company in writing with the amount and date of
payment prior to the making of such payment.

3. Additional Share Issuance Dates. The following dates referenced in Section 6 of the
Stock Purchase Agreement are hereby changed as indicated:

	 	a.	 	The reference to the date “June 30, 2011” in Section
6.a) is hereby changed to September 15, 2011.

	 	b.	 	The references to the date “June 30, 2010” in Sections
6.b) and 6.c) are hereby changed to September 15, 2010.

	 	c.	 	The reference to the date “August 31, 2010” in Section
6.a) is hereby changed to November 30, 2010.

4. Facility Construction. The following is hereby added as Section 17 to the Stock
Purchase Agreement:

Section 17. Facility Construction Provisions.

	 	a.	 	Investor shall provide the Company with oversight and consulting services
(“Construction Oversight”) for the Oxnard Plant Improvements, as to which Investor
shall use its best commercial efforts to complete according to the Company-approved
timeline and payment schedule contained in the Construction Contract. In connection
with the foregoing, Investor shall provide such expertise as may be necessary to (i)
obtain cGMP certifications for the Oxnard Plant comparable to those maintained by
Investor with respect to its own Tempe, AZ facility, and (ii) maintain such
certifications for twelve (12) months after the date hereof. Investor shall be entitled
to compensation for the Construction Oversight and ongoing cGMP consulting services as
follows: (i) the scope and cost to the Company of such shall be approved by the
Company’s CEO and President in advance and (ii) such compensation shall be paid in cash
or shares of common stock of the Company valued at a rate of $.15 per share.

	 	b.	 	For purposes of this Section 17, each of “Oxnard Plant Improvements,” and
“Construction Contract” shall have the meanings ascribed to them in the Note, as
amended.

	 	c.	 	In the event that Investor’s appointed members to the Company’s Board of
Directors, as set forth in Section 7 above, fail to constitute a majority of the Board
of Directors for any reason, Investor shall have the right to be repaid for its
expenses and costs resulting from the Oxnard Plant Improvements as follows:

	 	(i)	 	The Company shall repay Investor for (1) all amounts paid
pursuant to Section 2A.a(iii) of the Note, as amended, plus (2) all unpaid
amounts due under Section 17.a. above, (the “Repayment Obligation”).

	 	(ii)	 	Investor shall be granted a security interest in all of the
tangible and intangible assets of the Company securing performance of the
Repayment Obligation (the “Repayment Security Interest”).

 

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	 	(iii)	 	The Company and Investor shall hereafter in a timely manner
execute commercially reasonable documentation evidencing the obligations of
this Section 17.c., including without limitation a short term promissory note
with respect to the Repayment Obligation (which shall provide that payments
thereunder shall not commence for a period of four (4) months after Investor
elects to require such repayment under this Section 17.c) and one or more
security agreements evidencing the Repayment Security Interest.

	 	(iv)	 	In the event the Company repays any amount described in Section
17.c(i)(1) above as to which Shares have been released from the Pledge to
Investor, Investor shall be required to reconvey such released Shares to the
Company in connection with such repayment.

5. Conflicts; Reaffirmation; Waiver. In the event of any conflict or inconsistency
between the provisions of the Stock Purchase Documents and the provisions of this Amendment, the
provisions of this Amendment shall govern. Except to the extent expressly amended hereby, all
terms and conditions of the Stock Purchase Documents shall remain in full force and effect. Each
party hereto hereby expressly ratifies and affirms all such terms and conditions as of the
effective date hereof. The Company hereby acknowledges and agrees that no events of default of
Investor have occurred, or exist as of the date first set forth above, under the Note and the other
Stock Purchase Documents.

6. Governing Law; Jursidiction. THIS AMENDMENT AND THE OBLIGATIONS OF THE PARTIES
HEREUNDER WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA,
WITHOUT REGARD TO ANY CONFLICTS OF LAWS PROVISIONS THEREOF THAT WOULD OTHERWISE REQUIRE THE
APPLICATION OF THE LAW OF ANY OTHER JURISDICTION. Each party hereto knowingly and voluntarily
waives any and all rights it may have to a trial by jury with respect to any litigation based on,
or arising out of, under, or in connection with, this Amendment. Each party is hereby authorized to
submit, as conclusive evidence of such waiver of jury trial, this Amendment to a court that has
jurisdiction over the subject matter of such litigation and the parties to this Amendment.

7. Additional Acts and Assurances. Each party hereto agrees to do all such things and
take all such actions, and to make, execute and deliver such other documents and instruments, as
shall be reasonably requested to carry out the provisions, intent and purpose of this Amendment,
including without limitation amending any Stock Purchase Document as may be necessary to reflect
the revised provisions as set forth herein.

8. Counsel. The parties hereby acknowledge that (i) Keller Rohrback P.L.C. has
represented only Investor in connection with the Stock Purchase Documents and this Amendment and
(ii) the Company has been represented by other legal counsel in connection with the Stock Purchase
Documents and this Amendment.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed under
seal as of the date first above written.

	 	 	 	 	 
	 	Investor:

Supplemental Manufacturing & Ingredients, LLC, an Arizona limited liability company

 	 
	 	By:  	Ferrel Raskin
 	 
	 	 	Its: Chief Executive Officer 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	Company:

HealthSport, Inc. a Delaware corporation

 	 
	 	By:  	Robert Davidson
 	 
	 	 	Its: President 	 
	 	 	 	 
	 

 

4Exhibit 10.2

Exhibit 10.2

AMENDMENT TO 

STOCK PLEDGE AGREEMENT

THIS AMENDMENT TO STOCK PLEDGE AGREEMENT (this “Amendment”) is made and entered into as of
March 19, 2010 by and between Supplemental Manufacturing & Ingredients, LLC, an Arizona limited
liability company (“Debtor”) and HealthSport, Inc. a Delaware corporation (“Secured Party”).

RECITALS

WHEREAS, Debtor has purchased stock in Secured Party pursuant to that certain Stock Purchase
Agreement dated November 6, 2009 by and between the parties (the “Stock Purchase Agreement”). In
connection therewith, Debtor and Secured Party executed that certain Promissory Note dated as of
December 1, 2009 (the “Note”), as well as that certain Stock Pledge Agreement dated as of December
1, 2009 (the “Stock Pledge”) and that certain Escrow Agreement dated as of December 1, 2009
(collectively, all such documents, the “Stock Purchase Documents”);

WHEREAS, in connection with the execution of Amendments to each of the Note and Stock Purchase
Agreement of even date herewith, Debtor and Secured Party desire to amend the terms of the Stock
Pledge as set forth herein;

NOW, THEREFORE, in consideration of the covenants set forth herein, and for other good and
valuable consideration, intending to be legally bound hereby, the parties agree as follows:

1. Definitions. Capitalized terms not otherwise defined in this Amendment shall
have the respective meanings ascribed to them in the Stock Pledge.

2. Release of Shares from the Pledge. Section 3 of the Stock Pledge is hereby amended
and restated in its entirety as follows:

Section 3. Release of Shares from the Pledge. The security interest and
pledge created by this Agreement shall continue in effect so long as any Secured
Obligation is owed to Secured Party. The Shares shall be released from the pledge,
and certificates representing the amount of the released Shares shall be delivered
from the Escrow Agent to the Debtor, free and clear of any liens or encumbrances
imposed by this Agreement, as follows:

	 	a)	 	3,333,333 shares upon payment of the $500,000
payment under the Note due on November 15, 2009;

	 	b)	 	13,666,667 shares upon payment of the
$2,050,000 payment under the Note due on May 15, 2010;

 

 

 

	 	c)	 	16,666,667 shares upon payment of the
$2,500,000 payment under the Note due on July 15, 2010; and

	 	d)	 	19,666,667 shares on payment of all remaining
amounts due under the Note, at which point the Escrowed Resignations
shall be released from the escrow and delivered to Debtor.

In the event that Debtor makes any payments to Secured Party or for the benefit of
Secured Party as contemplated under Sections 2A or 10 of the Note, as amended,
Debtor shall have the right to demand the early release of the Shares from the
pledge, and certificates representing the amount of the early release Shares shall
be delivered from the Escrow Agent to the Debtor, free and clear of any liens or
encumbrances imposed by this Agreement, promptly after such demand.

3. Limited Recourse Indebtedness. Section 11 of the Stock Pledge is hereby amended
and restated in its entirety as follows:

Section 11. Limited Recourse Indebtedness. Subject only to Section 10 of the Note,
as amended, and notwithstanding any other provision of this Agreement, any related agreement
or document or any applicable law or provision of the UCC, Secured Party (and its successors
and assigns) by acceptance of this Agreement agrees that (i) no action based on an Event of
Default under this Agreement other than a foreclosure action under this Agreement shall be
brought against Debtor, its principals, members, officers, managers, employees, agents or
other affiliates (collectively, the “Nonrecourse Parties”), (ii) in any action to foreclose
the Security Interest, the Nonrecourse Parties shall not be liable for any deficiency
between the amount due and payable under the Secured Obligations and the proceeds of any
foreclosure sale, and (iii) no deficiency or other money judgment (other than a foreclosure
judgment) will be sought against one or more Nonrecourse Parties based on an Event of
Default under this Agreement. Further, except as expressly stated herein, nothing contained
in this Section shall be deemed to release or impair any part of the Secured Obligations or
the Security Interest or to limit or otherwise prejudice in any manner the rights of Secured
Party to foreclose the Security Interest under this Agreement or to enforce any rights or
remedies provided under the Secured Obligations or this Agreement.

4. Counsel. The parties hereby acknowledge that (i) Keller Rohrback P.L.C. has
represented only Debtor in connection with the Stock Purchase Documents and this Amendment; and
(ii) Secured Party has been represented by other legal counsel in connection with the Stock
Purchase Documents and this Amendment.

5. Conflicts; Reaffirmation; Waiver. In the event of any conflict or inconsistency
between the provisions of the Stock Purchase Documents and the provisions of this Amendment, the
provisions of this Amendment shall govern. Except to the extent expressly amended hereby, all
terms and conditions of the Stock Purchase Documents shall remain in full force and effect. Each
party hereto hereby expressly ratifies and affirms all such terms and conditions as of the effective date hereof. Secured Party hereby acknowledges and agrees that no events of default
of Debtor have occurred, or exist as of the date first set forth above, under the Note and the
other Stock Purchase Documents.

 

2

 

6. Governing Law; Jursidiction. THIS AMENDMENT AND THE OBLIGATIONS OF THE PARTIES
HEREUNDER WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA,
WITHOUT REGARD TO ANY CONFLICTS OF LAWS PROVISIONS THEREOF THAT WOULD OTHERWISE REQUIRE THE
APPLICATION OF THE LAW OF ANY OTHER JURISDICTION. Each party hereto knowingly and voluntarily
waives any and all rights it may have to a trial by jury with respect to any litigation based on,
or arising out of, under, or in connection with, this Amendment. Each party is hereby authorized to
submit, as conclusive evidence of such waiver of jury trial, this Amendment to a court that has
jurisdiction over the subject matter of such litigation and the parties to this Amendment.

7. Additional Acts and Assurances. Each party hereto agrees to do all such things and
take all such actions, and to make, execute and deliver such other documents and instruments, as
shall be reasonably requested to carry out the provisions, intent and purpose of this Amendment,
including without limitation amending any Stock Purchase Document as may be necessary to reflect
the revised provisions as set forth herein.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed under
seal as of the date first above written.

	 	 	 	 	 
	 	Debtor:

Supplemental Manufacturing & Ingredients, LLC, an Arizona limited liability company

 	 
	 	By:  	Ferrel Raskin
 	 
	 	 	Its: Chief Executive Officer 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	Secured Party:

HealthSport, Inc. a Delaware corporation

 	 
	 	By:  	Robert Davidson
 	 
	 	 	Its: President 	 
	 	 	 	 
	 

 

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