SEC Contract Filing

Filing Date: 2015-11-20

Document Content:
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<TYPE>EX-10.5
<SEQUENCE>6
<FILENAME>capp-20150930_10qex10z5.htm
<DESCRIPTION>EXHIBIT 10.5
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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>LC STRATEGIC HOLDINGS, LLC </B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B>SECURITIES PURCHASE AGREEMENT</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">THIS SECURITIES
PURCHASE AGREEMENT (this &#8220;<B>Agreement</B>&#8221;) is entered into on July 24, 2015, by and between LC Strategic Holdings,
LLC, a New York limited liability company (the &#8220;<B>Company</B>&#8221;), Capstone Financial Group, Inc., a Nevada corporation
(&#8220;<B>Capstone</B>&#8221;), Christopher Naugle and Lorissa Naugle, who hereby agree as follows:</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 11pt"><B>1.</B></FONT><B><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">PURCHASE AND SALE OF STOCK.</FONT></B></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 11pt"><B>1.1</B></FONT><B><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">Sale and Issuance of Membership Interest Units. </FONT></B><FONT STYLE="font-size: 11pt">Subject
to the terms and conditions of this Agreement, Capstone shall purchase from the Company at the Closing, and the Company shall sell
and issue to Capstone at the Closing, membership interests of the Company representing a 20% equity ownership interest in the Company,
for a purchase price of $138,750 cash.&nbsp; The membership interests issued to Capstone pursuant to this Agreement shall be referred
to in this Agreement as the &#8220;<B>Membership Interest Units</B>.&#8221;</FONT></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 11pt"><B>1.2</B></FONT><B><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">Mechanics.</FONT></B></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 10.5pt">(a)</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><U>Closing</U>. Subject to the terms and conditions of this Agreement, the initial purchase
and sale of the Membership Interest Units shall take place remotely via the exchange of documents and signatures immediately after
the execution and delivery of this Agreement (the &#8220;<B>Closing</B>&#8221;), whereby the Company shall sell and issue to Capstone,
and Capstone shall purchase from the Company, the Membership Interest Units. In addition, at the Closing, the parties shall enter
into the mutually agreed upon Members Agreement and the two mutually agreed upon Non-Competition Agreements (together with this
Agreement, the &#8220;<B>Transaction Agreements</B>&#8221;).</FONT></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 10.5pt">(b)</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">At the Closing, the Company shall issue to Capstone a certificate representing the Membership
Interest Units that Capstone is purchasing, against payment of the purchase price therefor by check, wire transfer, or any combination
thereof, or such other form of payment as shall be mutually agreed upon by Capstone and the Company.</FONT></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 1in"><FONT STYLE="font-size: 10.5pt">(c)</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">All references herein to &#8220;Membership Interest Units&#8221; shall be deemed to be references
to such Membership Interest Units as constituted on the date of this Agreement, and in the event of any split, reverse split or
recapitalization the indicated number of Membership Interest Units shall automatically be deemed adjusted prospectively to reflect
such event.</FONT></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 11pt"><B>2.</B></FONT><B><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">REPRESENTATIONS AND WARRANTIES OF THE COMPANY.</FONT></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The Company hereby
represents and warrants to Capstone that (except for any matters expressly set forth on a Disclosure Schedule previously delivered
by the Company to Capstone and countersigned by Capstone, if any such Disclosure Schedule has been so delivered and countersigned)
the following representations are true and correct:</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-s