SHARE EXCHANGE AGREEMENT
THIS SHARE
EXCHANGE AGREEMENT (the "Agreement") is made and entered into effective
September 13, 2010, by and among FRAMEWAVES, INC. a Nevada corporation
("Framewaves"), B6 SIGMA, INC., a Delaware corporation ("B6 Sigma"), and the
shareholders of B6 Sigma listed on Schedule A hereto, constituting all of the
shareholders of B6 Sigma (collectively, the "Shareholders").
RECITALS:
A. The Shareholders own all of the
issued and outstanding capital stock of B6 Sigma, (the "B6 Sigma
Shares").
B. Framewaves desires to acquire 100%
of the B6 Sigma Shares from the Shareholders by exchanging 6.67 shares of
Framewaves restricted common stock, $.001 par value per share, for each issued
and outstanding share of B6 Sigma common stock owned by the Shareholders (the
"Framewaves Exchange Shares").
C. The Shareholders desire to
exchange their B6 Sigma Shares for the Framewaves Exchange Shares upon the terms
and conditions set forth herein.
D. It is the intention of the parties
hereto that: (i) Framewaves shall acquire the B6 Sigma Shares solely for the
consideration set forth below (the "Exchange"); (ii) the Exchange shall qualify
as a transaction exempt from registration or qualification under the Securities
Act of 1933, as amended (the "Securities Act"), and (iii) the Exchange shall
qualify as a "tax-free" transaction within the meaning of Section 368 of the
Internal Revenue Code of 1986.
NOW, THEREFORE, in
consideration of the mutual covenants, agreements, representations and
warranties contained in this Agreement, the parties hereto agree as
follows:
SECTION
1. EXCHANGE OF SHARES AND OTHER TRANSACTIONS
1.1 Exchange of Shares.
On the Closing Date (as hereinafter defined), the Shareholders shall tender the
B6 Sigma Shares to Framewaves and Framewaves shall issue the Framewaves Exchange
Shares to the Shareholders in exchange therefor.
1.2 Delivery of B6 Sigma
Shares. On the Closing Date, the Shareholders will deliver to Framewaves
the certificates representing the B6 Sigma Shares, duly endorsed for transfer
(or with executed stock powers) so as to convey good and marketable title to the
B6 Sigma Shares to Framewaves, and, promptly thereafter, Framewaves will cause
its transfer agent to deliver certificates evidencing the Framewaves Exchange
Shares to the Shareholders in accordance with written instructions received from
B6 Sigma to Framewaves prior to the Closing.
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SECTION
2. REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS
Each
of the Shareholders represents and warrants to Framewaves as
follows:
2.1 Information on
Shareholders. Each of the Shareholders is an "accredited investor," as
such term is defined in Regulation D promulgated under the Securities Act, and
is experienced in investments and business matters, has made investments of a
speculative nature and has such knowledge and experience in financial, tax and
other business matters as to enable him to evaluate the merits and risks of, and
to make an informed investment decision with respect to, this Agreement. Each of
the Shareholders understands that his acquisition of the Framewaves Exchange
Shares is a speculative investment, and each of the Shareholders represents that
he is able to bear the risk of such investment for an indefinite period, and can
afford a complete loss thereof.
2.2 Investment Intent.
Shareholder understands that the Framewaves Exchange Shares have not been
registered under the Securities Act, and may not be sold, assigned, pledged,
transferred or otherwise disposed of unless the Framewaves Exchange Shares are
registered under the Securities Act or an exemption from registration is
available. Shareholder represents and warrants that it is acquiring the
Framewaves Exchange Shares for his/its own account, for investment, and not with
a view to the sale or distribution of the Framewaves Exchange Shares except in
compliance with the Securities Act. Each certificate representing the Framewaves
Exchange Shares will have the following or substantially similar legend
thereon:
"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 laws. The shares have been acquired for investment and may not be
sold or transferred in the absence of an effective Registration Statement for
the shares under the Securities Act unless, in the opinion of counsel
satisfactory to the Company, registration is not required under the Securities
Act or any applicable state securities laws."
2.3 Ownership of B6 Sigma Shares
and Authorization of Agreement. Each Shareholder is the sole record and
beneficial owner of his or its B6 Sigma Shares, all of which shares are owned
free and clear of all rights, claims, liens and encumbrances, and have not been
sold, pledged, assigned or otherwise transferred except pursuant to this
Agreement. There are no outstanding subscriptions, rights, options, warrants or
other agreements obligating Shareholder to sell or transfer to any third person
any of the B6 Sigma Shares owned by Shareholder, or any interest therein.
Shareholder has the power to enter into this Agreement and to carry out his, her
or its obligations hereunder. This Agreement has been duly executed by
Shareholder and constitutes the valid and binding obligation of Shareholder,
enforceable against Shareholder in accordance with its terms.
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SECTION
3. REPRESENTATIONS AND WARRANTIES OF B6 SIGMA
B6 Sigma, hereby represents and
warrants to Framewaves as follows, with any exceptions thereto being denoted on
the applicable schedule to this Agreement:
3.1 Organization and Good
Standing. B6 Sigma is a corporation, duly organized, validly existing and
in good standing under the laws of the State of Delaware, and is entitled to own
or lease its properties and to carry on its business as and in the places where
such properties are now owned, leased or operated and such business is now
conducted.
3.2 Authorization;
Enforceability; No Breach. B6 Sigma has all necessary corporate power and
authority to execute this Agreement and perform its obligations hereunder. This
Agreement constitutes the valid and binding obligation of B6 Sigma enforceable
against B6 Sigma in accordance with its terms, except as may be limited by
bankruptcy, moratorium, insolvency or other similar laws generally affecting the
enforcement of creditors' rights. The execution, delivery and performance of
this Agreement by B6 Sigma and the consummation of the transactions contemplated
hereby will not:
(a) violate any provision of the
Charter or By-Laws of B6 Sigma;
(b) violate, conflict with or result
in the breach of any of the terms of, result in a material modification of,
otherwise give any other contracting party the right to terminate, or constitute
(or with notice or lapse of time or both constitute) a default under, any
contract or other agreement to which B6 Sigma is a party or by or to which it or
any of its assets or properties may be bound or subject;
3.3 Consents and
Approvals. No filing with, and no permit, authorization, consent, or
approval of, any public body or authority or any third party is necessary for
the consummation by B6 Sigma of the transactions contemplated by this
Agreement.
3.4 Litigation. There is
no action, suit or proceeding pending or threatened, or any investigation, at
law or in equity, before any arbitrator, court or other governmental authority,
pending or threatened, nor any judgment, decree, injunction, award or order
outstanding, against or in any manner involving B6 Sigma or any of B6 Sigma's
properties or rights which (a) could reasonably be expected to have a material
adverse effect on B6 Sigma taken as a whole, or (b) could reasonably be expected
to materially and adversely affect consummation of any of the transactions
contemplated by this Agreement (collectively, a "Material Adverse
Effect").
3.5 Brokers or Finders.
No broker's or finder's fee will be payable by B6 Sigma in connection with the
transaction contemplated by this Agreement, nor will any such fee be incurred as
a result of any actions by B6 Sigma.
3.6 Real
Estate. B6 Sigma neither owns real property nor is a party to
any leasehold agreement except as set forth on Exhibit 3.6.
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3.7 Financial Statements.
B6 Sigma will provide Framewaves with audited Financial Statements for the
period from inception to February 28, 2010 on or before the Closing
Date.
3.8 Capitalization. The
authorized capital stock of B6 Sigma consists of 1,000,000 shares of common
stock, of which the shares held by the Shareholders as detailed on Schedule A
represent all of the issued and outstanding capital stock of B6 Sigma. B6 Sigma
has not granted, issued or agreed to grant, issue or make available any
warrants, options, subscription rights or any other commitments of any character
relating to the unissued shares of capital stock of B6 Sigma. At the Closing,
all of the B6 Sigma Shares will be duly authorized and validly issued, fully
paid and non-assessable.
3.9 Full Disclosure. No
representation or warranty by B6 Sigma in this Agreement or in any document or
schedule to be delivered by it pursuant hereto, and no written statement,
certificate or instrument furnished or to be furnished to Framewaves pursuant
hereto or in connection with the negotiation, execution or performance of this
Agreement contains, or will contain, any untrue statement of a material fact or
omits, or will omit, to state any fact necessary to make any statement herein or
therein not materially misleading or necessary to a complete and correct
presentation of all material aspects of the business of B6 Sigma.
SECTION
4. REPRESENTATIONS AND WARRANTS OF FRAMEWAVES
Framewaves hereby represents and
warrants to B6 Sigma and the Shareholders as follows:
4.1 Organization and Good
Standing. Framewaves is a corporation duly organized, validly existing
and in good standing under the laws of Nevada, and is entitled to own or lease
its properties and to carry on its business as and in the places where such
properties are now owned, leased or operated and such business is now conducted.
Framewaves is qualified to do business as a foreign corporation in each
jurisdiction, if any, in which its property or business requires such
qualification.
4.2 Authorization;
Enforceability; No Breach. Framewaves has all necessary corporate power
and authority to execute this Agreement and perform its obligations hereunder.
This Agreement constitutes the valid and binding obligation of Framewaves
enforceable against Framewaves in accordance with its terms, except as may be
limited by bankruptcy, moratorium, insolvency or other similar laws generally
affecting the enforcement of creditors' rights. The execution, delivery and
performance of this Agreement by Framewaves and the consummation of the
transactions contemplated hereby will not:
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(a)
violate any provision of the Charter or By-Laws of Framewaves;
(b) violate, conflict with or result
in the breach of any of the terms of, result in a material modification of,
otherwise give any other contracting party the right to terminate, or
constitute (or with notice or lapse of time or both constitute) a
default under, any contract or other agreement to which
Framewaves is a party or by or to which it or any of its assets or
properties may be bound or subject;
(c) violate any order, judgment,
injunction, award or decree of any court, arbitrator or governmental or
regulatory body against, or binding upon, Framewaves, or upon the properties or
business of Framewaves; or
(d) violate any statute, law or
regulation of any jurisdiction applicable to the transactions contemplated
herein which could have a Material Adverse Effect on the business or operations
of Framewaves.
4.3 The Framewaves Exchange
Shares. The Framewaves Exchange Shares to be issued to the Shareholders
have been, or on or prior to the Closing will have been, duly authorized by all
necessary corporate and shareholder actions and, when so issued in accordance
with the terms of this Agreement, will be validly issued, fully paid and
non-assessable and will not be issued in violation of the pre-emptive or similar
rights of any person.
4.4 Compliance with Laws.
Framewaves has complied with all federal, state, county and local laws,
ordinances, regulations, inspections, orders, judgments, injunctions, awards or
decrees applicable to it or its business which, if not complied with, would
materially and adversely affect the business or financial condition of
Framewaves.
4.5 Consents and
Approvals. No filing with, and no permit, authorization, consent or
approval of any public body or authority or any third party is necessary for the
consummation by Framewaves of the transactions contemplated by this
Agreement.
4.6 Litigation. There is
no action, suit or proceeding pending or threatened, or any investigation, at
law or in equity, before any arbitrator, court or other governmental authority,
pending or threatened, nor any judgment, decree, injunction, award or order
outstanding, against or in any manner involving Framewaves or any of Framewaves'
properties or rights which (a) could reasonably be expected to have a material
adverse effect on Framewaves taken as a whole, or (b) could reasonably be
expected to materially and adversely affect consummation of any of the
transactions contemplated by this Agreement.
4.7 Brokers or Finders.
No broker's or finder's fee will be payable by Framewaves in connection with the
transaction contemplated by this Agreement, nor will any such fee be incurred as
a result of any actions by Framewaves.
4.8 Real Estate.
Framewaves neither owns real property nor is a party to any leasehold
agreement.
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4.9 Assets. Framewaves
owns all rights, title and interest in and to its assets, free and clear of all
liens, pledges, mortgages, security interests, conditional sales contracts or
any other encumbrances.
4.10 Financial Statements.
The audited balance sheet of Framewaves at December 31, 2009 and related
statements of operations, cash flow and shareholders' equity (the "Framewaves
Financial Statements") fairly present in all material respects the financial
position of Framewaves as of the respective dates thereof, and the other related
statements included therein fairly present in all material respects the results
of operations, changes in shareholders' equity and cash flows of Framewaves for
the respective periods or as of the respective dates set forth therein, all in
conformity with generally accepted accounting principles consistently applied
during the period involved, except as otherwise noted therein.
4.11 Absence of Changes; No
Undisclosed Liabilities. Except as disclosed in its Form 10-K for fiscal
year ended December 31, 2009, Framewaves has not incurred any liability material
to Framewaves, except in the ordinary course of its business, consistent with
past practices; suffered a change, or any event involving a prospective change,
in the business, assets, financial condition, or results of operations of
Framewaves which has had, or is reasonably likely to have, individually or in
the aggregate, a Material Adverse Effect, (other than as a result of changes or
proposed changes in federal or state regulations of general applicability or
interpretations thereof, changes in generally accepted accounting principles,
and changes that could, under the circumstances, reasonably have been
anticipated in light of disclosures made in writing by Framewaves to B6 Sigma
pursuant hereto); or subsequent to the date hereof, conducted its business and
operations other than in the ordinary course of business and consistent with
past practices. Framewaves has no liability (and Framewaves is not aware of any
basis for any present or future action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand against any of them giving
rising to any liability which individually or is in the aggregate are reasonably
likely to have a Material Adverse Effect on Framewaves) except for (a)
liabilities set forth on the face of the most recent balance sheet included in
the Framewaves Financial Statements, and (b) liabilities which have arisen after
the date of such balance sheet in the ordinary course of business (none of which
results from, arises out of, relates to, is in the nature of, or was caused by
any breach of contract, tort, infringement, or violation of law). Framewaves
shall have no liabilities on the Closing Date and liabilities of $27,060 listed
on the December 31, 2009 balance sheet shall all be satisfied by Framewaves on
or before the Closing. Both parties agree that any liabilities
incurred after the execution of the Letter of Intent on February 23, 2010 shall
be the responsibility of B6 Sigma, Inc.
4.12 Capitalization. The
authorized capital stock of Framewaves consists of 100,000,000 shares of common
stock, $.001 par value of which 1,254,994 shares are presently issued and
outstanding. Framewaves has not granted, issued or agreed to grant, issue or
make available any warrants, options, subscription rights or any other
commitments of any character relating to the unissued shares of capital stock of
Framewaves. All of the Framewaves Exchange Shares are duly authorized and
validly issued, fully paid and non-assessable.
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4.13 Contracts. Framewaves
has no contracts, instruments, mortgages, notes, security agreements, leases,
agreements, or understandings, whether written or oral, to which Framewaves is a
party that relates to or affects the assets or operations of Framewaves or to
which Framewaves' assets or operations may be bound or subject (collectively,
the "Contracts"). There are no existing defaults by Framewaves under any
contract, agreement or understanding.
4.14 Taxes. All required
tax returns or federal, state, county, municipal, local, foreign and other taxes
and assessments have been properly prepared and filed by Framewaves for all
years for which such returns are due. Any and all federal, state, county,
municipal, local, foreign and other taxes, assessments, including any and all
interest, penalties and additions imposed with respect to such amounts have been
paid or provided for. Framewaves has never been audited by any local, state or
federal tax authority.
4.15 Labor and Employment
Matters. (a) Framewaves is and has been in compliance in all respects
with all applicable laws respecting employment and employment practices, terms,
and conditions of employment and wages and hours, including, such laws
respecting employment discrimination, equal opportunity, affirmative action,
worker's compensation, occupational safety, and health requirements and
unemployment insurance and related matters, and are not engaged in and have not
engaged in any unfair labor practice; (b) no investigation or review by or
before any governmental entity concerning any violations of any such applicable
laws is pending nor, to the knowledge of Framewaves is any such investigation
threatened or has any such investigation occurred during the last three years,
and no governmental entity has provided any notice to Framewaves or otherwise
asserted an intention to conduct any such investigation; (c) there is no labor
strike, dispute, slowdown, or stoppage actually pending or threatened against
Framewaves; (d) no union representation question or union organizational
activity exists respecting the employees of Framewaves; (e) no collective
bargaining agreement exists which is binding on Framewaves; (f) Framewaves has
experienced no work stoppage or other labor difficulty; and (g) in the event of
termination of the employment of any of the current officers, directors,
employees, or agents of Framewaves, Framewaves shall not, pursuant to any
agreement or by reason of anything done prior to the closing by Framewaves be
liable to any of said officers, directors, employees, or agents for so-called
"severance pay" or any other similar payments or benefits, including, without
limitation, post-employment healthcare (other than pursuant to COBRA) or
insurance benefits, except to the extent that any matter in Items (a), (b), (f)
and (g) could reasonably be expected individually or in the aggregate to have a
Material Adverse Effect on Framewaves.
4.16 State Anti-Takeover
Statutes. The Framewaves Board of Directors has approved this Agreement
and the transactions contemplated hereby, and thereby such approval constitutes
approval of the Agreement and other transactions contemplated hereby and thereby
by the Framewaves Board of Directors as required under Nevada law. To the
knowledge of Framewaves, no state anti-takeover statute is applicable to the
Exchange.
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4.17 Absence of Certain Business
Practices. Neither Framewaves nor any director, officer, employer, or
agent of the foregoing, nor any person acting on its behalf, directly or
indirectly has to Framewaves' knowledge given or agree to give any gift or
similar benefit to any customer, supplier, governmental employee or other person
which (a) might subject B6 Sigma to any damage or penalty in any civil,
criminal, or governmental litigation or proceeding, (b) if not given in the
past, might have had a Material Adverse Effect on Framewaves, or (c) if not
continued in the future, might have a Material Adverse Effect on Framewaves or
which might subject Framewaves to suit or penalty in any private or governmental
litigation or proceeding.
4.18 Internal Accounting
Controls. Framewaves maintains a system of internal accounting controls
sufficient to provide reasonable assurance that (i) transactions are executed in
accordance with management's general or specific authorizations, (ii)
transactions are recorded as necessary to permit preparation of financial
statements in conformity with generally accepted accounting principles and to
maintain asset accountability, (iii) access to assets is permitted only in
accordance with management's general or specific authorization and (iv) the
recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences.
4.19 SEC Reports. Except
as may be disclosed in its public filings with the SEC, Framewaves has filed all
reports required to be filed by it under the Exchange Act, including pursuant to
Section 13(a) or 15(d) thereof (the foregoing materials, including the exhibits
thereto, being collectively referred to herein as the "SEC Reports"). The SEC
Reports comply in all material respects with the requirements of the Exchange
Act and the rules and regulations of the SEC promulgated thereunder, and none of
the SEC Reports, when filed, contained any untrue statement of a material fact
or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under
which they were made, not misleading. The financial statements of the Company
included in the SEC Reports comply in all material respects with applicable
accounting requirements and the rules and regulations of the SEC with respect
thereto as in effect at the time of filing.
4.20 SEC Inquiry.
Framewaves has not received and is not aware of any Investigation of Framewaves
by the SEC or any self-regulatory agency.
4.21 Full Disclosure. No
representation or warranty by Framewaves in this Agreement or in any document or
schedule to be delivered by them pursuant hereto, and no written statement,
certificate or instrument furnished or to be furnished to B6 Sigma pursuant
hereto or in connection with the negotiation, execution or performance of this
Agreement contains, or will contain, any untrue statement of a material fact or
omits, or will omit, to state any fact necessary to make any statement herein or
therein not materially misleading or necessary to a complete and correct
presentation of all material aspects of the businesses of
Framewaves.
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SECTION
5. COVENANTS
5.1. Examinations and
Investigations. Prior to the Closing, the parties acknowledge that they
have been entitled, through their employees and representatives, to make such
investigation and verification of the assets, properties, business and
operations, books, records and financial condition of the other, including
communications with suppliers, vendors and customers, as they each may
reasonably require. No investigation by a party hereto shall, however, diminish
or waive in any way any of the representations, warranties, covenants or
agreements of the other party under this Agreement. Consummation of this
Agreement shall be subject to the fulfillment of due diligence procedures to the
reasonable satisfaction of each of the parties hereto and their respective
counsel.
5.2. Expenses. Each party
hereto agrees to pay its own costs and expenses incurred in negotiating this
Agreement and consummating the transactions described herein.
5.3. Further Assurances.
The parties shall execute such documents and other papers and take such further
action as may be reasonably required or desirable to carry out the provisions
hereof and the transactions contemplated hereby. Each such party shall use its
best efforts to fulfill or obtain in the fulfillment of the conditions to the
Closing, including, without limitation, the execution and delivery of any
documents or other papers, the execution and delivery of which are necessary or
appropriate to the Closing.
5.6. Confidentiality. In
the event the transactions contemplated by this Agreement are not consummated,
each of the parties hereto agree to keep confidential any information disclosed
to each other in connection therewith; provided, however, such obligation shall
not apply to information which:
(a) at the time of disclosure was
public knowledge;
(b) after the time of disclosure
becomes public knowledge (except due to the action of the receiving party);
or
(c) the receiving party had within
its possession at the time of disclosure.
5.7 Stock Certificates and
Consideration. At the Closing, the Shareholders shall have delivered the
certificates representing the B6 Sigma Shares duly endorsed (or with executed
stock powers) so as to make Framewaves the sole owner thereof. At such Closing,
Framewaves shall issue and deliver the Framewaves Exchange Shares to the
Shareholders.
5.8 Management of B6 Sigma and
Framewaves. On the Closing date, the officers, directors and shareholders
of Framewaves shall take such actions as may be required (i) to cause Xxxxxxx
Xxx, Xxxxx Xxxxx, Xxxx Cola, Vivek Xxxx and Xxxxxxx Xxxxxx to be appointed to
Framewaves’ Board of Directors; (ii) for B6 Sigma’s current officers and
directors to resign as officers and directors of B6 Sigma; and (iii) to cause
the following persons to be elected as officers of Framewaves, in the positions
set forth across from their respective names:
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Xxxxxxx
Xxx
|
CEO
|
Xxxxx
Xxxxx
|
Chairman
of the Board
|
|
Xxxx
Cola
|
President
and Chief Operating Officer
|
|
Vivek
Xxxx
|
Executive
Vice-President
|
Xxxxxxx
Xxxxxx
|
Secretary
|
5.9 150 for 1 Forward Stock
Split. On
or about September 27, 2010, Framewaves shall take such actions as may be
necessary to effect a 150 for 1 forward split of its common stock. (the “Forward
Split”). The Forward Split shall not be effected until (i) after the Closing;
and (ii) a minimum of ten (10) days notice of the Forward Split has been
delivered to the OTC BB. All reference to Framewaves Exchange Shares herein give
no effect to the Forward Split.
5.10
Employee Incentive
Stock Option Plan. On or before the
Closing Date, Framewaves shall obtain the written consent of its shareholders
and Board of Directors to authorize and adopt an Employee Incentive Stock Option
Plan pursuant to which options to acquire up to 266,667 shares of Framewaves
common stock may be issued to employees and consultants of Framewaves and its
subsidiaries.
5.11 Name
Change. On or before the Closing Date, Framewaves shall obtain
the written consent of its shareholders and Board of Directors to change the
name of Framewaves to Sigma Labs, Inc. The name change shall not be effected
until (i) after the Closing; and (ii) a minimum of ten (10) days notice of the
name change has been delivered to the OTC BB.
SECTION
6. THE CLOSING
The
closing (the "Closing") shall take place at such other time and place as is
mutually agreed upon by Xxxxxxxxxx, X0 Sigma and the Shareholders, following
satisfaction or waiver of all conditions precedent to Closing (the “Closing
Date”). At the Closing, the parties shall provide each other with such documents
as may be necessary or appropriate and customary in transactions of this sort in
order to consummate the transactions contemplated hereby, including evidence of
due authorization of the Agreement and the transactions contemplated
hereby.
SECTION
7. CONDITIONS PRECEDENT TO CLOSING
7.1 Conditions Precedent to the
Obligation of Framewaves to Issue the Framewaves Exchange Shares. The
obligation of Framewaves to issue the Framewaves Exchange Shares to the
Shareholders and to otherwise consummate the transactions contemplated hereby is
subject to the satisfaction, at or before the Closing, of each of the conditions
set forth below. These conditions are for Framewaves' sole benefit and may be
waived by Framewaves at any time in its sole discretion.
(a) Capital Transactions.
B6 Sigma shall have raised capital (gross proceeds) of at least $1,000,000 in a
private offering of its securities.
(b) Acquisition of
Assets. B6 Sigma shall have acquired substantially all of the assets of
the Beyond 6 Sigma division of TMC Corporation.
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(c) Accuracy of B6 Sigma's and
the Shareholders' Representations and Warranties. The
representations and warranties of B6 Sigma and the Shareholders will be true and
correct in all material respects as of the date when made and as of the Closing,
as though made at that time.
(d) Performance by B6 Sigma and
the Shareholders. B6 Sigma and the Shareholders shall have performed all
agreements and satisfied all covenants and conditions required to be performed
or satisfied by them at or prior to the Closing.
(e) No
Injunction. No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction which
prohibits the consummation of any of the transactions contemplated by this
Agreement.
(f) No Material Adverse
Changes. B6 Sigma shall have suffered no Material Adverse
Effect.
(g) Miscellaneous. B6
Sigma and the Shareholders shall have delivered to Framewaves such other
documents relating to the transactions contemplated by this Agreement as
Framewaves may reasonably request.
7.2 Conditions Precedent to the
Obligation of the Shareholders to Exchange B6 Sigma
Shares. The obligation of the Shareholders to exchange their
B6 Sigma Shares for the Framewaves Exchange Shares and to otherwise consummate
the transactions contemplated hereby is subject to the satisfaction, at or
before the Closing, of each of the conditions set forth below. These conditions
are for the Shareholders' sole benefit and may be waived by B6 Sigma at any time
in its sole discretion.
(a) Accuracy of Framewaves'
Representations and Warranties. The representations
and warranties of Framewaves will be true and correct in all
material respects as of the date when made and as of the Closing, as though made
at that time.
(b) Performance by
Framewaves. Framewaves shall have performed all agreements and
satisfied all covenants and conditions required to be performed or satisfied by
them at or prior to the Closing.
(c) No
Injunction. No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction which
prohibits the consummation of any of the transactions contemplated by this
Agreement.
(d) No Material Adverse
Changes. Framewaves shall have suffered no Material Adverse
Effect.
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(e) Miscellaneous.
Framewaves shall have delivered to the Shareholders such other documents
relating to the transactions contemplated by this Agreement as the Shareholders
may reasonably request.
SECTION
8. SURVIVAL OF REPRESENTATIONS AND WARRANTIES OF
FRAMEWAVES
Notwithstanding any right of B6 Sigma
and the Shareholders fully to investigate the affairs of Framewaves, B6 Sigma
and the Shareholders shall have the right to rely fully upon the
representations, warranties, covenants and agreements of Framewaves contained in
this Agreement or in any document delivered by Framewaves or any of its
representatives, in connection with the transactions contemplated by this
Agreement. All such representations, warranties, covenants and agreements shall
survive the execution and delivery hereof and the Closing hereunder for 12
months following the Closing.
SECTION
9. SURVIVAL OF REPRESENTATIONS AND WARRANTIES OF B6 SIGMA
AND
THE SHAREHOLDERS
Notwithstanding any right of
Framewaves fully to investigate the affairs of B6 Sigma, Framewaves shall have
the right to rely fully upon the representations, warranties, covenants and
agreements of B6 Sigma and the Shareholders contained in this Agreement or in
any document delivered to Framewaves by B6 Sigma or any of its representatives,
in connection with the transactions contemplated by this Agreement. All such
representations, warranties, covenants and agreements shall survive the
execution and delivery hereof and the Closing hereunder for 12 months following
the Closing.
SECTION
10. INDEMNIFICATION
10.1 Obligation of Framewaves to
Indemnify. Subject to the limitations on the survival of representations
and warranties contained in Section 8, Framewaves hereby agrees to indemnify,
defend and hold harmless the Shareholders and B6 Sigma, to the extent provided
for herein, from and against any losses, liabilities, damages, deficiencies,
costs or expenses (including interest, penalties and reasonable attorneys' fees
and disbursements) (a "Loss") based upon, arising out of, or otherwise due to
any inaccuracy in or any breach of any representation, warranty, covenant or
agreement of Framewaves contained in this Agreement or in any document or other
writing delivered pursuant to this Agreement.
10.2 Obligation of the B6 Sigma
to Indemnify. Subject to the limitations on the survival of
representations and warranties contained in Section 9, B6 Sigma agrees to
indemnify, defend and hold harmless Framewaves to the extent provided for herein
from and against any Loss based upon, arising out of, or otherwise due to any
inaccuracy in or any breach of any representation, warranty, covenant or
agreement made by any of them and contained in this Agreement or in any document
or other writing delivered pursuant to this Agreement.
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SECTION
11. MISCELLANEOUS
11.1 Waivers. The waiver
of a breach of this Agreement or the failure of any party hereto to exercise any
right under this Agreement shall in no event constitute a waiver as to any
future breach whether similar or dissimilar in nature or as to the exercise of
any further right under this Agreement.
11.2 Amendment. This
Agreement may be amended or modified only by an instrument of equal formality
signed by the parties or the duly authorized representatives of the respective
parties.
11.3 Assignment. This
Agreement is not assignable except by operation of law.
11.4 Notices. Until
otherwise specified in writing, the mailing addresses of both parties of this
Agreement shall be as follows:
To:
|
B6
Sigma, Inc.
|
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00X
Xxxxxx Xxxxx, Xxxx X0
|
|
Xxxxx
Xx, Xxx Xxxxxx
|
|
Attention:
Xxxxxxx Xxx, CEO
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With
a copy to:
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Xxxxxxxx
Xxxxxxx, Esq.
|
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Xxxxxxx
Xxxxxx & Fein
|
|
000
Xxxx 00xx
Xxxxxx
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Xxx
Xxxx, XX 00000
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The
Shareholders: Addresses as Set forth on Schedule A
To:
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Framewaves,
Inc.
|
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0000
Xxxx 0000 Xxxxx, Xxxxx 000
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Xxxx
Xxxx Xxxx, XX 00000
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Attention:
Xxxx Xxxxxxx, President
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With
a copy to:
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Xxxxxx
Xxxxxxxxx, Esq.
|
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0000
Xxxx Xxxxxx Xxxxxx
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Xxxxx,
XX 00000
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Any
notice or statement given under this Agreement shall be deemed to have been
given if sent by registered mail addressed to the other party at the address
indicated above or at such other address as may be furnished in writing to the
addressor.
13
11.5 Governing Law; Venue.
This Agreement shall be governed and construed in accordance with the laws of
the State of Delaware, without regard to the conflicts of law provisions
thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of
the state and federal courts sitting in the County of Santa Fe, State of New
Mexico, for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein, and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such
court, that such suit, action or proceeding is brought in an inconvenient forum
or that the venue of such suit, action or proceeding is improper. Each party
hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by mailing a copy thereof to
such party at the address for such 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 manner permitted by law. If any provision of this
agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or unenforceability shall not affect the validity or enforceability of the
remainder of this agreement in that jurisdiction or the validity or
enforceability of any provision of this agreement in any other jurisdiction.
EACH PARTY HERETO IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY.
11.6 Publicity. No
publicity release or announcement concerning this Agreement or the transactions
contemplated hereby shall be issued by either party hereto at any time from the
signing hereof without advance approval in writing of the form and substance
thereof by the other party.
11.7 Entire Agreement.
This Agreement (including the Exhibits and Schedules hereto) and the collateral
agreements executed in connection with the consummation of the transactions
contemplated herein contain the entire agreement among the parties with respect
to the Exchange and related transactions, and supersede all prior agreements,
written or oral, with respect thereto.
11.8 Headings. The
headings in this Agreement are for reference purposes only and shall not in any
way affect the meaning or interpretation of this Agreement.
11.9 Severability of
Provisions. The invalidity or unenforceability of any term, phrase,
clause, paragraph, restriction, covenant, agreement or other provision of this
Agreement shall in no way affect the validity or enforcement of any other
provision or any part thereof.
11.10 Counterparts. This
Agreement may be executed in any number of counterparts, each of which, when so
executed, shall constitute an original copy hereof, but all of which together
shall consider but one and the same document.
IN WITNESS
WHEREOF, the parties have executed this Agreement on the date first above
written.
FRAMEWAVES,
INC.
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B6
SIGMA, INC.
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|||
By:
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By:
|
|||
Name:
Xxxx Xxxxxxx
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Name:
Xxxxxxx Xxx
|
|||
Title:
President
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Title: CEO
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14
SHAREHOLDERS:
|
||
By:
|
||
Name:
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||
By:
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||
Name:
|
||
By:
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||
Name:
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15
SCHEDULE
A
B6
SIGMA, INC. EXCHANGE WITH FRAMEWAVES, INC.
Shares
of
|
Shares
of
|
|||
B6
Sigma
|
Framewaves
|
|||
Name
of
|
to
be
|
to
be
|
||
Shareholder
|
Exchanged
|
Received
|
||
Total
B6 Sigma, Inc.
|
||||
Shareholders
|
|
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16