ASSET EXCHANGE
AGREEMENT between BIOPHARMA MANUFACTURING SOLUTIONS, INC., a Delaware Corporation ("BioPharma") and GMR
ENGINEERING, INC., a California corporation ("GMR").
WHEREAS, GMR wishes
to transfer certain component unit of GMR as listed on the attached schedule A and referred to in the aggregate as "BioPharmaceutical
Process Engineering and Consulting Services" ("BPECS") in exchange for voting stock of BioPharma in a transaction
intended to qualify as a reorganization within the meaning of §368(a)(1)(C) of the Internal Revenue Code of 1986, as amended.
NOW, THEREFORE, BioPharma
and GMR adopt this agreement and agree as follows:
1. Transfer
of Assets. At the Closing (as defined hereinafter), GMR shall sell, convey, transfer, assign and deliver to BioPharma and
BioPharm will purchase and acquire from GMR all of GRM's right, title and interest in and to the assets and properties set forth
on Schedule A attached hereto free and clear of all liens, pledges, charges, claims, actions, suits, proceedings, security interests
or other encumbrances of any sort other than as set forth herein.
2. Transfer of BioPharma Shares. At the Closing, BioPharma shall deliver
to GMR one or more certificates aggregating 1,000,000 shares of the voting common stock of BioPharma, $.0001 par value per share,
fully paid and non-assessable, as payment in full for the transfer of assets by GMR under this agreement.
3. Approval
of Shareholders. This Agreement shall be adopted by the shareholders of GMR at a meeting of its shareholders called for that
purpose or by written consent pursuant to the laws applicable thereto. There shall be required for the adoption of this Agreement
the affirmative vote of the holders of at least a majority of the holders of all the shares of the common stock issued and outstanding
and entitled to vote thereon.
4. Representations
and Warranties of GMR. GMR represents and warrants that:
4.1. Corporate
Organization and Good Standing. GMR is a corporation duly organized, validly existing, and in good standing under the
laws of the State of California and is qualified to do business as foreign corporations in each jurisdiction, if any, in
which its property or business requires such qualification.
4.2. Capitalization. GMR's
authorized capital stock consists of 10,000 shares of Common Stock, of which 20 shares are
issued and outstanding, and no preferred stock.
4.3. Issued
Stock. All the outstanding shares of its common stock are duly authorized and validly issued, fully paid and non-assessable.
4.4. Corporate
Authority. GMR has all requisite corporate power and authority to own, operate and lease its properties, to carry on its business
as it is now being conducted and to execute, deliver, perform and conclude the transactions contemplated by this Agreement and
all other agreements and instruments related to this Agreement.
4.5. Authorization.
Execution of this Agreement has been duly authorized and approved by GMR's board of directors.
4.6. Subsidiaries.
GMR has no subsidiaries.
4.7.
Financial Statements. The financial statements of BPECS furnished to BioPharma are correct and fairly present its financial
condition as of the dates and for the periods involved, and such statements were prepared in accordance with generally accepted
accounting principles consistently applied.
4.8. Absence
of Undisclosed Liabilities. Except to the extent reflected or reserved in the Financial Statements, GMR did not have at that
date any liabilities or obligations (secured, unsecured, contingent, or otherwise) of a nature customarily reflected in a corporate
balance sheet prepared in accordance with generally accepted accounting principles.
4.9. No
Material Changes. There has been no material adverse change in the business, properties, or financial condition of GMR since
the date of Financial Statements.
4.10. Litigation.
There is not, to the knowledge of GMR, any pending, threatened, or existing litigation, bankruptcy, criminal, civil, or regulatory
proceeding or investigation, threatened or contemplated against GMR or against any of its officers.
4.11. Contracts.
GMR is not a party to any material contract not in the ordinary course of business that is to be performed in whole or in part
at or after the date of this Agreement.
4.12. Title. GMR
has good and marketable title to all the real property and good and valid title to all other property included in GMR
Financial Statements. Except as may be set out therein, the properties of GMR are not subject to any mortgage, encumbrance,
or lien of any kind except minor encumbrances that do not materially interfere with the use of the property in the conduct of
the business of GMR.
4.13. No
Violation. Consummation of the asset exchange will not constitute or result
in a breach or default under any provision of any charter, bylaw, indenture, mortgage, lease, or agreement, or any order, judgment,
decree, law, or regulation to which any property of GMR is subject or by which GMR is bound.
5. Representations
and Warranties of BioPharma. BioPharma represents and warrants that:
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5.1. Corporate
Organization and Good Standing. BioPharma is a corporation duly organized, validly existing, and in good standing under the
laws of the State of Delaware, and is qualified to do business as a foreign corporation in each jurisdiction, if any, in which
its property or business requires such qualification.
5.2. Capitalization. BioPharma's authorized capital stock consists of 100,000,000 shares of Common Stock, $.0001 par value, of which 94,000,000
shares are issued and outstanding, and 20,000,000 shares of non-designated preferred stock of which no shares are outstanding.
5.3. Stock
Rights. There are no stock grants, options, rights, warrants or other
rights to purchase or obtain the BioPharma common or preferred stock issued or committed to be issued.
5.4. Issued
Stock. All the outstanding shares of its common stock were duly authorized
and validly issued, fully paid and non-assessable.
5.5. Corporate
Authority. BioPharma has all requisite corporate power and authority to own, operate and lease its properties, to carry on
its business as it is now being conducted and to execute, deliver, perform and conclude the transactions contemplated by this Agreement
and all other agreements and instruments related to this Agreement.
5.6. Authorization.
Execution of this Agreement has been duly authorized and approved by BioPharma's board of directors.
5.7. Subsidiaries. BioPharma
has no subsidiaries.
5.8. Financial
Statements. The financial statements of BioPharma, furnished to GMR are correct and fairly present the financial condition
of BioPharma as of the dates and for the periods involved, and such statements were prepared in accordance with generally accepted
accounting principles consistently applied.
5.9. Absence
of Undisclosed Liabilities. Except to the extent reflected or reserved against in the BioPharma Financial Statements, BioPharma
did not have at that date any liabilities or obligations (secured, unsecured, contingent, or otherwise) of a nature customarily
reflected in a corporate balance sheet prepared in accordance with generally accepted accounting principles.
5.10. No
Material Changes. There has been no material adverse change in the business, properties, or financial condition of BioPharma
since the date of the BioPharma Financial Statements.
5.11. Litigation.
There is not, to the knowledge of BioPharma, any pending, threatened, or existing litigation, bankruptcy, criminal, civil,
or regulatory proceeding or investigation, threatened or contemplated against BioPharma or against any of its officers.
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5.12. Contracts.
BioPharma is not a party to any material contract not in the ordinary course of business that is to be performed in whole or
in part at or after the date of this Agreement.
5.13. Title. BioPharma
has good and marketable title to all the real property and good and valid title to all other property included in the BioPharma
Financial Statements. Except as set out in the balance sheet thereof, the properties of BioPharma are not subject to any mortgage,
encumbrance, or lien of any kind except minor encumbrances that do not materially interfere with the use of the property in the
conduct of the business of BioPharma.
5.14. No
Violation. Consummation of the merger will not constitute or result in
a breach or default under any provision of any charter, bylaw, indenture, mortgage, lease, or agreement, or any order, judgment,
decree, law, or regulation to which any property of BioPharma is subject or by which BioPharma is bound.
6. Conduct of GMR
Pending the Closing Date. GMR covenants that between the date of this Agreement and the Closing Date:
6.1. No
change will be made in GMR's articles of incorporation or bylaws.
6.2. GMR
will not make any change in its authorized or issued capital stock, declare or pay any dividend or other distribution or issue,
encumber, purchase, or otherwise acquire any of its capital stock other than as provided herein.
6.3. GMR
will submit this Agreement for its shareholders' approval with a favorable recommendation by its board of directors and will use
its best efforts to obtain the requisite shareholder approval.
6.4. GMR
will use its best efforts to maintain and preserve its business organization, employee relationships, and goodwill intact, and
will not enter into any material commitment except in the ordinary course of business.
7. Conduct of BioPharma
Pending the Closing Date. BioPharma covenants that between the date of this Agreement and the Closing Date:
7.1. No
change will be made in BioPharma's certificate of incorporation or bylaws.
7.2. BioPharma
will not make any change in its authorized or issued capital stock, declare or pay any dividend or other distribution or issue,
encumber, purchase, or otherwise acquire any of its capital stock otherwise than as provided herein.
7.3. BioPharma
will submit this Agreement for its shareholders' approval with a favorable recommendation by its board of directors and will use
its best efforts to obtain the requisite shareholder approval.
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7.4. BioPharma
will use its best efforts to maintain and preserve its business organization, employee relationships, and goodwill intact, and
will not enter into any material commitment except in the ordinary course of business.
8. Conditions Precedent
to Obligation of GMR. GMR's obligation to consummate this merger shall be subject to fulfillment on or before the Closing Date
of each of the following conditions, unless waived in writing by GMR:
8.1. BioPharma's
Representations and Warranties. The representations and warranties of BioPharma set forth herein shall be true and correct
at the Closing Date as though made at and as of that date, except as affected by transactions contemplated hereby.
8.2. BioPharma's
Covenants. BioPharma shall have performed all covenants required by this Agreement to be performed by it on or before the Closing
Date.
8.3. Shareholder
Approval. This Agreement shall have been approved by the required number of shareholders of BioPharma.
8.4. Supporting
Documents of BioPharma. BioPharma shall have delivered to GMR supporting documents in form and substance satisfactory to GMR,
to the effect that:
(i) BioPharma
is a corporation duly organized, validly existing, and in good standing.
(ii) BioPharma's
authorized and issued capital stock is as set forth herein.
(iii) The
execution and consummation of this Agreement have been duly authorized and approved by BioPharma's board of directors.
9. Conditions Precedent
to Obligation of BioPharma. BioPharma's obligation to consummate this merger shall be subject to fulfillment on or before the
Closing Date of each of the following conditions, unless waived in writing by BioPharma:
9.1. GMR's
Representations and Warranties. The representations and warranties of GMR set forth herein shall be true and correct at the
Closing Date as though made at and as of that date, except as affected by transactions contemplated hereby.
9.2. GMR's
Covenants. GMR shall have performed all covenants required by this Agreement to be performed by it on or before the Closing
Date.
9.3. Shareholder
Approval. This Agreement shall have been approved by the required number of shareholders of GMR.
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9.4. Supporting
Documents of GMR.GMR shall have delivered to BioPharma supporting documents in form and substance satisfactory to BioPharma
to the effect that:
(i) GMR
is a corporation duly organized, validly existing, and in good standing.
(ii) GMR's
authorized and issued capital stock is as set forth herein.
(iii) The
execution and consummation of this Agreement have been duly authorized and approved by GMR's board of directors.
10. Access. From
the date hereof to the Closing Date, BioPharma and GMR shall provide each other with such information and permit each other's officers
and representatives such access to its properties and books and records as the other may from time to time reasonably request.
If the merger is not consummated, all documents received in connection with this Agreement shall be returned to the party furnishing
such documents, and all information so received shall be treated as confidential.
11. Closing.
Closing The Closing contemplated herein shall be held on 10/11/12 or such other date as the parties shall agree, at
the principal offices of BioPharma, unless another place or time is agreed upon in writing by the parties without requiring the
meeting of the parties hereof. All proceedings to be taken and all documents to be executed at the Closing shall be deemed to have
been taken, delivered and executed simultaneously, and no proceeding shall be deemed taken nor documents deemed executed or delivered
until all have been taken, delivered and executed. The date of Closing may be accelerated or extended by agreement of the parties.
Any copy, facsimile
telecommunication or other reliable reproduction of the writing or transmission required by this Agreement or any signature required
thereon may be used in lieu of an original writing or transmission or signature for any and all purposes for which the original
could be used, provided that such copy, facsimile telecommunication or other reproduction shall be a complete reproduction of the
entire original writing or transmission or original signature.
12. Survival
of Representations and Warranties. The representations and warranties set out herein shall survive the Closing Date.
13. Arbitration.The
parties hereby agree that any and all claims (except only for requests for injunctive or other equitable relief) whether existing
now, in the past or in the future as to which the parties or any affiliates may be adverse parties, and whether arising out of
this agreement or from any other cause, will be resolved by arbitration before the American Arbitration Association.
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14. General Provisions
14.1. Further
Assurances. From time to time, each party will execute such additional instruments and take such actions as may be reasonably
required to carry out the intent and purposes of this Agreement.
14.2. Waiver.
Any failure on the part of either party hereto to comply with any of its obligations, agreements, or conditions hereunder may
be waived in writing by the party to whom such compliance is owed.
14.3 . Brokers.
Each party agrees to indemnify and hold harmless the other party against any fee, loss, or expense arising out of claims by
brokers or finders employed or alleged to have been employed by the indemnifying party.
14.4. Notices.
All notices and other communications hereunder shall be in writing and shall be deemed to have been given if delivered in person
or sent by prepaid first-class certified mail, return receipt requested, or recognized commercial courier service, as follows:
If to BioPharma, to:
BioPharma Manufacturing Solutions,
Inc.
0000 Xxxxxx Xxx, #00X
Xxxx Xxxxx, Xxxxxxxxxx 00000
If to GMR, to
0000 Xxxxxx Xxx, #00X
Xxxx Xxxxx, Xxxxxxxxxx 00000
14.5. Governing
Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware.
14.6. Assignment.
This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their successors and assigns; provided,
however, that any assignment by either party of its rights under this Agreement without the written consent of the other party
shall be void.
14.7. Counterparts.
This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. Signatures sent by facsimile transmission shall be deemed to be evidence
of the original execution thereof.
14.8. Effective
Date. This effective date of this Agreement shall be October 11, 2012.
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IN WITNESS WHEREOF, the parties have executed
this Agreement.
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BIOPHARMA MANUFACTURING SOLUTIONS, INC. |
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/s/ Xxxx Xxxxxx |
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GMR ENGINEERING, INC. |
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/s/ Xxxx Xxxxxx |
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Schedule A
to
Asset Exchange Agreement between
Biopharma Manufacturing Solutions, Inc.,
and GMR Engineering, Inc.
The assets to be transferred
consist as follows:
The components of GMR
comprising its consulting, design and engineering services. It does not include the manufacturing components or equipment.
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