SECURITIES EXCHANGE AGREEMENT
Exhibit 6.2
This Securities Exchange Agreement (this "Agreement") is dated as of September 25, 2017, by and among PureSafe Water Systems, Inc. (the "Seller"), GME Innotainment, Inc. (the "Purchaser"), and Sustainable Resources Corporation, a Delaware corporation (the "Company").
"Business Day" means any day except Saturday, Sunday and any day which shall be a federal legal holiday or a day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.
"Closing" means the closing of the purchase and sale of the Shares pursuant to Section 2.1.
"Closing Date" means the Business Day when this Agreement has been executed and delivered by the applicable parties thereto, and all conditions precedent to the Parties obligations pursuant to this Agreement have been satisfied or waived.
"Exchange Act" means the Securities Exchange Act of 1934, as amended.
“ Shares ” means one thousand (1,000) shares of common stock held by the Seller which are the subject of this Agreement.
" Liens " means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.
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"Person" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.
"Proceeding" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.
Royalty Agreement . Purchaser shall enter into a royalty agreement with Seller such that, beginning July 1, 2018 and thereafter, Seller shall receive five percent (5%) of the Gross Revenue earned by the Company on all product sales, as set forth in a Royalty Agreement attached hereto as Exhibit B .
(a) | At each Closing the Seller shall deliver to the Purchaser: |
i | each of this Agreement and the Royalty Agreement duly executed by the Seller and the Company; |
ii | certificates evidencing the Shares, registered in the name of the Purchaser. |
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(b) | At the Closing the Purchaser shall deliver or cause to be delivered to the Seller the following: |
i | this Agreement duly executed by the Purchaser; and |
ii | the Note, payable to the Seller; and |
(c) | All representations and warranties of each party contained herein shall remain true and correct as of the Closing Date and all conditions precedent to be performed by each party shall have been performed if due prior to such date. |
ARTICLE III
REPRESENTATIONS AND WARRANTIES
(a) | Subsidiaries. The Company has no direct or indirect subsidiaries. |
i. | could not, individually or in the aggregate adversely affect the legality, validity or enforceability of this Agreement, |
ii. | has had or could not reasonably be expected to result in a material adverse effect on the results of operations, assets, prospects, business or condition (financial or otherwise) of the Company, or |
iii. | could not, individually or in the aggregate, adversely impair the Company's ability to perform fully on a timely basis its obligations under this Agreement (any of (i), (ii) or (iii), a "Material Adverse Effect"). |
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(d) | No Conflicts. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby do not and will not: |
i. | conflict with or violate any provision of the Company' articles of organization, bylaws or other charter documents, or |
ii. | conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company debt or otherwise) or other understanding to which the Company is a party or by which any property or asset of the Company is bound or affected, or |
iii. | result, in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company is bound or affected; except in the case of each of clauses (ii) and (iii), such as has not had or could not reasonably be expected to result in a Material Adverse Effect. |
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i. | adversely affects or challenges the legality, validity or enforceability of any of this Agreement or the Shares; or |
ii. | could reasonably be expected to result in a Material Adverse Effect. Neither the Company, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty that has had or could reasonably be expected to result in a Material Adverse Effect. |
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(l) | Insurance. The Company maintains no insurance. |
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(q) | Employee Benefits. The Company has never had any plans which are subject to ERISA. |
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(a) | Organization; Authority. The Purchaser is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations thereunder. The execution, delivery and performance by the Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate action on the part of the Purchaser. This Agreement, to which it is party has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Purchaser, enforceable against it in accordance with its terms except |
i | as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, |
ii | as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and |
iii | insofar as indemnification and contribution provisions may be limited by applicable law. |
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(b) | No Conflict. The execution, delivery and performance by the Seller of this Agreement, and the consummation of the transactions contemplated hereby, will not |
i | conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any contractual obligations or other agreements of the Seller, or |
ii | violate any provision of law applicable to the Seller. |
ARTICLE IV
OTHER AGREEMENTS OF THE PARTIES
(a) | The Note, or any portion thereof, may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Note, the Purchaser may require the transferor thereof to provide an opinion of counsel selected by the transferor and reasonably acceptable to Purchaser, the form and substance of which opinion shall be reasonably satisfactory to the Purchaser, to the effect that such transfer does not require registration of such Note under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights of the Seller under this Agreement. |
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(b) | The Seller agrees to the imprinting, so long as is required by this Section 4.1(b), of the following legend on any certificate evidencing the Note: |
THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.
4.2 Operating Assets . Purchaser shall segregate its current operating assets and associated liabilities, as necessary, into a separate subsidiary, potentially to be spun off at a later date.
4.4 Management. Xxxx Xxxxxx shall be appointed to appropriate positions as officer and director of the Purchaser at an annual salary of $150,000, plus a commission of 6.5% of all Gross Sales generated by him. Existing management and board of the Company shall resign at the Closing, but remain available to serve Purchaser, as necessary, upon mutually satisfactory terms.
4.5 Balance Sheet . All existing debt obligations (loans) on the Purchaser’s balance sheet shall be converted to long term liabilities with a maturity date of no earlier than 2 years from Closing Date.
4.6 Announcements . Prior to the issuance of any press release or any other public statement with respect to the contents of this Agreement, or the transaction contemplated hereby, each party shall agree in writing as to the content, manner and timing of any such release or statement, except as may be required by law or applicable exchange.
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(a) | the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 6:00 p.m. (New York time) on a Business Day; |
(b) | the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Business Day or later than 6:00 p.m. (New York time) on any Business Day; |
(c) | the second Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service; or |
(d) | upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto. |
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5.8 Governing Law; Venue; Waiver of Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the County of New York for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of this Agreement), 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 improper or inconvenient venue for such proceeding. 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 via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for 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. The parties hereby waive all rights to a trial by jury. If either party shall commence an action or proceeding to enforce any provisions of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorney's fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.
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SELLER | ||
PURESAFE WATER SYSTEMS, INC. | ||
By: | /s/ Xxxxxx Xxxxxxx | |
Xxxxxx Xxxxxxx | ||
Chief Executive Officer |
PURCHASER | ||
GME INNOTAINMENT, INC. | ||
By: | /s/ Xxxxxxx Xxxxxx | |
Xxxxxxx Xxxxxx | ||
Chief Executive Officer | ||
COMPANY | ||
SUSTAINABLE RESOURCES CORPORATION | ||
By: | /s/ Xxxx Xxxxxx | |
Xxxx Xxxxxx | ||
President |
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