Document:

ex10-18.htm

Exhibit 10.18

 

ESCROW DEPOSIT AGREEMENT

 

This ESCROW DEPOSIT AGREEMENT (this “Agreement”) dated as of this 6th day of June, 2013, by and among SANUWAVE Health, Inc., a Nevada corporation (the “Company”), having an address at 11475 Great Oaks Way, Suite 150, Alpharetta, Georgia 30022, CIM Securities, LLC, a Colorado limited liability company (“Placement Agent”), having an address at 5975 S. Quebec Street,  Suite 270, Centennial, CO 80111,  and SIGNATURE BANK (the “Escrow Agent”), a New York State chartered bank, having an office at 950 Third Avenue, 9th Floor, New York, NY 10022.  All capitalized terms not herein defined shall have the meaning ascribed to them in that certain Prospectus, dated May 30, 2013, as amended or supplemented from time-to-time, including all attachments, schedules and exhibits thereto (the “Prospectus”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the terms of the Prospectus the Company desires to sell (the “Offering”) Units, each Unit consisting of one share of common stock and a warrant to purchase up to an additional ___ share of common stock in the amount of $6,000,000 (“Maximum Amount”); and

 

WHEREAS, unless a closing occurs by September 30, 2013 (the “Termination Date”), or by or the final termination date if the Termination Date has been extended by Company (the “Final Termination Date”) and the Placement Agent, the Offering shall terminate and all funds shall be returned to the Investors in the Offering; and

 

WHEREAS, the Company and Placement Agent desire to establish an escrow account with the Escrow Agent into which the Company and Placement Agent shall instruct Investors introduced to the Company by Placement Agent (the “Investors”) to deposit checks and other instruments for the payment of money made payable to the order of “Signature Bank as Escrow Agent for SANUWAVE Health, Inc.,” and Escrow Agent is willing to accept said checks and other instruments for the payment of money in accordance with the terms hereinafter set forth; and

 

WHEREAS, the Company and Placement Agent represent and warrant to the Escrow Agent that they have not stated to any individual or entity that the Escrow Agent’s duties will include anything other than those duties stated in this Agreement; and

 

WHEREAS, the Company and Placement Agent warrant to the Escrow Agent that a copy of each document that has been delivered to Investors and third parties that include Escrow Agent’s name and duties, has been attached hereto as Schedule I.

 

  

 

  

 

NOW, THEREFORE, IT IS AGREED as follows:

 

1.            Delivery of Escrow Funds.

 

(a) Placement Agent and the Company shall instruct Investors to deliver to Escrow Agent checks made payable to the order of “Signature Bank, as Escrow Agent for SANUWAVE Health, Inc.,” or wire transfer to Signature Bank, 950 Third Avenue, 9th Floor, New York, NY 10022, ABA No. 026013576 for credit to Signature Bank, as Escrow Agent for SANUWAVE Health, Inc., Account No. 1501955244, in each case, with the name, address and social security number or taxpayer identification number of the individual or entity making payment.  In the event any Subscriber’s address is not provided to Escrow Agent by the Subscriber, then Placement Agent and/or the Company agree to promptly provide Escrow Agent with such information in writing.  The checks or wire transfers shall be deposited into a non interest-bearing account at Signature Bank entitled “Signature Bank, as Escrow Agent for SANUWAVE Health, Inc.” (the “Escrow Account”).

 

(b)           The collected funds deposited into the Escrow Account are referred to as the “Escrow Funds.”

 

(c)           The Escrow Agent shall have no duty or responsibility to enforce the collection or demand payment of any funds deposited into the Escrow Account.  If, for any reason, any check deposited into the Escrow Account shall be returned unpaid to the Escrow Agent, the sole duty of the Escrow Agent shall be to return the check to the Subscriber and advise the Company and Placement Agent promptly thereof.

 

2.            Release of Escrow Funds.  The Escrow Funds shall be paid by the Escrow Agent in accordance with the following:

 

(a)           In the event that the Company and Placement Agent advise the Escrow Agent in writing that the Offering has been terminated (the “Termination Notice”), the Escrow Agent shall promptly return the funds paid by each Subscriber to said Subscriber without interest or offset.

 

(b) If prior to 3:00 P.M. Eastern time on the Termination Date, the Escrow Agent receives written notice, in the form of Exhibit A, attached hereto and made a part hereof, and signed by the Company and Placement Agent, stating that the Termination Date has been extended to the Final Termination Date, then the Termination Date shall be so extended.

 

(c) Provided that the Escrow Agent does not receive the Termination Notice in accordance with paragraph 2(a) on or prior to later of the Termination Date or  the date stated in the Extension Notice, if any, received by the Escrow Agent in accordance with paragraph 2(b) above, the Escrow Agent shall, upon receipt of written instructions, in the form of Exhibit B, attached hereto and made a part hereof, or in a form and substance satisfactory to the Escrow Agent, received from the Company and Placement Agent, pay the Escrow Funds in accordance with such written instructions, such payment or payments to be made by wire transfer within one (1) business day of receipt of such written instructions.  Such instructions must be received by the Escrow Agent no later than 3:00 PM Eastern Time on a Banking Day for the Escrow Agent to process such instructions that Banking Day.

 

  

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(d)           If by 3:00 P.M. Eastern time on the later of the Termination Date or the date stated in the Extension Notice, if any, that the Escrow Agent has received in accordance with paragraph 2(b) above, the Escrow Agent has not received written instructions from the Company and Placement Agent regarding the disbursement of the Escrow Funds, then the Escrow Agent shall promptly return the Escrow Funds to the Investors without interest or offset.  The Escrow Funds returned to each Subscriber shall be free and clear of any and all claims of the Escrow Agent.

 

(e)           The Escrow Agent shall not be required to pay any uncollected funds or any funds that are not available for withdrawal.

 

(f)           If the Termination Date, Final Termination Date or any date that is a deadline under this Agreement for giving the Escrow Agent notice or instructions or for the Escrow Agent to take action is not a Banking Day, then such date shall be the Banking Day that immediately preceding that date. A Banking Day is any day other than a Saturday, Sunday or a day that a New York State chartered bank is not legally obligated to be opened.

 

3.            Acceptance by Escrow Agent.  The Escrow Agent hereby accepts and agrees to perform its obligations hereunder, provided that:

 

(a)           The Escrow Agent may act in reliance upon any signature believed by it to be genuine, and may assume that any person who has been designated by Placement Agent or the Company to give any written instructions, notice or receipt, or make any statements in connection with the provisions hereof has been duly authorized to do so.  Escrow Agent shall have no duty to make inquiry as to the genuineness, accuracy or validity of any statements or instructions or any signatures on statements or instructions.  The names and true signatures of each individual authorized to act singly on behalf of the Company and Placement Agent are stated in Schedule II, which is attached hereto and made a part hereof. The Company and Placement Agent may each remove or add one or more of its authorized signers stated on Schedule II by notifying the Escrow Agent of such change in accordance with this Agreement, which notice shall include the true signature for any new authorized signatories.

 

(b)           The Escrow Agent may act relative hereto in reliance upon advice of counsel in reference to any matter connected herewith.  The Escrow Agent shall not be liable for any mistake of fact or error of judgment or law, or for any acts or omissions of any kind, unless caused by its willful misconduct or gross negligence.

 

(c)           Placement Agent and the Company agree to indemnify and hold the Escrow Agent harmless from and against any and all claims, losses, costs, liabilities, damages, suits, demands, judgments or expenses (including but not limited to reasonable attorney’s fees) claimed against or incurred by Escrow Agent arising out of or related, directly or indirectly, to this Escrow Agreement unless caused by the Escrow Agent’s gross negligence or willful misconduct.

 

  

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(d)           In the event that the Escrow Agent shall be uncertain as to its duties or rights hereunder, the Escrow Agent shall be entitled to (i) refrain from taking any action other than to keep safely the Escrow Funds until it shall be directed otherwise by a court of competent jurisdiction, or (ii) deliver the Escrow Funds to a court of competent jurisdiction.

 

(e)           The Escrow Agent shall have no duty, responsibility or obligation to interpret or enforce the terms of any agreement other than Escrow Agent’s obligations hereunder, and the Escrow Agent shall not be required to make a request that any monies be delivered to the Escrow Account, it being agreed that the sole duties and responsibilities of the Escrow Agent shall be to the extent not prohibited by applicable law (i) to accept checks or other instruments for the payment of money and wire transfers delivered to the Escrow Agent for the Escrow Account and deposit said checks and wire transfers into the non-interest bearing Escrow Account, and (ii) to disburse or refrain from disbursing the Escrow Funds as stated above, provided that the checks received by the Escrow Agent have been collected and are available for withdrawal.

 

4.            Escrow Account Statements and Information. The Escrow Agent agrees to send to the Company and/or the Placement Agent a copy of the Escrow Account periodic statement, upon request in accordance with the Escrow Agent’s regular practices for providing account statements to its non-escrow clients and to also provide the Company and/or Placement Agent, or their designee, upon request other deposit account information, including Account balances, by telephone or by computer communication, to the extent practicable. The Company and Placement Agent agree to complete and sign all forms or agreements required by the Escrow Agent for that purpose.  The Company and Placement Agent each consent to the Escrow Agent’s release of such Account information to any of the individuals designated by Company or Placement Agent, which designation has been signed in accordance with paragraph 3(a) by any of the persons in Schedule II.  Further, the Company and Placement Agent have an option to receive e-mail notification of incoming and outgoing wire transfers.  If this e-mail notification service is requested and subsequently approved by the Escrow Agent, the Company and Placement Agent agrees to provide a valid e-mail address and other information necessary to set-up this service and sign all forms and agreements required for such service.  The Company and Placement Agent each consent to the Escrow Agent’s release of wire transfer information to the designated e-mail address(es).  The Escrow Agent’s liability for failure to comply with this section shall not exceed the cost of providing such information.

 

5.            Resignation and Termination of the Escrow Agent.  The Escrow Agent may resign at any time by giving 30 days’ prior written notice of such resignation to Placement Agent and the Company.  Upon providing such notice, the Escrow Agent shall have no further obligation hereunder except to hold as depositary the Escrow Funds that it receives until the end of such 30-day period.  In such event, the Escrow Agent shall not take any action, other than receiving and depositing Investors checks and wire transfers in accordance with this Agreement, until the Company has designated a banking corporation, trust company, attorney or other person as successor.  Upon receipt of such written designation signed by Placement Agent and the Company, the Escrow Agent shall promptly deliver the Escrow Funds to such successor and shall thereafter have no further obligations hereunder.  If such instructions are not received within 30 days following the effective date of such resignation, then the Escrow Agent may deposit the Escrow Funds held by it pursuant to this Agreement with a clerk of a court of competent jurisdiction pending the appointment of a successor.  In either case provided for in this paragraph, the Escrow Agent shall be relieved of all further obligations and released from all liability thereafter arising with respect to the Escrow Funds.

 

5.            Termination.  The Company and Placement Agent may terminate the appointment of the Escrow Agent hereunder upon written notice specifying the date upon which such termination shall take effect, which date shall be at least 30 days from the date of such notice.  In the event of such termination, the Company and Placement Agent shall, within 30 days of such notice, appoint a successor escrow agent and the Escrow Agent shall, upon receipt of written instructions signed by the Company and Placement Agent, turn over to such successor escrow agent all of the Escrow Funds; provided, however, that if the Company and Placement Agent fail to appoint a successor escrow agent within such 30-day period, such termination notice shall be null and void and the Escrow Agent shall continue to be bound by all of the provisions hereof.  Upon receipt of the Escrow Funds, the successor escrow agent shall become the escrow agent hereunder and shall be bound by all of the provisions hereof and Signature Bank shall be relieved of all further obligations and released from all liability thereafter arising with respect to the Escrow Funds and under this Agreement.

 

  

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6.                      Investment.  All funds received by the Escrow Agent shall be invested only in non-interest bearing bank accounts at Signature Bank.

 

7.                      Compensation.  Escrow Agent shall be entitled, for the duties to be performed by it hereunder, to a fee of $4,000, which fee shall be paid by the Company upon the signing of this Agreement. In addition, the Company shall be obligated to reimburse Escrow Agent for all fees, costs and expenses incurred or that become due in connection with this Agreement or the Escrow Account, including reasonable attorney’s fees. Neither the modification, cancellation, termination or rescission of this Agreement nor the resignation or termination of the Escrow Agent shall affect the right of Escrow Agent to retain the amount of any fee which has been paid, or to be reimbursed or paid any amount which has been incurred or becomes due, prior to the effective date of any such modification, cancellation, termination, resignation or rescission.  To the extent the Escrow Agent has incurred any such expenses, or any such fee becomes due, prior to any closing, the Escrow Agent shall advise the Company and the Company shall direct all such amounts to be paid directly at any such closing.

 

8.                      Notices.  All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if sent by hand-delivery, by facsimile (followed by first-class mail), by nationally recognized overnight courier service or by prepaid registered or certified mail, return receipt requested, to the addresses set forth below:

 

If to Placement Agent:

 

CIM Securities, LLC

5975 S. Quebec Street, Suite 270

Centennial, CO 80111

Attention: Patrick Adams

Fax: ____________

  

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If to the Company:

 

SANUWAVE Health, Inc.

11475 Great Oaks Way, Suite 150

Alpharetta, GA 30022

Attention: Barry J. Jenkins

Fax: ____________

If to Escrow Agent:

 

Signature Bank

950 Third Avenue, 9th Floor,

New York, NY 10022

Attention: John D. Gonzalez

Fax: ___________

 

9.                            General.

 

(a)           This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York applicable to agreements made and to be entirely performed within such State, without regard to choice of law principles and any action brought hereunder shall be brought in the courts of the State of New York, located in the County of New York.  Each party hereto irrevocably waives any objection on the grounds of venue, forum non­conveniens or any similar grounds and irrevocably consents to service of process by mail or in any manner permitted by applicable law and consents to the jurisdiction of said courts.  Each of the parties hereto hereby waives all right to trial by jury in any action, proceeding or counterclaim arising out of the transactions contemplated by this Agreement.

 

(b)           This Agreement sets forth the entire agreement and understanding of the parties with respect to the matters contained herein and supersedes all prior agreements, arrangements and understandings relating thereto.

 

(c)           All of the terms and conditions of this Agreement shall be binding upon, and inure to the benefit of and be enforceable by, the parties hereto, as well as their respective successors and assigns.

 

  

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(d)           This Agreement may be amended, modified, superseded or canceled, and any of the terms or conditions hereof may be waived, only by a written instrument executed by each party hereto or, in the case of a waiver, by the party waiving compliance.  The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect its right at a later time to enforce the same.  No waiver of any party of any condition, or of the breach of any term contained in this Agreement, whether by conduct or otherwise, in any one or more instances shall be deemed to be or construed as a further or continuing waiver of any such condition or breach or a waiver of any other condition or of the breach of any other term of this Agreement.  No party may assign any rights, duties or obligations hereunder unless all other parties have given their prior written consent.

 

(e)           If any provision included in this Agreement proves to be invalid or unenforceable, it shall not affect the validity of the remaining provisions.

 

(f)           This Agreement and any modification or amendment of this Agreement may be executed in several counterparts or by separate instruments and all of such counterparts and instruments shall constitute one agreement, binding on all of the parties hereto.

 

10.                           Form of Signature. The parties hereto agree to accept a facsimile transmission copy of their respective actual signatures as evidence of their actual signatures to this Agreement and any modification or amendment of this Agreement; provided, however, that each party who produces a facsimile signature agrees, by the express terms hereof, to place, promptly after transmission of his or her signature by fax, a true and correct original copy of his or her signature in overnight mail to the address of the other party.

 

  

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IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first set forth above.

 

 

	SANUWAVE Health, Inc. 	 	CIM Securities, LLC	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	/s/Barry J. Jenkins	 	By: 	/s/Patrick Adams	 
	 	
Name: Barry J. Jenkins

	 	 	
Name: Patrick Adams

	 
	 	
Title: Chief Financial Officer

	 	 	
Title: President and CEO

	 
	 	 	 	 	
Officer

	 

 

 

 

	
SIGNATURE BANK

	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Marisol Figuerow	 	 	 	 
	 	
Name: Marisol Figuerow

	 	 	 	 
	 	
Title: Associate Group Director VP

	 	 	 	 

 

	By:	/s/ John D. Gonzalez	 	 	 	 
	 	
Name:  John D. Gonzalez

	 	 	 	 
	 	
Title: Senior Vice President

	 	 	 	 

 

 

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Schedule I

OFFERING DOCUMENTS

 

Prospectus of SANUWAVE Health, Inc.

 

  

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Schedule II

 

 

The Escrow Agent is authorized to accept instructions signed or believed by the Escrow Agent to be signed by any one of the following on behalf of the Company and Placement Agent.

 

 

 

SANUWAVE Health, Inc.

 

 

 

	 	Name	 	 	True Signature	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	
 

	 

 

 

CIM Securities, LLC

 

	 	Name	 	 	True Signature	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	
 

	 

 

  

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Exhibit A

EXTENSION NOTICE

Date: __________________

Signature Bank

950 Third Avenue, 9th Floor,

New York, NY 10022

Attention: John D. Gonzalez

Dear _________:

In accordance with the terms of paragraph 2(b) of an Escrow Deposit Agreement dated ___ _______, by and among SANUWAVE Health, Inc. (the “Company”), CIM Securities, LLC  (“Placement Agent”), and Signature Bank (the “Escrow Agent”), the Company and Placement Agent hereby notifies the Escrow Agent that the Termination Date has been extended to  __________ __, _____, the Final Termination Date.

Very truly yours,

SANUWAVE Health, Inc.

By:_____________

Name:__________

Title:____________

CIM Securities, LLC

By:_____________

Name:___________

Title:____________

  

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Exhibit B

FORM OF ESCROW RELEASE NOTICE

Date:

Signature Bank

950 Third Avenue, 9th Floor,

New York, NY 10022______________

Attention: John D. Gonzalez

Dear _________:

In accordance with the terms of paragraph 2(c) of an Escrow Deposit Agreement dated as of ________ __, 2013 (the "Escrow Agreement"), by and between SANUWAVE Health, Inc. (the "Company"), Signature Bank (the "Escrow Agent") and CIM Securities, LLC. ("Placement Agent"), the Company and Placement Agent hereby notify the Escrow Agent that the ________ closing will be held on ___________ for gross proceeds of $_________.

 

PLEASE DISTRIBUTE FUNDS BY WIRE TRANSFER AS FOLLOWS (wire instructions attached):

 

________________________:                                                                $

________________________:                                                                $ 

________________________:                                                                $

Very truly yours,

SANUWAVE Health, Inc.

By:_____________

Name:__________

Title:____________

CIM Securities, LLC

By:_____________

Name:___________

Title:____________EX 10.1 

AGREEMENT

THIS AGREEMENT (this
“Agreement”), dated as of November 27, 2012 and effective as of September 11, 2012 (the “Effective
Time”) is made by and between Shades Holdings, Inc., a Florida corporation (“Shades”), and Creative
Investments 2012 LLC (“Creative Investments”).

RECITALS

A.On September
7, 2012, Shades entered into a Share Exchange Agreement with Suncoast Real Estate Owned Holdings, Inc., a Florida corporation (the
“Company”) and the Company’s sole shareholder, Creative Investments, pursuant which to the parties agreed
that, upon the satisfaction of certain closing conditions, Creative Investments would transfer all of the issued and outstanding
common stock of the Company (the “Shares”) to Shades, causing the Company to become Shades’ wholly owned
subsidiary (the “Share Exchange Transaction”);

B.On September
11, 2012, the parties closed the Share Exchange Transaction and Shades issued to Creative Investments 15,500,000
shares of common stock, $0.0001 par value per share (the “Share Exchange Shares”).

C. The parties hereby
agree that Creative Investments never relinquished control of the Company to Shades, that the Share Exchange Transaction was never
effectively consummated and, as a result, it is the understanding of the parties, since the Effective Time, that Creative Investments
has effectively maintained ownership of the Company and, as such, the parties have agreed to memorialize such understanding in
this Agreement and Creative Investments has agreed to formally transfer the Share Exchange Shares back to Shades for cancellation.

Accordingly, the
parties hereto agree as follows:

1.Transfer
of Stock.

(a)Share
Exchange. Subject to the terms and conditions provided below, Shades and Creative Investments agree and confirm that the Share
Exchange Transaction was never effectively consummated and that the Shares have remained vested and under the ownership of Creative
Investments since the Effective Time.

(b)Share
Exchange Shares. In connection with the agreements contemplated herein, Creative Investments shall transfer and deliver to
Shades the Share Exchange Shares, along with a duly executed medallion guaranteed stock power, deliverable as provided in Section
2(b).

(c)Closing.
The closing of the transactions contemplated in this Agreement (the “Closing”) shall take place as soon as practicable
following the execution of this Agreement. The date on which the Closing occurs shall be referred to herein as the Closing Date
(the “Closing Date”).

 

2.Closing.

(a)Transfer
of Shares. As of the Effective Date, Creative Investments shall be vested with good and marketable title to all of the issued
and outstanding shares of capital stock of the Company, free and clear of all liens and encumbrances and such ownership shall be
recorded on the books and records of the Company.

(b) Share
Exchange Shares. At the Closing, Creative Investments shall deliver to Shades a certificate or certificates representing the
Share Exchange Shares duly endorsed to Shades, along with duly endorsed, medallion guaranteed stock powers, which delivery shall
vest Shades with good and marketable title to the Share Exchange Shares, free and clear of all liens and encumbrances.

3.Representations
and Warranties of Shades. Shades represents and warrants to Creative Investments as of the date hereof as follows:

(a)Corporate
Authorization; Enforceability. The execution, delivery and performance by Shades of this Agreement is within the corporate
powers and has been, duly authorized by all necessary corporate action on the part of Shades. This Agreement has been duly executed
and delivered by Shades and constitutes the valid and binding agreement of Shades, enforceable against Shades in accordance with
its terms, except to the extent that its enforceability may be subject to applicable bankruptcy, insolvency, reorganization, moratorium
and similar Laws affecting the enforcement of creditors’ rights generally and by general equitable principles.

(b)Governmental
Authorization. The execution, delivery and performance by Shades of this Agreement requires no consent, approval, Order, authorization
or action by or in respect of, or filing with, any Governmental Authority.

(c)Non-Contravention;
Consents. The execution, delivery and performance by Shades of this Agreement and the consummation of the transactions contemplated
hereby do not (i) violate the certificate of incorporation or bylaws of Shades or (ii) violate any applicable Law or Order.

4.Representations
and Warranties of Creative Investments. Creative Investments represents and warrants to Shades as of the date hereof as follows:

(a)Enforceability.
The execution, delivery and performance by Creative Investments of this Agreement are within Creative Investments’ s powers.
This Agreement has been duly executed and delivered by Creative Investments and constitutes the valid and binding agreement of
Creative Investments, enforceable against Creative Investments in accordance with its terms, except to the extent that its enforceability
may be subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the enforcement of creditors'
rights generally and by general equitable principles.

(b)Governmental
Authorization. The execution, delivery and performance by Creative Investments of this Agreement require no consent, approval,
Order, authorization or action by or in respect of, or filing with, any Governmental Authority.

(c)Non-Contravention;
Consents. The execution, delivery and performance by Creative Investments of this Agreement, and the consummation of the transactions
contemplated hereby do not violate any applicable Law or Order.

(d)Liabilities.
As of the Effective Date, the parties agree that Shades has had and will have no debts, liabilities or obligations relating to
the Company or its business or activities, whether before or after the Closing, and there are no outstanding guaranties, performance
or payment bonds, letters of credit or other contingent contractual obligations that have been undertaken by Shades directly or
indirectly in relation to the Company or its business and that may survive the Closing.

(e)Title
to Share Exchange Shares. Except as may be qualified herein, Creative Investments is the sole record and beneficial owners
of the Share Exchange Shares. At Closing, Creative Investments will have good and marketable title to the Share Exchange Shares,
which Share Exchange Shares are, and at the Closing will be, free and clear of all options, warrants, pledges, claims, liens and
encumbrances, and any restrictions or limitations prohibiting or restricting transfer to Shades, except for restrictions on transfer
as contemplated by applicable securities laws.

5.Indemnification
and Release.

(a)Indemnification.
Creative Investments covenants and agrees to indemnify, defend, protect and hold harmless Shades, and its officers, directors,
employees, stockholders, agents, representatives and affiliates (collectively, together with Shades, the “Shades Indemnified
Parties”) at all times from and after the date of this Agreement from and against all losses, liabilities, damages, claims,
actions, suits, proceedings, demands, assessments, adjustments, costs and expenses (including specifically, but without limitation,
reasonable attorneys’ fees and expenses of investigation), whether or not involving a third party claim and regardless of
any negligence of any Shades Indemnified Party (collectively, “Losses”), incurred by any Shades Indemnified
Party as a result of or arising from (i) any breach of the representations and warranties of Creative Investments set forth herein
or in certificates delivered in connection herewith, (ii) any breach or nonfulfillment of any covenant or agreement on the part
of Creative Investments under this Agreement, (iii) any debt, liability or obligation of the Company, whether incurred or arising
prior to the date hereof or after, (iv) any debt, liability or obligation of Shades for actions taken prior to the date hereof
regarding the Company including the Share Exchange Transaction, (v) the conduct and operations of the business of the Company whether
before or after the Closing, (vi) claims asserted against the Company whether arising before or after the Closing, or (vii) any
federal or state income tax payable by Shades and attributable to the transaction contemplated by this Agreement or activities
prior to the Share Exchange Transaction or with respect to the Company after the Share Exchange Transaction.

(b)Third
Party Claims.

(i)If any
claim or liability (a “Third-Party Claim”) should be asserted against any of Shades Indemnified Parties (the
“Indemnitee”) by a third party after the Closing for which Creative Investments has an indemnification obligation
under the terms of Section 5(a), then the Indemnitee shall notify Creative Investments (the “Indemnitor”) within
20 days after the Third-Party Claim is asserted by a third party (said notification being referred to as a “Claim Notice”)
and give the Indemnitor a reasonable opportunity to take part in any examination of the books and records of the Indemnitee relating
to such Third-Party Claim and to assume the defense of such Third-Party Claim and in connection therewith and to conduct any proceedings
or negotiations relating thereto and necessary or appropriate to defend the Indemnitee and/or settle the Third-Party Claim. The
expenses (including reasonable attorneys’ fees) of all negotiations, proceedings, contests, lawsuits or settlements with
respect to any Third-Party Claim shall be borne by the Indemnitor. If the Indemnitor agrees to assume the defense of any Third-Party
Claim in writing within 20 days after the Claim Notice of such Third-Party Claim has been delivered, through counsel reasonably
satisfactory to Indemnitee, then the Indemnitor shall be entitled to control the conduct of such defense, and shall be responsible
for any expenses of the Indemnitee in connection with the defense of such Third-Party Claim so long as the Indemnitor continues
such defense until the final resolution of such Third-Party Claim. The Indemnitor shall be responsible for paying all settlements
made or judgments entered with respect to any Third-Party Claim the defense of which has been assumed by the Indemnitor. Except
as provided in subsection (ii) below, both the Indemnitor and the Indemnitee must approve any settlement of a Third-Party Claim.
A failure by the Indemnitee to timely give the Claim Notice shall not excuse Indemnitor from any indemnification liability except
only to the extent that the Indemnitor is materially and adversely prejudiced by such failure.

(ii)If the
Indemnitor shall not agree to assume the defense of any Third-Party Claim in writing within 20 days after the Claim Notice of such
Third-Party Claim has been delivered, or shall fail to continue such defense until the final resolution of such Third-Party Claim,
then the Indemnitee may defend against such Third-Party Claim in such manner as it may deem appropriate and the Indemnitee may
settle such Third-Party Claim, in its sole discretion, on such terms as it may deem appropriate. The Indemnitor shall promptly
reimburse the Indemnitee for the amount of all settlement payments and expenses, legal and otherwise, incurred by the Indemnitee
in connection with the defense or settlement of such Third-Party Claim. If no settlement of such Third-Party Claim is made, then
the Indemnitor shall satisfy any judgment rendered with respect to such Third-Party Claim before the Indemnitee is required to
do so, and pay all expenses, legal or otherwise, incurred by the Indemnitee in the defense against such Third-Party Claim.

(c)Non-Third-Party
Claims. Upon discovery of any claim for which Creative Investments has an indemnification obligation under the terms of this
Section 5 which does not involve a claim by a third party against the Indemnitee, the Indemnitee shall give prompt notice to Creative
Investments of such claim and, in any case, shall give Creative Investments such notice within 30 days of such discovery. A failure
by Indemnitee to timely give the foregoing notice to Creative Investments shall not excuse Creative Investments from any indemnification
liability except to the extent that Creative Investments is materially and adversely prejudiced by such failure.

(d)Release.
Creative Investments, on behalf of itself and its Related Parties, hereby releases and forever discharges Shades and its individual,
joint or mutual, past and present representatives, Affiliates, officers, directors, employees, agents, attorneys, stockholders,
controlling persons, subsidiaries, successors and assigns (individually, a “Releasee” and collectively, “Releasees”)
from any and all claims, demands, proceedings, causes of action, orders, obligations, contracts, agreements, debts and liabilities
whatsoever, whether known or unknown, suspected or unsuspected, both at law and in equity, which Creative Investments or any of
its Related Parties now have or have ever had against any Releasee. Creative Investments hereby irrevocably covenants to refrain
from, directly or indirectly, asserting any claim or demand, or commencing, instituting or causing to be commenced, any proceeding
of any kind against any Releasee, based upon any matter released hereby. “Related Parties” shall mean, with
respect to Creative Investments, (i) any Person that directly or indirectly controls, is directly or indirectly controlled by,
or is directly or indirectly under common control with Creative Investments, (ii) any Person in which Creative Investments holds
a Material Interest or (iii) any Person with respect to which Creative Investments serves as a general partner or a trustee (or
in a similar capacity). For purposes of this definition, “Material Interest” shall mean direct or indirect beneficial
ownership (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended) of voting securities or other voting
interests representing at least ten percent (10%) of the outstanding voting power of a Person or equity securities or other equity
interests representing at least ten percent (10%) of the outstanding equity securities or equity interests in a Person.

6.Definitions.
As used in this Agreement:

(a)“Affiliate”
means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with
the first Person. For the purposes of this definition, “Control,” when used with respect to any Person, means
the possession, directly or indirectly, of the power to (i) vote 10% or more of the securities having ordinary voting power for
the election of directors (or comparable positions) of such Person or (ii) direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by contract or otherwise, and the terms “Controlling”
and “Controlled” have meanings correlative to the foregoing;

(b)“Governmental
Authority” means any domestic or foreign governmental or regulatory authority;

(c)“Law”
means any federal, state or local statute, law, rule, regulation, ordinance, code, Permit, license, policy or rule of common law;

(d)“Lien”
means, with respect to any property or asset, any mortgage, lien, pledge, charge, security interest, encumbrance or other adverse
claim of any kind in respect of such property or asset. For purposes of this Agreement, a Person will be deemed to own, subject
to a Lien, any property or asset which it has acquired or holds subject to the interest of a vendor or lessor under any conditional
sale agreement, capital lease or other title retention agreement relating to such property or asset;

(e)“Order”
means any judgment, injunction, judicial or administrative order or decree;

(f)“Permit”
means any government or regulatory license, authorization, permit, franchise, consent or approval; and

(g)“Person”
means an individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including
a government or political subdivision or an agency or instrumentality thereof.

7.Miscellaneous.

(a)Counterparts.
This Agreement may be signed in any number of counterparts, each of which will be deemed an original but all of which together
shall constitute one and the same instrument.

(b)Amendments
and Waivers.

(i)Any provision
of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of
an amendment, by each party to this Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective.

(ii)No failure
or delay by any party in exercising any right, power or privilege hereunder will operate as a waiver thereof nor will any single
or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.
The rights and remedies herein provided will be cumulative and not exclusive of any rights or remedies provided by Law.

(c)Successors
and Assigns. The provisions of this Agreement will be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns; provided that no party may assign, delegate or otherwise transfer (including by operation
of Law) any of its rights or obligations under this Agreement without the consent of each other party hereto.

(d)No
Third Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their permitted successors and
assigns and nothing herein expressed or implied will give or be construed to give to any Person, other than the parties hereto,
those referenced in Section 5 above, and such permitted successors and assigns, any legal or equitable rights hereunder.

(e)Governing
Law. This Agreement will be governed by, and construed in accordance with, the internal substantive law of the State of New
York.

(f)Headings.
The headings in this Agreement are for convenience of reference only and will not control or affect the meaning or construction
of any provisions hereof.

(g)Entire
Agreement. This Agreement constitutes the entire agreement among the parties with respect to the subject matter of this Agreement.
This Agreement supersedes all prior agreements and understandings, both oral and written, between the parties with respect to the
subject matter hereof of this Agreement.

(h)Severability.
If any provision of this Agreement or the application of any such provision to any Person or circumstance is held invalid, illegal
or unenforceable in any respect by a court of competent jurisdiction, the remainder of the provisions of this Agreement (or the
application of such provision in other jurisdictions or to Persons or circumstances other than those to which it was held invalid,
illegal or unenforceable) will in no way be affected, impaired or invalidated, and to the extent permitted by applicable Law, any
such provision will be restricted in applicability or reformed to the minimum extent required for such provision to be enforceable.
This provision will be interpreted and enforced to give effect to the original written intent of the parties prior to the determination
of such invalidity or unenforceability.

(i) Notices.
Any notice, request or other communication hereunder shall be given in writing and shall be served either personally, by overnight
delivery or delivered by mail, certified return receipt and addressed to the following addresses:

(a)If to Creative
Investments:

Creative Investments 2012 LLC

 

 

If to Shades:

Shades Holdings, Inc.

 

 

 

 

[Signature Page Follows]

    	 

    	 

    

[SIGNATURE PAGE TO STOCK PURCHASE
AGREEMENT]

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed and delivered, effective as of the date first above written.

	 	“SHADES”
	 	 
	 	SHADES HOLDINGS, INC.
	 	 
	 	 
	 	By: /s/ Sean Lyons
	 	     Name:  Sean Lyons
	 	     Title:  CEO
	 	 
	 	“CREATIVE INVESTMENTS”
	 	 
	 	CREATIVE INVESTMENTS 2012 LLC
	 	 
	 	 
	 	By: /s/ Jack Lee
	 	     Name: Jack Lee
	 	     Title:

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