Document:

icnb_ex108.htm

EXHIBIT 10.6
  
 SHARE EXCHANGE AGREEMENT
  
 This Share Exchange Agreement (this “Agreement”) is entered into on May 21, 2018 (the “Effective Date”) and is by and among Iconic Brands, Inc., a Nevada corporation (the “Company”), on the one hand, and Gregory M. Castaldo, an individual (“Castaldo”), Iroquois Master Fund Ltd., a Cayman Islands exempted limited company (“Iroquois”), Iroquois Capital Investment Group LLC, a Delaware limited liability company (“ICIG”), and The Special Equities Group, LLC, a Delaware limited liability company (“SEG,” and along with Castaldo, Iroquois and ICIG, each a “Shareholder” and collectively the “Shareholders”), on the other hand. Each of the Company and the Shareholders may be referred to herein as a “Party” and collectively as the “Parties.”
  
 RECITALS
  
 WHEREAS, the Shareholders are the beneficial and record owners of an aggregate of one hundred twenty million (120,000,000) shares of the issued and outstanding common stock of the Company (the “Common Shares”), which were issued pursuant to the Securities Purchase Agreement, dated as of November 1, 2017, between the Company and the Shareholders;
  
 WHEREAS, the Shareholders desire to transfer to the Company, and the Company desires to acquire from the Shareholders, the Common Shares in exchange for shares of Series E Convertible Preferred Stock of the Company (the “Exchange”); and
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
  
 AGREEMENT
 1. Exchange of Shares. 
  
 (a) At the Closing (as defined in Section 2), subject to the terms and conditions set forth herein, the Shareholders shall convey, assign, and transfer to the Company, and the Company shall acquire and accept from the Shareholders, the Common Shares. The Common Shares shall be cancelled and added to the Company’s unissued and authorized shares of common stock.
  
 (b) As consideration for the acquisition of the Common Shares, the Company shall issue to the Shareholders an aggregate of one million two hundred thousand (1,200,000) shares of the Company’s Series E Convertible Preferred Stock (the “Preferred Shares”), at a ratio of one (1) Preferred Share for each one hundred (100) Common Shares, as set forth on Exhibit A attached hereto. The Company shall deliver stock certificates representing the Preferred Shares to the Shareholders within five (5) business days of the Effective Date (the “Preferred Certificates”).
  
  	 
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 2. Closing. The closing of the Exchange (the “Closing”) will take place at 5:00 p.m. Eastern Time on the Effective Date. The Closing shall take place at the offices of the Company or via the electronic exchange of documents, unless another date, time, or place is agreed to in writing by the Parties hereto. 
  
 3. Deliveries at Closing.
  
 (a) The Company will deliver:
  
 (i) to each Shareholder, a counterpart signature page to this Agreement;
  
 (ii) evidence of the filing and acceptance of the Certificate of Designation of the Rights, Preferences, Privileges and Restrictions of the Preferred Shares (“Certificate of Designation”) from the Secretary of State of the State of Nevada; and
  
 (iii) to each Shareholder, the Preferred Certificate registered in name of such Shareholder and satisfactory to such Shareholder, which may be delivered within five (5) business days of the Effective Date.
  
 (b) Each Shareholder will deliver:
  
 (i) to the Company, a counterpart signature page to this Agreement; and
  
 (ii) to the Company, certificates evidencing the Common Shares, if existing, along with an executed Irrevocable Stock Power, or confirmation of instructions to its/his broker to transfer the Common Shares back to the Company, which may be delivered within five (5) business days of the Effective Date.
  
 4. Representations and Warranties of the Company.
  
 (a) The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, its board of directors or its stockholders in connection therewith. This Agreement has been duly executed by the Company and, when delivered in accordance with the terms hereof will constitute the valid and binding obligation of the Company enforceable against the Company 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) The Preferred Shares and Conversion Shares (as defined below) are duly authorized and, when issued and paid for in accordance with this Agreement and the Certificate of Designation, will be duly and validly issued, fully paid and nonassessable, free and clear of all liens imposed by the Company other than restrictions on transfer provided for in this Agreement. The Conversion Shares, when issued in accordance with the terms of the Certificate of Designation, will be validly issued, fully paid and nonassessable, free and clear of all liens imposed by the Company other than restrictions on transfer provided for in the Certificate of Designation.
  
 (c) The Company represents and agrees that the holding period of the Preferred Shares and Conversion Shares tack back to the original issue date of the Common Shares for Rule 144 purposes. The Company agrees not to take a position contrary to this paragraph. If requested by a Shareholder, the Company shall promptly, and in any event within 3 business days of such request, at the cost of the Company, deliver a legal opinion of outside counsel opining to the immediate availability of Rule 144 for the resale of the Preferred Shares and Conversion Shares.
  
 5. Representations and Warranties of the Shareholders. Each Shareholder represents to the Company as of the date hereof that (a) at the time such Holder was offered the securities, it was, and as of the date hereof it is, and on each date on which it converts any Preferred Shares it will be, an “accredited investor” as defined in Rule 501(a) under the Securities Act, (b) it will acquire the Preferred Shares, and the shares of common stock issuable upon conversion of the Preferred Shares (the “Conversion Shares”), for its account for the purpose of investment and not with a view to the distribution or resale thereof, (c) it has such knowledge and experience in financial and business matters that the Shareholder is capable of evaluating the merits and risks of acquiring the Preferred Shares and Conversion Shares, and (d) the Shareholder understands the Preferred Shares and Conversion Shares have not been registered under the Securities Act of 1933 or under any other securities law and, therefore, none of the Preferred Shares or Conversion Shares can be sold, assigned, transferred, pledged or otherwise disposed of without registration under applicable securities laws or unless an exemption from such registration thereunder is available.
  
 6. Transfer Restrictions. The Preferred Shares and Conversion Shares may not be sold, assigned, pledged, hypothecated or otherwise transferred except in accordance with applicable securities laws. The Company shall not be required (a) to transfer on its books any Preferred Shares or Conversion Shares that have been sold or otherwise transferred in violation of the foregoing transfer restrictions or (b) to treat as the owner of such Preferred Shares or Conversion Shares or to accord the right to vote or make distributions to any Shareholder or other transferee to whom such Preferred Shares or Conversion Shares shall have been so transferred.
  
 7. Amendment; Waiver. No provision of this Agreement may be amended except by a written instrument signed by the Parties. No provision of this Agreement may be waived except by a written instrument signed by the Party against which such waiver is to be enforced. Except as expressly provided otherwise in a waiver, no such waiver shall constitute an ongoing or future waiver of any provision of this Agreement.
  
  	 
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 8. Severability. Should any provision of this Agreement be found by a court of competent jurisdiction to be illegal or unenforceable, such provision shall be severed from this Agreement and the other provisions shall continue in full force and effect.
  
 9. Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same agreement. Facsimile copies of signed signature pages shall be binding originals for all purposes hereunder.
  
 10. Entire Agreement. This Agreement constitutes the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, written or oral, between the parties with respect thereto.
  
 11. Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. Venue for any cause of action brought hereunder shall be in New York County, New York.
  
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 IN WITNESS WHEREOF, the parties have executed this Share Exchange Agreement as of the date first set forth above.
  
 	 “Company”
	  
	 “Shareholders”
	  

		  
	  
	  

	 Iconic Brands, Inc.,
	  
	 The Special Equities Group, LLC
	  

	 a Nevada corporation
	  
		  

		  
		  

		  
	  
	  

	 /s/ Richard J. DeCicco 
	  
	  
	  

	 By: Richard J. DeCicco
	  
	 By: 
	  

	 Its: Chief Executive Officer 
	  
	 Its: 
	  

		  
		  

	  
	  
	 Iroquois Master Fund Ltd.
	  

		  
		  

		  
		  

	  
	  
	 By: 
	  

	  
	  
	 Its: 
	  

		  
		  

	  
	  
	 Iroquois Capital Investment Group, LLC
	  

		  
		  

		  
		  

	  
	  
	 By: 
	  

	  
	  
	 Its: 
	  

		  
		  

		  
		  

	  
	  
	 Gregory M. Castaldo 
	  

  
  	 
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 Exhibit A
  
 Selling Shareholders
  
 	 Name 
	  
	 Common Shares
	  
	  
	 Preferred Shares (Series E Convertible Preferred Stock)
	  

	 The Special Equities Group, LLC
	  
	  
	40,000,000	  
	  
	  
	400,000	  

	 Iroquois Master Fund Ltd.
	  
	  
	30,000,000	  
	  
	  
	300,000	  

	 Iroquois Capital Investment Group, LLC
	  
	  
	10,000,000	  
	  
	  
	100,000	  

	 Gregory M. Castaldo
	  
	  
	40,000,000	  
	  
	  
	400,000	  

	 Total
	  
	  
	120,000,000	  
	  
	  
	1,200,000icnb_ex109.htm

EXHIBIT 10.7
  
 AMENDMENT NO. 1
 SECURITIES PURCHASE AGREEMENT
  
 This First Amendment to the Securities Purchase Agreement (this “Amendment”) is entered into on May 21, 2018 by and among Iconic Brands, Inc., a Nevada corporation (the “Company”), and the purchasers identified on the signature pages hereto (including its successors and assigns, each a “Purchaser” and collectively with the other undersigned purchasers, the “Purchasers”). Each of the Purchasers and the Company may be referred to herein as a “Party” and collectively as the “Parties.”
  
 RECITALS
  
 WHEREAS, the Parties are parties to that certain Securities Purchase Agreement with an effective date of November 1, 2017 (the “Agreement”);
  
 WHEREAS, the Parties desire to amend certain terms of the Agreement as set forth in this Amendment.
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
  
 AGREEMENT
  
 1. Section 2.1(b) of the Agreement is hereby amended and restated in its entirety as follows:
  
 “(b) Second Closing. On the Second Closing Date, upon the terms and conditions set forth herein, the Company agrees to sell, and the Purchasers, severally and not jointly, agree to purchase, one million two hundred thousand (1,200,000) shares of Series E Preferred Shares and Warrants which closing shall occur on May 21, 2018, or as soon as reasonably practicable following, and in any event within five (5) Trading Days of, that date (the “Second Closing”). Each Purchaser shall deliver to the Company, via wire transfer or a certified check, immediately available funds equal to such Purchaser’s Subscription Amount as set forth on the signature page hereto executed by such Purchaser, and the Company shall deliver to each Purchaser its respective Series E Preferred Shares and a Warrant, as determined pursuant to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Second Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Second Closing shall occur at the offices of EGS or such other location as the parties shall mutually agree.
  
 Following the Second Closing, the Company will: (i) file a registration statement to register the Common Stock under Section 12(g) of the Exchange Act and take all action necessary to have the registration statement declared effective by the Commission as soon as reasonably possible, (ii) remain current in filing of reports required by the Exchange Act until the Purchasers have sold all Registrable Securities, and (iv) apply for the Common Stock to be quoted for trading on OTCQB and promptly take all action necessary to have the application approved by the OTC Markets and have the Common Stock quoted on the OTCQB.”
  
  	 
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 2. Section 2.2(a) of the Agreement is hereby amended and restated in its entirety as follows:
  
 “(a) On or prior to each Closing Date (except as otherwise indicated), the Company shall deliver or cause to be delivered to each Purchaser the following:
  
 (i) as to the First Closing, this Agreement duly executed by the Company;
  
 (ii) as to the First Closing, a legal opinion of Company Counsel, substantially in the form of Exhibit B attached hereto, and as to each subsequent Closing a legal opinion reasonably satisfactory to the Purchasers, which shall include customary opinions with respect to the Series E Preferred Shares reasonably satisfactory to the Purchasers; 
  
 (iii) as to the First Closing, a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver, on an expedited basis, a certificate evidencing a number of Shares equal to such Purchaser’s Subscription Amount, as to the applicable Closing, divided by the Per Share Purchase Price, registered in the name of such Purchaser;
  
 (iv) as to the First Closing, a Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to 100% of such Purchaser’s Shares issued on such applicable Closing, with an exercise price equal to $0.01, subject to adjustment therein;
  
 (v) as to the Second Closing, a Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to 100% of such Purchaser’s Conversion Shares on the Second Closing Date, with an exercise price equal to $0.01, subject to adjustment therein;
  
 (vi) as to each Closing, the Company shall have provided each Purchaser with the Company’s wire instructions, on Company letterhead and executed by the Chief Executive Officer or Chief Financial Officer;
  
 (vii) as to each Subsequent Closing, a bring-down of the Disclosure Schedules;
  
 (viii) as to the First Closing, the Lock-Up Agreements;
  
 (ix) as to the Second Closing, a letter from the Transfer Agent to the Purchasers certifying as to the Company’s reservation of at least 500,000,000 shares of Common Stock for issuances of Common Stock upon conversion of the Series E Preferred Shares and exercise of the Warrants; 
  
  	 
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 (x) as to the First Closing, the Registration Rights Agreement duly executed by the Company;
  
 (xi) as to the Second Closing, within five (5) Trading Days of the Second Closing Date, evidence of the filing and acceptance of the Certificate of Designation from the Secretary of State of the State of Nevada; and
  
 (xii) as to the Second Closing, within five (5) Trading Days of the Second Closing Date, a certificate evidencing a number of Series E Preferred Shares equal to such Purchaser’s Subscription Amount, as to the Second Closing, divided by the Per Share Purchase Price and further divided by one hundred (100), registered in the name of such Purchaser.”
  
 3. Definitions.
  
 A. The following definitions are added to Section 1.1:
  
 “Certificate of Designation” means the Certificate of Designation of the Rights, Preferences, Privileges and Restrictions of the Series E Convertible Preferred Stock to be filed with the Secretary of the State of Nevada, in the form attached hereto as Exhibit E.
  
 “Conversion Shares” means the shares of Common Stock issuable upon conversion of the Series E Preferred Shares.
  
 “Share Exchange Agreement” means the Share Exchange Agreement, dated as of May 21, 2018, between the Company and the Purchasers.
  
 “Series E Preferred Shares” means shares of the Company’s Series E Convertible Preferred Stock having the rights, preferences and privileges set forth in the Certificate of Designation that are issued pursuant to the Share Exchange Agreement and this Agreement. 
  
 “Underlying Shares” means the Conversion Shares and the Warrant Shares.
  
 B. The following definitions in Section 1.1 are amended and restated in their entirety as follows:
  
 “Registrable Securities” means, as of any date of determination, (a) all shares of Common Stock then issued and issuable upon conversion in full of the Series E Preferred Shares (assuming on such date that the Series E Preferred Shares are converted in full without regard to any conversion limitations therein), (b) all Warrant Shares then issued and issuable upon exercise of the Warrants (assuming on such date the Warrants are exercised in full without regard to any exercise limitations therein), (c) any additional shares of Common Stock issued and issuable in connection with any anti-dilution provisions in the Series E Preferred Shares or the Warrants (without giving effect to any limitations on conversion set forth in the Series E Preferred Shares or any limitations on exercise set forth in the Warrants) and (d) any securities issued or then issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing; provided, however, that any such Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required to maintain the effectiveness of any, or file another, Registration Statement hereunder with respect thereto) for so long as (a) a Registration Statement with respect to the sale of such Registrable Securities is declared effective by the Commission under the Securities Act and such Registrable Securities have been disposed of by the Holder in accordance with such effective Registration Statement, (b) such Registrable Securities have been previously sold in accordance with Rule 144, or (c) such securities become eligible for resale without volume or manner-of-sale restrictions and without current public information pursuant to Rule 144 as set forth in a written opinion letter to such effect, addressed, delivered and acceptable to the Transfer Agent and the affected Holders (assuming that such securities and any securities issuable upon exercise, conversion or exchange of which, or as a dividend upon which, such securities were issued or are issuable, were at no time held by any Affiliate of the Company, and all Warrants are exercised by “cashless exercise” as provided in Section 2(c) of each of the Warrants), as reasonably determined by the Company, upon the advice of counsel to the Company.
  
  	 
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 “Registration Rights Agreement” means the Registration Rights Agreement, dated on or about the date hereof, among the Company and the Purchasers, in the form of Exhibit A attached hereto, as amended.
  
 “Securities” means the Shares, the Warrants, the Warrant Shares, the Series E Preferred Shares and the Conversion Shares.
  
 “Transaction Documents” means this Agreement, the Certificate of Designation, the Warrants, the Lock-Up Agreement, the Registration Rights Agreement, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder
  
 4. Section 3.1(f) is hereby amended and restated in its entirety as follows:
  
 “Issuance of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents. The Conversion Shares and the Warrant Shares, when issued in accordance with the terms of the Transaction Documents, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement, the Series E Preferred Shares and the Warrants.”
  
 5. A new Section 3.1(uu) is inserted as follows:
  
 “(uu) Audited Financials. As of May 18, 2018, the Audit for the Company’s fiscal year ended December 31, 2016 and December 31, 2017 have been completed and such Audit for such fiscal years meets the requirements for purposes of the effectiveness of the Registration Statement.”
  
  	 
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 6. Section 4.1(c) is hereby amended and restated in its entirety as follows:
  
 “Certificates evidencing the Underlying Shares shall not contain any legend (including the legend set forth in Section 4.1(b) hereof): (i) while a registration statement (including the Registration Statement) covering the resale of such security is effective under the Securities Act, (ii) following any sale of such Underlying Shares pursuant to Rule 144 (assuming cashless exercise of the Warrants), (iii) if such Underlying Shares are eligible for sale under Rule 144 (assuming cashless exercise of the Warrants) or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Transfer Agent or the Purchaser promptly after the Effective Date or at such time as such legend is no longer required under this Section 4.1(c) if required by the Transfer Agent or requested by a Purchaser to effect the removal of the legend hereunder. If all or any Series E Preferred Shares are converted or any portion of a Warrant is exercised at a time when there is an effective registration statement to cover the resale of the Underlying Shares, or if such Underlying Shares may be sold under Rule 144 and the Company is then in compliance with the current public information required under Rule 144, or if the Underlying Shares may be sold under Rule 144 (assuming cashless exercise of the Warrants) without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Underlying Shares and without volume or manner-of-sale restrictions or if such legend is not otherwise required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission) then such Underlying Shares shall be issued free of all legends. The Company agrees that following the Effective Date or at such time as such legend is no longer required under this Section 4.1(c), it will, no later than the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined below) following the delivery by a Purchaser to the Company or the Transfer Agent of a certificate representing Underlying Shares, as applicable, issued with a restrictive legend (such date, the “Legend Removal Date”), deliver or cause to be delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other legends. The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4. Certificates for Underlying Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent to the Purchaser by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System as directed by such Purchaser. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of a certificate representing Underlying Shares, as applicable, issued with a restrictive legend.”
  
  	 
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 7. A new Section 4.21 is inserted as follows:
  
 4.21 Form 10 Information. The Company covenants to file “Form 10 information” (as such term is used in Rule 144(i)) for the Company with the Commission on or prior to June 8, 2018.
  
 8. A new Section 4.22 is inserted as follows:
  
 4.22 Company Covenants. The Company covenants (i) file a registration statement to register the Common Stock under Section 12(g) of the Exchange Act and take all action necessary to have the registration statement declared effective by the Commission as soon as possible, (ii) to remain current in filing of reports required by the Exchange Act until the Purchasers no longer hold any Conversion Shares or Warrant Shares, and (iii) to apply for the Common Stock to be quoted for trading on OTCQB and promptly take all action necessary to have the application approved by the OTC Markets and have the Common Stock quoted on the OTCQB as soon as possible.
  
 9. For purposes of clarity, no Shares will be issued to Purchasers in the Second Closing, only Series E Preferred Shares and Warrants.
  
 10. Other than as set forth herein, the terms and conditions of the Agreement shall remain in full force and effect.
  
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 IN WITNESS WHEREOF, the Parties hereto have executed this Amendment No. 1 to the Securities Purchase Agreement as of the date first above written.
  
 	 “Company”
	  
	 “Purchasers”
	  

		  
	  
	  

	 Iconic Brands, Inc.,
	  
	 The Special Equities Group, LLC
	  

	 a Nevada corporation
	  
		  

		  
		  

		  
		  

		  
	  
	  

	 By: Richard J. DeCicco
	  
	 By: 
	  

	 Its: Chief Executive Officer 
	  
	 Its: 
	  

		  
		  

	  
	  
	 Iroquois Master Fund Ltd.
	  

		  
		  

		  
		  

	  
	  
	 By: 
	  

	  
	  
	 Its: 
	  

		  
		  

	  
	  
	 Iroquois Capital Investment Group, LLC
	  

		  
		  

		  
		  

	  
	  
	 By: 
	  

	  
	  
	 Its: 
	  

		  
		  

		  
		  

	  
	  
	 Gregory M. Castaldo 
	  

		  
		  

  
  
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