Document:

EXHIBIT 10.2

UNWIND AGREEMENT

THIS AGREEMENT is made effective as of the 9th day of April, 2015 by and between ICONIC BRANDS, INC., a Nevada corporation with an address at 44 Seabro Avenue, Amityville, New York 11701 (“ICNB”)  MJ BUSINESS ACADEMY, INC., a Nevada private corporation with an address at 44 Seabro Avenue, Amityville, New York 11701, which is a wholly owned subsidiary of ICNB (“MergerSub”),  MEDICAL MARIJUANA BUSINESS ACADEMY, LLC, a Colorado limited liability company with an address at 332 East Colorado Avenue, Colorado Springs CO 80903 (“Priveco”), PHILLIP STARK AND CHARLES HOUGHTON, as managing members of Priveco (collectively, the “Selling Shareholder”), and RICHARD DECICCO.

RECITALS

	E.	On September 10, 2014, the Parties entered into a Share Exchange Agreement under which Priveco became a wholly owned subsidiary of ICNB, and under which Phillip Stark and Charles Houghton became majority shareholders, and officers and directors in ICNB.

	F.	On September 10, 2014, under the terms of the Share Exchange Agreement, Richard DeCicco resigned from his position as sole officer and director of ICNB and MergerSub, and those positions were accepted by Mr. Houghton and Mr. Stark.

	G.	On September 10, 2014, under the terms of the Share Exchange Agreement, Richard DeCicco transferred his ownership of the One (1) Share of Series A Preferred Stock in ICNB to Mr. Houghton and Mr. Stark, such that each owned 1⁄2.

	H.	On the date of the Share Exchange Agreement ICNB issued a total of Sixty Million (60,000,000) shares (the “Shares”) of its common stock to Mr. Houghton and Mr. Stark, as consideration for the purchase by MergerSub of all of the issued and outstanding LLC Interests held by MergerSub in Priveco (the “Transaction”); and

	I.	Upon the terms and subject to the conditions set forth in this Unwind Agreement, Mr. Houghton and Mr. Stark as Managing Members of Priveco have agreed to unwind the Transaction, such that they will return the Common Shares to ICNB, return the Preferred Stock to Mr. DeCicco, and resign from their respective officer and director positions with ICNB and MergerSub, in exchange for the return by ICNB of all of the issued and outstanding LLC Interests of Priveco which were held by MergerSub prior to the Share Exchange Agreement.

	J.	Immediately upon the Closing of this Agreement, Mr. Houghton and Mr. Stark will once again own all of the LLC Interests in MEDICAL MARIJUANA BUSINESS ACADEMY, LLC, and the ICNB Common Shares shall be returned to Treasury, and thereafter cancelled and extinguished by ICNB’s Transfer Agent, such that there shall be 60,000,000 fewer shares of ICNB common stock issued and outstanding.

	K.	Immediately upon the Closing of this Agreement, following the return of the Preferred Stock to Richard DeCicco, Mr. DeCicco shall assume all officer and director positions in ICNB and MergerSub left vacant by the departure of Mr. Houghton and Mr. Stark.

 

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	L.	It is the intention of the parties that: (i) the Transaction shall qualify as a tax-free reorganization under Section 368(a)(1)(B) of the Internal Revenue Code of 1986, as amended (the “Code”); and (ii) the issuance of the Shares shall be exempted from registration or qualification under the Securities Act; and

THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties covenant and agree as follows:

unwind

Offer, Purchase and Sale of Shares.  Subject to the terms and conditions of this Agreement, MergerSub hereby covenants and agrees to sell, assign and transfer to Mr. Houghton and Mr. Stark, all of the Priveco LLC Interests held by MergerSub. Mr. Houghton and Mr. Stark covenant and agree to sell, assign, and transfer to ICNB the 60,000,000 Shares of ICNB Common Stock, subject to any convertible notes and/or agreements set forth in Paragraph 1.5 below.  In addition, all outstanding preferred stock in the ICNB, which consists only of One (1) Share of Series A Preferred Stock of Iconic Brands, Inc. held collectively by Charles Houghton and Phillip Stark shall be returned to Richard DeCicco, at Closing.

Delivery of Stock Certificates and Stock Powers.  Island Stock Transfer has not issued certificates to Mr. Houghton and Mr. Stark for the Common Stock and Preferred Stock, which are currently held in book entry.  At Closing, Mr. Houghton and Mr. Stark shall deliver to ICNB  signed and medallion guaranteed stock powers to the Transfer Agent’s satisfaction in order to cancel and/or transfer title to the Common Stock and Preferred Stock.   No LLC Interest certificates were issued for Priveco, such that this Agreement shall serve to document the transfer of LLC Interests in Priveco from ICNB and MergerSub back to Mr. Houghton and Mr. Stark, and no certificates for such LLC Interests need be cancelled or reissued to Mr. Houghton and Mr. Stark.

No Further Ownership Rights.  Upon Closing, Mr. Houghton and Mr. Stark shall cease to own any rights to any warrants or future equity claims in ICNB or MergerSub.   Likewise, upon Closing, no party affiliated in any way with ICNB or MergerSub shall have any right to warrants or future equity claims in Priveco.

Closing Date.  The Closing shall take place, subject to the terms and conditions of this Agreement, on the Closing Date.

Waiver of Rights/Acknowledgment of Obligations.  Between the date of execution of the Share Exchange Agreement and the date of this Unwind Agreement, Mergersub entered into the agreements set forth below.

	(i).	MergerSub, Priveco entered into an Intellectual Property Agreement with Brilliant Direct, LLC.  The Brilliant Direct Agreement was for the benefit of Priveco, with no benefit to ICONIC and/or MergerSub.  Mr. DeCicco, ICONIC and MergerSub hereby waive any and all rights that they may have in or to any agreement(s) with Brilliant Direct, LLC and the parties acknowledge and agree that after the Closing, Priveco shall be entitled to any and all benefits, royalty and/or any other payments flowing from Brilliant Direct, LLC, its agents, affiliates and/or associated companies.

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	(ii).	Mr. DeCicco, ICONIC and MergerSub also acknowledge that ICONIC and/or MergerSub entered into a Convertible Note with Sable Ridge Special Equity Fund, LP.  ICONIC agrees to honor the terms of that Convertible Note.

	(iii).	MMJBA, LLC agrees to repay the $125,000.00 non-refundable investment to ICONIC by way of a promissory note, bearing one percent( 1%) percent interest, payable over ten (10) years at the rate of $1,095.05 per month, commencing June 5, 2015.  The promissory note will be made payable to ICONIC and will be in form and content as set forth on Exhibit A, attached hereto and incorporated herein by this reference.

REPRESENTATIONS AND WARRANTIES OF Priveco AND MERGERSUB

Capitalization of Priveco.  The entire authorized capital stock and other equity securities of Priveco consist of Two (2) LLC Interests with no par value per share.  These Two (2) LLC Interests were transferred to MergerSub upon the Closing of the Transaction.

Title and Authority of MergerSub. MergerSub is the registered and beneficial owner of and has good and marketable title to all of the Priveco LLC Interests held by it and will hold such free and clear of all liens, charges and encumbrances whatsoever; and such Priveco LLC Interests held by MergerSub have been duly and validly issued and are fully paid and non-assessable.  MergerSub has due and sufficient right and authority to enter into this Agreement on the terms and conditions herein set forth and to transfer the registered, legal and beneficial title and ownership of all of the Priveco LLC Interest held by it to Mr. Houghton and Mr. Stark at Closing.

REPRESENTATIONS AND WARRANTIES OF ICNB

ICNB represents and warrants to Priveco and MergerSub and acknowledges that Priveco and MergerSub are relying upon such representations and warranties in connection with the execution, delivery and performance of this Agreement, notwithstanding any investigation made by or on behalf of Priveco or MergerSub, as follows:

Organization and Good Standing.  ICNB is duly incorporated, organized, validly existing and in good standing under the laws of the State of Nevada and has all requisite corporate power and authority to own, lease and to carry on its business as now being conducted.  ICNB is qualified to do business and is in good standing as a foreign corporation in each of the jurisdictions in which it owns property, leases property, does business, or is otherwise required to do so, where the failure to be so qualified would have a material adverse effect on the businesses, operations, or financial condition of ICNB.

Authority.  ICNB has all requisite corporate power and authority to execute and deliver this Agreement and any other document contemplated by this Agreement (collectively, the “ICNB Documents”) to be signed by ICNB and to perform its obligations hereunder and to consummate the transactions contemplated hereby.  The execution and delivery of each of the ICNB Documents by ICNB and the consummation by ICNB of the transactions contemplated hereby have been duly authorized by its board of directors and no other corporate or shareholder proceedings on the part of ICNB is necessary to authorize such documents or to consummate the transactions contemplated hereby.  This Agreement has been, and the other ICNB Documents when executed and delivered by ICNB as contemplated by this Agreement will be, duly executed and delivered by ICNB and this Agreement is, and the other ICNB Documents when executed and delivered by ICNB, as contemplated hereby will be, valid and binding obligations of ICNB enforceable in accordance with their respective terms, except:

 

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as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally;

as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies; and

as limited by public policy.

Capitalization.  The entire authorized capital stock and other equity securities of ICNB consists One (1) Share of Series A Preferred Stock of Iconic Brands, Inc. held by Mr. Houghton and Mr. Stark (each holding a 1⁄2 share) (the “ICNB Preferred Stock”) and 100,000,000 shares of common stock with a par value of $0.001 (the “ICNB Common Stock”).  The reverse split of the ICNB Common Stock became effective on April 11, 2014. All of the issued and outstanding shares of ICNB Preferred Stock and ICNB Common Stock have been duly authorized, are validly issued, were not issued in violation of any pre-emptive rights and are fully paid and non-assessable, are not subject to pre-emptive rights and were issued in full compliance with all federal, state, and local laws, rules and regulations.  There are no outstanding options, warrants, subscriptions, phantom shares, conversion rights, or other rights, agreements, or commitments obligating ICNB to issue any additional shares of ICNB Preferred Stock or ICNB Common Stock, or any other securities convertible into, exchangeable for, or evidencing the right to subscribe for or acquire from ICNB any shares of ICNB Preferred Stock or ICNB Common Stock as of the date of this Agreement.  There are no agreements purporting to restrict the transfer of the ICNB Preferred Stock or ICNB Common Stock, no voting agreements, voting trusts, or other arrangements restricting or affecting the voting of the ICNB Preferred Stock or ICNB Common Stock.

CLOSING CONDITIONS

Conditions Precedent to Closing by ICNB.  The obligation of ICNB to consummate the Unwind is subject to the satisfaction or written waiver of the conditions set forth below.  The Closing of the Unwind contemplated by this Agreement will be deemed to mean a waiver of all conditions to Closing.  These conditions precedent are for the benefit of ICNB and may be waived by ICNB in its sole discretion.

 

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Representations and Warranties.  The representations and warranties of Priveco and MergerSub set forth in this Agreement shall be true, correct and complete in all respects as of the Closing Date, as though made on and as of the Closing Date and Priveco shall have delivered to ICNB a certificate dated as of the Closing Date, to the effect that the representations and warranties made by Priveco in this Agreement are true and correct.

Performance.  All of the covenants and obligations that Priveco and MergerSub are required to perform or to comply with pursuant to this Agreement at or prior to the Closing shall have been performed and complied with in all material respects.

Unwind Documents.  This Agreement and all other documents necessary or reasonably required to consummate the Unwind, all in form and substance reasonably satisfactory to ICNB, shall have been executed and delivered to ICNB.

Conditions Precedent to Closing by Priveco.  The obligation of Priveco and MergerSub to consummate the Unwind is subject to the satisfaction or written waiver of the conditions set forth below.  The Closing of the Unwind will be deemed to mean a waiver of all conditions to Closing.  These conditions precedent are for the benefit of Priveco and MergerSub and may be waived by Priveco and MergerSub in their discretion.

Representations and Warranties.  The representations and warranties of ICNB set forth in this Agreement shall be true, correct and complete in all respects as of the Closing Date, as though made on and as of the Closing Date and ICNB will have delivered to Priveco a certificate dated the Closing Date, to the effect that the representations and warranties made by ICNB in this Agreement are true and correct.

Performance.  All of the covenants and obligations that ICNB are required to perform or to comply with pursuant to this Agreement at or prior to the Closing must have been performed and complied with in all material respects.  ICNB must have delivered each of the documents required to be delivered by it pursuant to this Agreement.

Unwind Documents.  This Agreement and all other documents necessary or reasonably required to consummate the Unwind, all in form and substance reasonably satisfactory to Priveco, will have been executed and delivered by ICNB.

ADDITIONAL COVENANTS OF THE PARTIES

Confidentiality of Priveco Business.  All information regarding the business of Priveco including, without limitation, financial information that Priveco provided to ICNB during ICNB’s due diligence investigation of Priveco will be kept in strict confidence by ICNB and will not be used (except in connection with due diligence), dealt with, exploited or commercialized by ICNB or disclosed to any third party (other than ICNB’s professional accounting and legal advisors) without the prior written consent of Priveco.

 

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Confidentiality of Transaction and Unwind.  ICNB is a public company and the dissemination of material non-public information about the Transaction or the Unwind, other than such broad statements as shall be included in any pre-approved press releases made public by ICNB or Priveco may violate certain Securities and Exchange Commission (“SEC”) regulations governing such information.  Such “confidential information” related to the Transactions specifically includes the share structure, the transfer of the Control Block, any name change, symbol change, timing of Closing, any language in this Agreement, any language in the Share Exchange Agreement or the Closing documents and in general anything other than that information which is agreed to be presented and has already been made public in a press release or in the Company’s OTCMarkets.com filings.  Unwittingly releasing knowledge of any of these elements of the transaction could provide someone with what may be construed later as “insider information."

Notification.  Between the date of this Agreement and the Closing Date, each of the parties to this Agreement will promptly notify the other parties in writing if it becomes aware of any fact or condition that causes or constitutes a material breach of any of its representations and warranties as of the date of this Agreement, if it becomes aware of the occurrence after the date of this Agreement of any fact or condition that would cause or constitute a material breach of any such representation or warranty had such representation or warranty been made as of the time of occurrence or discovery of such fact or condition.  Should any such fact or condition require any change in the Schedules relating to such party, such party will promptly deliver to the other parties a supplement to the Schedules specifying such change.  During the same period, each party will promptly notify the other parties of the occurrence of any material breach of any of its covenants in this Agreement or of the occurrence of any event that may make the satisfaction of such conditions impossible or unlikely.

Certain Acts Prohibited - ICNB.  Except as expressly contemplated by this Agreement, between the date of this Agreement and the Closing Date, ICNB will not, without the prior written consent of Priveco:

incur any liability or obligation or encumber or permit the encumbrance of any properties or assets of ICNB except in the ordinary course of business consistent with past practice;

dispose of or contract to dispose of any ICNB property or assets except in the ordinary course of business consistent with past practice;

declare, set aside or pay any dividends on, or make any other distributions in respect of the ICNB Common Stock; or

materially increase benefits or compensation expenses of ICNB, increase the cash compensation of any director, executive officer or other key employee or pay any benefit or amount to any such person.

Public Announcements.  ICNB and Priveco each agree that they will not release or issue any reports or statements or make any public announcements relating to this Agreement or the Transaction contemplated herein without the prior written consent of the other party, except as may be required upon written advice of counsel to comply with applicable laws or regulatory requirements after consulting with the other party hereto and seeking their reasonable consent to such announcement.

 

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ICNB Directors and Officers.  Mr. Houghton and Mr. Stark shall appoint Richard DeCicco as an officer and director of ICNB and MergerSub on the Closing Date. Following that appointment, Mr. Houghton and Mr. Stark shall resign from all officer and director positions (both of ICNB and the MergerSub).

Indemnification by Priveco, Houghton and Stark.  Priveco, will indemnify, defend, and hold harmless, to the full extent of the law, Pubco and its shareholders from, against, and in respect of any and all Losses asserted against, relating to, imposed upon, or incurred by Pubco and its shareholders by reason of, resulting from, based upon or arising out of the breach by Priveco of any representation or warranty of Priveco contained in or made pursuant to this Agreement, any Priveco Document or any certificate or other instrument delivered pursuant to this Agreement; or the breach or partial breach by Priveco of any covenant or agreement of Priveco made in or pursuant to this Agreement, any Priveco Document or any certificate or other instrument delivered pursuant to this Agreement.

Indemnification by Pubco.  Pubco will indemnify, defend, and hold harmless, to the full extent of the law, Priveco and its members, including Mr. Houghton and Mr. Stark, from, against, and in respect of any and all Losses asserted against, relating to, imposed upon, or incurred by Priveco and its members by reason of, resulting from, based upon or arising out of the breach by Pubco of any representation or warranty of Pubco contained in or made pursuant to this Agreement, any Pubco Document or any certificate or other instrument delivered pursuant to this Agreement; or the breach or partial breach by Pubco of any covenant or agreement of Pubco made in or pursuant to this Agreement, any Pubco Document or any certificate or other instrument delivered pursuant to this Agreement.

CLOSING

Closing.  The Closing shall take place on the Closing Date at the offices of the lawyers for ICNB or at such other location as agreed to by the parties.  Notwithstanding the location of the Closing, each party agrees that the Closing may be completed by the exchange of undertakings between the respective legal counsel for Priveco and ICNB, provided such undertakings are satisfactory to each party’s respective legal counsel.

 

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Closing Deliveries of Priveco and MergerSub.  At Closing, Priveco and MergerSub will deliver or cause to be delivered the following, fully executed and in the form and substance reasonably satisfactory to ICNB:

copies of all resolutions and/or consent actions adopted by or on behalf of the board of directors of Priveco evidencing approval of this Agreement and the Unwind;

if any of MergerSub appoint any person, by power of attorney or equivalent, to execute this Agreement or any other agreement, document, instrument or certificate contemplated by this agreement, on behalf of MergerSub, a valid and binding power of attorney or equivalent from such Selling Shareholder;

share certificates, if issued, representing the Priveco LLC Interests;

the Priveco Documents and any other necessary documents, each duly executed by Priveco, as required to give effect to the Unwind.

Closing Deliveries of ICNB.  At Closing, ICNB will deliver or cause to be delivered the following, fully executed and in the form and substance reasonably satisfactory to Priveco:

copies of all resolutions and/or consent actions adopted by or on behalf of the board of directors of ICNB and MergerSub evidencing approval of this Agreement and the Unwind;

all stock powers, and other documents required for the cancellation of the 60,000,000 ICNB common shares and the transfer of the Preferred Stock;

resolutions and resignations required to effect the changes in directors and officers;

any other necessary documents, each duly executed by ICNB and/or MergerSub, as required to give effect to the Unwind.

MISCELLANEOUS PROVISIONS

Effectiveness of Representations; Survival.  Each party is entitled to rely on the representations, warranties and agreements of each of the other parties and all such representation, warranties and agreement will be effective regardless of any investigation that any party has undertaken or failed to undertake.  Unless otherwise stated in this Agreement, and except for instances of fraud, the representations, warranties and agreements will survive the Closing Date and continue in full force and effect until one (1) year after the Closing Date.

Further Assurances.  Each of the parties hereto will co-operate with the others and execute and deliver to the other parties hereto such other instruments and documents and take such other actions as may be reasonably requested from time to time by any other party hereto as necessary to carry out, evidence, and confirm the intended purposes of this Agreement.

Amendment.  This Agreement may not be amended except by an instrument in writing signed by each of the parties.

Expenses.  Each party will bear their own costs incurred in connection with the preparation, execution and performance of this Agreement and the Unwind.

Entire Agreement.  This Agreement, the schedules attached hereto and the other documents in connection with this transaction contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior arrangements and understandings, both written and oral, expressed or implied, with respect thereto.  Any preceding correspondence or offers are expressly superseded and terminated by this Agreement.

 

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Notices.  All notices and other communications required or permitted under to this Agreement must be in writing and will be deemed given if sent by personal delivery, faxed with electronic confirmation of delivery, internationally-recognized express courier or registered or certified mail (return receipt requested), postage prepaid, to the parties at the addresses (or at such other address for a party as will be specified by like notice) on the first page of this Agreement.

All such notices and other communications will be deemed to have been received:

in the case of personal delivery, on the date of such delivery;

in the case of a fax, when the party sending such fax has received electronic confirmation of its delivery;

in the case of delivery by internationally-recognized express courier, on the business day following dispatch; and

in the case of mailing, on the fifth business day following mailing.

Headings.  The headings contained in this Agreement are for convenience purposes only and will not affect in any way the meaning or interpretation of this Agreement.

Benefits.  This Agreement is and will only be construed as for the benefit of or enforceable by those persons party to this Agreement.

Assignment.  This Agreement may not be assigned (except by operation of law) by any party without the consent of the other parties.

Governing Law.  This Agreement will be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed therein.

Construction.  The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against any party.

Gender.  All references to any party will be read with such changes in number and gender as the context or reference requires.

Business Days.  If the last or appointed day for the taking of any action required or the expiration of any rights granted herein shall be a Saturday, Sunday or a legal holiday in the State of New York, then such action may be taken or right may be exercised on the next succeeding day which is not a Saturday, Sunday or such a legal holiday.

Counterparts.  This Agreement may be executed in one or more counterparts, all of which will be considered one and the same agreement and will become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart.

 

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Fax Execution.  This Agreement may be executed by delivery of executed signature pages by fax and such fax execution will be effective for all purposes.

Schedules and Exhibits.  The schedules and exhibits are attached to this Agreement and incorporated herein.

IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written.

ICONIC BRANDS, INC.

By: /s/ Phillip Stark

Authorized Signatory

Name: Phillip Stark

 Title: President

MJ BUSINESS ACADEMY, INC., a Subsidiary of ICONIC BRANDS, INC.

By: /s/ Phillip Stark

Authorized Signatory

Name: Phillip Stark

Title: President

	
MEDICAL MARIJUANA BUSINESS ACADEMY, LLC

	
 

	
 

By:  /s/ Phillip Stark

	
 

	
By:  /s/ Charles Houghton

	
Authorized Signatory 

	
 

	
Authorized Signatory

	
Name: Phillip Stark  

Title:   Managing Member

	
 

	
Name: Charles Houghton

 Title:  Managing Member

  

	
PHILLIP  STARK

	
CHARLES HOUGHTON

	
 

 /s/ Phillip Stark

	
 

	
 /s/ Charles Houghton

	
 

	
 

	
 

 

RICHARD DECICCO

/s/ Richard DeCicco

 

10Exhibit 10.3

SECURITIES EXCHANGE AGREEMENT

 

This Securities Exchange Agreement (this “Agreement”) is dated as of May 15, 2015, by and among the members of BiVi LLC, Nevada limited liability company (the “Company”)(collectively referred to as the Seller”), and Iconic Brands, Inc.  (“Iconic”).

 

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), the Seller desires to transfer to Iconic, and Iconic desires to acquire from Seller membership interests in the Company representing fifty-one percent (51%) of the issued and outstanding membership interests (the “Majority Interest”), as more fully described in this Agreement.

 

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Sellers and the Purchaser agree as follows:

 

ARTICLE I

 DEFINITIONS

 

1.1            Definitions.  In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings indicated in this Section 1.1:

 

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 144.  

“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 transfer of the Majority Interest 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 to transfer the Majority Interest have been satisfied.

  

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Liens” means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

  

“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.

 

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“Preferred Stock” means newly designated Series C Convertible Preferred Stock issued by Iconic as consideration to Seller, the form of certificate of designation of which is set forth as Exhibit A attached hereto.

 

“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.

 

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

“Working Capital Facility” means a working capital advance to the Company in the aggregate amount of up to $750,000.00.

ARTICLE II

 PURCHASE AND SALE

 

2.1            Closing.    At the Closing, the Seller shall transfer the Majority Interest to Iconic, and Iconic shall deliver (a) 1,000,000 shares of restricted common stock and (b)  1,000 shares of Preferred Stock to Seller as consideration for the transfer of the Majority Interest.  Upon satisfaction of the conditions set forth in Section 2.2, the Closing shall occur at the offices of the Company, or such other location as the parties shall mutually agree, on or before May 31, 2015.

 

2.2           Closing Conditions.

 

(a)  At each Closing the Seller shall deliver to Iconic:

 

(i)  this Agreement duly executed by the Seller; and

 

(ii)  certificate(s) evidencing the Majority Interest registered in the name of Iconic.

 

(b)  At the Closing Iconic shall deliver or cause to be delivered to the Seller the following:

 

(i)  this Agreement duly executed by Iconic; and

 

(ii) 1,000 shares of Preferred Stock as set forth on Schedule A; and

(iii) 1,000,000 shares of restricted common stock.

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(c)  All representations and warranties of the other party contained herein shall remain true and correct as of the Closing Date and all covenants of the other party shall have been performed if due prior to such date.

 

ARTICLE III

 REPRESENTATIONS AND WARRANTIES

 

3.1          Representations and Warranties of the Company.  The Company hereby makes the following representations and warranties set forth below:

 

 

(a)    Organization and Qualification.  The Company is duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.  The Company is not in violation of any of the provisions of its certificate or articles of incorporation, bylaws or other organizational or charter documents.  The Company is duly qualified to do business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, (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”).

 

(b)  Authorization; Enforcement.  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 or 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 consent or action is required by the Company other than required approvals.  This Agreement has been (or upon delivery will be) 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, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally and general principles of equity.  The Company is not in violation of any of the provisions of its certificate or articles of incorporation, by-laws or other organizational or charter documents.

 

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(c)  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’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) subject to obtaining the required approvals, 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.

 

(d)   Filings, Consents and Approvals.  The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of this Agreement.

 

(e)   Majority Interest.  The Majority Interest is duly authorized 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. 

  

(f)   Regulatory Permits.  The Company possesses all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their business, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and the Company has not received any notice of proceedings relating to the revocation or modification of any Material Permit.

 

(g)   Title to Assets.  The Company has good and marketable title in fee simple to all real property owned by it that is material to the business of the Company and good and marketable title in all personal property owned by it that is material to the business of the Company, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties.  Any real property and facilities held under lease by the Company is held by it under valid, subsisting and enforceable leases of which the Company is in compliance, except where the failure to be in compliance would not reasonably be expected to result in a Material Adverse Effect.

 

(h)  Patents and Trademarks.  The Company has, or has rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, licenses and other similar rights necessary or material for use in connection with its businesses and which the failure to so have has had or could reasonably be expected to result in a Material Adverse Effect (collectively, the “Intellectual Property Rights”).   The Company has not received a written notice that the Intellectual Property Rights used by the Company violates or infringes upon the rights of any Person that has had or could reasonably be expected to result in a Material Adverse Effect.  To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights that has had or could reasonably be expected to result in a Material Adverse Effect.

 

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(i)    Certain Fees.  No brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this Agreement, and the Company has not taken any action that would cause the Purchaser to be liable for any such fees or commissions.  

(j)    No Undisclosed Liabilities.  Except as otherwise disclosed in the Company’ Financial Statements, the Company has no other undisclosed liabilities whatsoever, either direct or indirect, matured or unmatured, accrued, absolute, contingent or otherwise.  The Company represents that at the date of Closing, except as set forth on Schedule 3.1 (j) the Company shall have no other liabilities or obligations, either direct or indirect, matured or unmatured, accrued, absolute, contingent or otherwise.

3.2          Representations and Warranties of Iconic.  Iconic represents and warrants as of the date hereof and as of the Closing Date as follows:

 

(a)   Organization; Authority.  Iconic 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 Iconic of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate action on the part of Iconic.  This Agreement, to which it is party has been duly executed by Iconic, and when delivered in accordance with the terms hereof, will constitute the valid and legally binding obligation, enforceable against Iconic 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.

 

(b)   No Undisclosed Liabilities.  Except as otherwise disclosed in the Company’ Financial Statements and as set forth on Schedule 3.2 (b), the Company has no other undisclosed liabilities, either direct or indirect, matured or unmatured, accrued, absolute, contingent or otherwise.

  

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3.3      Representations and Warranties of Seller.  Seller represents and warrants as of the date hereof and as of the Closing Date as follows:

(a)     Ownership.  The Seller is the legal, beneficial and registered owner(s) of the Majority Interest, free and clear of any liens, security interests, charges or other encumbrances of any nature whatsoever.

(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.

(c)Consents.  No registration, filing with the consent or approval of, or other action by, any federal, state or other governmental authority, agency, regulatory body, third party or other Person is or will be required in connection with the execution, delivery and performance by the Seller of this Agreement and the consummation of the transactions contemplated hereby.

ARTICLE IV

 OTHER AGREEMENTS OF THE PARTIES

 

4.1         Transfer Restrictions.

 

(a)      The Preferred Stock may only be disposed of in compliance with state and federal securities laws.  In connection with any transfer of the Preferred Stock other than pursuant to an effective registration statement or Rule 144, 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 transferred Preferred Stock, 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.

 

(b)   The Seller agrees to the imprinting, so long as is required by this Section 4.1(b), of the following or similar legend on any certificate evidencing the Preferred Stock:

 

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. 

 

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4.2        Working Capital Facility.  Iconic shall provide working capital, from time to time, of up to $750,000.00 pursuant to a Working Capital Facility to the Company, which shall be repaid by the Company from working capital generated from Company’s operations. Provided that, in the event that  Iconic fails to provide working capital of at least $40,000.00 per month, and such failure shall continue for a period of sixty (60) calendar days thereafter (“Cure Period”) then the Company may, at its option, by written notice to Iconic, declare a default.  In the event of such default, Iconic shall surrender the Majority Interest back to the Company for retirement and the Holders of the Series C Preferred Stock shall surrender all outstanding shares of  Preferred Stock back to Iconic for retirement (“Unwind”).  At the time of the Unwind, the Company shall issue a 5% promissory note to Iconic (“Promissory Note”) with a principal amount equal to the then outstanding unpaid balance of the Working Capital Facility advanced to the Company prior to the Unwind, payable upon the acquisition of the majority of the outstanding stock or assets of the Company, including but not limited to the BiVi Brand of products, by a third party, but in no event later than 36 months from issuance (“Maturity Date”).

ARTICLE V

 MISCELLANEOUS

 

5.1     Fees and Expenses.  Except as otherwise set forth in this Agreement, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement.  The Company shall pay all stamp and other taxes and duties levied in connection with the sale of the Shares.

 

5.2    Entire Agreement.  This Agreement, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.3    Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (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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5.4     Amendments; Waivers.  No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment, by the Company and the Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought.  No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.

 

5.5    Construction.  The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.  The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

 

5.6    Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.  The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Purchaser.  The Purchaser may assign its rights under this Agreement to any Person to whom the Purchaser assigns or transfers any Shares.

 

5.7   No Third-Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.5.

 

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 Nevada, 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 State of Nevada 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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5.9     Survival.  The representations, warranties and covenants contained herein shall survive for a period of 12 months after the Closing Date and delivery and/or exercise of the Shares, as applicable.

 

5.10    Execution.  This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof.

 

5.11    Severability.  If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

 

 

 

 

 

 

(Signature Page Follows)

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IN WITNESS WHEREOF, the parties hereto have caused this Securities Exchange Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

ICONIC BRANDS, INC

 

	
By:

	
/s/ Richard DeCicco

	
 

	
 

	
Name:  Richard DeCicco

Title:  President

	
 

	
 

	
 

	
 

	BIVI LLC	
	 		
	
By:

	
/s/ Richard DeCicco

	
 

	 	
Name:  Richard DeCicco

Title:  Manager

	

 

 

 

 

 

 

 

 

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