STOCK PURCHASE AGREEMENT AND SHARE
EXCHANGE
by and among
EDMONDS 6, INC.
a Delaware Corporation
and
UNIVERSAL FOG, INC.
an Arizona Corporation
effective as of May 9, 2005
STOCK PURCHASE AGREEMENT AND
SHARE EXCHANGE
THIS STOCK PURCHASE AGREEMENT AND
SHARE EXCHANGE, made and
entered into this May 9, 2005, by and among Edmonds 6, Inc., a
Delaware corporation with its principal place of business located
at 1808 South 1 st Avenue, Phoenix, Arizona 85003
(“EDMONDS”); Universal Fog, Inc., an Arizona
corporation with its principal place of business located at 1808
South 1 st Avenue, Phoenix, Arizona 85003
(“UNIVERSAL FOG”) and the shareholders of UNIVERSAL FOG
(“Shareholders”) as set forth on Exhibit A attached
hereto (collectively UNIVERSAL FOG and the shareholders of
UNIVERSAL FOG shall be known as the “UNIVERSAL FOG
Group”).
A. This
Agreement provides for the acquisition of UNIVERSAL FOG whereby
UNIVERSAL FOG shall become a wholly owned subsidiary of EDMONDS and
in connection therewith, the issuance of a total of 34,400,000
shares of EDMONDS to the UNIVERSAL FOG shareholders.
B. The
boards of directors of UNIVERSAL FOG and EDMONDS have determined,
subject to the terms and conditions set forth in this Agreement,
that the transaction contemplated hereby is desirable and in the
best interests of their stockholders, respectively. This Agreement
is being entered into for the purpose of setting forth the terms
and conditions of the proposed acquisition.
NOW, THEREFORE, on the stated
premises and for and in consideration of the mutual covenants and
agreements hereinafter set forth and the mutual benefits to the
parties to be derived here from, it is hereby agreed as
follows:
ARTICLE I
REPRESENTATIONS, COVENANTS AND
WARRANTIES OF
EDMONDS
As an inducement to and to obtain
the reliance of UNIVERSAL FOG, EDMONDS represents and warrants as
follows:
Section 1.1
Organization. EDMONDS is a corporation duly organized,
validly existing, and in good standing under the laws of Delaware
and has the corporate power and is duly authorized, qualified,
franchised and licensed under all applicable laws, regulations,
ordinances and orders of public authorities to own all of its
properties and assets and to carry on its business in all material
respects as it is now being conducted, including qualification to
do business as a foreign corporation in the jurisdiction in which
the character and location of the assets owned by it or the nature
of the business transacted by it requires qualification. Included
in the Schedules attached hereto (hereinafter defined) are complete
and correct copies of the articles of incorporation, bylaws and
amendments there to as in effect on the date hereof. The execution
and delivery of this Agreement does not and the consummation of the
transactions contemplated by this Agreement in accordance with the
terms hereof will not violate any provision of EDMONDS’s
articles of incorporation or bylaws. EDMONDS has full power,
authority and legal right and has taken all action required by law,
its articles of incorporation, its bylaws or otherwise to authorize
the execution and delivery of this Agreement.
Section 1.2
Capitalization . The authorized capitalization of EDMONDS
consists of 100,000,000 Common Shares, $0.001 par value per share,
and 10,000,000 Preferred Shares. As of the date hereof, EDMONDS has
100,000 common shares issued and outstanding. EDMONDS is presently
a 1934 Exchange Act reporting company and has filed all necessary
reports, quarterly, annual and special with the Securities and
Exchange Commission of the United States on a timely
basis.
All issued and outstanding shares
are legally issued, fully paid and nonassessable and are not issued
in violation of the preemptive or other rights of any person.
EDMONDS has no securities, warrants or options authorized or
issued.
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Section 1.3
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Subsidiaries.
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EDMONDS has no subsidiaries.
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Section 1.4
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Tax Matters: Books and Records.
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(a) The books and records, financial
and others, of EDMONDS are in all material respects complete and
correct and have been maintained in accordance with good business
accounting practices; and
(b) EDMONDS has no liabilities with
respect to the payment of any country, federal, state, county, or
local taxes (including any deficiencies, interest or
penalties).
(c) EDMONDS shall remain responsible
for all debts incurred by EDMONDS prior to the date of
closing.
Section 1.5
Litigation and Proceedings. There are no actions, suits,
proceedings or investigations pending or threatened by or against
or affecting EDMONDS or its properties, at law or in equity, before
any court or other governmental agency or instrumentality, domestic
or foreign or before any arbitrator of any kind that would have a
material adverse affect on the business, operations, financial
condition or income of EDMONDS. EDMONDS is not in default with
respect to any judgment, order, writ, injunction, decree, award,
rule or regulation of any court, arbitrator or governmental agency
or instrumentality or of any circumstances which, after reasonable
investigation, would result in the discovery of such a
default.
Section 1.6
Material
Contract Defaults.
EDMONDS is not in default in any material respect under the terms
of any outstanding contract, agreement, lease or other commitment
which is material to the business, operations, properties, assets
or condition of EDMONDS, and there is no event of default in any
material respect under any such contract, agreement, lease or other
commitment in respect of which EDMONDS has not taken adequate steps
to prevent such a default from occurring.
Section 1.7
Information . The
information concerning EDMONDS as set forth in this Agreement and
in the attached Schedules is complete and accurate in all material
respects and does not contain any untrue statement of a material
fact or omit to state a material fact required to make the
statements made in light of the circumstances under which they were
made, not misleading. EDMONDS’s filings with the SEC are
complete and accurate in all material respects and do not contain
any untrue statement of a material fact or omit to state a material
fact required to make the statements made in light of the
circumstances under which
they were made, not misleading.
Section 1.8 Title and Related
Matters. EDMONDS has good
and marketable title to and is the sole and exclusive owner of all
of its properties, inventory, interest in properties and assets,
real and personal (collectively, the “Assets”) free and
clear of all liens, pledges, charges or encumbrances. EDMONDS owns
free and clear of any liens, claims, encumbrances, royalty
interests or other restrictions or limitations of any nature
whatsoever and all procedures, techniques, marketing plans,
business plans, methods of management or other information utilized
in connection with EDMONDS’s business. No third party has any
right to, and EDMONDS has not received any notice of infringement
of or conflict with asserted rights of other with respect to any
product, technology, data, trade secrets, know-how, proprietary
techniques, trademarks, service marks, trade names or copyrights
which, singly on in the aggregate, if the subject of an unfavorable
decision ruling or finding, would have a materially adverse affect
on the business, operations, financial conditions or income of
EDMONDS or any material portion of its properties, assets or
rights.
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Section 1.9
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Contracts
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On the closing date:
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(a) There are no material contracts,
agreements franchises, license agreements, or other commitments to
which EDMONDS is a party or by which it or any of its properties
are bound:
(b) EDMONDS is not a party to any
contract, agreement, commitment or instrument or subject to any
charter or other corporate restriction or any judgment, order,
writ, injunction, decree or award materially and adversely affects,
or in the future may (as far as EDMONDS can now foresee) materially
and adversely affect , the business, operations, properties, assets
or conditions of EDMONDS; and
(c) EDMONDS is not a party to any
material oral or written: (I) contract for the employment of any
officer or employee; (ii) profit sharing, bonus, deferred
compensation, stock option, severance pay, pension benefit or
retirement plan, agreement or arrangement covered by Title IV of
the Employee Retirement Income Security Act, as amended; (iii)
agreement, contract or indenture relating to the borrowing of
money; (iv) guaranty of any obligation for the borrowing of money
or otherwise, excluding endorsements made for collection and other
guaranties, of obligations, which, in the aggregate exceeds $1,000;
(v) consulting or other contract with an unexpired term of more
than one year or providing for payments in excess of $10,000 in the
aggregate; (vi) collective bargaining agreement; (vii) contract,
agreement or other commitment involving payments by it for more
than $10,000 in the aggregate.
Section 1.10 Compliance With Laws
and Regulations. To the
best of EDMONDS’s knowledge and belief, EDMONDS has complied
with all applicable statutes and regulations of any federal, state
or other governmental entity or agency thereof, except to the
extent that noncompliance would not materially and adversely affect
the business, operations, properties, assets or condition of
EDMONDS or would not result in EDMONDS incurring material
liability.
Section 1.11
Insurance. All of the
insurable properties of EDMONDS are insured for EDMONDS ‘s
benefit under valid and enforceable policy or policies containing
substantially equivalent coverage and will be outstanding and in
full force at the Closing Date.
Section 1.12 Approval of
Agreement. The directors
of EDMONDS have authorized the execution and delivery of the
Agreement by and have approved the transactions contemplated
hereby.
Section 1.13 Material
Transactions or Affiliations . There are no material contracts or agreements
of arrangement between EDMONDS and any person, who was at the time
of such contract, agreement or arrangement an officer, director or
person owning of record, or known to beneficially own ten percent
(10%) or more of the issued and outstanding Common Shares of
EDMONDS and which is to be performed in whole or in part after the
date hereof. EDMONDS has no commitment, whether written or oral, to
lend any funds to, borrow any money from or enter into material
transactions with any such affiliated person.
Section 1.14
No Conflict With
Other Instruments . The execution of this Agreement and the
consummation of the transactions contemplated by this Agreement
will not result in the breach of any term or provision of, or
constitute an event of default under, any material indenture,
mortgage, deed of trust or other material contract, agreement or
instrument to which EDMONDS is a party or to which any of its
properties or operations are subject.
Section 1.15
Governmental
Authorizations.
EDMONDS has all licenses,
franchises, permits or other governmental authorizations legally
required to enable it to conduct its business in all material
respects as conducted on the date hereof. Except for compliance
with federal and state securities and corporation laws, as
hereinafter provided, no authorization, approval, consent or order
of, or registration, declaration or filing with, any court or other
governmental body is required in connection with the execution and
delivery by EDMONDS of this Agreement and the consummation of the
transactions contemplated hereby.
ARTICLE II
REPRESENTATIONS, COVENANTS AND
WARRANTIES
OF UNIVERSAL FOG
As an inducement to, and to obtain
the reliance of EDMONDS, UNIVERSAL FOG represents and warrants as
follows:
Section 2.1
Organization.
UNIVERSAL FOG is a corporation duly organized, validly existing and
in good standing under the laws of Arizona and has the corporate
power and is duly authorized, qualified, franchised and licensed
under all applicable laws, regulations, ordinances and orders of
public authorities to own all of its properties and assets and to
carry on its business in all material respects as it is now being
conducted, including qualification to do business as a foreign
entity in the country or states in which the character and location
of the assets owned by it or the nature of the business transacted
by it requires qualification. Included in the Attached Schedules
(as hereinafter defined) are complete and correct copies of the
articles of incorporation, bylaws and amendments thereto as in
effect on the date hereof. The execution and delivery of this
Agreement does not and the consummation of the transactions
contemplated by this Agreement in accordance with the terms hereof
will not, violate any provision of UNIVERSAL FOG’s
certificate of incorporation or bylaws. UNIVERSAL FOG has full
power, authority and legal right and has taken all action required
by law, its articles of incorporation, bylaws or otherwise to
authorize the execution and delivery of this Agreement.
Section 2.2
Capitalization. The authorized capitalization of UNIVERSAL
FOG consists of 100,000,000 shares of common stock, $0.0001 par
value and 10,000,000 shares of preferred stock, $0.0001 par value.
As of the date hereof, there are 34,400 shares of common stock
issued and outstanding and 1,000,000 shares of preferred stock
issued and outstanding.
All issued and outstanding common
shares have been legally issued, fully paid, are nonassessable and
not issued in violation of the preemptive rights of any other
person. UNIVERSAL FOG has no other securities, warrants or options
authorized or issued.
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Section 2.3
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Subsidiaries.
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UNIVERSAL FOG has no subsidiaries.
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Section 2.4
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Tax Matters; Books & Records
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(a)
The books and records, financial and
others, of UNIVERSAL FOG are in all material respects complete and
correct and have been maintained in accordance with good business
accounting practices; and
(b)
UNIVERSAL FOG has no liabilities
with respect to the payment of any country, federal, state, county,
local or other taxes (including any deficiencies, interest or
penalties).
(c) UNIVERSAL FOG shall remain
responsible for all debts incurred prior to the closing.
Section 2.5
Information . The
information concerning UNIVERSAL FOG as set forth in this Agreement
and in the attached Schedules is complete and accurate in all
material respects and does not contain any untrue statement of a
material fact or omit to state a material fact required to make the
statements made, in light of the circumstances under which they
were made, not misleading.
Section 2.6
Title
and Related Matters. UNIVERSAL FOG has good and
marketable title to and is the sole and exclusive owner of all of
its properties, inventory, interests in properties and assets, real
and personal (collectively, the “Assets”) free and
clear of all liens, pledges, charges or encumbrances. Except as set
forth in the Schedules attached hereto, UNIVERSAL FOG owns free and
clear of any liens, claims, encumbrances, royalty interests or
other restrictions or limitations of any nature whatsoever and all
procedures, techniques, marketing plans, business plans, methods of
management or other information utilized in connection with
UNIVERSAL FOG’s business. Except as set forth in the attached
Schedules, no third party has any right to, and UNIVERSAL FOG has
not received any notice of infringement of or conflict with
asserted rights of others with respect to any product, technology,
data, trade secrets, know-how, proprietary techniques, trademarks,
service marks, trade names or copyrights which, singly or in the
aggregate, if the subject of an unfavorable decision, ruling or
finding, would have a materially adverse affect on the business,
operations, financial conditions or income of UNIVERSAL FOG or any
material portion of its properties, assets or rights.
Section 2.7
Litigation and Proceedings
. There
are no actions, suits or proceedings pending or threatened by or
against or affecting UNIVERSAL FOG, at law or in equity, before any
court or other governmental agency or instrumentality, domestic or
foreign or before any arbitrator of any kind that would have a
material adverse effect on the business, operations, financial
condition, income or business prospects of UNIVERSAL FOG. UNIVERSAL
FOG does not have any knowledge of any default on its part with
respect to any
judgment, order, writ, injunction,
decree, award, rule or regulation of any court, arbitrator or
governmental agency or instrumentality.
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Section 2.8
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Contracts.
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On the Closing Date:
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(a)
There are no material contracts,
agreements, franchises, license agreements, or other commitments to
which UNIVERSAL FOG is a party or by which it or any of its
properties are bound;
(b)
UNIVERSAL FOG is not a party to any
contract, agreement, commitment or instrument or subject to any
charter or other corporate restriction or any judgment, order,
writ, injunction, decree or award which materially and adversely
affects, or in the future may (as far as UNIVERSAL FOG can now
foresee) materially and adversely affect, the business, operations,
properties, assets or conditions of UNIVERSAL FOG; and
(c)
UNIVERSAL FOG is not a party to any
material oral or written: (i) contract for the employment of any
officer or employee; (ii) profit sharing, bonus, deferred
compensation, stock option, severance pay, pension, benefit or
retirement plan, agreement or arrangement covered by Title IV of
the Employee Retirement Income Security Act, as amended; (iii)
agreement, contract or indenture relating to the borrowing of
money; (iv) guaranty of any obligation for the borrowing of money
or otherwise, excluding endorsements made for collection and other
guaranties of obligations, which, in the aggregate exceeds $1,000;
(v) consulting or other contract with an unexpired term of more
than one year or providing for payments in excess of $10,000 in the
aggregate; (vi) collective bargaining agreement; (vii) contract,
agreement, or other commitment involving payments by it for more
than $10,000 in the aggregate.
Section 2.9
No
Conflict With Other Instruments
. The execution of this
Agreement and the consummation of the transactions contemplated by
this Agreement will not result in the breach of any term or
provision of, or constitute an event of default under, any material
indenture, mortgage, deed of trust or other material contract,
agreement or instrument to which UNIVERSAL FOG is a party or to
which any of its properties or operations are subject.
Section 2.10
Material Contract
Defaults.
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