EXHIBIT 10.53.1
AMENDMENT NO. 1 TO
AGREEMENT FOR PURCHASE OF ASSETS
This AMENDMENT NO. 1 TO AGREEMENT FOR PURCHASE OF ASSETS (this
"AMENDMENT") is entered into as of the 29th day of October, 2004, by and among
TARRANT MEXICO, S. de X.X. de C.V., a corporation organized under the laws of
the Republic of Mexico ("TARRANT MEXICO"), ACABADOS Y XXXXXX TEXTILES S.A. DE
C.V., a corporation organized under the laws of the Republic of Mexico
("ACABADOS"), and CONSTRUCCIONES SOLTICIO S.A. DE C.V., a corporation organized
under the laws of the Republic of Mexico ("SOLTICIO" and together with Acabados,
the "PURCHASERS").
RECITALS
X. Xxxxxxx Mexico and the Purchasers are parties to that certain
Agreement for Purchase of Assets dated as of August 13, 2004 (the "AGREEMENT").
X. Xxxxxxx Mexico and the Purchasers desire to amend the
provisions of the Agreement on the terms and conditions set forth herein.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as set forth
below.
1. ACKNOWLEDGEMENT. The parties hereto acknowledge that the
corporate name of Solticio was inadvertently misspelled in the Agreement and the
parties hereby agree that all references to Solticio in the Agreement shall be
deemed to refer to CONSTRUCCIONES SOLTICIO S.A. DE C.V., a corporation organized
under the laws of the Republic of Mexico.
2. AMENDMENT TO SECTION 1.2(A). The Agreement is hereby amended
to replace Section 1.2(a) of the Agreement in its entirety with the following:
"(a) In consideration of the sale of the Assets to
Acabados, Acabados shall pay or deliver to Tarrant Mexico on the
Closing Date the following consideration (the "ASSET PURCHASE PRICE"):
(1) U.S. $1,465,400 by delivery to Tarrant
Mexico of (a) cash in the amount of $105,400 by wire transfer
of immediately available funds, and (b) a promissory note in
the amount of $1,360,000, providing for 36 equal monthly
payments of principal and interest with interest accruing at
the rate of 5.5% per annum, and otherwise in form and
substance reasonably acceptable to Tarrant Mexico; and
(2) U.S. $35,701,152, by delivery to Tarrant
Mexico of ten (10) separate senior secured promissory notes of
Acabados, in form
and substance reasonably acceptable to Tarrant Mexico, each in
the principal amount of U.S. $3,570,115.20 and with an
interest rate of 4.5% per annum (for an aggregate principal of
U.S. $35,701,152), and having the maturity dates and payment
schedules as set forth on SCHEDULE 1.2(A) (collectively, the
"ACABADOS NOTES"), the payment of which will be secured by all
of the assets and real property of Acabados and Solticio
(including the Assets and Real Property) pursuant to a
security agreement in form and substance reasonably acceptable
to Tarrant Mexico (the "SECURITY AGREEMENT")."
3. AMENDMENT TO SECTION 2.2. The Agreement is hereby amended to
replace Section 2.2 of the Agreement in its entirety with the following:
"2.2 PURCHASE PRICE. In consideration of the sale of the
Real Property to be purchased by Solticio, Solticio shall pay or deliver to
Tarrant Mexico on the closing date of the following consideration (the "REAL
PROPERTY PURCHASE PRICE"):
(a) U.S. $2,550,000 by delivery to Tarrant
Mexico of a promissory note in the amount of U.S. $2,550,000, providing
for 36 equal monthly payments of principal and interest with interest
accruing at the rate of 5.5% per annum, and otherwise in form and
substance reasonably acceptable to Tarrant Mexico; and
(b) U.S. $4,502,848, by delivery to Tarrant
Mexico of ten (10) separate senior secured promissory notes of
Solticio, in form and substance reasonably acceptable to Tarrant
Mexico, each in the principal amount of $450,284.80 and with an
interest rate of 4.5% per annum (for an aggregate principal of
$4,502,848), and having the maturity dates and payment schedules as set
forth on SCHEDULE 2.2(B) (collectively, the "SOLTICIO NOTES"), the
payment of which will be secured by all of the assets and real property
of Acabados and Solticio (including the Assets and Real Property)
pursuant to the Security Agreement."
4. REMAINING TERMS RATIFIED. Except as expressly amended or
modified by the Amendment and the Schedule attached hereto, all terms and
conditions of the Agreement are hereby ratified, confirmed and approved and
shall remain in full force and effect. The term "Agreement" as used in the
Agreement shall refer to the Agreement, as amended by this Amendment. In the
event of any conflict or inconsistency between this Amendment and the Agreement,
this Amendment shall govern.
5. GOVERNING LAW. The validity, construction and interpretation
of this Agreement shall be governed in all respects by the laws of the State of
California applicable to contracts made and to be performed wholly within that
State.
6. COUNTERPARTS. This Agreement may be executed simultaneously in
two or more counterparts, each one of which shall be deemed an original, but all
of which shall constitute one and the same instrument.
[SIGNATURE PAGE FOLLOWS]
2
IN WITNESS WHEREOF, the parties have caused this Agreement to
be executed as of the date first set forth above.
Tarrant Mexico: TARRANT MEXICO, S. de X.X. de C.V.
By /S/ XXXXXXX XXXXX
----------------------------------------
Xxxxxxx Xxxxx, Authorized Representative
0000 Xxxx Xxxxxxxxxx Xxxxxxxxx
Xxx Xxxxxxx, Xxxxxxxxxx 00000
Telecopier: (000) 000-0000
Acabados: ACABADOS Y XXXXXX TEXTILES, S.A. DE C.V.
By /S/ XXXXX XXXXX
----------------------------------------
Xxxxx Xxxxx, Authorized Representative
Xxxxx Xxxxx Xxx #231
Col. Xxxxxxx, X.X. 00000
Xxxxxx, D.F.
Telecopier: (000) 000-0000
Solticio: CONSTRUCCIONES SOLTICIO, S.A. DE C.V.
By /S/ XXXXX XXXXX
----------------------------------------
Xxxxx Xxxxx, Authorized Representative
Xxxxx Xxxxx Xxx #231
Col. Xxxxxxx, X.X. 00000
Xxxxxx, D.F.
Telecopier: (000) 000-0000
3
SCHEDULE 1.2(A)
ACABADOS NOTES
INTEREST PAYMENTS PRINCIPAL PAYMENTS MATURITY DATE
-------- ---------------------- --------------------------------- --------------
NOTE 1 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2005
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 2 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2006
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 3 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2007
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 4 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2008
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 5 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2009
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 6 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2010
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 7 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2011
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 8 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2012
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 9 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2013
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 10 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2014
maturity
-------- ---------------------- --------------------------------- -------------
SCHEDULE 2.2(B)
SOLTICIO NOTES
INTEREST PAYMENTS PRINCIPAL PAYMENTS MATURITY DATE
-------- ---------------------- --------------------------------- -------------
NOTE 1 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2005
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 2 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2006
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 3 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2007
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 4 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2008
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 5 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2009
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 6 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2010
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 7 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2011
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 8 Monthly, commencing 12 equal monthly installments December 31,
31, 2005 commencing one year prior to 2012
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 9 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2013
maturity
-------- ---------------------- --------------------------------- -------------
NOTE 10 Monthly, commencing 12 equal monthly installments December 31,
Jan. 31, 2005 commencing one year prior to 2014
maturity
-------- ---------------------- --------------------------------- -------------
