1
Exhibit 10.4
ASSET PURCHASE AGREEMENT
THIS ASSET PURCHASE AGREEMENT (this "Agreement") is made and entered into
this 28 day of March, 2000, by and between XXXXXXXX.XXX, INC., a Delaware
corporation ("Seller") and INTEGRATED INFORMATION SYSTEMS, INC., a Delaware
corporation ("Purchaser").
RECITALS
A. On even date herewith, Action Performance Companies, Inc., an Arizona
corporation, and sole shareholder of goracing ("Action"), and Purchaser intend
to enter into a Sublease Agreement (the "Hohokam Sublease") whereby Purchaser
will sublease from Action a portion of the premises located at 0000 X. Xxxxxxx
Xxxxx, Xxxxx, Xxxxxxx (the "Subleased Premises").
B. The Subleased Premises currently contains among other assets, those
assets listed on Exhibits A and B hereto (the "Assets"), which are owned or
licensed by goracing.
C. Purchaser desires to purchase the Assets as part of its occupation of
the Subleased Premises and the Seller desires to sell the Assets, on the terms
and conditions set forth herein.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants and agreements of
the parties and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereby agree as
follows:
1. SALE AND PURCHASE. Seller hereby sells and Purchaser hereby purchases
the Assets.
2. LIABILITIES TO BE ASSUMED BY PURCHASER. Purchaser shall assume no
liabilities with regard to the Assets.
3. PURCHASE PRICE. The purchase price for the Assets shall be $1,963,307
(the "Purchase Price"). The Purchase Price is due and payable to Seller in
readily available funds upon the execution of this Agreement.
4. TAX OBLIGATIONS.
(a) 1999 YEAR TAX OBLIGATIONS. Seller agrees to pay any and all tax
obligations relating to the Assets for the year ended December 31, 1999.
(b) 2000 YEAR TAX OBLIGATIONS. Seller agrees to pay any and all tax
obligations relating to the Assets, which are incurred for the period January
1, 2000, through March 31, 2000. Purchaser agrees to pay any and all tax
obligations related to the Assets which are incurred for the period April 1,
2000 through December 31, 2000.
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(c) FUTURE TAX OBLIGATIONS. Purchaser agrees to pay all tax
obligations related to the Assets, to the extent applicable, beginning on April
1, 2000.
5. SELLER'S REPRESENTATIONS AND WARRANTIES. To induce Purchaser to enter
into this Agreement and for the benefit of Purchaser, Seller represents and
warrants as follows:
(a) CORPORATE STATUS AND AUTHORITY. Seller is a corporation duly
organized, validly existing and in good standing under the laws of its state of
incorporation. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby have been validly
authorized by all necessary corporate action of Seller.
(b) OWNERSHIP OF ASSETS AND PROPERTIES.
(i) ASSETS LISTED ON EXHIBIT A. Seller has good and marketable
title to the assets listed on Exhibit A (the "A Assets"). Seller owns the A
Assets free and clear of all liens, mortgages, pledges, security interests,
restrictions, prior assignments, encumbrances and claims of every kind and
character.
(ii) ASSETS LISTED ON EXHIBIT B. Seller makes no representations
or warranties with respect to title to or transferability of those assets
listed on Exhibit B (the "B Assets"). Seller agrees to use its reasonable best
efforts to assist Purchaser in transferring any of the B Assets from Seller to
Purchaser.
(c) DISPUTES. There are no outstanding, and to the best of Seller's
knowledge, no threatened, disputes or disagreements with respect to the Assets.
(d) INTELLECTUAL PROPERTY. All intellectual property rights relating
to the Assets, to the best of Seller's knowledge, are currently in compliance
with all legal requirements, are valid and enforceable, and have not been
challenged or threatened in any way as infringing upon the rights of any third
party.
6. NOTICES. All notices of communication required or permitted hereunder
or with regard to the Base Equipment Leases shall be in writing and may be
given by depositing the same in the United States mail, addressed to the party
to be notified, postage prepaid and registered or certified with return receipt
requested, or by delivering the same in person to any officer or agent of such
party.
(i) If to Seller, addressed to it at:
xxxxxxxx.xxx, inc.
0000 Xxxx Xxxxxxxx Xxxx
Xxxxx, Xxxxxxx 00000
Attn: Chief Financial Officer
Fax: (000) 000-0000
2
3
With a copy to:
Xxxxxxxxx Xxxxxxx, LLP
0 X. Xxxxxxxxx Xxxx, Xxxxx 0000
Xxxxxxx, Xxxxxxx 00000
Attn: Xxxxxx X. Xxxx, Esq.
Fax: (000) 000-0000
(ii) If to Purchaser, addressed to it at:
Integrated Information Systems, Inc.
0000 X. Xxxxxxx Xxxxx
Xxxxx, Xxxxxxx 00000
Attn: Xxxxxxx Xxxxxxx
Fax: (000) 000-0000
With a copy to:
Xxxxx & Xxxxxx, LLP
One Arizona Center
000 Xxxx Xxx Xxxxx
Xxxxxxx, Xxxxxxx 00000-0000
Attn: Xxxxxxx Xxxxxxxxxxx, Esq.
Fax: (000) 000-0000
7. PURCHASER'S REPRESENTATIONS AND WARRANTIES. To induce Seller to enter
into this Agreement, Purchaser represents and warrants as follows:
(a) CORPORATE STATUS AND AUTHORITY. Purchaser is a corporation duly
organized, validly existing and in good standing under the laws of its state of
incorporation. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby have been validly
authorized by all necessary corporate action of Purchaser.
(b) "AS IS" CONDITION. The Purchaser acknowledges that the Assets are
being sold "as is" and the Seller makes no representations with regard to their
condition or their future use or performance.
8. DELIVERIES.
(a) BY SELLER. Upon the execution of this Agreement, Seller shall
deliver all other document(s) necessary to convey to Purchaser title to the
Assets to the extent contemplated by this Agreement.
(b) BY PURCHASER. Upon the execution of this Agreement, Purchaser
shall deliver to Seller, the Purchase Price.
3
4
9. XXXX OF SALE. This Agreement is intended to also operate as a xxxx of
sale and shall be evidence of the transfer of the Assets as provided for herein.
10. GENERAL PROVISIONS.
(a) ENTIRE AGREEMENT. This Agreement contains the entire agreement
and understanding among the parties hereto with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements,
understandings, inducements and conditions, express or implied, oral or
written, of any nature whatsoever with respect to the subject matter hereof.
(b) CONTROLLING LAW. This Agreement and all questions relating to
its validity, interpretation, performance and enforcement, shall be governed by
and construed, interpreted and enforced in accordance with the laws of the
State of Arizona, notwithstanding any Arizona or other conflict-of-law
provision to the contrary.
IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT AS OF THE DATE
FIRST WRITTEN ABOVE.
SELLER:
xxxxxxxx.xxx, inc., a Delaware corporation
By: /s/ Xxxxx Xxxxxxx
-------------------------------------
Name: Xxxxx Xxxxxxx
------------------------------------
Its: Chief Financial Officer
------------------------------------
PURCHASER:
Integrated Information Systems, Inc., a
Delaware corporation
By: /s/ Xxxxx X. Xxxx
-------------------------------------
Name: Xxxxx X. Xxxx
------------------------------------
Its: Vice President
------------------------------------
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5
Exhibit A to Asset Purchase Agreement
(IIS Interest)
Acquisition Sys Asset Acquisition
Date No. Life Account No. Asset Description Value NBV
-----------------------------------------------------------------------------------------------------------------------------------
OFFICE EQUIPMENT
6/26/97 103 05 00 1545-000 h CLOSE AI BOOKS TO JDE-XXX XXXXXXXX-DIGITAL CAMERA $ 530 $ 256
10/1/95 106 05 00 1545-000 h CLOSE AI BOOKS TO JDE-FAX MACHINE 315 47
1/20/00 222 05 00 1545-000 CORPORATE EXPRESS-CHAIRS 3,594 3,594
5/7/99 114 05 00 1545-000 XXXXX XXXXXXX-BOOKSHELVES 273 237
1/31/00 226 05 00 1545-000 h TEMPE CAMERA-PHOTO EQUIPMENT/CARD READER, MICROTECH USB/BACKGROUND/
6x7 CHROMA-KE 2,411 2,411
9/29/99 172 05 00 1545-000 X.X. XXXXX-CREDIT MEMO (469) (438)
5/19/99 115 05 00 1545-000 X.X. XXXXX-OFFICE FURNITURE 5,383 4,665
6/16/99 143 05 00 1545-000 XX XXXXX-FURNITURE 469 000
XXXXXXXXX PARTITIONS 5,392 5,392
SOUTHWEST PARTITIONS 1,262 1,262
CORPORATE EXPRESS - MISC. OFFICE FURNITURE 7,533 7,533
NEOPOST 7,399 7,399
MCMASTER XXXX SUPPLY CO. 386 386
X.X. XXXXXX - TRAINING ROOM FURNITURE 11,893 9,118
----------------
Office Equipment 46,371 42,277
----------------
COMPUTER EQUIPMENT
1/20/00 224 03 00 1550-000 h XXXXXXX XXXXX-(2) C2NET STONGHOLD SECURE WE 2,020 2,020
1/29/99 30 05 00 1550-000 h AT&T WIRELESS-NOKIA 6160 TELEPHONE/LEATHER CARRY CASE/TAX 94 80
10/31/99 236 03 00 1550-000 h COMPAQ USA-IMAQ 333 32 MB COMPUTERS LIME 7,200 7,200
9/30/99 190 05 00 1550-000 h COMPAQ-COMPUTER EQUIPMENT 7,770 7,252
1/21/99 27 05 00 1550-000 h COMPUSA-EPSON HARDSHELL CARRYING CASE 249 212
1/29/99 31 05 00 1550-000 h COMPUSA-EPSON POWERLITES 5100XB 5,222 4,439
1/11/00 227 03 00 1550-000 h DEL MARKETING-(2) DELL PIII WORKSTATIONS/TAX & SHIPPING 49,253 49,253
12/17/99 217 03 00 1550-000 h DELL MARKETING-5 DELL P6450 SYSTEMS 8,012 7,789
5/20/99 119 05 00 1550-000 h DELL MARKETING-DELL P633 CEL COMPUTER/SALES TAX/SHIPPING 4,528 3,925
10/31/99 233 03 00 1550-000 h DELL MARKETING-DELL P6450 G1 COMPUTER/TAX/INSTALLATION 24,639 24,639
8/2/99 159 05 00 1550-000 h DELL MARKETING-DELL P6450 GX1 9,515 8,722
5/20/99 118 05 00 1550-000 h DELL MARKETING-DELL P6450 GXI COMPUTER/SALES TAX/SHIPPING 16,467 14,271
10/31/99 234 03 00 1550-000 h DELL MARKETING-DELL P64501 COMPUTER/TAX/INSTALLATION 14,796 14,796
10/31/99 232 03 00 1550-000 h DELL MARKETING-DELL PII 450K GX1 COMPUTER 28,781 28,781
12/31/98 2 05 00 1550-000 h DELL MARKETING-INSPRION D233ST PENTIUM II/DELL SYSTEM MOUSE/WIN95
SPACESAVER KEY 7,372 6,020
2/16/99 24 05 00 1550-000 h DELL MARKETING-LATITUDE CPI300XT 13.3/SHIPPING/TAX 8,072 6,592
12/31/98 1 05 00 1550-000 h DELL MARKETING-LATITUDE CPI300XT/DELL SYSTEMS MOUSE/WIN95
SPACESAVER KEYBOARD/SH 21,329 17,419
8/5/99 163 05 00 1550-000 l DELL MARKETING-SHIPPING/TAX/MS SUPPORT SYSTEM 915 839
Fixed Asset Schedules Page 1 of 4 Interest
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1/13/99 26 05 00 1550-000 h DELL MARKETING-ULTRABOARD WINDOWS 95 104 KEY 2,110 1,793
12/31/98 23 05 00 1550-000 h DELL P6450 GX1 COMPUTER/READYWARE FACTORY 77,228 61,782
7/30/99 154 05 00 1550-000 h INSIGHT DIRECT INC 864 778
2/3/99 36 05 00 1550-000 h INSIGHT DIRECT INC-128 MB 569 484
6/28/99 150 05 00 1550-000 h INSIGHT DIRECT INC-COMPAQ 15U RACK BLANKING PANEL 113 100
12/31/98 11 05 00 1550-000 h INSIGHT DIRECT INC-COMPAQ 42U RACK FOR PROLIANT 5,481 4,476
12/31/98 9 05 00 1550-000 h INSIGHT DIRECT INC-COMPAQ PROLIANT STORAGE/WIN NT SERVER V4.0 ENTERPRISE/RACK MO 24,997 20,414
2/3/99 38 05 00 1550-000 h INSIGHT DIRECT INC-COMPAQ PROLINE 2500/4.3 GB SCSI ULTR WIDE 4,875 4,144
6/28/99 151 05 00 1550-000 h INSIGHT DIRECT INC-COMPUTER EQUIPMENT 1,963 1,734
4/22/99 62 05 00 1550-000 h INSIGHT DIRECT INC-DIGI ACC.PORT MODEMS 1,485 1,262
12/31/98 17 05 00 1550-000 h INSIGHT DIRECT INC-FIBRE CLUSTER OPTION KIT/6'COMPAQ EXTERNAL WIDE SCSI/NETELLIG 780 637
1/28/99 33 05 00 1550-000 h INSIGHT DIRECT INC-MAGICOLOR 330EX COLOR LASER/FIBRE CHANNEL TROUBLESHOOT 4,964 4,219
1/28/99 28 05 00 1550-000 h INSIGHT DIRECT INC-VHDCI TO 68PIN CABLE 69 59
9/30/99 176 05 00 1550-000 h INSIGHT DIRECT-0 VOUCHER (349) (326)
2/3/99 37 05 00 1550-000 h INSIGHT DIRECT-18.2 GB SCSI ULTRA WIDE/4.3 GB LOW CAT NON-HOT/SMART 2/DH PCI ARR 13,204 11,223
4/7/99 46 05 00 1550-000 h INSIGHT DIRECT-18.2 GB SCSI ULTRA-WIDE PLUGA/TAX 14,417 12,255
1/11/00 228 03 00 1550-000 h INSIGHT DIRECT-18.2GB SCSI ULTRA-WIDE PLUGAB 18,200 18,200
5/27/99 126 05 00 1550-000 h INSIGHT DIRECT-256MB REGISTERED SDRAM DIMM 6,680 5,789
5/13/99 117 05 00 1550-000 h INSIGHT DIRECT-256MB REGISTERED SDRAM DIMM/SHIPPING/HANDLING/SALES TAX 16,442 14,250
4/8/99 61 05 00 1550-000 h INSIGHT DIRECT-4.3 GB SCSI ULTRA WIDE/OKI MICROLINE 321 TURBO/TAX 16,031 13,626
4/22/99 55 05 00 1550-000 h INSIGHT DIRECT-512MB DIMM KIT/FIBRE CHANNEL ARRAY RACK 9,275 7,884
4/8/99 59 05 00 1550-000 h INSIGHT DIRECT-64 MB REGISTERED/256 MB/COMPAQ PII 450/COMPAQ ULTRA WIDE CONTROLL 4,419 3,756
5/27/99 128 05 00 1550-000 h INSIGHT DIRECT-APC MATRIX CASTERS BLACK META 170 147
5/12/99 116 05 00 1550-000 h INSIGHT DIRECT-COMPAQ 37-70GB EXTERNAL/SALES TAX/SHIPPING 6,777 5,874
6/14/99 140 05 00 1550-000 h INSIGHT DIRECT-COMPAQ 42U RACK SIDEWALL KIT/RACK COUPLING KIT/MONITOR UTILITY SH 1,500 1,325
5/27/99 123 05 00 1550-000 h INSIGHT DIRECT-COMPAQ CD STORAGE SYSTEM RACK/COMPAQ 24X MAX IDE CDROM/64MB SIMM 10,190 8,831
4/8/99 60 05 00 1550-000 h INSIGHT DIRECT-COMPAQ CPU TO SWITCH CABLE/37/70 GB DLT LIBRARY READY/DLT TAPE 12,246 10,409
9/16/99 175 05 00 1550-000 h INSIGHT DIRECT-COMPAQ FIBRE HOST ADAPTER (3,609) (3,368)
4/14/99 51 05 00 1550-000 h INSIGHT DIRECT-COMPAQ FIBRE HOST ADAPTER PCI/SALES TAX/SHIPPING/HANDLING 3,616 3,073
5/27/99 135 05 00 1550-000 h INSIGHT DIRECT-COMPAQ MULTI SERVER COMM/NETELLIGENT RECESSED RAIL KIT/COUPLING K 1,425 1,235
5/27/99 132 05 00 1550-000 h INSIGHT DIRECT-COMPAQ PROLIANT 1850R HOTPLUG/COMPQ 42U RACK SIDEWALL KIT/SALES T 1,625 1,408
4/7/99 44 05 00 1550-000 h INSIGHT DIRECT-COMPAQ PROLIANT REDUNDANT PWR 591 502
5/27/99 131 05 00 1550-000 h INSIGHT DIRECT-COMPAQ PROLIANT REDUNDANT PWR/CLUSTER KIT PROLIANT CLUST/COMPAQ R 1,091 946
5/27/99 137 05 00 1550-000 h INSIGHT DIRECT-COMPAQ PROLIANT REDUNDANT PWR/FIBRE CHANNEL STORAGE HUB/DLT TAPE 3,977 3,447
5/27/99 136 05 00 1550-000 h INSIGHT DIRECT-COMPAQ PROLIANT REDUNDAT/CLUSTER KIT/COMPAQ RECOVERY SERVER OPTIO 9,084 7,873
5/27/99 130 05 00 1550-000 h INSIGHT DIRECT-COMPAQ PROLIANT STORAGE SYS/FREIGHT 3,900 3,380
5/27/99 125 05 00 1550-000 h INSIGHT DIRECT-COMPAQ PROSIGNIA 200 6/300/9 10GB SCSI UW HOT PLUG HD/COMPAQ NETE 6,166 5,343
5/27/99 134 05 00 1550-000 h INSIGHT DIRECT-COMPAQ RACK STABILIZING/COMPAQ PROLIANT REDUNDANT/COMPAQ MULTISER 8,251 7,151
6/14/99 141 05 00 1550-000 h INSIGHT DIRECT-COMPAQ RECOVERY SERVER OPTION/NETELLIGENT ETHERNET 1,359 1,201
6/28/99 147 05 00 1550-000 h INSIGHT DIRECT-COMPUTER EQUIPMENT BOSTON 2,116 1,869
5/27/99 124 05 00 1550-000 h INSIGHT DIRECT-HP LASERJET 400N (2)/COMPAQ PROLIANT 1850R PII 400 10,836 9,391
5/27/99 129 05 00 1550-000 h INSIGHT DIRECT-KEYBOARD DRAWER KIT/COMPAQ 15U RACK BLANKING PANEL 1,029 892
5/27/99 121 05 00 1550-000 h INSIGHT DIRECT-P2400 512K SLOT 1 PROCESSOR 3,120 2,704
4/21/99 54 05 00 1550-000 h INSIGHT DIRECT-PLASMAVISION 42' MONITOR/SHIPPING 12,473 10,602
8/20/99 165 05 00 1550-000 h INSIGHT DIRECT-QD6525 DATA CARTRIDGE TAPES/SALES TAX/SHIPPING 71 65
Fixed Asset Schedules Page 2 of 4 Interest
7
5/27/99 133 05 00 1550-000 h INSIGHT DIRECT-RACK MOUNTABLE UPS MODEL 3000/COMPAQ 15U RACK
BLANKING PANEL/TAX 4,909 4,255
4/22/99 63 05 00 1550-000 h INSIGHT DIRECT-REMOTE INSIGHT PCI LAN ONLY 28,294 24,050
6/24/99 149 05 00 1550-000 h INSIGHT DIRECT-RETURNED COMPAQ PROLIANT/COMPAQ SCSI (5,289) (4,672)
6/14/99 139 05 00 1550-000 h INSIGHT DIRECT-RETURNED COMPAQ24X MAX IDE CDR (2,352) (2,078)
5/27/99 122 05 00 1550-000 h INSIGHT DIRECT-SMART 2/DH PCI ARRAY/COMPAQ PROLIANT 2500/
COMPAQ 18.2 GB PLUB UW 18,819 16,310
2/5/99 39 05 00 1550-000 h INSIGHT DIRECT-UNIVERSAL INPUT CASSETTE 170 145
4/8/99 58 05 00 1550-000 h INSIGHT DIRECT-WACOM INTUOS 12X12 SERIAL/COMPAQ NETELLIGENT
ETHERNET/COMPAQ PROL 4,978 4,232
2/25/99 35 05 00 1550-000 h INSIGHT DIRECT-ZERO VOUCHER (21,657) (18,408)
8/11/99 158 05 00 1550-000 h INSIGHT-COMPAQ FLAT PANEL MON 2,874 2,635
12/31/98 15 05 00 1550-000 h KENT DATACOMM-030-RED/040-RED/015-ORANGE/030-ORANGE/
040-ORANGE/015-GREEN/030/GRE 2,435 1,988
6/10/99 146 05 00 1550-000 h KENT DATACOMM-1 PORT T1 FRACTIONAL T1 806 712
12/31/98 12 05 00 1550-000 h KENT DATACOMM-30' FDDI-MMF-MIC/XXXXXX & XXXXX-FREIGHT 594 485
11/22/99 204 03 00 1555-000 h KENT DATACOMM-50' CAT 5 PURPLE CABLE/50' XXXXX 0 XXXX/
00' XXXX XXXXX XXXX 986 931
12/17/99 216 03 00 1550-000 h KENT DATACOMM-600W REDUNDANT AC POWER SYSTEMS 2,140 2,080
1/20/99 34 05 00 1550-000 h KENT DATACOMM-CAT 5/6 RED/GREEN/PURPLE/3" PURPLE/TAX/FREIGHT" 115 98
1/29/99 29 05 00 1550-000 h KENT DATACOMM-CISCO ADD ON 8X5XNB FOR 2900 1,018 865
3/22/99 43 05 00 1550-000 h KENT DATACOMM-CISCO PIX FIREWALL 520/CISCO 1/100 INTERFACE CARD/
TAX/FREIGHT 18,311 15,565
4/7/99 57 05 00 1550-000 h KENT DATACOMM-CISCO SMARTNET PIX 5200 1,624 1,380
6/10/99 138 05 00 1550-000 h KENT DATACOMM-CROSS CONNECT 24 PORT PNL-25PR 650 574
8/3/99 162 05 00 1550-000 h KENT DATACOMM-FRIGHT/TAX/SHIPPING FOR COMPUTER EQUIPMENT 1,624 1,489
7/29/99 153 05 00 1550-000 h KENT DATACOMM-NETRANGER SENSOR,2 10/100T 13,680 12,312
7/19/99 152 05 00 1550-000 h KENT DATACOMM-NETSSONAR NT-UP TO 2500 DDR 12,668 11,402
7/2/99 155 05 00 1550-000 h KENT DATACOMM-NETWORK CONFIG MODULE 1,211 1,090
12/31/98 14 05 00 1550-000 h KENT DATACOMM-VELCROE TIE/CISCO ADD ON V.35-60 PIN/HORIZONTAL
MNGR/CISCO ADD ON 9,278 7,577
10/6/99 187 03 00 1550-000 h KENT DATACOMM-PATCH CORDS FOR NEW BUILDING 2,548 2,335
1/20/00 225 03 00 1550-000 h OPEN SYSTEM SOLUTIONS-PF FOR PIX-UP DEVICE LIC 4,515 4,515
9/8/99 173 05 00 1550-000 h PC CONNECTION-IBM THINKPAD 570 PII 9,268 8,650
10/31/99 231 03 00 1550-000 h PC CONNECTION-IBM THINKPAD 570 PII 3,479 3,479
12/31/98 6 05 00 1550-000 h PC CONNECTION-POWERMAC G3 COMPUTER/APPLE G3 64MV DIMM/APPLE G3
128MB DIMM/21 VI" 3,732 3,048
ACCRUE SOFTWARE, INC. 10,000 10,000
ACCRUE SOFTWARE, INC. 20,000 20,000
VERITAS DB EDITION/ORACLE TIER 2 LICENSE 28,576 28,576
PREMIER DIRECT ASSIST SUPPORT 8,648 8,648
UNIMOUNT BASE FOR SPARC 4,5,20,ULTRA 1,560 1,560
UNIMOUNT BEZEL FOR ULTRA 1 504 504
KENT DATACOMM-ETHERNET PORT 4,644 4,644
KENT DATACOMM-PPORT PLUS UPGRADES 600 600
KENT DATACOMM-1000BASE-SX GBIC MUL 3,600 3,600
MICROSOFT 1,225 1,225
COMPAQ PARTS AND SERVICE 1,805 1,805
COMPAQ PARTS AND SERVICE 1,805 1,805
FRY'S ELECTRONICS 494 494
FRY'S ELECTRONICS 644 644
PC CONNECTION 932 932
INSIGHT DIRECT, INC. 262 262
Page 3 of 4
8
Computer Equipment
-------------------------------------
744,781 669,428
--------------------------------------
LEASEHOLD IMPROVEMENTS
11/19/99 200 10 00 1590-000 BOB'S LOCK & SAFE CENTER-REKEYS/KEYS/SERVICE 1,849 1,818
11/30/99 238 10 00 1590-000 COMPEL-CONTRACT PRICE/UPS UPGRADE/GENERATOR SET UP 313,574 305,735
11/30/99 237 10 00 1590-000 COMPEL-SPEAKER TERM/INSTALL/ADDN'L WORK STATIONS
ADDN VOICE/TECH CENTER/BALANCE 235,156 229,277
1/5/00 221 10 00 1590-000 XXXXXXXX-FIRE PROTECTION SYSTEM 25,102 25,102
12/10/99 213 10 00 1590-000 HB TEMPE LLC-FINAL PAYMENT FOR IMPROVEMENTS 88,216 87,481
11/4/99 201 10 00 1590-000 HB TEMPE LLC-GORACING BUILDING TENANT IMPROVEMENTS 169,046 166,228
12/29/99 207 10 00 1590-000 RICKABAUG INC-MAILROOM/COPYROOM CABINETRY 6,276 6,224
----------------------------------------
Leasehold Improvements 839,219 821,866
----------------------------------------
GRAND TOTAL ----------------------------------------
$1,630,372 $1,533,571
========================================
LESS EQUIPMENT TO BE RETAINED:
1/29/99 31 05 00 1550-000 h COMPUSA-EPSON POWERLITES 5100XB (5,222) (4,439)
10 DELL GX1 WORKSTATIONS (@ $1,300 EACH) (13,000) (13,000)
2 IBM THINKPAD LAPTOPS (@ $4,000 EACH) (8,000) (8,000)
----------------------------------------
$1,604,150 $1,508,132
$ 5,599
Telecommunication installation charges to be reimbursed by IIS for telecommunication
services assumed by IIS -------------------
$1,513,731
===================
Page 4 of 4
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EXHIBIT B TO ASSET PURCHASE AGREEMENT
(IIS LESS INTEREST)
ACQUISITION SYS ASSET ACQUISITION
DATE NO. LIFE ACCOUNT NO. ASSET DESCRIPTION VALUE NBV
----------- --- ----- ----------- -------------------------------------------------------------------- ----------- -------
OFFICE EQUIPMENT
3/25/96 78 05 00 1545-000 h CLOSE AI BOOKS TO JDE-INFORMATION SERVICE-SERVER $ 10,000 $ 2,333
3/27/96 79 05 00 1545-000 h CLOSE AI BOOKS TO JDE-INFORMATION SERVICE-SERVER 24,000 5,600
2/20/97 100 05 00 1545-000 h CLOSE AI BOOKS TO JDE-BAY STATE COMPUTER GROUP 1,377 574
12/30/96 99 05 00 1545-000 h CLOSE AI BOOKS TO JDE-BAY STATE COMPUTER GROUP-2.1 GB INTERNAL DRIVE 800 307
12/19/96 97 05 00 1545-000 h CLOSE AI BOOKS TO JDE-BAY STATE COMPUTER GROUP-HARD DRIVE 2.1 GB 858 329
12/26/96 98 05 00 1545-000 h CLOSE AI BOOKS TO JDE-BAY STATE COMPUTER GROUP-HARDWARE AND SOFTWARE 3,570 1,369
7/12/96 86 05 00 1545-000 h CLOSE AI BOOKS TO JDE-BAY STATE COMPUTER GROUP-HP VECTRA 3,421 1,026
7/12/96 87 05 00 1545-000 h CLOSE AI BOOKS TO JDE-BAY STATE COMPUTER GROUP-HP VECTRA 2,983 895
3/6/97 101 05 00 1545-000 h CLOSE AI BOOKS TO JDE-BAY STATE COMPUTER GROUP-LAP TOP & 16MB 3,674 1,592
7/15/96 88 05 00 1545-000 h CLOSE AI BOOKS TO JDE-BAY STATE COMPUTER GROUP-NEC PORT REPLICA 146 44
10/25/96 96 05 00 1545-000 h CLOSE AI BOOKS TO JDE-BAY STATE COMPUTER GROUP-NT USERS 5,250 1,838
7/22/96 89 05 00 1545-000 h CLOSE AI BOOKS TO JDE-BAY STATE COMPUTER GROUP-SYNOPTICS 16 PORT 1,291 387
9/18/96 95 05 00 1545-000 h CLOSE AI BOOKS TO JDE-BAY STATE COMPUTER GROUP-T1 UPGRADE 4,992 1,664
9/9/96 93 05 00 1545-000 h CLOSE AI BOOKS TO JDE-BAY STATE COMPUTER GROUP-UNIX BOX (1,000) (333)
9/10/96 94 05 00 1545-000 h CLOSE AI BOOKS TO JDE-BAY STATE COMPUTER GROUP-UNIX BOX 10,552 3,517
5/22/96 83 05 00 1545-000 h CLOSE AI BOOKS TO JDE-BBN PLANET-PBX EQUIPMENT 6,350 1,693
12/18/95 111 05 00 1545-000 h CLOSE AI BOOKS TO JDE-DATATREND-PENTIUM 998 183
1/25/96 76 05 00 1545-000 h CLOSE AI BOOKS TO JDE-DATATREND-RETUN COMP. (998) (200)
8/28/96 91 05 00 1545-000 h CLOSE AI BOOKS TO JDE-DATAWARE PRODUCTS-MEMORY 756 239
8/28/96 92 05 00 1545-000 h CLOSE AI BOOKS TO JDE-DATAWARE PRODUCTS-NEC VERSA 6,199 1,963
6/13/96 84 05 00 1545-000 h CLOSE AI BOOKS TO JDE-XXXX XXXXXXX-2 COMPAQ COMPUTERS 6,682 1,893
7/24/96 90 05 00 1545-000 h CLOSE AI BOOKS TO JDE-XXXX XXXXXXX-2 COMPUTERS 10,023 3,007
6/13/96 85 05 00 1545-000 h CLOSE AI BOOKS TO JDE-XXXX XXXXXXX-DRIVE ET AL 1,914 542
1/25/96 77 05 00 1545-000 h CLOSE AI BOOKS TO JDE-XXXX XXXXXXX-HP 5P 883 177
5/3/96 82 05 00 1545-000 h CLOSE AI BOOKS TO JDE-LOUIS CATARINA-COMPTUER BALANCE 377 100
5/20/97 102 05 00 1545-000 h CLOSE AI BOOKS TO JDE-MBNA AMERICA-MOTOROLA HAND HELD 462 216
9/12/95 104 05 00 1545-000 h CLOSE AI BOOKS TO JDE-MICRONET ASSOCIATES-COMPUTERS 13,442 1,792
10/20/95 107 05 00 1545-000 h CLOSE AI BOOKS TO JDE-MICRONET ASSOCIATES-COMPUTERS 1,435 215
11/20/95 108 05 00 1545-000 h CLOSE AI BOOKS TO JDE-MICRONET ASSOCIATES-COMPUTERS 5,000 833
11/20/95 109 05 00 1545-000 h CLOSE AI BOOKS TO JDE-MICRONET ASSOCIATES-COMPUTERS 6,000 1,000
11/30/95 110 05 00 1545-000 h CLOSE AI BOOKS TO JDE-MICRONET ASSOCIATES-COMPUTERS 875 146
12/28/95 113 05 00 1545-000 h CLOSE AI BOOKS TO JDE-MICRONET ASSOCIATES-COMPUTERS 2,734 501
1/10/96 73 05 00 1545-000 h CLOSE AI BOOKS TO JDE-MICRONET ASSOCIATES-COMPUTERS 5,140 1,028
1/10/96 74 05 00 1545-000 h CLOSE AI BOOKS TO JDE-MICRONET ASSOCIATES-COMPUTERS 5,465 1,093
1/24/96 75 05 00 1545-000 h CLOSE AI BOOKS TO JDE-MICRONET ASSOCIATES-COMPUTERS 1,321 264
10/1/95 105 05 00 1545-000 h CLOSE AI BOOKS TO JDE-PAID BY VB 2,555 383
4/24/96 80 05 00 1545-000 h CLOSE AI BOOKS TO JDE-SIGN-A-RAMA-ALUM SIGN BOX 1,475 369
5/2/96 81 05 00 1545-000 h CLOSE AI BOOKS TO JDE-SIGNATURE COMPUTER-2 PCS 3,742 998
12/28/95 112 05 00 1545-000 h CLOSE AI BOOKS TO JDE-MICRONET ASSOCIATES-COMPUTERS 1,894 347
8/17/99 166 05 00 1545-000 h XXXX XXXXXXX-EQUIPMENT FOR RADIO 3,349 3,070
Fixed Asset Schedules Page 1 of 3 Non Interest
10
10/18/99 186 05 00 0000-000 XXXXXXXXX PUBLISHING SERVICES-PHOTOGRAPHY XXXXXXX-XXXXXXXX.XXX 750 713
------- -------
Office Equipment 160,735 43,708
------- -------
COMPUTER EQUIPMENT
4/12/99 50 05 00 1550-000 s ADOBE ACCOBAT WRITER 210 178
11/19/96 65 05 00 1550-000 s CLOSE AI BOOKS TO JDE-STORM CLOUD-SOFTWARE 1,005 369
1/10/00 223 03 00 1550-000 h COMPEL-AIA DOCUMENT G703 7,238 7,238
12/31/98 7 05 00 1550-000 c COMPUTER BREAKTHROUGH-TIVOLI IT DIRECTOR 1.1/CBI INTALLATION-5 DAYS/CBI
SUPPORT 22,000 17,967
7/30/99 156 05 00 1550-000 s COMPUTER NETWORK SOFTWARE 224 202
12/31/99 230 03 00 1550-000 c CONSULTING FOR NEW EQUIPMENT 17,213 17,213
8/17/99 164 05 00 1550-000 h XXXX XXXXXXX-COMPUTER EXPENSE 793 727
4/20/99 52 05 00 1550-000 s XXXX XXXXXXX-TSI/SOFTWARE FOR SPEEDMALL 100 85
12/17/99 218 03 00 1550-000 s DTP DIRECT-DREAMWEAVER 867 843
12/1/99 219 03 00 1550-000 s DTP DIRECT-DREAMWEAVER 2/PHOTOSHOP 5.5/PHOTOTOOLS 3.0/ACROBAT 4.0/TYPE
MANAGER 4,409 4,286
12/1/99 214 03 00 1550-000 s DTP DIRECT-MS VISUAL STUD PROF 6.0/AB AFTER EFFECTS 4.1/HEADLINE
STUDIO 1.0/DIME 7,864 7,646
1/1/99 20 05 00 1550-000 c ENGAGE TECHNOLOGIES--PUBLIC TRAINING 12/10-12/11/98- doc PV40239 3,300 2,695
1/1/99 21 05 00 1550-000 c ENGAGE TECHNOLOGIES--INSTALLATION 11/30-12/01/98- doc PV40240 3,000 2,450
1/1/99 19 05 00 1550-000 l ENGAGE TECHNOLOGIES--LICENSE/MAINT&SUPPORT- doc PV38379 14,520 11,858
8/31/99 161 05 00 1550-000 h EYEWIRE INC-LETTERPRESS SPECIAL EDITION 400 367
4/7/99 48 05 00 1550-000 h INSIGHT DIRECT-BACKUP EXEC FOR WIN NT V7.2/SHIPPING 2,723 2,314
4/8/99 49 05 00 1550-000 h INSIGHT DIRECT-BACKUP EXEC FOR WIN NT V7.2/SQL AGENT/WNT V7.2 OPEN/DLT
35/70 CAR 14,347 12,195
4/7/99 47 05 00 1550-000 l INSIGHT DIRECT-LIC NMS ENTERPRISE ENCRYPTION/SW SUBSCRIPTION LIC NMS 8,971 7,625
6/14/99 142 05 00 1550-000 h INSIGHT DIRECT-MATRIX3000ES 3000VA ONLINE/CORD CONNECTED POWER DIST UNI 5,450 4,814
8/30/99 160 05 00 1550-000 s INSIGHT DIRECT-MIXIMIZER 5.0 864 792
10/31/99 235 03 00 1550-000 s INSIGHT DIRECT-MS OFFICE 2000 PRO FUL/TAX 18,723 18,723
10/21/99 180 03 00 1550-000 s INSIGHT DIRECT-MS OFFICE PROFESSIONAL 97/TAX/FREIGHT 4,802 4,402
5/27/99 120 05 00 1550-000 s INSIGHT DIRECT-MS WINDOWS NT SERVER 667 578
4/7/99 45 05 00 1550-000 l INSIGHT DIRECT-TOTIAL VIRUS DEFENSE LICENSE 4,491 3,817
6/9/99 145 05 00 1550-000 s INSIGHT DIRECT-VISIO PROFESSIONAL V5.0 SINGLE 349 308
5/27/99 127 05 00 1550-000 h INSIGHT DIRECT-WIN NT SERVER V4.0 ENTERPRISE/COMPAQ PROLIANT STORAGE SYS 4,800 4,160
6/15/99 148 05 00 1550-000 h KENT DATACOMM-COMPUTER SUPPLIES 5,348 4,724
12/31/98 13 05 00 1550-000 s XXXXXXX & ASSOCIATES-WEB CHAT SOFTWARE/WEB CROSSING/PLATINUM SERVER/WEB
CROSSING 25,171 20,556
10/18/99 179 03 00 1550-000 s XXXXXXX & ASSOCIATES-WEB CROSSING PRIORITY SUPPORT 6,190 5,674
12/31/98 3 05 00 1550-000 s PC CONNECTION-ADOBE PHOTOSHOP 5 MAC/ADOBE ILL 8 VRS UPGRADE MAC/PAINTER 5.5
WEB 1,340 1,095
12/31/98 8 05 00 1550-000 s PC CONNECTION-DIRECTOR MULTIMEDIA STUDIO 6. 936 764
12/31/98 5 05 00 1550-000 s PC CONNECTION-EYE CANDY 3.0 WIN95/EYE CANDY 3.0 MAC/KPT VECTOR EFFECTS
MAC/KEIS 2,630 2,148
12/31/98 4 05 00 1550-000 s PC CONNECTION-FLASH 3.0 MAC/FLASH 3.0 WIN95/ADOBE PAGEMAKER 6.5
MAC/QUARKXPRESS 1,624 1,326
9/30/99 188 05 00 1550-000 c PROFESSIONAL ALTERNATIVE WEB DEVELOPMENT 203,624 190,049
6/9/99 144 05 00 1550-000 s REAL NETWORKS-STEAMING MEDIA SOFTWARE 15,695 13,864
11/29/99 202 03 00 1550-000 s SOFTWARE 183 172
9/30/99 189 05 00 1550-000 s SOFTWARE FOR ACTION INTERACTIVE 22,000 20,533
4/30/99 56 05 00 1550-000 s SOFTWARE.COM-SERVICE PROVIDER/FREIGHT 3,001 2,551
Cisco 1,979 1,979
vignette 4,908 4,908
Fixed Asset Schedules Page 2 of 3 Non Interest
11
Visio Professional 1,720 1,672
-------- --------
Computer Equipment 445,678 405,868
-------- --------
GRAND TOTAL $606,413 $449,576
======== ========
Fixed Asset Schedules Page 3 of 3 Non Interest
