EX-9.1 2 dex91.htm ASSET PURCHASE AGREEMENT ASSET PURCHASE AGREEMENT
Exhibit 9.1
THIS AGREEMENT is made this _______ day of November, 2004 by and between BAD TOYS HOLDINGS, INC., a Nevada Corporation (“BUYER”) and GAMBLER MOTORCYCLE COMPANY, a Tennessee Corporation and GAMBLER COMPETITION CENTER, INC., a Tennessee Corporation (hereinafter collectively called “SELLER”), with BUYER and SELLER (hereinafter referred to at times as a “PARTY” and collectively as the “PARTIES”).
2. Representations and Warranties. SELLER represents and warrants that:
(a) SELLER has good and merchantable title, free and clear of all third-party claims, to all of its’ assets being sold;
(b) The consummation of this Agreement does not violate any agreement or restriction to which SELLER is subject;
(c) The inventories being sold are good and merchantable and suitable for sale in the ordinary course of business excepting only for items which are salvage value;
(d) SELLER is not aware of any circumstance, adverse condition, ruling or order which may affect the manner of operation of the business by BUYER. SELLER is not aware of any adverse condition affecting BUYER’S right to use the same suppliers and materials as SELLER.
(e) All other property, machinery, and equipment being sold is in good operating condition and repair, has been properly maintained, and is suitable for the business purposes, and is subject only to normal wear and tear; and
(f) SELLER has taken all steps and obtained all authorizations necessary to consummate this transaction.
(a) Partial consideration of Four Hundred Twelve Thousand Five Hundred ($412,500.00) Dollars in cash, bank check, or other collected funds to be paid to SELLER on or before November 29, 2004. SELLER acknowledges the receipt of Sixty-five Thousand ($65,000.00) Dollars as partial payment of consideration which is non-refundable and which will be applied to the purchase price. Any other funds or deposits received on or before November 29, 2004 are non-refundable up to the total sum of One Hundred Seventy-five ($175,000.00) Dollars which includes the original Sixty-five Thousand ($65,000.00) Dollar deposit. Funds received will be applied Three Hundred Twenty-five Thousand ($325,000.00) Dollars to Gambler Motorcycle Company and Eighty-seven Thousand Five Hundred ($87,500.00) Dollars to Gambler Competition Center, Inc. . The payment of Four Hundred Twelve Thousand Five Hundred ($412,500.00) Dollars on or before November 29, 2004 will result in the Part One Closing as hereinafter described in this Agreement;
(b) Should BUYER fail to pay the partial consideration hereinabove of Four Hundred Twelve Thousand Five Hundred ($412,500.00) Dollars as due on or before November 29, 2004 as required on a timely basis, then in that event this Asset and Purchase Agreement shall be terminated and SELLER shall have the right to retain all sums paid up to One Hundred Seventy-five ($175,000.00) Dollars. Any sums paid on or before November 29, 2004 exceeding One Hundred Seventy-five Thousand ($175,000.00) Dollars will be refunded to BUYER if prior to the Part One Closing;
(c) An additional partial consideration of Four Hundred Twelve Thousand Five Hundred ($412,500.00) Dollars payable in eight (8) equal consecutive monthly installments on the third day of each month beginning January 3, 2005, together with interest at the rate of five (5%) percent per annum, each payment being Fifty-two Thousand Five Hundred Thirty-three and 99/100
($52,533.99) Dollars per month, until all remaining sums are paid in full. The installment payments will be made payable to Gambler Competition Center, Inc.. The Part Two closing as hereinafter defined in this Agreement, will occur upon the completion and payment in full of the remaining consideration, which includes the installment payments with accrued interest thereon;
(d) Should BUYER fail to timely pay any installment of the partial consideration described in Subparagraph (c) hereinabove on a timely basis, then in that event SELLER may immediately terminate the Asset and Purchase Agreement and retain all funds paid to date. SELLER may immediately take possession of all remaining assets. SELLER shall have no obligation to transfer any portion of the remaining assets to BUYER in the event of BUYER’S failure to make the consideration installment payments as agreed herein. Further, SELLER shall have the right to enforce as liquidated damages its’ lien upon the truck and trailer conveyed to BUYER in the Part One Closing in the total amount of Eighty Thousand ($80,000.00) Dollars.
to obtain the necessary facilities. The assets contemplated to be transferred under this Agreement are located at 000 Xxxxxxxxx xxxxx, Xxxxxxxxxxxxxx, Xxxxxx Xxxxxx, Xxxxxxxxx.
agent, employee or otherwise of (ii) hire or attempt to hire, or contract or attempt to contract with, any officers, employees, agents, independent contractors or other persons or entities that have a contractual, fiduciary or other type of relationship (whether written or oral) with the business of BUYER. Notwithstanding the foregoing. This covenant is expressly enforceable by all assignees and/or successors of BUYER. This covenant is void should SELLER reacquire the business or assets for any reason, or should this transaction not be completed in full.
other extent as such court may judicially determine or indicate constitutes a reasonable restriction under the circumstances involved.
10. Right of Temporary Operation.
(a) Upon the completion of the Part One Closing, BUYER shall have the right to take physical possession of all assets, fixed or otherwise, defined under this Agreement, and to operate the business contemplated hereunder as the Manager of said business operation. The ownership of said assets shall remain with the SELLER.
(b) BUYER will be entitled to full operational control, and will have the responsibility to perform all business functions previously performed by SELLER. BUYER will be responsible for payment of all expenses of business operation, including payment of employees, rent, utilities, insurance, vendors, taxes, and any and all other operating expenses. BUYER will specifically insure all equipment, including but not limited to, truck, trailer, and fixed assets listed on Schedule 1 of this Agreement and shall list SELLER as an additional insured for casualty and liability purposes.
(c) BUYER shall have the right to receive and retain all revenues, including profits, for work performed and movies collected during the terms of this right of temporary operation.
(d) BUYER will maintain all equipment in a good operating condition and will not allow waste to occur. BUYER will allow no lien or encumbrance to attach to assets of SELLER, and will execute any documents requested by SELLER to secure SELLER’S interest.
(e) Should BUYER fail to make the required installments payments under Paragraph 3(c) of this Agreement, then in that event BUYER will immediately surrender all fixed assets to SELLER. BUYER will not remove any assets from Xxxxxx County, Tennessee, except truck and trailer, until completion of Part Two Closing contemplated hereunder.
(f) This Right of Temporary Operation shall expire on August 3, 2005, or upon termination by SELLER for non-performance of BUYER, or by mutual agreement of the PARTIES.
IN WITNESS WHEREOF, the parties have executed this Agreement, on the day and date stated above.
BUYER: | ||
BY: | ||
TITLE: | ||
SELLER: | ||
BY: | ||
TITLE: |
EXHIBIT 1
FADAL MILLING CENTER W/5TH AXES SOFTWARE | 86,957.53 | |
FADAL MILLING CENTER W/5TH AXES | 95,389.00 | |
CK – 2 LATHE | 50,432.10 | |
HYUNDAI LATHE | 67,940.70 | |
TORSION BAR PRESS | 3,500.00 | |
TORSION BAR POLISHER | 2,070.00 | |
TORSION BAR HOBB | 3,000.00 | |
20,000 TON PRESS | 28,500.00 | |
SMALL PUNCH PRESS | 7,500.00 | |
MANUAL XXXXX (2) | 15,000.00 | |
SMALL COMPUTER MILL | 21,500.00 | |
MAGNET TABLE & DRILL | 5,450.00 | |
BAND SAW | 2,975.00 | |
HOT SAW | 1,050.00 | |
WELDERS (4) | 10,850.00 | |
COMPUTER XXXXXX | 33,200.00 | |
MANUAL XXXXXX | 3,000.00 | |
MANUAL LATHE | 15,000.00 | |
PARTS WASHER EPA APPROVED | 1,050.00 | |
SAND BLASTER | 5,400.00 | |
WELDING TABLES | 2,000.00 | |
NON-WING CAR JIG METAL | 7,500.00 | |
ALUMINUM FRAME TABLES (3@ 65,000.00 EACH) | 195,000.00 | |
COMPUTER SYSTEM | 21,200.00 | |
SOFTWARE (AUTO CAD, MECHANICAL DESKTOP VIRTUAL XXXXX & BEND TECH) | 30,000.00 | |
SPINDLE FORGING DIES | 21,000.00 | |
HUB FORGING DIES | 8,400.00 | |
FIXTURE TOOLING | 100,000.00 | |
PRINTS & DESIGNS | 150,000.00 | |
12 FOOT RULE | 2,100.00 | |
FIXTURES FOR SPRINT CARS | 125,000.00 | |
INVENTORY AT COST | 75,000.00 | |
HAND TOOLS & MISC | 5,000.00 | |
SMALL PARTS TRUCK USED | 1,000.00 | |
SHELVING & PACKING MATERIALS | 2,500.00 | |
SHOW TRUCK & TRAILER | 80,000.00 | |
EXPENDABLE TOOLING (DRILL BITS, XXXXX, ETC) | 15,000.00 | |
OFFICE EQUIPMENT (DESKS, CHAIRS, ETC) | 5,000.00 | |
INVENTORY | 75,000.00 | |
TOTAL | 1,380,464.33 |