1
Schedule I
to Asset Purchase Agreement
between West Coast Entertainment Corporation and
the Sellers and Principals Identified Below
Section of Agreement
in Which Term, Item or
Information is Referenced Term or Item
--------------------------------------------------------------------------------
Recital Name, Address and Principal Office of Each Seller:
Xxxxxx Turn Entertainment, Inc.
0000 Xxxxxxxx Xxxx
Xxxxxxxxxx Xxxxxx, XX 00000
Xxxxxx Turn Entertainment II, Inc.
0000 Xxxxxxxx Xxxx
Xxxxxxxxxx Xxxxxx, XX 00000
Recital Principals: Xxxxxxxx Xxxxx
Xxxxxx Xxxxxx
Xxxxxx Xxxxx
1.1(a)(ix)Trade Names: Xxxxxx Turn Entertainment, Inc.
DBA West Coast Video Miami
Xxxxxx Turn Entertainment II, Inc.
DBA West Coast Video Emerald Hills
1.1(c) Stores, Reflecting Street Address of Each Store,
and its Owning Seller:
Total Number of Stores: two
Xxxxxx Turn Entertainment, Inc.
0000 Xxxxxxxx Xxxxxx
0
Xxxxxxxxx, XX 00000
Xxxxxx Turn Entertainment II, Inc.
0000 Xxxxxxx Xxx.
Xxxxx, XX 00000
1.3(a) Purchase Price: $1,500,000
1.3(b) Cash Percentage: 60% ($900,000)
$600,000 payable at the Closing with the balance payable on or before
January 3, 1997.
Pursuant to an instrument of evidence of indebtedness to be delivered at
the Closing to Seller, 100% of the shares of Common Stock shall be
issued on January 5, 1998.
1.3(b) Allocation of Purchase Price Among Sellers:
Xxxxxx Turn Entertainment, Inc. - 60%
Xxxxxx Turn Entertainment II, Inc. - 40%
1.3(c) "Net Operating Cash Flow" shall be equal to (i) the pre-tax income from
the Stores for the 12-month period ending on June 30, 1996, plus (ii)
all debt-related interest expense for the Stores and depreciation and
amortization expenses for the Stores for such 12-month period, plus
(iii) all royalty expenses (if any and if expensed) attributable to such
stores during such 12-month period, less (iv) all rental product
purchases for the Stores during such 12-month period (including revenue
sharing expenses if not previously expensed), less (v) all earned income
interest for such 12-month period; with such components of Net Operating
Cash Flow determined in accordance with generally accepted accounting
principles applied consistently with the Sellers' past practices.
1.4 Assumed Liabilities:
All obligations of the Sellers continuing after the Closing under the
Leases specified on Schedule 2.11 which become due and payable after the
Closing Date. (No adjustment to Purchase Price.)
1.6 Closing Date: November 15, 1996
2.1 Type of Entity and Capitalization:
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Each Seller is a Florida corporation.
For each Seller, jurisdictions in which qualification is required:
Florida
2.2 Each Seller's State of Organization, and Authorized and Issued Stock (or
Other Interests), and Identity of Holders of All Legal and Beneficial
Interests in Each Seller:
Xxxxxx Turn Entertainment, Inc. is a Florida corporation with 3,000
shares of common stock authorized and 1,500 shares of common stock
outstanding, of which 1,000 shares are beneficially owned by Xxxxxx Turn
Video, Inc. (which is owned equally by Xxxxxx Xxxxx and Xxxxxxxx Xxxxx)
and 500 shares are beneficially owned by Royo, Inc. (which is 100% owned
by Xxxxxx Xxxxxx).
Xxxxxx Turn Entertainment II, Inc. is a Florida corporation with 3,000
shares of common stock authorized and 1,500 shares of common stock
outstanding, of which 1,000 shares are beneficially owned by Xxxxxx Turn
Video, Inc. and 500 shares are beneficially owned by Royo, Inc.
2.5(c) Minimum Net Operating Cash Flow: $400,000
7.10 Amount of Cash to Be Left at each Store on Closing Date: $300.
8.8 Other Conditions: Promptly following delivery to the Seller and each of
the Principals of a Prospectus (and any current supplement thereto)
relating to the sale of Buyer's Common Stock (which is included in a
Registration Statement which has been declared effective by the
Securities and Exchange Commission), the Seller shall hold a meeting of
its stockholders for purposes of approving the consummation of the
transactions contemplated by this Agreement.
14 Address for notices for purposes of Section 14:
To any Principal: Xxxxxxxx Xxxxx
00000 Xxxxxxx Xxxxx Xxx
Xxxx Xxxxx, XX 00000
Xxxxxx Xxxxx
4
0000 Xxxxxxxx Xxxx
Xxxxxxxxxx Xxxxxx, XX 00000
Xxxxxx Xxxxxx
000 X.X. 00xx Xx, Xxx. 0000
Xxxxx, XX 00000
With a copy to: Xxxxxx Turn Video, Inc.
0000 X. Xxxxx Xxxxxx
Xxxxxxxxx, XX 00000