EXHIBIT 2.3
ASSUMPTION AGREEMENT
THIS ASSUMPTION AGREEMENT (the "Agreement") is made this 11th
day of February, 1998, by and among Xxxx Xxxxxx & Co., Inc., Xxxx Xxxxxx Sons,
Inc., Xxxx Xxxxxx & Co., Xxxxxxx Corp. (collectively, "Seller"); Xxxxxx X.
Xxxxx, Xxxxx X. Xxxxx, Personal Representative of the Estate of Xxxxxxx X.
Xxxxx, Xxxxx X. Xxxxx and Xxxx Xxxxx, Trustees of the Marital Trust under the
Last Will and Testament of Xxxxxxx X. Xxxxx, Xxxxx X. Xxxxx and Xxxx Xxxxx,
Trustees of the Bypass Trust under the Last Will and Testament of Xxxxxxx X.
Xxxxx, Xxxxx X. Xxxxx and Xxxxxx Xxxxxxxxx, Trustees u/a Xxxxxx X. Xxxxx dated
May 14, 1997, FBO Xxxxxx X. Xxxxx, and Xxxxx X. Xxxxx and Xxxxxx Xxxxxxxxx,
Trustees u/a Xxxxxx X. Xxxxx dated May 14, 1997, FBO Xxxxxx X. Xxxxx, and Xxxxxx
X. Xxxxx and Xxxxx X. Xxxxx, Trustees of the Xxxxxx X. Xxxxx Trust Share of the
Xxxxxxx Xxxxxx Trust, the Xxxxxxx X. Xxxxx Trust Share of the Xxxxxxx Xxxxxx
Trust, the Xxxxxx X. Xxxxx Trust Share of the Ely Shanis Trust, and the Xxxxxxx
X. Xxxxx Trust Share of the Ely Shanis Trust (collectively called "Owners");
Xxxxx-Xxxxx Bancshares, Inc. ("Xxxxx-Xxxxx"); and Bay Finance, LLC and Bay
Insurance, LLC (collectively, "Purchaser"), pursuant to an Asset Purchase
Agreement (the "Asset Purchase Agreement") dated November 26, 1998, by Seller,
Owners, and Xxxxx-Xxxxx, involving the sale of substantially all of the assets
of the Seller (the "Assets"). Capitalized terms used and not otherwise defined
herein shall have the meanings as defined in the Asset Purchase Agreement.
WHEREAS, pursuant to the Asset Purchase Agreement, Seller and
Owners have agreed to transfer to Purchaser the Assets used by Seller in its
business in exchange for, among other things, the assumption of certain of the
Seller's liabilities and obligations;
WHEREAS, Xxxxx-Xxxxx owns Purchaser and desires to guaranty
Purchaser's performance of the assumed liabilities;
NOW, THEREFORE, in consideration of the transfer to Purchaser
of the Assets, and for other good and valuable consideration, the receipt and
sufficiency of which is acknowledged, Seller, Purchaser and Xxxxx-Xxxxx agree as
follows:
1. Assumption of Obligations. Subject to the terms of this
Agreement, effective on the date hereof, Purchaser, for itself and its
successors and assigns, hereby covenants and agrees to assume and accept those
debts, liabilities and obligations of Seller as are listed or described on
Schedule A to this Agreement (the "Assumed Liabilities"). Bay Insurance, LLC
shall assume and accept Assumed Liabilities of Xxxxxxx Corp. Bay Finance, LLC
shall assume and accept all other Assumed Liabilities of the Seller.
2. Indemnification. Purchaser shall defend, indemnify and hold
Seller and the Owners harmless against and from any and all liability to any
person, firm, corporation, political subdivision, or other entity for any
failure of Purchaser to pay the Assumed Liabilities. 3.Representations of
Seller. All representations and warranties of Seller relating to the Assumed
Liabilities contained in the Asset Purchase Agreement are hereby incorporated by
reference herein. Seller hereby further represents and warrants to Purchaser
that, as of the effective date of this Agreement, Seller has not received notice
of any default by Seller in
connection with the Assumed Liabilities, and to the best of Seller's knowledge,
information and belief, Seller is not in default in connection with the Assumed
Liabilities.
4. Further Assurances. The parties agree that they will take
whatever action or actions are found to be reasonably necessary from time to
time to effectuate the provisions and intent of this Agreement, and, to that
end, the parties agree that they will execute any further documents or
instruments which may be necessary to give full force and effect to this
Agreement or to any of its provisions.
5. Binding Effect. This Agreement shall be binding upon, and
shall inure to the benefit of, the parties hereto and their respective
successors and assigns.
6. Severability. In case any of the provisions of this
Agreement shall, for any reason, be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision of this Agreement, but this Agreement shall be construed as
if such invalid, illegal or unenforceable provision or provisions had never been
contained herein.
7. Amendment. This Agreement may not be amended or terminated
orally but only as expressly provided herein or by an instrument in writing duly
executed by all of the parties.
8. Counterparts. This Agreement may be executed in any number
of counterparts, each of which will be an original, but all of which together
will constitute one agreement.
9. Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Maryland.
10. Xxxxx-Xxxxx'x Guaranty. Xxxxx-Xxxxx unconditionally and
irrevocably guarantees to Seller and the Owners the full and timely performance
by Purchaser of all obligations to be performed by Purchaser hereunder,
including, but not limited to, the payment by Purchaser of the Assumed
Liabilities. Xxxxx-Xxxxx shall defend, indemnify and hold Seller and the Owners
harmless against and from any and all liability to any person, firm,
corporation, political subdivision, or other entity for any failure of Purchaser
to pay the Assumed Liabilities.
IN WITNESS WHEREOF, Seller, Xxxxx-Xxxxx, Owners, and Purchaser
have each executed under seal this Assumption Agreement or caused it to be
executed under seal on its behalf by its duly authorized representatives, on the
day and year first written above, to be effective February 11, 1998, at 6:00
p.m.
XXXX XXXXXX & CO., INC.
By:/s/ Xxxxxx X. Xxxxx (SEAL)
---------------------------------------
XXXX XXXXXX SONS, INC.
By:/s/ Xxxxxx X. Xxxxx (SEAL)
---------------------------------------
XXXXXXX CORP.
By: /s/ Xxxxxx X. Xxxxx (SEAL)
------------------------------------------
XXXX XXXXXX & CO.
By: /s/ Xxxxx X. Xxxxx (SEAL)
------------------------------------------
Xxxxx X. Xxxxx, Trustee of the Xxxxxx X.
Xxxxx Trust Share of the Ely Shanis Trust,
General Partner
By: /s/ Xxxxx X. Xxxxx (SEAL)
------------------------------------------
Xxxxx X. Xxxxx, Trustee of the Xxxxxxx X.
Xxxxx
Trust Share of the Ely Shanis Trust,
General Partner
By: /s/ Xxxxxx X. Xxxxx (SEAL)
------------------------------------------
Xxxxxx X. Xxxxx, Trustee of the Xxxxxx X.
Xxxxx Trust Share of the Ely Shanis Trust,
General Partner
By: /s/ Xxxxxx X. Xxxxx (SEAL)
------------------------------------------
Xxxxxx X. Xxxxx, Trustee of the Xxxxxxx X.
Xxxxx
Trust Share of the Ely Shanis Trust,
General Partner
By: /s/ Xxxxx X. Xxxxx (SEAL)
------------------------------------------
Xxxxx X. Xxxxx, Trustee of the Xxxxxx X.
Xxxxx Trust Share of the Xxxxxxx Xxxxxx
Trust, General Partner
By: /s/ Xxxxx X. Xxxxx (SEAL)
-----------------------------------------
Xxxxx X. Xxxxx, Trustee of the Xxxxxxx X.
Xxxxx
Trust Share of the Xxxxxxx Xxxxxx Trust,
General Partner
By: /s/ Xxxxxx X. Xxxxx (SEAL)
-----------------------------------------
Xxxxxx X. Xxxxx, Trustee of the Xxxxxx X.
Xxxxx Trust Share of the Xxxxxxx Xxxxxx
Trust, General Partner
By:/s/ Xxxxxx X. Xxxxx (SEAL)
-----------------------------------------
Xxxxxx X. Xxxxx, Trustee of the Xxxxxxx
X. Xxxxx Trust Share of the Xxxxxxx
Xxxxxx Trust, General Partner
By:/s/ Xxxxxx X. Xxxxx (SEAL)
-----------------------------------------
Xxxxxx X. Xxxxx, General Partner
By:/s/ Xxxxx X. Xxxxx (SEAL)
-----------------------------------------
Xxxxx X. Xxxxx, Personal
Representative of the Estate
of Xxxxxxx X. Xxxxx, General Partner
XXXXXX X. XXXXX
/s/ Xxxxxx X. Xxxxx (SEAL)
------------------------------------------
XXXXX X. XXXXX, PERSONAL
REPRESENTATIVE OF THE ESTATE OF
XXXXXXX X. XXXXX
/s/ Xxxxx X. Xxxxx (SEAL)
------------------------------------------
/s/ Xxxxx X. Xxxxx (SEAL)
------------------------------------------
Xxxxx X. Xxxxx, Trustee u/a Xxxxxx X.
Xxxxx dated May 14, 1997, FBO Xxxxxx X.
Xxxxx
/s/ Xxxxxx Xxxxxxxxx (SEAL)
------------------------------------------
Xxxxxx Xxxxxxxxx, Trustee u/a Xxxxxx X.
Xxxxx dated May 14, 1997, FBO Xxxxxx X.
Xxxxx
/s/ Xxxxx X. Xxxxx (SEAL)
------------------------------------------
Xxxxx X. Xxxxx, Trustee u/a Xxxxxx X.
Xxxxx dated May 14, 1997, FBO Xxxxxx X.
Xxxxx
/s/ Xxxxxx Xxxxxxxxx (SEAL)
------------------------------------------
Xxxxxx Xxxxxxxxx, Trustee u/a Xxxxxx X.
Xxxxx dated May 14, 1997, FBO Xxxxxx X.
Xxxxx
/s/ Xxxxx X. Xxxxx (SEAL)
------------------------------------------
Xxxxx X. Xxxxx, Trustee of the Xxxxxx X.
Xxxxx Trust Share of the Ely Shanis Trust
/s/ Xxxxx X. Xxxxx (SEAL)
------------------------------------------
Xxxxx X. Xxxxx, Trustee of the Xxxxxxx X.
Xxxxx Trust Share of the Ely Shanis Trust
/s/ Xxxxxx X. Xxxxx (SEAL)
------------------------------------------
Xxxxxx X. Xxxxx, Trustee of the Xxxxxx X.
Xxxxx Trust Share of the Ely Shanis Trust
/s/ Xxxxxx X. Xxxxx (SEAL)
------------------------------------------
Xxxxxx X. Xxxxx, Trustee of the Xxxxxxx X.
Xxxxx Trust Share of the Ely Shanis Trust
/s/ Xxxxx X. Xxxxx (SEAL)
------------------------------------------
Xxxxx X. Xxxxx, Trustee of the Xxxxxx X.
Xxxxx Trust Share of the Xxxxxxx Xxxxxx
Trust
/s/ Xxxxx X. Xxxxx (SEAL)
------------------------------------------
Xxxxx X. Xxxxx, Trustee of the Xxxxxxx X.
Xxxxx Trust Share of the Xxxxxxx Xxxxxx
Trust
/s/ Xxxxxx X. Xxxxx (SEAL)
------------------------------------------
Xxxxxx X. Xxxxx, Trustee of the Xxxxxx X.
Xxxxx Trust Share of the Xxxxxxx Xxxxxx
Trust
/s/ Xxxxxx X. Xxxxx (SEAL)
------------------------------------------
Xxxxxx X. Xxxxx, Trustee of the Xxxxxxx X.
Xxxxx Trust Share of the Xxxxxxx Xxxxxx
Trust
XXXXX X. XXXXX AND XXXX XXXXX,
TRUSTEES OF MARITAL TRUST UNDER THE
LAST WILL AND TESTAMENT OF
XXXXXXX X. XXXXX
/s/ Xxxxx X. Xxxxx (SEAL)
------------------------------------------
Xxxxx X. Xxxxx, Trustee
/s/ Xxxx Xxxxx (SEAL)
------------------------------------------
Xxxx Xxxxx, Trustee
XXXXX X. XXXXX AND XXXX XXXXX,
TRUSTEES OF BYPASS TRUST UNDER THE
LAST WILL AND TESTAMENT OF
XXXXXXX X. XXXXX
/s/ Xxxxx X. Xxxxx(SEAL)
------------------------------------------
Xxxxx X. Xxxxx, Trustee
/s/ Xxxx Xxxxx(SEAL)
------------------------------------------
Xxxx Xxxxx, Trustee
XXXXX-XXXXX BANCSHARES, INC.
By:/s/ Xxxxxx X. Xxxxxxxx (SEAL)
------------------------------------------
Xxxxxx X. Xxxxxxxx, President
BAY FINANCE, LLC
By:/s/ Xxxxxx X. Xxxxxxxx (SEAL)
------------------------------------------
Xxxxxx X. Xxxxxxxx, President
Xxxxx-Xxxxx Bancshares, Sole Member of Bay
Finance, LLC
BAY INSURANCE, LLC
By:/s/ Xxxxxx X. Xxxxxxxx (SEAL)
------------------------------------------
Xxxxxx X. Xxxxxxxx, President
Xxxxx-Xxxxx Bancshares, Sole Member of Bay
Finance, LLC
Assumption Agreement
Schedule A
A. Family loans as follows, up to maximum amount of $1,343,000.00 plus interest
accrued from December 31, 1997:
Principal Date Interest Maturity
Amount Made Rate Date
--------- ---- -------- --------
Xxxxx, Xxxxx 129,000 12-31-97 12% 6-30-98
Xxxxx, Xxxxxx 100,000 12-31-97 12% 6-30-98
Xxxxx, Xxxxx 26,000 12-31-97 12% 6-30-98
Xxxxx, Xxxxxxx 300,000 12-31-97 12% 6-30-98
(Estate of)
Xxxxx, Xxxxxx l70,000 12-31-97 12% 6-30-98
Xxxxx, Xxxxxx 100,000 12-31-97 12% 6-30-98
Xxxxx, Xxxxxxx 78,000 12-31-97 12% 6-30-98
Xxxxx, Xx. 90,000 12-31-97 12% 6-30-98
Xxxxx, X. Xxxx 100,000 12-31-97 11.5% 6-30-98
Xxxx, Xxxxxxx 100,000 12-31-97 11.5% 6-30-98
Xxxx, Xx. R. 100,000 12-31-97 11% 0-00-00
Xxxxxxxxx, X. 50,000 12-31-97 8.25% 6-30-98
Xxxxxx, R. 60,000 12-31-97 7.5% 6-30-98
Xxxxxx, R. 40,000 12-31-97 8% 6-30-98
B. NationsBank, N.A., CoreStates Bank, N.A., Xxxxxx Trust and Savings Bank
under loan agreement dated September 29, 1995, as amended and extended, up
to a maximum amount of $33,000,000, unless additional borrowings are
approved in writing by Xxxxx-Xxxxx (which approval shall not be unreasonably
withheld or delayed) to enable Xxxx Xxxxxx to fund additional consumer loans
or credit sales or cover operating expenses which are incurred by Xxxx
Xxxxxx in the ordinary course of business.
C. $440,833.
D. Dealer Reserves specified on attached Schedule A.
E. Unearned Insurance Commissions up to $563,397 as shown on Xxxx Xxxxxx'
September 30, 1997 Balance Sheet.
F. Obligation to pay "pay to stay" retention bonuses under the bonus program
described in Item #4 of Schedule 10.14.7 up to $237,000.
G. Accounts Payable and Accrued Expenses up to amounts shown on Xxxx Xxxxxx'
internally prepared December 31, 1997 Balance Sheet, adjusted by audited
December 31, 1997 Statement and further adjusted through the date of Closing
by expenses incurred in the ordinary course of business.
Assumption Agreement
Schedule A (cont.)
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DEALER
RESERVE
1/30/98
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1ST STEP MTR A $18,066
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AOK A $0
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AUTO GALLERY A $ 2,777
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AUTOMART $550
(J.Q.E., Ltd.) A
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BALT BEST A $15,333
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BAYCOUNTRY AUT A $5,240
-----------------------------------------------------------
XXXXX MTR A $24,790
-----------------------------------------------------------
CAMBRIDGE A $0
-----------------------------------------------------------
CAR CAPITAL A $ 4,911
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CATONAUTO A $0
-----------------------------------------------------------
COUNTRY CLUB A $0
-----------------------------------------------------------
DAYS AUTO A $ 2,432
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FARMAX CORP. T/A $0
COUNTY LINE A
-----------------------------------------------------------
H2ONLY, INC. A $2,140
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HAKER AUTO A $0
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XX XXX USED CAR A $ 3,996
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K B AUTO A $14,766
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LDB AUTO A $0
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M & M AUTO A $13,396
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XXXXX MTR. A $ 22,589
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MVSTEVENS A $0
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N WEST VIEW A $2,233
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ROSEDALE CYCLE $14,162
WORLD, INC. A
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XXXX AUTO A $17,735
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SELECT USED CARS A $ 1,100
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SPORTS & IMPORTS I A $20,386
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SPORTS & IMPORTS II A $18,669
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SPORTSMAN A $2,262
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UNIVERSAL A $ 1,847
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TOTALS $209,380
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