EXHIBIT 10.49
PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT (this "Agreement") is entered into this first day
of July 2004, by and among BRIGHTSTAR CORP., a Delaware corporation
("Brightstar"), XXXX XXXXXXX XXXXXX ("Xxxxxx") BRIGHTSTAR EL SALVADOR, S.A., an
entity formed under the laws of the Republic of El Salvador (the "Company") and
J Y M INMOBILIARIA, S.A. DE C.V., an entity formed under the laws of the
Republic of El Salvador ("Seller") and acknowledged and accepted by XXX
XXXXXXXXX XXXXXX XX XXXXXXXX ("Xxxxxxxxx") and SEBASTIAN DE XXXXX XXXXXXXX
XXXXXX ("Sebastian"). Xxxxxx and Brightstar shall collectively be referred to as
"Buyer"; and Xxxxxxxxx and Sebastian shall collectively be referred to as
"Seller's Shareholders".
RECITALS
WHEREAS, Seller owns Three Thousand Five Hundred Forty (3,540) shares of
the stock of Company, which constitutes a forty-nine percent (49%) ownership
interest (the "Seller's Interest") in the Company; and
WHEREAS, Seller desires to sell to Buyer and Buyer desires to purchase
from Seller the Seller's Interest on the terms and conditions set forth in this
Agreement.
NOW THEREFORE, in consideration of the mutual promises and covenants
contained herein, and for other good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the parties hereto agree as follows:
1. Recitals. The above recitals are true and correct and are incorporated
into this Agreement by this reference.
2. Sale and Purchase. Subject to the terms and conditions of this
Agreement, Seller hereby irrevocably sells, transfers and assigns Three Thousand
Five-Hundred Thirty Nine (3,539) shares of the Seller's Interest to Brightstar
(the "Brightstar Purchased Interest") and One (1) share of the Seller's Interest
to Xxxxxx (the "Xxxxxx Purchased Interest") and Brightstar and Xxxxxx hereby
purchase and acquire from Seller, free and clear of all mortgages, liens,
charges, claims, pledges, encumbrances, security interests and rights of other
persons and entities of every nature and description whatsoever (collectively,
the "Encumbrances"), the Seller's Interest, and all of Seller's rights, title
and interest in and to the Seller's Interest, for the consideration set forth in
Section 3 below.
3. Purchase Price.
(a) Net Book Value. The net book value of the Company as of May 31,
2004 was One Million Two Hundred Ten Thousand Seven Hundred Seventy One US
Dollars (US$1,210,771) (the "Net Book Value"). For purposes of this Agreement,
the Net Book Value represents the Company's total stockholders equity as
determined in accordance with accounting principles generally accepted in the
United States of America ("US").
(b) Interest Expense Allocation. Due to an interest expense that
should have been allocated to the Company relating to that certain Twenty Four
Million Dollar ($24,000,000) loan by Ocean Bank in 2003, which loan was
terminated in April 2004, the Company is subject to an adjustment of an interest
expense allocation of Ninety-Three Thousand Six Hundred Sixty-Eight US Dollars
(US$93,668). At a tax rate of 25%, the applicable after-tax interest expense
adjustment is equal to Seventy Thousand Two-Hundred Fifty One US Dollars
(US$70,251) (the "Interest Expense Allocation").
(c) Calculation of Purchase Price. In consideration for the Seller's
Interest, Buyer shall pay to Seller the sum of Five Hundred Fifty-Eight Thousand
Eight Hundred Fifty-Five US Dollars (US$558,855) (the "Purchase Price"),
representing forty-nine percent (49%) of: (i) the Net Book Value, minus (ii) the
Interest Allocation Expense. Xxxxxx shall pay One Hundred Fifty-Eight US Dollars
(US$158) of the portion of the Purchase Price payable to Seller pursuant to
Section 3(d)(i) below as set forth in Section 8(b).
(d) Payment of Purchase Price. The Purchase Price shall be payable
as follows: (i) Three Hundred Thirty-Five Thousand Three Hundred Thirteen U.S.
Dollars (US$335,313), subject to Section 4 hereof, payable as set forth in
Section 8(b) and 8(c) (i), (iii) and (iv), in immediately available funds; and
(ii) Two Hundred Twenty-Three Thousand Five Hundred Forty-Two U.S. Dollars
(US$223,542), payable in shares of Brightstar common stock, $0.0001 par value
("Brightstar Stock"). The number of shares of Brightstar Stock transferred to
Seller pursuant to subsection (ii) hereof shall be calculated by dividing the
dollar value reflected in subsection (ii) hereof by the price per share of the
Brightstar Stock, which price shall be equal to its fair market value as
determined by the valuation study currently prepared by Xxxxxxxx Xxxxx Xxxxxx
and Xxxxx, an independent valuation company ("HLHK"), on or about June 0000 (xxx
"XXXX Valuation Report").
4. Post-Closing Audit. Except as set forth in Section 4(b), Brightstar
shall have a period of thirty (30) days to conduct a post-closing audit of the
books and records of the Company to verify the Net Book Value of the Company as
of May 31, 2004. In the event the audit discloses that the Net Book is
materially less (i.e., a difference of 2% or greater than the Net Book Value
used in calculating the Purchase Price set forth Section 3 hereof), then Seller
shall refund, within fifteen (15) days of receiving written notice of such
difference, forty-nine percent (49%) of such difference in the Net Book Value
from the amounts paid by Brightstar to Seller pursuant to Section 3(d)(i)
hereof.
5. Resignations. Except with respect to the employment position referenced
in Section 6 herein, Seller shall cause Xxxxxxxxx to resign as an officer or
director of the Company as of the Closing Date. Attached hereto as Exhibit A is
the form resignation to be executed by Xxxxxxxxx.
6. Addendum to Employment Agreement. As of the Closing Date, Xxxxxxxxx
shall enter into an addendum to the employment agreement that was entered into
between the Company and Xxxxxxxxx on May 5, 2002 (the "Employment Agreement") in
substantially the same form as that attached hereto as Exhibit B. Under the
Addendum to the Employment Agreement, Xxxxxxxxx shall continue to be employed as
the General Manager of the Company.
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7. Closing. The closing of the transactions contemplated herein (the
"Closing") shall take place on or before July 6, 2004 (the "Closing Date").
8. Closing Deliveries.
(a) Deliveries of Seller. At the Closing, Seller shall deliver the
following:
(i) Stock certificates or other written instruments
representing the Seller's Interest, together with endorsements thereof or valid
stock powers thereto executed by Seller and duly transferring the Xxxxxx
Purchased Interest to Xxxxxx and the Brightstar Purchased Interest to
Brightstar; and
(ii) Margarita's written resignation as an officer and
director of the Company pursuant to Section 5 hereof in the form attached hereto
as Exhibit A.
(b) Deliveries of Xxxxxx. At the Closing, Xxxxxx shall deliver to
Seller One Hundred Fifty-Eight US Dollars (US$158) payable by wire transfer or
other method of payment acceptable to Seller.
(c) Deliveries of Brightstar. Brightstar shall deliver the following
to Seller:
(i) At the Closing, One Hundred Eleven Thousand Six Hundred
Thirteen US Dollars (US$111,613) payable by wire transfer or other method of
payment acceptable to Seller;
(ii) Within fifteen (15) days from the Closing Date, stock
certificates or other written instruments representing the Brightstar Stock
payable to Seller pursuant to Section 3(ii) hereof; and
(iii) Subject to Section 4, within Thirty (30) days from the
Closing Date, One Hundred Eleven Thousand Seven Hundred Seventy-One US Dollars
(US$111,771) payable by wire transfer or other method of payment acceptable to
Seller; and
(iv) Subject to Section 4, within Sixty (60) days from the
Closing Date, One Hundred Eleven Thousand Seven hundred Seventy-One US Dollars
(US$111,771) payable by wire transfer or other method of payment acceptable to
Seller.
9. Further Documentation. Each party hereto shall execute and deliver or
cause to be executed and delivered upon execution hereof and from time to time
hereafter, upon request, all such further documents and instruments, and shall
do and perform all such acts as may be reasonably necessary to give full effect
to the intent of this Agreement.
10. Restrictive Covenants.
(a) Restriction of Transfer of Brightstar Stock. As a material
inducement for Buyer and the Company to enter into this Agreement, Seller hereby
acknowledges and agrees that Seller shall comply with all of the contractual
and/or US Securities and Exchange
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Commission restrictions imposed upon Xxxxxx with respect to the sale, transfer
or disposal of shares of Brightstar.
(b) Confidentiality. As a material inducement for Buyer and the
Company to enter into this Agreement, Seller and Seller's Shareholders hereby
acknowledge and agree that all information relating to Brightstar, Xxxxxx, the
Company and their respective affiliates, shareholders, directors, officers,
employees, agents, successors and assigns (for purposes of this Section 10 the
"Brightstar Parties"), including, without limitation, information regarding the
Brightstar Parties' business, investments and potential business and
investments, trade secrets, financial information, marketing and business plans,
investment and management strategies, methods of providing services, practices,
documentation, drawings, development and technical information, facilities,
contracts, customers, policies, suppliers, pricing, customer lists and leads,
and other information and know-how has actual or potential economic value to the
Brightstar Parties, is not generally known to others and is not readily
ascertainable by them ("Confidential Information"). The Confidential Information
constitutes a valuable, special and unique asset of the Brightstar Parties,
access to and knowledge of which are essential to the business of the Brightstar
Parties. In light of the highly competitive nature of the industry in which the
Brightstar Parties are engaged, Seller and Seller's Shareholders acknowledge and
agree that all such Confidential Information, heretofore or in the future
obtained by the Seller or Seller's Shareholders, whether or not such information
has been specifically designated by the Brightstar Parties as Confidential
Information, shall be deemed to be Confidential Information. The Seller and
Seller's Shareholders shall not, and shall cause Seller's officers, directors,
employees, agents and contractors not to, for a period of five (5) years from
the Closing Date, disclose either directly or indirectly, to any other person,
partnership, corporation, limited liability company or other entity any of the
Confidential Information of the Brightstar Parties or use any of the
Confidential Information.
(c) Non-Compete. Unless otherwise consented to in writing by
Brightstar, as a material inducement for Buyer and the Company to enter into
this Agreement, Seller and Seller's Shareholders warrant, represent and agree
that during Margarita's employment by the Company and for a period of three (3)
years after the date such employment is terminated (which period of time is
agreed to by the parties to be reasonable) neither the Seller, nor Seller's
Shareholders, officers or directors, will (except as it relates to Seller's
ownership of Brightstar Stock or except as it relates to Margarita's employment
as set forth in Section 6 herein) in any manner, either directly or indirectly,
including, without limitation, as an owner, investor, independent contractor,
partner, member, joint venturer, shareholder, manager, officer, director,
employee, agent, or licensee, for any person, firm, partnership, corporation,
limited liability company or other entity, engage in the wholesale distribution
or sale of cellular telephones or accessories (the "Business") anywhere within
South America, Central America, Mexico, the Caribeean or the United States (the
"Territory"). Except as consented to in writing by Brightstar, without limiting
the generality of the foregoing, neither Seller, nor Seller's Shareholders,
directors or officers, shall:
(i) Engage in the Business anywhere within the Territory;
(ii) Enter into, be employed by or consult in an association
or business which is the same or similar to the Business, anywhere within the
Territory;
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(iii) Divert, directly or indirectly, business from any of the
Brightstar Parties;
(iv) Solicit or cause any person or entity ("Person") to
solicit any employees or agents of any of the Brightstar Parties to terminate
their relationship with any of the Brightstar Parties;
(v) Employ or otherwise engage the services of, or cause or
solicit any Person to employ or otherwise engage the services of, any employee
or agent of any of the Brightstar Parties or any Persons who were employees or
agents of any of the Brightstar Parties within the one (1) year period prior to
the date of this Agreement;
(vi) Solicit or cause any Person to solicit any suppliers,
vendors, customers or clients of any of the Brightstar Parties ("Customers") to
terminate their relationship with any of the Brightstar Parties; or
(vii) Enter into, or cause any Person to enter into, any
contractual or business relationship with a Customer or any Person that was a
Customer of any of the Brightstar Parties during the one (1) year period prior
to the date of this Agreement.
(d) Non-Disparagement. Seller and Seller's Shareholders shall, and
Seller shall ensure that its shareholders, officers, directors and employees,
refrain from making any written or oral statement or taking any action, directly
or indirectly, which Seller or Seller's Shareholders reasonably knows or
reasonably should know to be a disparaging or negative comment concerning the
Brightstar Parties with the intent to injure or damage the Brightstar Parties,
and shall refrain from suggesting that any such disparaging or negative comment
concerning the Brightstar Parties be made except as may be compelled by a court
of competent jurisdiction.
(e) Independent Covenants. The covenants in this Section 10 shall be
deemed severable, and the invalidity of any covenant shall not affect the
validity or enforceability of any other covenant or the validity of this
Agreement. The existence of any claim or cause of action by any of the Seller or
Seller's Shareholders shall not constitute a defense to the enforcement by any
of the Brightstar Parties of these covenants, but shall be litigated separately.
(f) Tolling of Time Periods. The time for calculating the term of
the restrictions contained herein shall not include any period of time during
which the covenant is violated or in which any legal action or other proceeding
is ongoing to enforce the terms of this Agreement through the date of final
judgment or final resolution, including all appeals, if any, of such legal
action or other proceeding, unless the Brightstar Parties fail to prevail in
such action or proceeding.
(g) Legitimate Business Interests. After discussion and consultation
or the opportunity to consult with their respective attorneys, the parties agree
that the Brightstar Parties have a legitimate business interest, which must be
protected under this Agreement. It is further acknowledged between the parties
hereto that the provisions contained in this Agreement are reasonable in terms
of scope, time and geographical location, that the restrictions contained herein
are reasonable restraints upon the Seller and Seller's Shareholders and further
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acknowledge that any violation of the terms of the covenants contained in this
Agreement could have a substantial detrimental effect on the legitimate business
interests of the Brightstar Parties. Seller and Seller's Shareholders have
carefully considered the nature and extent of the restrictions imposed upon it
and the rights and remedies conferred upon the Brightstar Parties under the
provisions of this Agreement and hereby acknowledges and agrees that same are
designed to and are required to protect the legitimate business interests of the
Brightstar Parties, and do not confer a benefit upon the Brightstar Parties
disproportionate to the detriment of the Seller or Seller's Shareholders.
(h) Injunctive Relief. It is further recognized and agreed between
the parties hereto that damages at law will be an insufficient remedy to the
Brightstar Parties in the event that the Seller and/or Seller's Shareholders
violate the terms of this Agreement, and that the Brightstar Parties shall
suffer irreparable harm if the Seller and/or Seller's Shareholders violated the
terms of this Agreement. Therefore, in the event the Seller and/or Seller's
Shareholders breach this covenant, the Brightstar Parties shall have the right
not only to pursue an action at law for damages, but also to pursue an action
for injunctive relief and specific performance of this covenant from any court
of competent jurisdiction without the posting of a bond.
(i) Reconstruction of Restrictive Covenants. If any portions of the
terms of this Section 10 are held to be unreasonable, arbitrary or against
public policy by a court exercising competent jurisdiction, such portion of the
covenant shall be considered divisible as to both time and geographical area.
The parties agree that if a court of competent jurisdiction determines the
specified time period or specified geographical area applicable to this Section
10 to be unreasonable, arbitrary or against public policy, the lesser time
period or geographical area which is deemed to be reasonable, not arbitrary and
not against public policy, shall be enforced against the Seller and/or Seller's
Shareholders.
(j) Survival of Provisions. The provisions in this Section 10 shall
survive the termination of this Agreement.
11. Releases.
(a) Release of Seller and Seller's Shareholders. Buyer and the
Company, on their behalf and on behalf of their respective shareholders,
officers and directors hereby release Seller and Seller's Shareholders from any
and all claims, demands, actions, causes of action, judgments, damages, losses,
expenses (including reasonable attorneys' fees) and costs ("Claims") arising
from or relating to the Company, with the exception of (i) the gross negligence
or willful misconduct of the Seller and/or Seller's Shareholders; and (ii) the
breach by Seller and/or Seller's Shareholders of any provision, agreement,
representation, warranty or covenant contained herein or in the Addendum to
Employment Agreement.
(b) Release of Buyer and the Company. Seller hereby releases
Brightstar, Xxxxxx, the Company and their respective shareholders, officers and
directors (as applicable), from any and all Claims arising from or relating to
the Company, with the exception of (i) the gross negligence or willful
misconduct of any of the indemnified parties; and (ii) the material breach by
Brightstar, Xxxxxx or the Company of any provision, agreement, representation,
warranty or covenant contained herein.
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12. Indemnification. Each party hereto (the "Indemnifying Party")
indemnifies and holds the other and the other's affiliates, successors and
assigns, and their respective shareholders, directors, officers, employees and
agents (the "Indemnified Parties"), as applicable, harmless from any and all
Claims arising from or relating to any material breach by the Indemnifying
Party, its affiliates, successors, legal beneficiaries or assigns or their
respective shareholders, directors, officers, employees or agents of any
agreement, representation, warranty or covenant contained herein.
13. Representations and Warranties of Seller. Seller hereby represents,
warrants and covenants to Buyer and the Company that as of the date hereof and
as of the Closing Date:
(a) Power and Authorization. Seller has all requisite legal power
and authority to execute and deliver this Agreement and to perform her
obligations under the terms of this Agreement. All actions on the part of Seller
necessary for the authorization, execution, delivery and performance of this
Agreement by her have been performed.
(b) Binding Agreement. This Agreement constitutes legally valid and
binding obligations of Seller enforceable against her in accordance with its
terms. The execution of this Agreement will not constitute a breach of any other
agreement to which Seller is a party and the execution, delivery and performance
of this Agreement by Seller will not, with or without the giving of notice or
the passage of time, or both, conflict with, result in a default, right to
accelerate or loss of rights under, or result in the creation of any Encumbrance
pursuant to, any provision of any agreement, understanding, law, rule or
regulation or any order, judgment or decree to which Seller is a party or by
which Seller is bound.
(c) Ownership. Seller is the sole legal and beneficial owner of the
Seller's Interest and the Seller's Interest, upon consummation of the
transactions contemplated hereby, will be validly issued, fully paid and
non-assessable and will have the rights, preferences, privileges and
restrictions described in the Company's organizational documents, and the
Seller's Interest will be free of any Encumbrances. The Seller's Interest
represent all of Seller's ownership interest in the Company, and after the
execution hereof, Seller shall have no rights, title or interest in any shares
of capital stock or other equity securities of the Company and Seller has no
options, warrants or other rights, whether contractual, equitable or otherwise,
to purchase any equity interest in the Company. The certificates representing
the Seller's Interest are, and the signatures and endorsements thereof or stock
powers relating thereto will be, valid and genuine.
(d) Litigation. There are no actions, suits, proceedings or
investigations pending or threatened against Seller, which would affect the
Seller's Interest, before any court or governmental agency and there is no
reasonable basis therefore.
(e) Disclosure. This Agreement does not contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make
the statements contained herein not misleading in light of the circumstances
under which they were made.
(f) Securities Act. Seller hereby acknowledges and agrees that the
Brightstar Stock payable to Seller has not been registered under the Securities
Act of 1933, as amended (the
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"Securities Act"), and may be transferred pursuant only to the registration
under such Securities Act or an exemption therefrom. Seller hereby acknowledges
and agrees that Seller is not a "U.S. Person", as defined in Rule 902(k) under
the Securities Act.
14. Representations and Warranties of Seller's Shareholders. Seller's
Shareholders represent, warrant and covenant to Buyer and the Company that as of
the date hereof and as of the Closing Date:
(a) Power and Authorization. Seller's Shareholders have all
requisite legal power and authority to execute and deliver this Agreement and to
perform its obligations under the terms of this Agreement.
(b) Binding Agreement. This Agreement constitutes legally valid and
binding obligations of Seller's Shareholders enforceable against them in
accordance with its terms. The execution of this Agreement will not constitute a
breach of any other agreement to which Xxxxxxxxx or Sebastian are a party and
the execution, delivery and performance of this Agreement by Xxxxxxxxx or
Sebastian will not, with or without the giving of notice or the passage of time,
or both, conflict with, result in a default, right to accelerate or loss of
rights under, or result in the creation of any Encumbrance pursuant to, any
provision of any agreement, understanding, law, rule or regulation or any order,
judgment or decree to which either Xxxxxxxxx or Sebastian is a party or by which
either Xxxxxxxxx or Sebastian is bound.
15. Representations and Warranties of Brightstar. Brightstar represents,
warrants and covenants to Seller that as of the date hereof and as of the
Closing Date:
(a) Organization. Brightstar is a corporation duly incorporated and
validly existing under, and by virtue of, the laws of Delaware and is in good
standing under such laws.
(b) Power and Authorization. Brightstar, as well as the individual
executing this Agreement on its behalf, has all requisite legal power and
authority to execute and deliver this Agreement and to perform its obligations
under the terms of this Agreement. All actions on the part of Brightstar
necessary for the authorization, execution, delivery and performance of this
Agreement by it have been performed.
(c) Binding Agreement. This Agreement constitutes legally valid and
binding obligations of Brightstar enforceable against it in accordance with its
terms. The execution of this Agreement will not constitute a breach of any other
agreement to which Brightstar is a party and the execution, delivery and
performance of this Agreement by Brightstar will not, with or without the giving
of notice or the passage of time, or both, conflict with, result in a default,
right to accelerate or loss of rights under, or result in the creation of any
Encumbrance pursuant to, any provision of any agreement, understanding, law,
rule or regulation or any order, judgment or decree to which Brightstar is a
party or by which Brightstar is bound.
(d) Disclosure. This Agreement does not contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make
the statements contained herein not misleading in light of the circumstances
under which they were made.
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16. Representations and Warranties of Xxxxxx. Xxxxxx represents, warrants
and covenants to Seller that as of the date hereof and as of the Closing Date:
(a) Power and Authorization. Xxxxxx has all requisite legal power
and authority to execute and deliver this Agreement and to perform his
obligations under the terms of this Agreement.
(b) Binding Agreement. This Agreement constitutes legally valid and
binding obligations of Xxxxxx enforceable against him in accordance with its
terms.
17. Representations and Warranties of the Company. The Company represents,
warrants and covenants to Seller that as of the date hereof and as of the
Closing Date:
(a) Organization. The Company is an entity duly organized and
validly existing under, and by virtue of, the laws of the Republic of El
Salvador and is in good standing under such laws.
(b) Power and Authorization. The Company, as well as the individual
executing this Agreement on its behalf, has all requisite legal power and
authority to execute and deliver this Agreement and to perform its obligations
under the terms of this Agreement. All actions on the part of the Company
necessary for the authorization, execution, delivery and performance of this
Agreement by it have been performed.
(c) Binding Agreement. This Agreement constitutes legally valid and
binding obligations of the Company enforceable against it in accordance with its
terms. The execution of this Agreement will not constitute a breach of any other
agreement to which the Company is a party and the execution, delivery and
performance of this Agreement by the Company will not, with or without the
giving of notice or the passage of time, or both, conflict with, result in a
default, right to accelerate or loss of rights under, or result in the creation
of any Encumbrance pursuant to, any provision of any agreement, understanding,
law, rule or regulation or any order, judgment or decree to which the Company is
a party or by which the Company is bound.
(d) Disclosure. This Agreement does not contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make
the statements contained herein not misleading in light of the circumstances
under which they were made.
18. Survival. All agreements, representations, warranties and indemnities,
by whomsoever made, contained in this Agreement shall survive the execution and
delivery of this Agreement and the Closing.
19. Miscellaneous Provisions.
(a) Entire Agreement. This Agreement constitutes the entire
agreement among the parties pertaining to the subject matter hereof, and
supersedes and revokes any and all prior or existing agreements, written or
oral, relating to the subject matter hereof, and this Agreement shall be solely
determinative of the subject matter hereof.
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(b) Amendments. This Agreement may not be amended, modified,
superseded, canceled, or terminated, except by a written instrument executed by
the parties hereto.
(c) Counterparts. This Agreement may be executed in one or more
counterparts, and any such counterpart shall, for all purposes, be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument. All parties acknowledge that a facsimile copy of this Agreement
may be executed and shall have the same binding force and effect, and in such
case each party agrees to execute the appropriate original agreement thereafter
if requested.
(d) Severability. The invalidity or unenforceability of any
provision hereunder (or any portion of such a provision) shall not affect the
validity or enforceability of the remaining provisions (or remaining portions of
such provisions) of this Agreement.
(e) Waiver. The parties hereto may, at any time or times, waive (in
whole or in part) any rights or privileges to which it may be entitled
hereunder. However, no waiver by any party of any condition or of the breach of
any term contained in this Agreement, in any one or more instances, shall be
deemed to be or construed as a further continuing waiver of any other condition
or of any breach of any other terms contained in this Agreement, and no waiver
shall be effective unless it is in writing and signed by the waiving party and
to the extent required, any other prerequisites to a waiver under this Agreement
are satisfied.
(f) Binding Effect and Agreement. This Agreement shall be binding
upon the parties hereto and their respective heirs, personal or other legal
representatives, successors, and permitted assigns.
(g) Governing Law; Jurisdiction; Venue; Consent to Service. This
Agreement shall be governed by and construed in accordance with the internal
laws of the State of Florida, determined without regard to provisions of
conflicts of laws. Each of the parties hereto irrevocably consents to the
exclusive jurisdiction of the state and federal courts located in Miami-Dade
County in the State of Florida in any and all actions between or among any of
the parties hereto, whether arising hereunder or otherwise. Venue for any action
arising hereunder shall lie exclusively in Miami-Dade County, Florida. The
parties hereto further agree that service of process, relating to an action
arising hereunder, pursuant to the notice provision set forth in this Agreement
shall be sufficient and hereby waive any claim for insufficiency of process as a
result of a party's use of such method of service.
(h) Enforcement Costs. If any legal action or other proceedings is
brought for the enforcement of this Agreement, or because of an alleged dispute,
breach, default or misrepresentation in connection with any provision of this
Agreement, the prevailing party shall be entitled to recover reasonable
attorneys' fees, court costs and all expenses incurred in that action or
proceeding, in addition to any other relief to which such party may be entitled.
(i) Specific Performance. The Seller's Interest cannot be readily
purchased or sold in the open market, and, for that reason, among others, the
parties hereto will be irreparably damaged (and damages at law would be an
inadequate remedy) if this Agreement is
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not specifically enforced. Therefore, in the event of a breach or threatened
breach by any party hereto of any provision hereof, the other party shall be
entitled, in addition to all other rights or remedies, to injunctions
restraining such breach, without being required to show any actual damage or to
post any bond or other security, and/or to a decree for specific performance of
the provisions of this Agreement.
(j) Notice. All notices, requests, consents and other communications
required or permitted under this Agreement shall be in writing and shall be
deemed given upon hand delivery by messenger or two (2) days after mailing by
internationally recognized overnight courier (i.e., Federal Express, United
Parcel Service, DHL) addressed to the address set forth below for each party:
If to Brightstar and/or
the Company: Brightstar Corp.
0000 X.X. 00xx Xxxxxx
Xxxxx, Xxxxxxx 00000
Attn: R. Xxxxxxx Xxxxxx
If to Xxxxxx: Xxxx Xxxxxxx Xxxxxx
0000 X.X. 00xx Xxxxxx
Xxxxx, Xxxxxxx 00000
With a copy to: Xxxxxxxxxxx & Xxxxxxxx LLP
Miami Center, Suite 2000
000 X. Xxxxxxxx Xxxx.
Xxxxx, Xxxxxxx 00000
Attn: Xxxxxxx X.Xxxxxx,Esq.
If to Seller and/or Seller's J Y M Inmobiliaria, S.A. de C.V.
Shareholders: 67 Avenida Sur No. 2-D Colonia Roma
San Salvador, El Salvador CA
Attn: Xxx Xxxxxxxxx Xxxxxx xx Xxxxxxxx
With a copy to: Buffete Xxxxxx Xxxx
Calle Padres Xxxxxxx No. 192
Colonia Escalon
San Salvador, El Salvador CA
or to such other address as may be designated by notice complying with the terms
of this Section.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.
BRIGHTSTAR:
BRIGHTSTAR CORP.
11
By: /s/ R. Xxxxxxx Xxxxxx
--------------------------------
R. Xxxxxxx Xxxxxx, President
XXXXXX:
/s/ R. Xxxxxxx Xxxxxx
------------------------------------
R. XXXXXXX XXXXXX, Individually
COMPANY:
BRIGHTSTAR EL SALVADOR, S.A.
By: /s/ Xxxx X. Xxxxxx
--------------------------------
Name: Xxxx X. Xxxxxx
Its: Director - President
SELLER:
J Y M INMOBILIARIA, S.A. DE C.V.
By: /s/ Xxx Xxxxxxxxx Xxxxxx xx Xxxxxxxx
-------------------------------------
Name: Xxx Xxxxxxxxx Xxxxxx xx Xxxxxxxx
Title: Representante Legal
THIS AGREEMENT IS HEREBY ACKNOWLEDGED AND ACCEPTED ON THIS FIRST DAY OF JULY BY
:
SELLER'S SHAREHOLDERS:
/s/ Xxx Xxxxxxxxx Xxxxxx xx Xxxxxxxx
------------------------------------------------
XXX XXXXXXXXX XXXXXX XX XXXXXXXX, Individually
/s/ Sebastian de Xxxxx Xxxxxxxx
------------------------------------------------
SEBASTIAN DE XXXXX XXXXXXXX, Individually
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EXHIBIT A
RESIGNATION
Board of Directors
Brightstar El Salvador, S.A.
00 Xxxxxxx Xxx Xx. 000
Xxx Xxxxxxxx, El Salvador
I, Xxx Xxxxxxxxx Xxxxxx xx Xxxxxxxx, hereby tender my resignation as an
officer and a member of the Board of Directors of Brightstar El Salvador, S.A.,
to be effective immediately.
Date: July 1, 2004
/s/ Xxx Xxxxxxxxx Xxxxxx xx Xxxxxxxx
---------------------------------------
Xxx Xxxxxxxxx Xxxxxx xx Xxxxxxxx
13
EXHIBIT B
ADDENDUM TO EMPLOYMENT AGREEMENT
14
