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THIS DOCUMENT, WHICH IS BASED ON GEORGIA LAW, IS INTENDED TO INFORM NOT
TO ADVISE. NO ONE SHOULD ATTEMPT TO APPLY OR INTERPRET ANY LAW
WITHOUT THE AID OF A LAWYER WHO KNOWS CRIMINAL LAW AND COURT RULES,
BECAUSE THE FACTS OF EACH INDIVIDUAL CASE ARE DIFFERENT AND MAY CHANGE
THE APPLICATION OF THE LAW.
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AGREEMENT FOR PURCHASE AND SALE OF ASSETS
THIS AGREEMENT is made at Ringgold, Georgia, as of the
________ day of ______________,1990 by ________________________
hereinafter referred to as the Purchaser, and ________________________
___________________________, a Tennessee Corporation, hereinafter referred
to as the Seller.
RECITAL
The Purchaser desires to purchase and receive from the
Seller, and the Seller desires to sell and assign to the
Purchaser, all of the Seller's properties, assets, and
business as a going concern which are determined to be useful
by Purchaser, and also a list of all customers, said list
consisting of approximately 300 names, addresses, and
telephone numbers.
AGREEMENT
THEREFORE, in consideration of the mutual promises and
conditions contained in this Agreement, the parties hereby
agree as follows:
PURCHASE AND SALE
(1) Upon the terms and subject to all of the conditions in
this Agreement and the performance by each of the parties of
their respective obligations, the Purchaser agrees to purchase
from the Seller, and the Seller agrees to sell and deliver to
the Purchaser on the Closing Date, all of the Seller's
properties, assets, and business as a going concern, including
its cash on hand and in banks, accounts receivable corporate
books, records, and seal, all of which shall be retained by
the Purchaser. The properties, assets, and business to be
conveyed and delivered include those described or referred to
in Exhibit A attached hereto.
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PURCHASE PRICE
(2) Subject to the terms and conditions of this Agreement,
and in full consideration for the conveyance, transfer, and
delivery of the Seller's properties, assets, and business to
the Purchaser at the Closing:
(a) The Purchaser will deliver to the Seller a cashier's
check in the sum of $_____________.
(b) The Purchaser will assume the indebtedness owed by
the Seller to _______________, as evidenced by a
promissory note in the principal amount of ________;
a copy of the note is attached as Exhibit B.
(c) The Purchase will assume the indebtedness owed by
the Seller to __________________, as evidenced by a
promissory note in the principal amount of ________;
a copy of the note is attached as Exhibit B-1.
(d) The above notes will be assumed by Purchaser subject
to the Creditor's approval.
ALLOCATION OF PURCHASE PRICE
(3) The foregoing purchase price shall be apportioned among
the properties, assets, and business being sold by the Seller
to the Purchaser hereunder as follows:
(a) Inventory (Wholesale rate) $____________
(b) Furniture, Fixtures, and $____________
Equipment(Appraised or Book
value)
(c) Utility Deposits $____________
(d) Covenant Not to Compete $____________
(e) Goodwill $____________
Total $____________
____________
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ASSUMPTION OF CERTAIN OBLIGATIONS BY PURCHASER
(4) At the Closing, the Purchaser shall assume and agree
to discharge the Seller's obligation to ____________________
as described in Paragraph 2(b). Except as expressly provided
in this Section 4, the Purchaser will not assume and will not
discharge or be liable for any debts, liabilities, or
obligations of the Seller, including, without limitation, any
(a) liabilities or obligations of the Seller to its creditors
or stockholders as such or as creditors; (b) liabilities or
obligations of the Seller with respect to any transactions
occurring after the Closing; (c) sales or income tax or other
liabilities or obligations of the Seller incurred in
connection with the sale of its properties, assets, or
business pursuant to this Agreement, or in connection with its
liquidation or dissolution; or (d) any contingent liabilities
or obligations of the Seller.
CLOSING AND CERTAIN RELATED MATTERS
(5)(a) The Closing shall be on December _____,1990 or such
other date as the parties hereto shall mutually agree. The
time and place of the Closing shall be at the law office of
Marshall M. Bandy, Jr. at 505 Lafayette Street, Ringgold,
Georgia.
INSTRUMENTS OF CONVEYANCE AND TRANSFER
(b) At the Closing:
(i) The Seller will deliver to the Purchaser such
deeds, bills of sale, endorsements,
assignments, and other good and sufficient
instruments of conveyance and transfer in form
satisfactory to the Purchaser's counsel,
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MARSHALL M. BANDY, JR., and containing full
warranties of title, as shall be effective to
vest in the Purchaser good, absolute, and
marketable title to the properties, assets, and
business being transferred to the Purchaser by
the Seller, free and clear of all liens,
charges and encumbrances, and restrictions
whatsoever; and
(ii) The Seller will deliver to the Purchaser all
the contracts, dealer franchises, agreements,
commitments, and rights pertaining to the
Seller's business and other data relating to
its assets, business, and operation, except its
books of account and supporting records,
corporate minutes books and stock transfer
records of the Seller. Seller agrees to
provide copies of books of account and
supporting records, corporate minute books and
stock transfer records of the Seller.
(iii) Simultaneously with such deliver, the Seller
will take all such steps as may be requisite to
put the Purchaser in actual possession,
operation, and control of the properties,
assets, and business to be transferred
hereunder.
SALES AND TRANSFER TAXES AND FEES
(c) All applicable sales, transfer, documentary, use,
filing, and other taxes and fees that may be due or
payable as a result of the conveyance, assignment,
transfer, or delivery of the property, assets, or
business to be conveyed and transferred as provided
herein whether levied on the Seller or the Purchaser
shall be borne by the Seller. The parties agree that
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the Purchaser shall not pay any such tax, but that
all such taxes shall be paid by the Seller, subject
to its right in good faith to contest the validity
or amount thereof by proper proceedings at its
expense.
FURTHER ASSURANCES TO PURCHASER
(d) From time to time, after the Closing, at the request
of the Purchaser, the Seller will execute and
deliver to the Purchaser such other instruments of
conveyance and transfer and take such other action
as the Purchaser may reasonably require more
effectively to convey, transfer to, and vest in the
Purchaser, and to put the Purchaser in possession
of, any of the properties or assets to be conveyed,
transferred, and delivered to the Purchaser
hereunder.
REPRESENTATIONS AND WARRANTY BY SELLER
(6) As a material inducement to the Purchaser to execute
and perform its obligations under this Agreement, the Seller
hereby represents and warrants to the Purchaser as follows:
ORGANIZATION OF SELLER
(a) The Seller is a corporation duly organized, validly
existing, and in good standing under the laws of the
State of Tennessee and has all requisite
corporate and authority to carry on its business
as it is presently being conducted, to enter into
this Agreement, and to carry out and perform the
terms and provisions of this Agreement. Seller has
no subsidiaries and, further, has no direct or
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indirect interest (other than as a creditor under
accounts receivable), either by way of stock
ownership or otherwise, in any other firm,
corporation, association, or business enterprise.
CAPITALIZATION
(b) The Seller is duly and lawfully authorized by its
Articles of Incorporation, as heretofore duly and
lawfully amended, to issue __________shares of
_________, ______________, of which there are
__________ shares validly issued and outstanding as
of the date of this Agreement. The Seller has not
other class or series or authorized capital stock.
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There are in existence no outstanding options,
contracts, commitments, warrants, agreements, or
rights of any character or nature whatever affecting
or relating in any manner to the issuance of the
Seller's capital stock.
FINANCIAL STATEMENTS
(c) The Seller has delivered to Purchaser an audited
balance sheet, hereinafter referred to as the
Balance Sheet, of the Seller as of ________________,
1990, a copy of which is attached hereto as Exhibit
C, said audit to be performed by a certified public
accountant subject to approval of Purchaser. To the
best of the Seller's knowledge and belief, the
Balance Sheet fairly presents the condition of the
Seller at the date thereof and discloses all of the
debts, liabilities, and obligations of the Seller,
whether accrued, absolute, contingent, or otherwise
due or to become due (including without limitation
liabilities for taxes of any kind whatsoever) or
arising out of transactions occurring, or any state
of facts existing, on or prior to the date of such
Balance Sheet. The Balance Sheet was prepared in
accordance with generally accepted accounting
principles, applied on a basis consistent with prior
periods.
CHANGES
(d) Between November 1, 1990 and the date hereof, the
Seller has not:
(i) Incurred any obligations or liabilities,
absolute, accrued, contingent, or otherwise,
except current liabilities incurred in the
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ordinary course of business, and those current
liabilities are as follows:
;
(ii) Mortgaged, pledged, subjected to lien, charge,
or encumbrance, or granted a security interest
in, any of its assets, tangible or intangible;
(iii)Canceled any debt or claim or sold or
transferred any of its assets or properties,
except sales out of inventory in the ordinary
course of business;
(iv) Suffered any damage, destruction, or loss
(whether or not covered by insurance) affecting
its properties, business, or prospects, or
waived any rights of substantial value; or
(v) Entered into any transaction other than in the
ordinary course of business other than
specifically enumerated as follows:
.
LITIGATION
(e) There are no actions, suits, or proceedings pending
or threatened against the Seller or affecting any of
its properties or rights, at law or in equity, or
before any federal, state, municipal, or other
governmental agency or instrumentality, domestic or
foreign, nor is the Seller or any of its officers or
directors aware of any facts which to its or their
knowledge might result in any such action, suit, or
proceeding. The Seller is not in default with
respect to any order or decree of any court or of
any such governmental agency or instrumentality. The
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only exception being civil action ______ in Hamilton
County, Tennessee. Purchaser warrants that it has or
will prior to Closing furnish all pending and other
relevant documents to Purchaser's counsel and
Purchaser shall be entitled to receive opinion of
counsel which confirms Seller's warranty prior to
Closing sale.
COMPLIANCE WITH LAW AND OTHER INSTRUMENTS
(f) The Seller is not in violation of any term or
provision of any charter, bylaw, mortgage,
indenture, contract, agreement, instrument,
judgment, decree, order, statute, rule or
regulation, and the execution and delivery of and
performance and compliance with this Agreement will
not result in the violation of or be in conflict
with or constitute a default under any
such term or provision or result in the creation of
any mortgage, lien, encumbrance, or charge upon any
of the properties or assets of the Seller pursuant
to any such term or provision.
CORPORATE ACTS AND PROCEEDINGS
(g) The sale and transfer of assets by the Seller, as
provided for in this Agreement, have been approved
and consented to by the Board of Directors of the
Seller and by the requisite number of holders of its
outstanding capital stock, and all action required
by any applicable law or otherwise by stockholders
of the Seller with regard to such sale and transfer
of assets by Seller [and its change of name to
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______________ Corporation] have been appropriately
authorized and accomplished.
TITLE TO PROPERTIES AND ASSETS
(h) The Seller has good, absolute, and marketable title
to all of its properties and assets being sold to
the Purchaser pursuant to this Agreement, including
without limitation those reflected in the Balance
Sheet (other than inventory since sold or disposed
of in the ordinary course of business) and those
described or referred to in Exhibit A hereto, held
in each case subject to not lease, mortgage, pledge,
lien, charge, security interest, encumbrance, or
restriction whatsoever. The furniture, fixtures,
and equipment of the Seller are in good condition
and repair, reasonable wear and tear excepted and
are listed on attached Exhibit _____ (1).
PATENTS AND TRADEMARKS
(i) The Seller has no knowledge of any claim or reason
to believe that it is or may be infringing or
otherwise acting adversely to the rights of any
person under or in respect of any patent, trademark,
service mark, trade name, copyright, license, or
other similar intangible right. The Seller is not
obligated or under any liability whatever to make
any payments by way of royalties, fees, or otherwise
to any owner or licensee of or other claimant to any
patent, trademark, trade name, copyright, or other
intangible asset with respect to the use thereof or
in connection with the conduct of its business or
otherwise.
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NO DEFAULT
(j) The Seller is not in default in any respect under
any of the contracts, agreements, leases, documents,
or other commitments to which it is a party or
otherwise bound.
ABSENCE OF CERTAIN CHANGES OR EVENTS
(k) Since the date of the Balance Sheet, there has not
been any adverse change in, or event or condition
adversely affecting the condition (financial or
otherwise) of properties, assets, liabilities,
business, or prospects of the Seller.
DEALERS
(l) The introduction of the Seller to the Purchaser and
all negotiations on the part of the Seller relative
to this Agreement and the transaction contemplated
hereby have been effected and carried on by the
Seller directly with the Purchaser without the
intervention of any dealer, finder, or other person.
DISCLOSURE
(m) No representation or warranty by the Seller in this
Agreement or in any writing attached hereto,
contains or will contain any untrue statement of
material fact or omits or will omit to state any
material fact (of which the Seller or any of its
directors or stockholders has knowledge or notice)
required to make the statements herein or therein
contained not misleading.
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CONDITIONS PRECEDENT TO THE CLOSING BY PURCHASER
(7) The obligation of the Purchaser to consummate this
Agreement is subject to and conditioned upon the satisfaction,
at or prior to the Closing, of each of the following
conditions:
COMPLIANCE WITH AGREEMENT
(a) All the terms and conditions of this Agreement to be
complied with and performed by the Seller on or
before the Closing Date, including the delivery to
the Purchaser of all schedules, documents, and
instruments required to be delivered to purchaser by
this Agreement, shall have been complied with and
performed.
APPROVAL OF LEGAL MATTERS BY PURCHASER'S COUNSEL
(b) The validity or legality of all actions,
proceedings, instruments, and documents required to
carry out this Agreement or incidental thereto, and
all other related legal matters, shall have been
approved by Purchaser's counsel, MARSHALL M. BANDY,
JR.; and there shall have been furnished to such
counsel by the Seller such corporate and other
records of the Seller as they may have requested for
such purpose.
COUNSEL'S OPINION
(c) The Seller shall have delivered to the Purchaser an
opinion dated the date hereof, of Seller's
counsel,Ralph Killabrew, Jr., to the effect that:
(i) The Seller is a duly organized and validly
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existing corporation in good standing under the laws
of the State of Tennessee;
(ii) The Seller has the corporate power to carry on
its business as it is presently being
conducted, to enter into this Agreement, to
assign, transfer, and deliver to the Purchaser
the properties, assets, and business of the
Seller as contemplated by this Agreement, and
to carry out the provisions of this Agreement;
(iii) All corporate proceedings required by law or by
the provisions of this Agreement to be taken by
the Board of Directors and shareholders of the
Seller on or prior to the date hereof in
connection with the consummation of the
transactions contemplated by this Agreement
have been duly and validly taken;
(iv) This Agreement and the instruments executed and
delivered to Purchaser pursuant to this
Agreement have been fully and properly
authorized, executed, and delivered and
constitute the legal, valid, and binding
obligation of the Seller or the stockholders of
the Seller, enforceable in accordance with
their terms;
(v) The performance of this Agreement and the
consummation of the transactions contemplated
hereby will not result in any breach or
violation of any of the terms or provisions of,
or constitute a default under, the Seller's
Articles of Incorporation or Bylaws, or any
agreement or instrument to which the Seller is
a party or by which it is bound or to which any
of its property is subject;
(vi) Such counsel has no knowledge of any
litigation, (other than that listed in this
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agreement) proceeding, or governmental
investigation (whether state or federal) or
labor dispute or labor trouble pending or
threatened against or relating to the Seller or
its properties, assets, or business.
CONSENT TO ASSIGNMENT OF LEASE
(d) The Seller shall have obtained from the Lessor of
the premises located at
_____________________________, his consent to the
assignment of the rights of the Lessee under the
lease agreement dated ______________,19____, between
____________________, as Lessor, and Signal
Communications, as Lessee, and his agreement to
substitute RTC Communication, Inc. as the primary
Lessee under the terms of the lease agreement.
DELIVERY OF CERTAIN INSTRUMENTS BY SHAREHOLDERS
(e) The shareholders of the Seller shall have executed
and delivered to the Purchaser a joint and several
Guaranty and Agreement of Indemnity, dated the date
of the Closing, and in the form attached hereto as
Exhibit D.
COMPLIANCE WITH BULK TRANSFER LAW
(f) All notice and other requirements of Sections
__________shall have been complied with.
REPRESENTATIONS AND WARRANTIES
(g) The representations and warranties of the Seller in
Paragraph (6) hereof shall be deemed to have been
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made again on the Closing Date and then be true and
correct, subject to any changes contemplated by this
Agreement. There shall have been no materially
adverse change in the financial condition of the
Seller.
NATURE AND SURVIVAL OF REPRESENTATIONS AND WARRANTIES
(8) The representations and warranties contained in and
made pursuant to this Agreement shall survive the execution
and delivery of this Agreement and all inspections,
examinations, and audits made at any time by or on behalf of
any of the parties.
INDEMNIFICATION
(9) The Seller shall, and hereby agrees to, indemnify and
hold harmless, the Purchaser at all times from and after the
Closing Date against and in respect to any damages, as
hereinafter defined. Damages, as used herein, shall include
any claims, actions, demands, losses, costs, expenses,
liabilities (joint or several), penalties, and damages,
including counsel fees incurred in investigating or in
attempting to avoid the same or oppose the imposition
thereof,resulting to the Purchaser from (a) any materially
inaccurate representation made by the Seller in or under this
Agreement; (b) breach of any of the warranties made by the
Seller in or under this Agreement; (c) breach or default in
the performance by the Seller of any of the covenants to be
performed by it hereunder; and (d) any debts, liabilities, or
obligations of the Seller, whether accrued, absolute,
contingent, or otherwise, due or to become due, except those
obligations specifically assumed by the Purchaser in Paragraph
(2)(b) of this Agreement.
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DEMANDS AND ACTIONS
(10) The Purchaser agrees that promptly upon receipt by it
of notice of any demand, assertion, claim, action, or
proceeding, judicial or otherwise, with respect to any matter
as to which the Seller and its stockholders (by separate
agreement) have agreed to indemnify the Purchaser under the
provisions of this Agreement, the Purchaser will give prompt
notice thereof in writing to the Seller, together, in each
instance, with a statement of such information respecting such
demand, assertion, claim, action, or proceeding as the
Purchaser shall then have. The Seller reserves the right to
contest and defend by all appropriate legal or other
proceedings any demand, assertion, claim, action, or
proceeding with respect to which it or its stockholders have
been called upon to indemnify the Purchaser under the
provisions of this Agreement; provided, however, that:
(a) Notice of the intention so to contest shall be
delivered to the Purchaser within ________ calendar
days from the date of receipt by the Seller of
notice of the assertion of such demand, assertion,
claim, action, or proceeding;
(b) The Seller shall pay all costs and expenses of such
contest, including all attorneys' and accountants'
fees and the cost of any bond required by law to be
posted in connection with such contest; and
(c) Such contest shall be conducted by reputable
attorneys employed by the Seller at the Seller's
cost and expense, but the Purchaser shall have the
right to participate in such proceedings and to be
represented by attorneys of its own choosing, at its
own cost and expense.
If after such opportunity, the Seller does not elect to
participate, or does not participate, in any such proceedings,
the Seller and its stockholders shall be bound by the results
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obtained by the Purchaser, including without limitation any
out-of-court settlement or compromise.
If Seller elects to contest any demand, assertion, or
claim, neither it nor its stockholders shall be obligated to
make any payments to the Purchaser with respect thereto until
the legal remedies available to the Seller or Purchaser, as
the case may be, with respect to such demand, assertion, or
claim, shall have been exhausted.
If requested by the Seller, the Purchaser agrees to
cooperate with the Seller in contesting any demand, assertion,
or claim which the Seller elects to contest, or, if
appropriate, in the making of any counterclaim or demand
against the person asserting such demand, assertion, or claim
or any cross-complaint against any person; but the Seller will
reimburse the Purchaser for any expenses incurred by the
Purchaser in so cooperating with the Seller. If such
counterclaim or cross-complaint results in receipt by the
Purchaser of amounts in excess of the amount which is subject
to any such demand, assertion, or claim, such excess shall
first be applied to the payment of the reasonable costs and
expenses of the Seller incurred in connection with such
contest, counterclaim, or cross-complaint, and the balance
retained by the Purchaser.
COVENANT NOT TO COMPETE
(11) The Seller and its officers and directors [and all of
its shareholders] agree separately and severally that, for a
period of two years from the date of closing, they will not,
directly or indirectly, own, manage, operate, join, control,
or participate in the ownership, management, operation, or
control of, or be connected with, in any manner, any business
in Hamilton, Bradley, Sequatchie Counties in Tennessee, and
Catoosa, Walker, Dade, Whitfield, and Chattooga Counties nor
within a 75 mile radius of the City of Chattanooga, Tennessee,
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which shall be in competition with the business of the Seller
presently being conducted.
SATISFACTION OF DEBTS
(12) The Seller hereby further covenants that as promptly
as practicable after the Closing it will satisfy in full all
of its debts, liabilities, and obligations. From and after
the Closing Date, the Seller will not engage in any business
or other activity, except as required to wind up and dissolve
the corporation.
FIRE CASUALTY
(13) The Seller assumes all risk of destruction, loss, or
damage due to fire or other casualty up to the date of
Closing. Upon said destruction, loss, or damage due to fire or
other casualty of a substantial portion of the assets listed
in Exhibit A, the Purchaser shall have the option to terminate
this Agreement and, in the event of the exercise of such
option, all rights of the Purchaser and the Seller shall
terminate without liability to any party. The Purchaser shall
notify the Seller within _________________ days after
receiving written notice of said destruction, loss, or damage
due to fire or other casualty, of its decision to terminate
this Agreement. If the Purchaser does not timely notify the
Seller of termination, this Agreement shall remain in full
force and effect, provided, however, the purchase price shall
be adjusted at the Closing to reflect such destruction, loss,
or damage, and if the Purchaser or Seller are unable to agree
upon the amount of such adjustment, the dispute shall be
determined by an independent appraiser and such determination
shall be binding upon both the Purchaser and Seller herein.
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MISCELLANEOUS
(14)(a) This Agreement shall not be assignable by the
Seller of Purchaser without the consent of the
other. Nothing in this Agreement, expressed or
implied, is intended to confer upon any person,
other than the parties hereto and their successors,
any rights or remedies under or by reason of this
Agreement.
EXPENSES
(b) Each of the parties shall bear all expenses incurred
by them in connection with this Agreement and in the
consummation of the transactions contemplated hereby
and in preparation thereof.
AMENDMENT AND WAIVER
(c) This Agreement may be amended or modified at any
time and in all respects, or any provisions may be
waived by an instrument in writing executed by the
Purchaser and the Seller, or either of them in the
case of a waiver.
NOTICES
(d) Any notices or other communications required or
permitted hereunder shall be sufficiently given if
delivered personally or sent by registered or
certified mail, postage prepaid, addressed to the
Seller or its stockholders at _____________________
or to the Buyer's Counsel at P.O. Box 429, Ringgold,
Georgia, or at such other address as shall be
furnished in writing by any party to the others, and
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shall be deemed to have given as of the date so
delivered or deposited in the United States mail
postage paid, as the case may be.
CHOICE OF LAW
(e) It is the intention of the parties that the laws of
the State of Georgia should govern the validity of
this Agreement, the construction of its terms, and
the interpretation of the rights and duties of the
parties.
SECTION AND OTHER HEADINGS
(f) Section, paragraph, and other headings contained in
this Agreement are for reference purposes only and
shall not affect in any way the meaning or
interpretation of this Agreement.
COUNTERPART EXECUTION
(g) This Agreement may be executed in two or more
counterparts, each of which shall be deemed an
original, but all of which together shall constitute
but one and the same instrument.
GENDER
(h) All personal pronouns used in this Agreement shall
include the other genders whether used in the
masculine or feminine or neuter gender, and the
singular shall include the plural whenever and as
often as may be appropriate.
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PARTIES IN INTEREST
(i) All the terms and provisions of this Agreement shall
be binding upon and inure to the benefit of, and be
enforceable by, the Seller and the Purchaser and
their successors and assigns.
INTEGRATED AGREEMENT
(j) This Agreement constitutes the entire agreement
between the parties hereto, and there are no
agreements, understandings, restrictions,
warranties, or representations between the parties
other than those set forth herein or herein provided
for.
PURCHASER
ATTEST: ______________________________
_________________________ BY_______________________________
Secretary President
SELLER
ATTEST: _____________________________
_________________________ BY______________________________
Secretary President
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