CONTRACT FOR SALE AND PURCHASE OF BUSINESS This contract for sale and purchase (herein after referred to as "Contract" or "Agreement" ) is entered by and between ______________ ("Seller") and _____________ ("Buyer"). This Agreement shall take effect upon the signature of the last of the two parties to execute with their signatures, below. WITNESSETH: WHEREAS, Seller is the owner of Seller's property, situated
and located in County,
State of , more particularly described in Exhibit "A" attached hereto
and made a part hereof, hereinafter referred to as the "Property"; and
WHEREAS, Buyer desires to purchase Seller's property and Seller desires
to sell
said property to Buyer; NOW, THEREFORE, for and in consideration of the mutual
covenants and promises
hereinafter contained, the Seller agrees to sell and the Buyer agrees
to buy the
"Property" upon the following terms and conditions. 1. PURCHASE PRICE AND METHOD OF PAYMENT. Buyer shall pay and
Seller shall accept
the purchase price for the property in the manner of payment therefor
set forth
in Exhibit "B" attached hereto and made a part hereof. 2. CLOSING. The closing of the transactions contemplated by
this agreement, hereinafter
referred to as "The Closing", shall be held at , , , on the day of , 19
, at x.m. or at such other place, date and time as the parties hereto
may otherwise
agree (such date to be referred to in this agreement as the "Closing
Date"). 3. REPRESENTATIONS AND WARRANTIES OF SELLER. Seller represents
and warrants to
Buyer the correctness, truthfulness and accuracy of the matters shown
on Exhibit
"C" attached hereto, all of which shall survive closing. In addition,
Seller represents and warrants to Buyer that the documents enumerated
in Exhibit
"D" attached hereto and made a part hereof, are true, authentic and
correct
copies of the original, or, if appropriate, the originals themselves,
and no alterations
or modifications thereof have been made. 4. REPRESENTATIONS AND WARRANTIES. Buyer and Seller hereby
represent and warrant
the following: a. Brokers. There has been no act or omission by Buyer or
Seller which would
give rise to any valid claim against any of the parties hereto for a
brokerage commission,
finder's fee, or other like payment in connection with the transactions
contemplated
hereby. 5. TRANSACTIONS PRIOR TO CLOSING. Seller hereby covenants the
following: a. Conduct of Seller's Business Until Closing. Except as Buyer
may otherwise
consent in writing prior to the Closing Date, Seller will not enter
into any transaction,
take any action or fail to take any action which would result in, or
could reasonably
be expected to result in or cause any of the representations and
warranties of Seller
contained in this Agreement to be void, invalid or false on the Closing
Date. b. Resignations. Seller shall deliver to Buyer prior to the
Closing Date, such
resignations of officers or employees of the business as Buyer shall
indicate, each
such resignation to be effective on the Closing Date. c. Satisfactions. Seller shall deliver to Buyer on the Closing
Date a satisfaction
of any encumbrance or lien on the property satisfactory in form and
substance to
the Buyer indicating that the then outstanding unpaid principal balance
of any promissory
note secured thereby has been paid in full prior to or simultaneously
with the closing. d. Advice of Changes. Between the date hereof and the Closing
Date, Seller will
promptly advise Buyer in writing of any fact which, if existing or
known at the
date hereof, would have been required to be set forth herein or
disclosed pursuant
to this Agreement. e. Documents. Seller shall deliver to Buyer at closing such
documents which are,
in Buyer's sole discretion, necessary to fully satisfy the objectives
of this Agreement
in content and form reasonably intended to do so. 6. EXPENSES. Each of the parties hereto shall pay its own
expenses in connection
with this Agreement and the transactions contemplated hereby, including
the fees
and expenses of its counsel and its certified public accountants. 7. GENERAL. a. Survival of Representations and Warranties. Each of the
parties to this Agreement
covenants and agrees that their respective representations, warranties,
covenants,
statements, and agreements contained in this Agreement shall survive
the Closing
Date and terminate on the second anniversary of such date. Except as
set forth in
this Agreement, the exhibits hereto or in the documents and papers
delivered by
Seller to Buyer in connection herewith, there are no other agreements,
representations,
warranties, or covenants by or among the parties hereto with respect to
the subject
matter hereof. b. Waivers. No action taken pursuant to this Agreement,
including any investigation
by or on behalf of any party shall be deemed to constitute a waiver by
the party
taking such action of compliance with any representation, warranty,
covenant or
agreement contained herein or therein and in any documents delivered in
connection
herewith or therewith. The waiver by any party hereto of a breach of
any provision
of this Agreement shall not operate or be construed as a waiver of any
subsequent
breach. c. Notices. All notices, requests, demands and other
communications which are
required or may be given under this Agreement shall be in writing and
shall be deemed
to have been duly given if delivered or mailed, first class mail,
postage prepaid, To Seller: To Buyer: or to such other address as such party shall have specified by
notice in writing
to the other party. d. Sections and Other Headings. The section and other headings
contained in this
Agreement are for reference purposes only and shall not affect the
meaning or interpretations
of this Agreement. e. Governing Law. This agreement, and all transactions
contemplated hereby, shall
be governed by, construed and enforced in accordance with the laws of
the State
of . The parties herein waive trial by jury and agree to submit to the
personal
jurisdiction and venue of a court of subject matter jurisdiction
located in County,
State of . In the event that litigation results from or arises out of
this Agreement
or the performance thereof, the parties agree to reimburse the
prevailing party's
reasonable attorney's fees, court costs, and all other expenses,
whether or not
taxable by the court as costs, in addition to any other relief to which
the prevailing
party may be entitled. In such event, no action shall be entertained by
said court
or any court of competent jurisdiction if filed more than one year
subsequent to
the date the cause(s) of action actually accrued regardless of whether
damages were
otherwise as of said time calculable. f. Conditions Precedent. The Conditions Precedent to the
enforceability of this
Agreement are outlined more fully in Exhibit "E", attached hereto and
made a part hereof. In the event that said Conditions Precedent are not
fulfilled
by the appropriate dates thereof, then this Agreement shall be deemed
null and void
and any deposits paid at said time shall be returned to the Buyer
forthwith. g. Captions. The Captions of this contract are for convenience
and reference
only and in no way define, describe, extend, or limit the scope or
intent of this
contract, or the intent of any provisions hereof. h. Typewritten or Handwritten Provisions. Hand-written
provisions inserted in
this contract and typewritten provisions initialed by both parties
shall control
over the typewritten provisions in conflict therewith. i. Time of the Essence. Time and timely performance are of the
essence of this
contract and of the covenants and provisions hereunder. j. Successors and Assigns. Rights and obligations created by
this contract shall
be binding upon and inure to the benefit of the parties hereto, their
successors
and assigns. Whenever used, the singular number shall include the
plural, the plural
the singular, and the use of any gender shall include all genders. k. Contractual Procedures. Unless specifically disallowed by
law, should litigation
arise hereunder, service of process therefore may be obtained through
certified
mail, return receipt requested; the parties hereto waiving any and all
rights they
may have to object to the method by which service was perfected. l. Extraordinary Remedies. To the extent cognizable at law,
the parties hereto,
in the event of breach and in addition to any and all other remedies
available thereto,
may obtain injunctive relief, regardless of whether the injured party
can demonstrate
that no adequate remedy exists at law. 8. AMENDMENTS OR ADDENDA. All amendments, addenda,
modifications, or changes
to this contract are shown on Exhibit "F", attached hereto and made a
part hereof. 9. INITIALS AND EXHIBITS. This contract shall not be valid and
enforceable unless
it is properly executed by Buyer and Seller and their initials affixed
to each page
of the exhibits attached hereto and made a part hereof. IN WITNESS WHEREOF, this Agreement has been executed by each
of the individual
parties hereto and signed by an officer thereunto duly authorized and
attested under
the corporate seal of the Secretary of the Corporate party hereto, if
any, all on
the date and year first above written. Signed, sealed and deliveredin the presence of: SELLER: BUYER EXHIBIT "A" PROPERTY DESCRIPTION All assets associated with or relating to that certain
business establishment
known and commonly referred to as , located at ______________ in
_______County,
, including, but not limited to: the trade name " ," all leasehold
improvements,
inventory, fixtures, utility deposits, telephone deposits, any and all
other security
deposits, good will (which has no value), and any and all other items
normally considered
and commonly referred to as assets, except those specifically excepted
hereinafter:
. EXHIBIT "B" AMOUNT AND PAYMENT OF PURCHASE PRICE a. CONSIDERATION As total consideration for the purchase and
sale of the property,
the Buyer shall pay to the Seller the sum of ($ ), such total
consideration to be
referred to in this Agreement as the "Purchase Price". b. PAYMENT. The Purchase Price shall be paid as follows: i. Dollars ($ ) to be paid to Seller upon execution of this
contract; ii. Cashier's or certified check from Buyer in the sum of
Dollars ($ ) to be
delivered to Seller at closing. c. ALLOCATION. The Purchase Price shall be allocated for tax
purposes as follows: i. Inventory $ ii. Fixtures $ iii. Leasehold Improvements $ iv. Goodwill $ v. Non-Competition Provision $ vi. Other (specify) $ EXHIBIT "C" REPRESENTATIONS AND WARRANTIES OF SELLER a. Organization and Standing. Corporation is a corporation
duly organized, validly
existing and in good standing under the laws of the State of and has
the corporate
power and authority to carry on its business as it is now being
conducted. b. Authority Relative to this Agreement. Except as otherwise
stated herein, the
Seller has full power and authority to execute this Agreement and carry
out the
transactions contemplated by it and no further action is necessary by
the Seller
to make this Agreement valid and binding upon Seller and enforceable
against it
in accordance with the terms hereof, or to carry out the actions
contemplated hereby.
The execution, delivery and performance of this Agreement by the Seller
will not
(i) constitute a breach or a violation of the Corporation's Certificate
of Incorporation,
By-Laws, or of any law, agreement, indenture, deed of trust, mortgage,
loan agreement
or other instrument to which it is a party, or by which it is bound;
(ii) constitute
a violation of any order, judgment or decree to which it is a party or
by which
its assets or properties is bound or affected; or (iii) result in the
creation of
any lien, charge or encumbrance upon its assets or properties, except
as stated
herein. c. Tax Matters. The Seller has timely prepared and filed all
federal, state and
local tax returns and reports as are and have been required to be filed
and all
taxes shown thereon to be due have been paid in full, including but not
limited
to, sales tax, withholding tax and all other taxes of every nature. d. Properties. The Seller has good and merchantable title to
all of its properties
and assets which are those properties and assets as set out in Exhibit
"A"
annexed hereto and made a part hereof. At Closing, such properties and
assets will
be subject to no mortgage, pledge, lien, conditional sales agreement,
security agreement,
encumbrance or charge, secured or unsecured, except for those taxes
which shall
be pro-rated as of the date of Closing. Seller has or will pay all
debts incurred
by it up to the date of occupancy by Buyer including all employee
compensation and
utilities. e. Compliance with Applicable Laws. None of the Seller's
actions in transferring
good and merchantable title to those assets and properties set out in
Exhibit "A"
are prohibited by or have violated or will violate any law in effect on
the date
of this Agreement or on the date of closing. f. Documents for Review. The Seller's documents enumerated in
Exhibit "D"
attached hereto and made a part hereof, are true, authentic, and
correct copies
of the originals, or, as appropriate, the originals themselves, and no
alterations
and modifications thereof have been made. g. The lease currently operative on the premises, if
applicable, is in good standing
and all payments required to be made under the lease have been made by
Seller. h. All rent averages, rent, maintenance expenses and
prorations relating to the
lease, including any real property tax obligations and insurance
obligations up
to occupancy by Buyers, are the responsibility of Seller. i. will pay any and all fees charged by the Landlord for
processing any assignment
of the lease to the Buyer. EXHIBIT "D" DOCUMENTS FOR REVIEW i. Leasehold Agreement(s) ii. Financial and Operating Statement(s) iii. Sales Tax Return(s) iv. Income Tax Return(s) v. Accounts Payable/Receivables Ledger vi. If Seller is a Corporation: a. Corporate Articles of Incorporation b. Corporate Bylaws c. Corporate Minutes and Resolutions EXHIBIT "E" CONDITIONS PRECEDENT a. Buyer obtaining the full transfer and assumption of the
leasehold interest
and the leasehold agreement(s) currently in force between Seller and
Seller's landlord. b. The full payment of all liabilities and obligations
currently outstanding
on the business, except those specifically enumerated hereinafter and
assumed by
Buyer as a part of this transaction: EXHIBIT "E" AMENDMENTS AND ADDENDA During the term of this Agreement, upon its termination for
any Seller will not,
directly or indirectly, enter the employment of, or render services to,
any other
person, partnership, association, or corporation engaged in the same or
substantially
similar business covered by this agreement in any area which can be
reasonably termed
competitive to the Buyer; and during such term of two (2) years, the
Seller will
not within such territory engage in such business on his own account,
or become
interested therein, directly or indirectly, as an individual, partner,
shareholder,
director, consultant, independent contractor, officer, clerk,
principal, agent,
employee, trustee, or in any relation or capacity whatsoever. |