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G.
At the closing, Seller shall deliver to Buyer, copies of all customer accounts and records and any other documents pertinent to the
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operation of the Business which Seller may have. Such records shall include copies of those documents necessary to conduct business with
.
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suppliers and customers of the Business
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H. It is agreed that Seller’s accounts receivable of $_______________, are included in the purchase price. Details of these receivables include
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name, account number, amount and aging and shall be delivered to Buyer at closing. Any increase or decrease to the date of closing, as
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compared to this amount, shall adjust the purchase price. Where applicable, any increase shall be added to the Promissory Note owed to Seller
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and a decrease shall reduce the cash to close. All receivables so transferred shall be fully guaranteed by Seller. If these receivables remain
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uncollectible after 180 days, the amounts uncollected may be set-off against the next payment(s) due under the Promissory Note owed to Seller,
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provided that Buyer shall assign Seller the right to collect said receivables. If none, put -0-.
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I.
Seller hereby grants Buyer, effective with the closing of this sale, any and all rights held by Seller in the trade name
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“_____________________________________________________” and any variations thereof and Seller hereby waives any rights thereto and
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shall not, after closing, make use of such name, directly or indirectly. If the corporate and business trade names of the Seller are the same or
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similar, the Seller shall be obligated to change its corporate name to a name unrelated to such name within ninety (90) days of closing.
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J. It is agreed that the on-hand inventory at closing of marketable goods at Seller’s cost shall be $______________. An itemized physical
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count of these goods held for resale shall be taken by Buyer and Seller prior to the closing and an increase or decrease as compared to this cost
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shall adjust the total purchase price. Where applicable, an increase shall be added to the Promissory Note owed to Seller and a decrease shall
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reduce the cash down payment.
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11. PRE-CLOSING OBLIGATIONS:
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A. Seller Obligations:
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1. Seller acknowledges that Broker has made no representation concerning the creditworthiness or ability of Buyer to complete this
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transaction, thereby relying solely on Buyer’s representations with respect thereto. The Seller acknowledges that the Broker has preformed all its
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duties pursuant to the listing agreement and has earned its compensation. Buyer and Seller acknowledge that certain Federal Income Tax and
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State of Florida laws and taxes may be applicable to this transaction.
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2. Seller hereby agrees, from the date of execution of this contract to the date of closing, to carry on the business activities and operations of
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the Business diligently and in substantially the same manner as has been customary in the past and shall not remove any item with the exception
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of product inventory sold in the normal course of business.
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3. Seller represents and warrants that there is no pending litigation or proceedings to the Seller’s knowledge against or relating to the Business,
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its properties or business activity nor does the Seller know or have reasonable grounds to know of any basis of any such action relative to the
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Business, its properties or business activity.
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4. After closing, Seller agrees that all mail relating to the Business shall be routed to Buyer and Buyer agrees to promptly forward to Seller any
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mail personalized to Seller.
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5. Until possession is transferred to Buyer at closing, Seller agrees to maintain the Business premises including heating, cooling, plumbing and
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electrical systems, built-in fixtures, together with all other equipment and assets included in this sale, in good working order and to maintain and
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leave the premises in a clean, orderly condition.
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6. Seller and/or _____________________________________________ agrees to spend, at no cost to Buyer, a period of ___________ (days,
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weeks, months) during normal business hours exclusive of holidays and Sundays, from the closing Date, to assist Buyer and employees in the
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orderly transfer of the Business.
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7. Seller warrants that the financial information supplied to Buyer by Seller is true and correct and is a fair and accurate presentation of the
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financial condition and results of the operation of the Business. From the date of execution of this Contract, Buyer shall, at his option, have three
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(3) business days to request through Broker, in writing, any financial documents of Seller necessary to verify the financial information supplied
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by Seller to Buyer and Buyer shall have five (5) business days after receipt of said documents to verify this information. A five (5) percent or
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greater negative variance in any of the financial information furnished by the Seller will allow Buyer to cancel this Contract by written notice to
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Broker during said verification period. Failure of Buyer to notify Broker within the time specified shall constitute Buyer’s waiver of this
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provision.
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B. Buyer’s Obligations:
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1. Buyer hereby acknowledges that Buyer is relying solely on Buyer’s own inspection of the Business as well as the representations of Seller
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regarding the prior operating history of the Business, the value of the assets being purchased and all other material facts. Broker has not
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conducted any independent investigation whatsoever of the Business or the information provided by Seller. Buyer acknowledges that Broker has
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not verified the representations of Seller.
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2. Any and all amounts currently on deposit for the benefit of the Business for utility services, leases, insurance, etc., are and shall remain the
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sole property of Seller and are not included as part of this transaction. Buyer shall, effective with the closing, deposit such amounts as are
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necessary to continue the operation of the Business or the Seller shall receive a credit for such deposits at closing.
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3. Buyer hereby agrees not to divulge any information about this transaction or about Seller’s business information or trade secrets, except to
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attorneys, accountants or other professional advisors. Buyer further agrees not to interfere with Seller’s business or visit the business premises
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without the permission of Seller.
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12. INCORPORATION BY BUYER: The parties hereby stipulate and agree that Buyer may elect to incorporate. In such event, the new
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corporation shall become the Buyer and Buyer shall cause the corporation to ratify and adopt all of the terms and conditions of this Contract.
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However, the original Buyer shall continue to be personally liable for the performance of the terms, covenants and conditions herein. In the
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event of the Buyer being a corporation, the signatory to this Agreement shall, in addition to the corporation, be personally liable for the
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performance of the terms, conditions and covenants contained herein.
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13. COVENANT NOT TO COMPETE: The Seller (and its principal corporate stockholders and officers, if a corporation) agrees not to compete,
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directly, indirectly or in any manner, or engage in a business similar to the Business within ______ miles of the Business being purchased, nor
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aid or assist anyone else, except Buyer, to do so within these limits, nor solicit in any manner any past accounts of the Business, nor employ any
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employee of the Business with the exception of the following:__________________________________________; nor have any interest,
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directly or indirectly, in such a business except as an employee of Buyer, for a period of _______________ (
) consecutive years from the
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closing of this sale; provided, however, that Buyer’s right to enforce this portion shall terminate in the event that Buyer is in default under any
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material term of this Agreement or of the closing documents. The parties acknowledge that there are legitimate business interests justifying this
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restrictive covenant and that the covenant is reasonably necessary to protect the interest justifying the covenant.
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BPASC
Page 3 of 5
Rev 3/2001
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