Source: https://www.sec.gov/Archives/edgar/data/1674227/000114420416119831/v446339_ex10-3.htm
Timestamp: 2019-04-20 14:23:01+00:00

Document:
THIS ASSET PURCHASE AGREEMENT (the “Agreement”), dated as of February 23, 2016 (the “Effective Date”), is entered into by and among CFFC PROMOTIONS, LLC, a New Jersey limited liability company (“Seller”), Robert J. Haydak, an individual and resident of the State of New Jersey (“Haydak”), and Michael V. Constantino, an individual and resident of the State of New Jersey (“Constantino”, and together with Haydak, the “Members”), and ALLIANCE MMA, INC., a Delaware corporation (“Buyer”).
“Executive Employment Agreement” means each of the Executive Employment Agreements entered into by and between Buyer and each of Haydak and Constantino in substantially the form attached hereto as Exhibits C-1 and C-2.
“Other Agreements” means, collectively, the Assignment and Assumption Agreement, the Bill of Sale, Conveyance and Assignment, the Intellectual Property Transfer Agreement, the Non-Competition and Non-Solicitation Agreement, the Executive Employment Agreements, and the Trademark License Agreement.
3.1 Purchase Price. The purchase price (“Purchase Price”) for the Purchased Assets shall be $2,350,000, subject to the Earn Out adjustment pursuant to Section 3.2. .
3.2 Adjustments to Purchase Price. To the extent the Gross Profit generated from the Purchased Assets exceeds $350,000 for the full calendar year following the Closing, the Purchase Price will be adjusted upward proportionately such that each additional dollar of Gross Profit in excess of $350,000 will increase the Purchase Price by seven (7) dollars (the “Earn Out”). The Earn Out will be computed by the Company and confirmed by its accountants in the quarter following the full calendar year following the Closing. The methodology (including allocations of corporate revenue and expenses to the Purchased Assets and the Business) for determining the Earn Out will be consistently applied by Buyer to each of the Target Companies. Buyer will apply an allocation of any corporate revenues that are generated in whole or in part by the Purchased Assets or the Business to the Purchased Assets and the Business, and such allocation shall be commercially reasonable and proportionate in relation to the other Target Companies. The Earn Out will be paid to the Members in shares of Common Stock valued at the lesser of (i) the IPO Price and (ii) the trailing 20 day VWAP for the Common Stock on the Trading Market as reported by Bloomberg, L.P. as of the date Buyer reports its quarterly report on Form 10-Q for the quarter following the full calendar year following the Closing. As used in this Agreement and the Other Agreements, “Gross Profit” means total revenue minus the cost of revenue as determined by US GAAP, consistently applied. THE MEMBERS ACKNOWLEDGE THAT THE BASE SALARY FOR CONSTANTINO WILL BE DEEMED AN EXPENSE OF THE BUSINESS AND SHALL BE INCLUDED IN COST OF REVENUE FOR PURPOSES OF DETERMINING THE EARN OUT.
(b) To Seller of number of shares of Common Stock (rounded to the nearest whole number) equal to $2,115,000 divided by the IPO Price.
5.1 Organization. Seller is a corporation duly organized and validly existing in good standing under the laws of the State of New Jersey, duly qualified to transact business as a foreign entity in such jurisdictions where the nature of its Business makes such qualification necessary, except as to jurisdictions where the failure to qualify would not reasonably be expected to have a material adverse effect on the Business of the Seller or the Purchased Assets, and has all requisite corporate power and authority to own, lease and operate the Purchased Assets and to carry on its Business, as now being conducted.
12.16 Knowledge. As used herein, Seller will be deemed to have knowledge of a particular fact or matter only if Robert J. Haydak and/or Michael V. Constantino are/is actually aware of the fact or matter, or with the exercise of reasonable diligence should have been aware of the fact or mater.
This ASSIGNMENT AND ASSUMPTION AGREEMENT dated as of ______ __, 2016 is entered into by and among CFFC PROMOTIONS, LLC, a New Jersey limited liability company (“Seller”) and ALLIANCE MMA, INC., a Delaware corporation (“Buyer”) and is delivered pursuant to, and subject to the terms of, that certain Asset Purchase Agreement, dated as of February 23, 2016 (the “Asset Purchase Agreement”), by and among Seller, Buyer, Robert J. Haydak, an individual and resident of the State of New Jersey (“Haydak”), Michael V. Constantino, an individual and resident of the State of New Jersey (“Constantino”, and together with Haydak, the “Members”). All capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Asset Purchase Agreement.
THIS BILL OF SALE, CONVEYANCE AND ASSIGNMENT (this “Instrument”) dated as of ______ __, 2016 is entered into by and among CFFC PROMOTIONS, LLC, a New Jersey limited liability company (“Seller”) and ALLIANCE MMA, INC., a Delaware corporation (“Buyer”) and is delivered pursuant to, and subject to the terms of, that certain Asset Purchase Agreement, dated as of February 23, 2016 (the “Asset Purchase Agreement”), by and among Seller, Buyer, Robert J. Haydak, an individual and resident of the State of New Jersey (“Haydak”), Michael V. Constantino, an individual and resident of the State of New Jersey (“Constantino”, and together with Haydak, the “Members”).
THIS EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”), entered into effective ___________ __, 2016, by and between ALLIANCE MMA, INC., a Delaware corporation (the “Company”) and Robert J. Haydak, an individual and resident of the State of New Jersey (the “Executive”) and is delivered pursuant to, and subject to the terms of, that certain Asset Purchase Agreement, dated as of February 23, 2016 (the “Asset Purchase Agreement”), by and among CFFC PROMOTIONS, LLC, a New Jersey limited liability company (“Seller”), the Company, the Executive, Michael V. Constantino, an individual and resident of the State of New Jersey (“Constantino”, and together with Haydak, the “Members”). All capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Asset Purchase Agreement.
THIS EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”), entered into effective ___________ __, 2016, by and between ALLIANCE MMA, INC., a Delaware corporation (the “Company”) and Michael V. Constantino, an individual and resident of the State of New Jersey (the “Executive”) and is delivered pursuant to, and subject to the terms of, that certain Asset Purchase Agreement, dated as of February 23, 2016 (the “Asset Purchase Agreement”), by and among CFFC PROMOTIONS, LLC, a New Jersey limited liability company (“Seller”), the Company, the Executive, and Robert J. Haydak, an individual and resident of the State of New Jersey (“Haydak”, and together with the Executive, the “Members”). All capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Asset Purchase Agreement.
2. Position. Executive agrees to serve as Regional Vice President of the Company and to perform such duties as are commensurate with such office, including the oversight and management of the employees and day-to-day operations of the Business. The Executive will devote substantially all his business time and efforts to the Company and the Company’s business and will not engage in other business activities without the Company’s prior consent, whether or not such business activity is pursued for profit, gain or other pecuniary advantage. Nothing herein will prevent Executive from engaging in investment activities unrelated to the Company’s business for his own account. The Executive shall have all the duties and powers of an officer of the Company and shall report to the Company’s Chief Executive Officer.
4. Salary; Bonus. Executive will receive a salary during the Term of Seventy Five Thousand ($75,000) per year (“Base Compensation”), pro-rated for partial years, payable at regular intervals in accordance with the Company’s normal payroll practices in effect from time to time. Executive’s Base Compensation will be reviewed annually by the Company’s Board of Directors and Executive will be eligible for consideration for merit-based increases to Base Compensation as determined by the Board of Directors in its sole discretion. In addition to eligibility for consideration of merit-based increases in the discretion of the Board of Directors, Executive’s Base Compensation will be increased effective January 1 of each year during the Term (commencing with January 1, 2017) by three percent (3%) to reflect anticipated increases in cost of living.
This INTELLECTUAL PROPERTY TRANSFER AGREEMENT dated as of ______ __, 2016 is entered into by and among CFFC PROMOTIONS, LLC, a New Jersey limited liability company (“Assignor”) and ALLIANCE MMA, INC., a Delaware corporation (“Assignee”) and is delivered pursuant to, and subject to the terms of, that certain Asset Purchase Agreement, dated as of February 23, 2016 (the “Asset Purchase Agreement”), by and among Assignor, Assignee, Robert J. Haydak, an individual and resident of the State of New Jersey (“Haydak”), Michael V. Constantino, an individual and resident of the State of New Jersey (“Constantino”, and together with Haydak, the “Members”).
This TRADEMARK LICENSE AGREEMENT (“Agreement”) dated as of ______ __, 2016 is entered into by and among CFFC PROMOTIONS, LLC, a New Jersey limited liability company (“Licensor”) and ALLIANCE MMA, INC., a Delaware corporation (“Licensee”) and is delivered pursuant to, and subject to the terms of, that certain Asset Purchase Agreement, dated as of February 23, 2016 (the “Asset Purchase Agreement”), by and among Licensor, Licensee, Robert J. Haydak, an individual and resident of the State of New Jersey (“Haydak”), Michael V. Constantino, an individual and resident of the State of New Jersey (“Constantino”, and together with Haydak, the “Members”). All capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Asset Purchase Agreement.
WHEREAS, Licensor asserts that it is the sole and exclusive owner of the name “Cage Fury Fighting Championships” and “CFFC” and all logos, trademarks and service marks attendant thereto (the “Licensed Marks”).
Reference is made to that certain ASSET PURCHASE AGREEMENT (the “Agreement”), dated as of February 23, 2016 (the “Effective Date”) by and among CFFC PROMOTIONS, LLC, a New Jersey limited liability company (“Seller”), ALLIANCE MMA, INC., a Delaware corporation (“Buyer”), Robert J. Haydak, an individual and resident of the State of New Jersey (“Haydak”), Michael V. Constantino, an individual and resident of the State of New Jersey (“Constantino”, and together with Haydak, the “Members”). Capitalized terms used herein and not otherwise defined herein shall have the meaning given to them in the Agreement.

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