Document:

exhibit102.htm

EXHIBIT 10.2

 

 

 

 

 

	 	 ASSET PURCHASE AGREEMENT	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	DONIHE GRAPHICS, INC.	 
	 	 A TENNESSEE CORPORATION, SELLER	 
	 	 AND	 
	 	THE MERTEN COMPANY,	 
	 	
AN OHIO CORPORATION, SELLER

	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 TO	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 GRAPHICS INTERNATIONAL, LLC,	 
	 	
A NORTH CAROLINA LIMITED LIABILITY COMPANY, BUYER

	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 NOVEMBER 30, 2012	 

 

 

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	 	 TABLE OF CONTENTS	 

 

 

	Section	Page
	 	 
	1. Sale of Assets 	1
	 	 
	2. Purchase Price 	1
	 	 
	3. Closing Date and Place; Operations Post-Closing 	3
	 	 
	4. Representations and Warranties of Sellers 	5
	 	 
	5. Covenants of the Sellers 	9
	 	 
	6. Representations and Warranties of Buyer	11
	 	 
	7. Conditions Precedent to Buyer's Obligations 	11
	 	 
	8. Conditions to Closing by Sellers 	14
	 	 
	
9. Termination of Agreement 

	15
	 	 
	10. Additional Documents and Acts after Closing 	17
	 	 
	11. Non-Assumption of Liability 	18
	 	 
	12. Indemnification 	18
	 	 
	13. Risk of Loss 	20
	 	 
	14. Brokerage 	21
	 	 
	15. Survival of Representations, Warranties and Agreements 	21
	 	 
	16. Benefit 	21
	 	 
	
17. Modification 

	21
	 	 
	
18. Nonwaiver 

	22
	 	 
	19. Entire Agreement 22	22
	 	 

 

 

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	20. Descriptive Headings 	22
	 	 
	21. Notices 	22
	 	 
	22. Counterparts 	23
	 	 
	23. Binding Nature; Assignments 	
23

	 	 
	24. Governing Law and Venue 	23
	 	 
	25. Legal Fees and Expenses; Other Expenses 	23
	 	 
	26. Invalid Provisions 	24
	 	 
	
Signatures 

	24
	 	 

 

 

 

 

  

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	 	 EXHIBITS	 

 

 

A                      Assets – Machinery and Equipment

B                      Liens, Encumbrances, Mortgages and Security Interests

C                      Allocation of Purchase Price

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	 	 ASSET PURCHASE AGREEMENT	 

 

 

               THIS AGREEMENT is made and entered into as of the 30th day of November, 2012, by and between DONIHE GRAPHICS, INC., a Tennessee corpora­tion, hereinafter called “Donihe” or a "Seller", THE MERTEN COMPANY, an Ohio corporation, hereinafter called “Merten” or a “Seller” (collectively, the “Sellers”) and GRAPHICS INTERNATIONAL, LLC, a North Carolina limited liability company, herein­after called the "Buyer".

 

               WHEREAS, Donihe is engaged in the commercial printing business in Tennessee and Merten owns printing machinery and equipment in Ohio; and

 

               WHEREAS, the parties have reached an understanding with respect to the sale of machinery and equipment of the Sellers and the purchase by the Buyer of such assets.

 

               NOW, THEREFORE, in consideration of the premises, which are not mere recitals but are an integral part hereof, and in further consideration of the mutual covenants and promises herein con­tained, and for other good and valuable consideration, the receipt and sufficiency of all of which are hereby acknowl­edged, the parties hereto agree as follows:

 

           1.           Sale of Assets.   The Sellers agree that, at the Closing, the Sellers shall sell, transfer, and deliver to the Buyer for the consideration hereinafter provided, those assets of the Sellers set forth in Exhibit A attached hereto and incor­porated herein by reference, constituting all the Sellers’ machinery and equipment (collectively, the “Purchased Assets”).  The Sellers are not selling to Buyer any other assets (collectively, the “Excluded Assets”) and such Excluded Assets shall remain the property of Sellers after the Closing.  Such sale shall be made free and clear of all liabil­ities, mortgages, liens, obliga­tions, security in­terests, and encum­brances except such that are ex­pressly assumed in writing by Buyer.

 

          2.           Purchase Price.    Subject to the terms of this agreement, the Buyer shall purchase the Purchased Assets and, in full consideration therefor, shall pay the Sellers, subject to the adjustments provided for herein, the sum of One Million One Hundred Thousand Dollars ($1,100,000.00) (the "Purchase Price"), as described and calculated below.

 

A.           Adjustments to Purchase Price.   The Purchase Price shall be adjusted at Closing as follows:

(1)           Ad valorem taxes on the Purchased Assets assessed as of the Closing shall be prorated on a calendar year basis, with the Buyer receiving a credit against the Purchase Price for the amount of such taxes apportioned to Sellers, which will be calculated on the basis of the latest tax bill available.

(2)           Amounts to be adjusted pursuant to Section A(1) above that are known prior to the Closing Date shall be handled by a credit against or increase in the Purchase Price to be paid at Closing.  Amounts to be so adjusted pursuant to Section A(1) above that are not handled at the Closing, shall be handled as follows:  the party hereto claiming that the other party owes payment to it for such adjusted item shall so notify the other party of the amount due with reasonable details about the nature of the charge and the manner in which the amount due was calculated and with documentation that the claiming party has paid the amount for which it seeks reimbursement.  The party receiving notice shall pay the amount due within fifteen (15) days after receipt of such notice.

 

	
B.

	
Payment of Purchase Price.  Purchase Price shall be paid as follows:

	
  

	
1.

	
The Purchase Price shall be paid at Closing in cash by wire transfer of funds as follows:

	
  

	
(a)

	
Fifty Thousand and no/100 Dollars to Raymond  James & Associates, Inc. to an account with Citibank, N.A. as designated by Sellers; and

	 	
(b)

	
the balance of the purchase price directly to an account at Fifth Third Bank as Administrative Agent (the “Agent”) for those secured lenders under that certain First Amended and Restated Credit Agreement dated as of October 19, 2012, in the name of the Agent, as designated by Sellers.

	
C.

	
Allocation.

	
                                (a)

	
The Purchase Price shall be allocated among the Purchased Assets hereby sold and purchased for all purposes, including all tax, tax reporting and accounting purposes, as set forth on Exhibit C.  The allocations shall be determined by mutual agreement of Buyer and Sellers. The allocation of the Purchase Price to the Purchased Assets shall be binding on Buyer and Sellers for all tax purposes.  Buyer and Sellers will exe­cute Internal Revenue Service Form 8594 at the Closing and shall attach same to their tax return covering the year in which the Closing occurs.

	
                                (b)

	
In the event of a reduction in the Purchase Price, the allocation agreed to by the parties shall be reduced in proportion to the original values agreed upon.

 

  

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3.           Closing Date and Place; Operations Post-Closing.  The Closing under this agreement (the "Closing") shall take place within five (5) days from the date of this Agreement at such time (the "Closing Date") and place as to which the parties may agree.

 

                Buyer acknowledges that at the Closing Date of this Agreement and at the closing date of the real estate purchase agreement for 766 Brookside, Kingsport, Tennessee (the “Donihe Facility”), Donihe will have uncompleted orders and work in process.  Buyer agrees that after the Closing Date of this Agreement Donihe will be permitted to utilize the Purchased Assets located at the Donihe Facility, without charge, to complete its uncompleted jobs and work in process at the Closing Date of this Agreement for as long as necessary but in no event beyond December 30, 2012.  Buyer agrees that on and after the closing of the real estate purchase agreement, Buyer hereby leases to Donihe, without charge, and Donihe shall have full but non-exclusive access to, the Donihe Facility for as long as necessary to complete Donihe’s uncompleted jobs and work in process, but in no event beyond December 30, 2012, at which time Donihe shall vacate such location and remove all its property therefrom.  Donihe shall indemnify and hold Buyer from any damages caused by Donihe’s use of the Purchased Assets after the Closing Date.  Donihe agrees to have Buyer named as an additional insured on its insurance policies for such time as Donihe is using the Purchased Assets or occupying the Donihe Facility under the above and foregoing lease.

 

               Until such time as the sale to Buyer of the Donihe Facility is closed, Buyer shall have continuing access to the Donihe Facility and Donihe agrees to move any of its remaining inventory located in the Donihe Facility, except for any inventory that is in process and located on any of the Purchased Assets, to a location within the Donihe Facility that will not unreasonably interfere with Buyer’s efforts (a) to market the Purchased Assets before the end of the Donihe’s rights to use the Purchased Assets and (b) thereafter, but subject to the time limits set forth herein, to liquidate the Purchased Assets.  Buyer shall have the right to have access to the Donihe facility and Merten’s leased real property facility located at 1515 Central Parkway, Cincinnati, Ohio (the “Merten Facility”) without charge for the purpose of removing the Purchased Assets therefrom, but subject to the rights of Donihe noted above, for a period of 120 days from the Closing Date and shall have the Purchased Assets removed from the Donihe Facility and the Merten Facility within such 120 day period, provided however that such time limits will have no further force or effect as to the Donihe Facility after the closing of the sale thereof to Buyer.  Buyer shall not cause any physical injury to the Merten Facility during Buyer’s use thereof and Buyer shall not cause any physical injury to the Donihe Facility prior to the closing of the sale thereof by Donihe to Buyer.  Buyer shall be entitled to temporarily move any non-weight bearing wall at the Merten Facility in order to remove the pre-press equipment therefrom but shall promptly restore said wall or walls to their former condition following the removal.  Buyer shall indemnify and hold Sellers harmless from any damages caused by Buyer’s access to the facilities of Sellers.  Buyer shall also carry insurance with respect to any such damage and shall provide Sellers with evidence of such insurance coverage prior to Closing.

 

              4.           Representations and Warranties of Sellers.   The Sellers jointly represent and warrant to Buyer as a material inducement to Buyer to enter into and perform its obligations under this Agreement, as follows:

 

	 	(a)	 	Organization and Standing of Sellers.   Donihe is a cor­poration duly organized, validly existing, and in good standing under the laws of the State of Tennessee. Merten is a corporation duly organized, validly existing and in good standing under the laws of Ohio. The Sellers have all requisite corporate power and authority to own and operate their properties and to conduct their business in the manner and in the places where it is now conducted.
	 	 	 	 
	 	(b)	 	 Sellers’ Authority. The execution and delivery of this Agreement and other documents herein contemplated to the Buyer and the sale contemplated hereby will have been duly authorized by the Sellers’ Boards of Directors and sole shareholder, and the Sellers will at the Closing deliver to the Buyer copies of the resolutions of their Boards of Directors and sole shareholder granting such authority, such copies to be certified by the Sellers’ and sole shareholder’s secre­tary. No other corporate action on the part of the Sellers will be neces­sary to authorize execution and delivery of same and of the sale. The execution and delivery of this Agreement to the Buyer and the sale con­templated hereby do not violate any federal, state or local laws or regulations. The execu­tion and delivery of this Agreement and the consum­mation of the transac­tions con­templated hereby will not violate any provision of, or result in the breach of or accelerate or permit the acceler­ation of the performance required by the terms of, any applicable law, rule or regu­lation of any governmental body having jurisdiction, the Articles of Incorporation or Bylaws of the Sellers, or any agreement to which the Sellers are a party or by which they may be bound (except for loan agreements and other obligations for which consent is required, as listed on Exhibit B), or of any order, judgment or decree applicable to it, or result in the crea­tion of any claim, lien, charge or encumbrance upon any of the property or assets of the Sellers or termi­nate or result in the termination of any such agreement.
	 	 	 	 
	 	(c)	 	
Title of Property. The Sellers have good, market­able and indefeasible title to all the Purchased Assets, including without limitation, those reflected on Exhibit A hereto, free and clear of any mortgages, security interests, liens, charges or encumbrances what­soever, except as otherwise specifically disclosed in Exhibit B to this Agreement. Prior to Closing, Buyer shall have received a commitment from any and all secured lenders of Seller that the liens of said secured lender will be released upon Closing.

	 	 	 	 

 

  

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	 	(d)	 	
Tax Returns. All required federal, state and local tax returns of the Sellers have been accurately pre­pared and duly and timely filed, and all federal, state and local taxes re­quired to be paid with respect to the periods covered by such returns have been paid or accrued on the balance sheets. The Sellers are not delinquent in the pay­ment of any tax, assessment or governmental charge, and there is no tax deficiency outstan­ding, proposed in writing or assessed against it. The Sellers have not executed any outstanding waiver of any statute of limitations on the as­sessment or collection of any tax.

	 	 	 	 
	 	(e)	 	Insurance. All Purchased Assets are and will be insured against fire and other casualty to the Closing Date in accordance with past practices and valid policies there­for are and will be outstanding and duly in force at Closing.
	 	 	 	 
	 	(f)	 	Compliance with Laws. To the best knowledge of Sellers, the Sellers have complied in all material respects with all applicable laws, rules, regulations, ordinances, and franchises with respect to their operations, and neither the ownership nor use of the Sellers’ properties nor the conduct of its business con­flicts with the rights of any other person, firm or corpora­tion.
	 	 	 	 
	 	(g)	 	No Litigation. There is no claim, legal action, suit, arbitra­tion, governmental investigation or other legal, administra­tive or tax proceeding for which Sellers have received written notice, nor any order, decree or judgment, in progress, pending, or, to the best knowledge of Seller, threatened against or relating to the Sellers which in­volves or affects their properties, assets or business or the tran­sac­tions contem­plated by this Agreement.
	 	 	 	 
	 	(h)	 	Employees. Donihe will retain all li­ability, if any, for any benefits of its employees at­tributable to their employment by Donihe and the termina­tion of such employment by Donihe, including specifically severance, hospitalization, or retirement benefits, if any, and liability for any other claim by an employee or former employee of Donihe attributable to his employment or termi­nation of employment by Seller.
	 	 	 	 
	 	 	 	(i)  Donihe has paid in full (to the extent required by the Donihe's current practices but con­sistent with the Donihe's legal obliga­tions) to all its employees, all wages, salaries, commissions, bonuses, vacation pay, and other direct compensation for all services perform­ed by them to the date here­of and will pay after the Closing Date as and when due such obliga­tions through the day preceding Closing Date;
	 	 	 	 
	 	 	 	(ii) Upon termination of the employment of any such employees, Donihe will not, by reason of anything done prior to the Closing Date, be liable to any of such employees for any specific "severance pay" or any other payments, except for liabilities accrued on the Finan­cial State­ments or other of Donihe's books and records (all of which have been made available for Buyer's in­spection) or as may be required under state unemploy­ment insur­ance or other laws;
	 	 	 	 
	 	 	 	(iii)  Donihe has complied in all material respects and is in compliance with all Federal, state and local laws and regulations respecting employment and employment practices (including, without limitation, to the best of Donihe’s knowledge, OSHA), terms and conditions of employment, wages and hours, collective bargaining and the payment of social security and similar taxes.
	 	 	 	 
	 	(i)	 	Employee Benefit Plans. Sellers are not party to any pension plan or profit sharing plan or other employee benefit plan which would constitute a "Multi­employer Plan" as defined in Section 3(37) of ERISA (a "Multiemployer Plan"). Sellers have not incurred nor will Sellers incur, directly or in­directly, any material withdrawal li­ability with respect to a Multi­employer Plan nor do Sellers expect to incur such li­ability.
	 	 	 	 
	 	(j)	 	No Bankruptcy. There has not been filed any petition application, or any proceedings commenced, by or against, or with respect to any assets of, Sellers under Title 11 of the United States Code or any other law, domestic or foreign, relating to bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of debt or creditors' rights which is currently being adjudicated, and Sellers have not made any assignment for the benefit of creditors that is currently effective.
	 	 	 	 
	 	(k)	 	List of Secured Creditors, Taxes, and Obligations. The Sellers have delivered to Buyer a true and complete list of the Sellers’ obligations, including but not limited to obligations owed to secured creditors, taxing authorities, and other creditors, whether secured or unsecured, together with copies of all documents evidencing or relating to such obligations. The Sellers warrant that said list, attached hereto as Exhibit B, is accurate and complete.

 

  

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               5.           Covenants of the Sellers.    The Sellers covenant and agree with the Buyer that they will perform the following between the date of this Agreement and the Closing Date:

 

	 	(a)	 	Access. The Sellers shall give Buyer and its lenders, counsel, accountants, and other representa­tives full access during normal business hours to all of the properties, books, contracts and records of the Sellers related to the Purchased Assets, and the Sellers will furnish Buyer with all such documents, copies of documents (certified if re­quired) and information concerning the affairs of the Sellers as Buyer may from time to time reasonably request. Buyer and its representatives will conduct their investigation so as not to disrupt the operations of Sellers.
	 	 	 	 
	 	(b)	 	Conduct of Business Pending Closing. The Sellers covenant that pending the Closing:
	 	 	 	 
	 	 	 	(i)  The Sellers shall maintain, keep and preserve the Purchased Assets in good condition and repair, normal wear and tear excepted, and main­tain insurance thereon in accordance with present practices.
	 	 	 	 
	 	 	 	(ii)  The Sellers will not sell or dispose of any of the Purchased Assets except in the ordinary course of business, or permit the creation of any mort­gage, pledge, lien or other encum­brances, security interest, or imperfection of title thereon or with respect thereto, without prior written consent of Buyer. Without limiting the foregoing, the Sellers shall not transfer the Purchased Assets to or incur any liability to any corporation, partnership, Sellers, joint venture or any individual related to (whether by virtue of common ownership or agreement) or controlled by the Sellers or any of their stockholders, and any such transfer or incurrence of liability shall be deemed not to be in the ordinary course of Sellers’ business.
	 	 	 	 
	 	 	 	(iii)  Except as otherwise specifically provided in this Agreement, possession and control of the assets covered by this Agreement shall remain with Sellers.
	 	 	 	 
	 	(c)	 	Obligations of Donihe After the Closing Date. Donihe covenants and agrees that:
	 	 	 	 
	 	 	 	(i)  Donihe’s Corporate Records. Donihe will make available for inspection and copying all books and records related to the Purchased Assets to Buyer upon reasonable request for access thereto, and if at any time Donihe proposes to discard or destroy the books and records, they will first offer to transfer them without charge to Buyer.
	 	 	 	 

 

            6.           Representations and Warranties of Buyer.  Buyer repre­sents and warrants to Sellers as follows:

 

	 	(a)	 	Buyer is a limited liability company duly organized and validly existing under the laws of North Carolina, and has the full power and authority to enter into this Agreement and to carry out the trans­actions con­tem­plated thereby.
	 	 	 	 
	 	(b)	 	Neither the execution, delivery nor performance of this Agreement by Buyer will, with or without the giving of notice of the passage of time, or both, conflict with, re­sult in a default or loss or rights under, or result in the creation of any lien, charge or encumbrance pursuant to any provision of its Articles of Organization or Operating Agreement, or any mortgage, deed of trust, lease, license, agreement, un­derstanding, law, order, or judgment, fran­chise, or­dinance or decree to which Buyer is a party or by which it is bound. Buyer has the full power and authority to enter into this Agreement and to carry out the trans­actions con­templated hereby and this Agreement and Buyer's perfor­mance hereunder have been duly and validly authorized by all necessary cor­porate actions on the part of the Buyer and constitutes the valid and binding obligation of the Buyer enforceable in accor­dance with its terms.
	 	 	 	 

 

  

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7.           Conditions Precedent to Buyer's Obligations.  All obli­gations of Buyer under this Agreement are subject, at the option of Buyer, to the satisfaction and fulfillment of each of the following con­ditions at or prior to Closing.  Buyer may waive any or all of these conditions in whole or in part without prior notice; provided, however, that no such waiver of a condition shall constitute a waiver by Buyer of any of their other rights or remedies at law or in equity, if the Sellers shall be in default of any of their representations, warranties or covenants under this Agreement.  The Sellers agree to use its best efforts to fulfill each such condition:

 

	 	(a)	 	The representations and warranties of the Sellers contained herein and in any document or certificate delivered pursuant to this Agreement shall be true and cor­rect as of the date of this Agreement, and shall be true and correct on and as of the Closing Date with the same force and effect as though made on and as of the Closing Date.
	 	 	 	 
	 	(b)	 	
The Sellers shall have per­formed all of their obli­gations and agreements and complied with all covenants and conditions contained in this Agreement to be performed or complied with on or before the Closing Date.

	 	 	 	 
	 	(c)	 	The Sellers shall have obtained all necessary con­sents or approvals, of other persons or parties, to the as­signment of all contracts to be assigned to Buyer pursuant hereto.
	 	 	 	 
	 	(d)	 	
The Sellers shall have obtained all necessary consents and releases of taxing authorities and secured creditors necessary to ensure that the Purchased Assets are free and clear of all liabilities, mortgages, liens, obligations, security interests and encumbrances.

	 	 	 	 
	 	(e)	 	Sellers shall deliver to Buyer bills of sale, en­dorsements, certificates of title, as­signments and other good and sufficient in­struments of conveyance, transfer and assignment as shall be effective to vest in Buyer good and marketable title in and to the Purchased Assets, free and clear of all security interests, liens, charges and en­cumbrances of any nature what­soever.
	 	 	 	 
	 	(f)	 	Between the date of this agreement and the Closing Date, there shall have been no material adverse change in the Purchased Assets.
	 	 	 	 
	 	(g) 	 	Sellers and Buyer shall deliver to each other copies of resolutions of their respective Board of Directors (and the Sellers’ shareholder) authorizing and approving the execution and consummation of the transactions contemplated hereby, certified by their secretaries.
	 	 	 	 
	 	(h)	 	There shall not be any pending or threatened arbi­tration, litigation or administrative proceeding against or affecting the Sellers, Buyer or any shareholder, director, officer, agent, employee or affiliate of any of the fore­going or to which any properties or rights of the Sellers or Buyer is subject, which (a) is likely to have a material adverse effect on the Purchased Assets or the Buyer or (b) would prohibit or set aside the transactions contemplated by this Agreement.
	 	 	 	 
	 	(i)	 	The approval of and consent to the tran­sactions contemplated hereby shall have been given prior to the Closing Date by the regulatory agencies, federal and state, whose approval or consent is re­quired, and all notice periods, waiting periods, delay periods and all periods for review, objection or appeal of or to any of the consents, approvals, or permissions required by law with respect to the consummation of this Agreement shall have expired. Such approvals shall not be conditioned or restricted in a manner which, in the judgment of Buyer, materially adversely affects the economic assumptions of the transac­tions contemplated hereby so as to render inadvisable con­summation of the Agreement.
	 	 	 	 
	 	(j)	 	Buyer shall have received from the Agent an agreement, in writing, that it will release its lien against the Purchased Assets upon Buyer’s payment of the full purchase price set forth in this Agreement and as adjusted pursuant to the terms hereof.
	 	 	 	 

 

  

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            8.           Conditions to Closing by Sellers.  The obligations of Sellers under this Agreement are, at the option of Sellers, subject to the satis­faction, at or prior to the Closing Date, of each of the conditions set forth below in this Section 8.  Sellers may waive any or all of these conditions in whole or in part without prior notice; provided, however, that no such waiver of a con­dition shall constitute a waiver by Sellers of any of their other rights or remedies at law or in equity if Buyer shall be in default of any of its represen­ta­tions, warranties or covenants under this Agreement.

 

	 	(a)	 	All proceedings taken in connec­tion with the tran­sactions contemplated hereby, and all instru­ments and documents incident thereto shall be reasonably satis­factory in form and substance to counsel for Sellers.
	 	 	 	 
	 	(b)	 	The representations and warran­ties of Buyer made in this Agreement and in any document or certificate delivered pursuant to this Agreement shall be true and correct as of the date of this Agreement and shall be true and correct on and as of the Closing Date with the same effect as though such representations and warranties had been made on and as of the Closing Date.
	 	 	 	 
	 	(c)	 	Buyer shall have fully performed and complied with all covenants and agreements to be performed and complied with by Buyer on or before the Closing Date.
	 	 	 	 
	 	(d) 	 	
Sellers and Buyer shall deliver to each other copies of resolutions of their respective Board of Directors (and the Sellers’ shareholder) authorizing and approving the execution and consummation of the transactions contemplated hereby, certified by their secretaries.

	 	 	 	 
	 	(e)	 	There shall not be any pending or threatened arbi­tration, litigation or administrative proceeding against or affecting the Sellers, Buyer or any shareholder, director, officer, agent, employee or affiliate of any of the fore­going or to which any properties or rights of the Sellers or Buyer is subject, which (i) is likely to have a material adverse effect on the Purchased Assets or the Buyer or (ii) would prohibit or set aside the transactions contemplated by this Agreement.
	 	 	 	 
	 	(f)	 	
Buyer and Donihe shall have entered into a real estate purchase agreement for the sale by Donihe to Buyer of the Donihe Facility for a purchase price of $175,000.

	 	 	 	 
	 	(g)	 	Buyer shall have provided Sellers with sales tax exemption certificates with respect to the sale of the Purchased Assets hereunder.
	 	 	 	 
	 	(h)	 	
Buyer shall have provided Sellers with certificates of insurance as to the coverage required under Section 3 of this Agreement.

	 	 	 	 

 

  

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9.           Termination of Agreement.

 

	 	(a)	 	Grounds for Termination. This Agreement and the tran­sac­tions contemplated hereby may be terminated at any time prior to the Closing Date:
	 	 	 	 
	 	 	 	(i)  By mutual consent in writing of all parties hereto; or
	 	 	 	 
	 	 	 	(ii)  By Buyer if there has been a material misrepresen­tation or breach of warranty in the representations and warran­ties of Sellers set forth herein not materially cured by Sellers within ten (10) days after written notice of same from Buyer, or by Sellers if there has been a material misrepresentation or breach of warranty in the represen­tations and warranties of Buyer set forth herein not materially cured by Buyer within ten (10) days after written notice of same from Sellers; or
	 	 	 	 
	 	 	 	(iii)  By either Sellers or Buyer upon written notice to the other if any regulatory agency whose approval of the transactions con­templated by this Agreement is required denies such application for approval by final order or ruling (which order or ruling shall not be considered final until expiration or waiver of all periods for review or appeal); or
	 	 	 	 
	 	 	 	(iv)  By either Sellers or Buyer upon written notice to the other if any condition precedent to such party’s performance hereunder is not satisfied or waived; or
	 	 	 	 
	 	 	 	(v)  By either Sellers or Buyer if the transac­tions con­templated by the Agreement shall violate any non-ap­pealable final order, decree or judgment of any court or governmental body having competent jurisdiction; or
	 	 	 	 
	 	 	 	(vi) By either Sellers or Buyer upon the bank­ruptcy or assignment for the benefit of creditors of either the Sellers or the Buyer.
	 	 	 	 
	 	(b)	 	Effect of Termination. In the event of the termination and abandonment of this Agreement pursuant to Section 9 of this Agreement, this Agreement shall become void and have no effect, and none of the Sellers, the Buyer, the stockholders or any of the officers or directors of any of them shall have any liability of any nature whatsoever under this Agreement, except that the provisions of this Section 9(b), Section 9(c) and Section 12 of this Agreement shall survive any such termination and abandonment.
	 	 	 	 
	 	(c)	 	Return of Information. In the event of the termination of this Agreement for any reason, each party shall deliver to the other party, and shall require each of its officers, agents, employees and independent advisers (including legal, financial and accounting advisers) to deliver to the other party all documents, work papers, and other material obtained from such other party relating to the transactions contemplated hereby, whether obtained before or after the execution hereof. Each party agrees that notwithstanding any other provision contained in this Agreement, the undertakings and covenants regarding confidentiality shall survive termination of this Agreement.
	 	 	 	 

 

10.           Additional Documents and Acts after Closing. 

 

                (a)           From time to time, at the Buyer's or Sellers’ request, whether at or after closing, and without further consideration, the Sellers or Buyer, as the case may be, will at their own expense execute and deliver such further instruments of convey­ance and transfer and take such other action as may be reason­ably re­quested to more effectively convey and transfer to the Buyer the Purchased Assets, and will assist the Buyer in the collection or reduction to possession of such property.

 

                (b)           After the Closing Date, Buyer agrees that it shall forward to Donihe, c/o Champion Industries, Inc., P.O. Box 2968, 2450 1st Avenue, Huntington, West Virginia 25704 any customer checks received by it attributable to Donihe accounts receivable.

 

                (c)           Post-Closing Access.  After the Closing, Buyer shall provide Donihe with reasonable access during normal business hours to any books and records of Donihe related to the Purchased Assets reasonably required by Donihe in connection with, among other things, any insurance claims by, legal proceedings against or governmental investigations of Donihe or preparation of Donihe financial statements and tax returns.  Buyer shall maintain such books and records following the Closing for a period of at least seven years.  In the event the Buyer wishes to destroy (or permit to be destroyed) such records after that time, Buyer shall first give ninety (90) days prior written notice to Donihe and Donihe shall have the right at its option and expense, upon prior written notice given to Buyer within that ninety (90) day period, to take possession of the records within one hundred eighty (180) days after the date of such notice. 

 

  

7

  

 

              11.           Non-Assumption of Liability.  It is understood and agreed that the Buyer is not assuming in any way whatsoever any liability of Seller of any kind whatsoever.

 

              12.           Indemnification.

 

	 	(a)	 	Sellers. Without limiting any other right of in­demnification or any other cause of action, Sellers shall defend, indemnify and hold Buyer harmless from and against any and all losses, liabilities, damages, costs, claims, judgments and expenses (including attorney's fees) what­soever arising out of or resulting from:
	 	 	 	 
	 	 	 	(i)  Any breach of warranty or misrepresentation by Sellers con­tained herein, or the non­performance of any covenant or obligation to be per­formed by Sellers or from any mis­repre­sentation, omission or inaccuracy in any schedule, exhibit, certificate, instrument or paper delivered or to be delivered by Sellers hereunder in connection with the transactions herein con­templated;
	 	 	 	 
	 	 	 	(ii)  Any liability or matter not disclosed in writing to Buyer prior to Closing arising out of the con­duct of Sellers’ business prior to the Closing Date;
	 	 	 	 
	 	 	 	(iii)  Any claim which may be asserted against Buyer or any of the assets being sold hereunder, by any of Sellers’ employees, independent contractors or agents with respect to liabilities incurred by or on Sellers’ behalf prior to their termination by Sellers whether covered by a collective bargaining agreement or not, including labor costs, severance pay, pension benefits, employee benefits, vacation and holiday benefits, sick pay, mul­tiemployer withdrawal liability, any and all employee benefits, and any other costs associated therewith;
	 	 	 	 
	 	 	 	(iv)  Any attempt (whether or not successful) by any person to cause or require Buyer to pay or discharge any debt, obligation or liability relating to the Sellers other than any liability specifically assumed by Buyer hereunder;
	 	 	 	 
	 	 	 	(v)  Any liability arising out of or in connec­tion with Donihe’s termination of its employees, including but not limited to alleged violations of any collec­tive bargaining agreement, any charges or com­plaints against Buyer or Donihe, by or with the National Labor Rela­tions Board or any body judicial, ad­ministrative or otherwise, with jurisdiction over the parties to any collective bargaining agreement or otherwise or any such charges, complaints, lawsuits or administrative proceedings with regard to the termina­tion of employees, the payment of wages or benefits or related costs associated with the termination of Donihe's employees; and
	 	 	 	 
	 	 	 	(vi)  Any and all claims and expenses related to or arising under any of the Donihe’s employee benefit plans, including, but not limited to, claims related to health care continuation coverage under Internal Revenue Code Section 4980B and ERISA Sections 601-608.
	 	 	 	 
	 	(b)	 	Buyer's Indemnity. Without limiting any other right of indemnification or any other cause of action, Buyer shall indemnify and hold Sellers forever harmless from and against any and all losses, liability, damages, costs, claims, judgments and expenses (including attorney's fees) whatsoever arising out of or resulting from:
	 	 	 	 
	 	 	 	(i)  Any breach of warranty or misrepresenta­tion by Buyer contained herein, or the non-perfor­mance of any covenant or obligation to be performed by Buyer or from any misrepresentation, omis­sion or inaccuracy in any Schedule, exhibit, cer­tificate, instrument or paper delivered or to be delivered by Buyer hereunder in con­nection with the transactions herein contem­plated.
	 	 	 	 
	 	(c)	 	Indemnification Limitations. Notwithstanding any other provision in this Agreement:
	 	 	 	 
	 	 	 	(i)  The Indemnifying Party hereunder shall have the right to control the defense of any claim or proceeding by any third party as to which it shall have acknow­ledged its obligation to indemnify the other party, and the Indem­nified Party hereunder shall not settle or compromise any such claim or proceeding without the written consent of the Indemnifying Party, which con­sent shall not unreasonably be withheld or delayed. The Indemnified Party may in any event participate in any such defense, with its own counsel and at its own expense; and
	 	 	 	 
	 	 	 	(ii)  Nothing herein shall be construed as granting a right of indem­nification in any party hereto in respect of any (A) losses any party may have arising out of the allocation of the purchase price or (B) in respect of any consequential damages.
	 	 	 	 

 

           13.            Risk of Loss.    Sellers shall assume all risk of loss to the assets covered by this Agreement until the Closing Date and the transfer of assets contemplated hereunder except either the Buyer or the Sellers shall have the option to determine whether to cancel this con­tract or adjust the sales price in the event of losses in excess of $10,000.00.  Buyer has the risk of loss after the Closing Date.

  

8

  

 

                14.           Brokerage.  The Sellers represent and warrant to the Buyer and Buyer represents and warrants to Sellers that except for the assistance of Raymond James and Associates, Inc., for whose fee Sellers’ sole shareholder has sole responsibility, all negotiations on its part relative to this Agreement have been carried on by the parties hereto directly without the intervention of any other person on its behalf; that except as aforesaid, neither party has incurred any liability for finder's, agents or brokerage fees, commissions or compensation in connection with this Agreement or the transactions contemplated hereby, and each party shall indemnify the other and hold the other harmless against and in respect of any claim for such relative to this Agreement, or to the transactions contemplated hereby, and also in respect of all expenses of any character incurred by them in connection with this Agreement or such transactions.

 

                15.           Survival of Representations, Warranties and Agreements.  All representations, warran­ties, agree­ments and indemnities made by the Sellers and Buyer in this Agreement, or pursuant hereto, shall sur­vive the Closing Date and any investigation at any time made by or on behalf of the Buyer or Sellers for a period of two (2) years after the Closing Date.

 

16.           Benefit.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

17.           Modification.                                This agreement cannot be modified, changed, discharged, or terminated, except by a writing signed by the parties hereto.

 

18.           Nonwaiver.  No waiver of any breach or default here­under shall be considered valid unless in writing and signed by the party giving such waiver, and no such waiver shall be deemed a waiver of any subsequent breach of default of the same or simi­lar nature.

 

19.           Entire Agreement.  This Agreement and the agreements specifically referred to herein constitute the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral and written, among the parties hereto or their assignors with respect to the subject matter hereof.

 

20.           Descriptive Headings.  Descriptive headings used in this Agreement are for convenience only and shall not control or affect the meaning or construction of any provision of this Agree­ment.

 

  

9

  

 

               21.           Notices.  All notices or other communications which are required or permitted hereunder shall be in writing and shall be sufficient if delivered or mailed by registered or certified mail, postage prepaid, sent by telex or telegram, or delivered by hand, and shall be effective upon delivery to the following addresses or such other address as the appropriate party may advise each other party hereto.                            

 

	 	If to the Sellers: 	 	
c/o Champion Industries, Inc.

P.O. Box 2968

2450 1st Avenue

Huntington, WV 25704

	 	Attention:	 	Todd R. Fry, Senior Vice President and Chief Financial Officer
	 	 	 	 
	 	 	 	 
	 	Copy to: 	 	
Huddleston Bolen LLP

Post Office Box 2185

Huntington, West Virginia 25722

	 	Attention:	 	Thomas J. Murray, Esquire
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	If to the Buyer: 	 	
Graphics International, LLC

2318 Crown Centre Drive

Charlotte, NC 28227

	 	Attention: 	 	William B. Troutman, CEO
	 	Telephone: 	 	1-704-847-8282
	 	 	 	 
	 	 	 	  
	 	Copy to: 	 	
Weaver, Bennett & Bland, P.A.

P.O. Box 2570

Matthews, NC 28106

	 	Attention: 	 	F. Lee Weaver, Esquire
	 	 	 	 

                             

  

10

  

 

 

                22.           Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agree­ment.

 

23.           Binding Nature; Assignments.  This Agreement is binding upon, and inures to the benefit of, the parties hereto and their respective heirs, successors and assigns.  This Agreement may not be assigned by any party hereto without the prior written consent of the other parties to be bound thereby, except that Buyer may assign this Agreement to any affiliate of Buyer.  Except as otherwise expressly stated in this Agreement, nothing contained herein shall be construed to confer any right or cause of action on any person other than the parties hereto, and their respective successors and permitted assigns.

 

24.           Governing Law and Venue.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Tennessee.

 

25.           Legal Fees and Expenses; Other Expenses.  Each of the parties hereto will pay its own fees and expenses incurred in connection with review of this Agreement and related documents and the consummation of the transactions therein contemplated, including, without limitation, all legal fees.

 

26.           Invalid Provisions.  The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be con­strued in all respects as if such invalid or unenforceable pro­vision were omitted.

 

IN WITNESS WHEREOF, the parties have executed this Agreement effective on the 30th day of November, 2012.

 

DONIHE GRAPHICS, INC.,

a Tennessee corpora­tion

By /s/ Todd R. Fry

Its:  Vice President

THE MERTEN COMPANY,

an Ohio corporation

By: /s/  Todd R. Fry

Its: Vice President

 

GRAPHICS INTERNATIONAL, LLC,

a North Carolina limited liability company

By: /s/ WB Troutman

Its:  Member/Mgr.

{H0807897.2 }

  

11

  

EXHIBIT “A”

Assets – Machinery and Equipment

	
1.  

	
All the assets set forth and described on Exhibit A-1 attached hereto and incorporated herein by reference, which assets are presently located in Seller’s Cincinnati, Ohio printing business which operates under the name of The Merten Company at the following business address:  1515 Central Parkway, Cincinnati, Ohio.  These assets include computers and computer software and further include all the operating software necessary to run the printing equipment being purchased and any and all related support software (exclusive of Apogee Workflow Software), whether proprietary to The Merten Company, or subject to the proprietary claims of third parties and/or license agreements, which license agreements, if any, are hereby transferred to Buyer.

	
2.  

	
All the assets presently located in Seller’s Kingsport, Tennessee printing business, which operates under the name of Donihe Graphics, Inc., at the following business address:  766 Brookside Drive, Kingsport, Tennessee.  These assets consist of (but are not limited to) printing equipment, machinery, tools, spare parts, computers, and computer software including of all the operating software necessary to run the printing equipment being purchased and any and all related support software (exclusive of Apogee Workflow Software), whether proprietary to Donihe Graphics, Inc., or subject to the proprietary claims of third parties and/or license agreements, which license agreement, if any, are hereby assigned and transferred to Buyer.

{H0807897.2 }

  

  

 

	
EXHIBIT A-1

	  	  	  	  	  
	
MERTEN

	  	  	  	  
	  	  	  	  	  
	
Machine

	
Model

	
Machine Number

	
Year

	
Description

	
Heidelberg

	
CD 102-6-L

	
548 127

	
2007

	
SE Version AXIS Control

	
Komori

	
L640+C

	
249

	
1988

	
200 Million Impressions

	
Heidelberg

	
SORSZ

	
507 993

	
1975

	
2 Color 40"

	
Heidelberg

	
102 ZP

	
515 552

	
1980

	  
	
Komori

	
L426

	
300

	
1985

	
4 Color

	
Muller Martini

	
Presto

	  	
2006

	
8 Pocket with Conver Feeder

	
Heidelberg

	
Plate Bender

	  	  	
Plate Bender

	
Heidelberg

	
Plate Punch

	  	  	
Plate Punch

	
Carlson

	
KPS-40

	
16968

	  	  
	  	  	  	  	  
	
Seybold

	
Citation 42

	  	  	
42" Paper Cutter with Micro Cut

	
Schnieder

	
Senator 115MC2

	
45382

	  	
45" Paper Cutter

	
MBO

	
B26-C

	
k.10/69

	
1983

	
26 X 40 Folder

	
Baumfolder

	
Liberty

	
AD5171

	  	
26 X 40 Folder

	
MBO

	
B30F-1-30/4

	
Y06/09

	
2007

	
30 X 44" Folder with 3 rt angles and stacker

	
Hangata

	
HP-10Z Lbar

	
110109

	
1997

	
Shrink wrap with heat tunnel

	
Beseler

	
3020-EM-A

	
3870205

	  	
Shrink wrap with Bestronic Heat Tunnel

	
AM Graphics

	
SP455

	
SL1316

	
1993

	
6 Pocket Saddle Stitcher

	
Champion

	  	  	  	
Wire Stitcher

	
Acme Champion

	  	  	  	
Wire Stitcher

	
Lassco

	
50P

	
518

	  	
Round Corner Machine

	  	  	  	  	  
	
Challenge

	
MS-10A

	
50185

	  	
5 Hole Drill

	
Nestaflex

	  	  	  	
12" Wide X 15' Long Flexible Conveyor

	
Ingersoll-Rand

	
SSR-EP20SE

	
970DXR3853

	
1997

	
20 HP Screw Compressor 57K Hours with Tank

	
Quincy

	
QSBHANA12K

	
38162

	  	
Estimated 15 HP Screw Compressor with Belair Dryer

	  	  	  	  	  
	
Factory Support

	  	  	  	
Factory Support Equipment Pallet Jacks Workbenchs etc.

	
Pallet Racking

	  	  	  	
78 Sections Medium Duty 108" X 40" X 8' to 2 Tier

	
Prepress Misc.

	  	  	  	
AGFA 50" Viewing Booth, Light Tabels, etc

	
Agfa

	
Gallleo VE

	
3067

	  	
Computer to Plate

	
Caterpillar

	
T40D

	
1990

	
1990

	
4,000 lb. lift truck LP Gas

	
Big Joe

	
1524-A/

	
1317710

	  	
Walk behind electric walkie

	
Crown

	
BT-130

	
20202

	  	
1500 lb. Electric Walkie

	
Clark

	
SP30

	
SP30-0069

	
1985

	
3000 lb. Electric Walkie

	
Toyota

	
6HBW20

	
6HBW20-18704

	  	
4000 lb. Electric Walkie

	  	  	  	  	  
	
EXCLUDED ITEMS:

	  	  	  
	
Items on list that were not present in final walk through and in certain cases have been removed for months:

	
GSF

	
550

	  	  	
5000 Pound Scale 48" X 48"

	
PMC

	  	
B193

	  	
Bottom Up Diecutter

	
Office

	  	  	  	
Furniture Business Machine Conference Table, etc.

	
Prepress Misc

	  	  	  	
Epson 9800

	
Ford

	
350

	  	
2008

	
Cargo Van 80K miles

	
Freightliner

	
BUS M2 BUS

	  	
2004

	
297K miles

	
Ford

	
Escape

	  	
2010

	
SUV

	  	  	  	  	  

 

  

  

  

	
DONIHE

	  	  	  	  
	  	  	  	  	  
	
Machine

	
Model

	
Machine Number

	
Year

	
Description

	
Gardner Denver

	
EBH99D13

	
S036790

	
1999

	
15 HP Rotary Screw Compressor

	
Ingersoll Rand

	
U40H-SP

	  	
1989

	
40 HP Rotary Screw Compressor

	
Ingersoll Rand

	
SSR 150H

	
S036790

	
1982

	
40 HP Rotary Screw Compressor

	
Mitsubishi

	
DAIYA-3F

	
K7725U89F

	
1989

	
6 Color 16B Million Impressions with Rapidec Coater

	
Wohlenberg

	
92

	  	
1982

	
36 inch Paper Cutter

	
Harris

	
M110

	
3F155D

	
1981

	
5 Color Press

	
Halm Jet

	
JP-TWOD-6D

	
3003-003

	
1996

	
2 Color 12 X 18"

	
AB Dick

	
9870

	
0195005

	
1981

	
Single Color with T-51 Print Head

	
Beseler

	
1720-GMTE

	
SJ5598

	  	
Heat Shrink Tunnel

	
Hanagata

	
HP-110Z

	
110067

	  	
L Bar Sealer

	
Wohlenberg

	
92

	
9209-001

	  	
36 inch Paper Cutter

	
Challenge

	
EH-3A

	
75753

	  	
3 Hole Drill

	
Polar

	
115 EMC

	
5232119

	
1982

	
45" Paper Cutter

	
Wohlenberg

	  	
S7223

	  	
Trimmer 36" Not in operation

	
Kansa

	  	  	
1982

	
28 inch Padder

	
MBO

	
B26 S-C

	
R11/72

	
2000

	
26 X 40" with right angle ith BA-700 Banding Machine

	
MBO

	
B123-C

	
f.05/104

	
1992

	
Folder with 2 right angles

	
Challenge

	
MS-10A

	
68372

	  	
5 Hole Drill

	
Bostitch

	
Bronco

	  	  	
Single head stitcher

	
Muller Martini

	
Minuteman

	
99.0084

	  	
4 Pocket

	
Muller Martini

	
Bravo T

	
NN6259

	
2000

	
10 Pocket Cover Feeder Apollo Stacker

	
Toledo

	
8136

	  	  	
Platform Scale

	
3M

	
4800

	
6111

	
2000

	
Case Sealer

	
Wexler

	
ATS-CE 240/30

	
8587-G

	  	
Banding Machine

	
Agfa

	
Avalon LF

	
CNXZA000

	
2007

	
CTP System

	
Misc PrePress

	  	  	  	
Apple G5 Computers Printers etc.

	
Hyster

	
E4OB

	
B108V073398

	
1980

	
4000 lb Electric Lift Truck

	
Hyster

	
E65Xm2

	
F108V21950Y

	
2001

	
6500 lb Electric Fork Lift side shift

	
Clark

	
CSM-15

	
CSM-0248-6833

	
1998

	
3000 lb Electric Walkie

	
MAN Roland

	
202

	  	  	  

{H0807897.2 }

  

  

  

EXHIBIT B

 

LIENS, ENCUMBRANCES, MORTGAGES AND SECURITY INTERESTS

 

 

Sellers’ Guaranty of the obligations of Champion Industries, Inc. under the First Amended and Restated Credit Agreement among Champion Industries, Inc. as Borrower, Various Lenders from time to time party thereto and Fifth Third Bank, as Administrative Agent and L/C Issuer dated as of October 19, 2012, secured in part by UCC-1 financing statements covering the Purchased Assets.

 

 

{H0807897.2 }

	  

  

  

  

EXHIBIT C

 

ALLOCATION OF PURCHASE PRICE

 

One hundred percent (100%) of the Purchase Price is allocated to the machinery and equipment listed or described in Exhibit A.

 

{H0807897.2 }exhibit103.htm

EXHIBIT 10.3

 

 

REAL ESTATE PURCHASE AGREEMENT

THIS REAL ESTATE PURCHASE AGREEMENT (the “Agreement”) is executed as of the 4th day of December, 2012 (the “Agreement Date”), by and between DONIHE GRAPHICS, INC., a Tennessee corporation (the “Seller”) and GRAPHICS INTERNATIONAL, LLC, a North Carolina limited liability company (the “Buyer”).

RECITALS:

	
  

	
A.

	
Seller is the owner in fee simple of unimproved real property and certain improved property consisting of an industrial building containing approximately 38,500 square feet, located at 766 Brookside Road, Kingsport, Tennessee, all of such property being more particularly described in Exhibit A attached hereto (the “Property”), which Exhibit A is incorporated herein by reference (such real estate, industrial building, appurtenances, and any improvements, structures and/or fixtures are herein referred to collectively as the “Property”); and

	
  

	
B.

	
Buyer desires to purchase, and Seller desires to sell the Property, which is part of the assets being purchased as described in a certain Asset Purchase Agreement between the parties.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, Seller and Buyer agree as follows:

1.           Purchase and Sale.  Seller agrees to sell, and Buyer agrees to purchase the Property for the price and subject to the terms and conditions hereinafter set forth.  Seller and Buyer agree that the Property, as purchased by Buyer, is sold and purchased AS IS, WHERE IS, with no warranty or representation as to the physical condition of the Property or its suitability for any particular purpose, except as otherwise expressly set forth in this Agreement.

2.           Purchase Price.  The purchase price for the Property (the “Purchase Price”) shall be One Hundred Seventy-Five Thousand and no/100 Dollars ($175,000.00).

 

 

3.           Payment of Purchase Price.  The Purchase Price shall be paid to Seller as follows:

The Purchase Price, plus or minus any prorations and adjustments made pursuant to this Agreement, shall be paid by Buyer in cash, by wire transfer of funds directly to an account at Fifth Third Bank as Administrative Agent (the "Agent") for those secured lenders under that certain First Amended and Restated Credit Agreement dated as of October 19, 2012, in the name of the Agent, as designated by Sellers.

  

1

  

4.           Conditions.  The Buyer’s obligations under this Agreement are subject to the satisfaction (or waiver in writing by Buyer) of the conditions in this Section 4 (the “Conditions”) within ten days (10) days after the Agreement Date (the “Satisfaction Date”).  The Buyer will have the right and option to extend the Satisfaction Date for up to one (1) additional period of ten (10) days (the “Extension”).  Buyer’s notice of any such Extension shall be given pursuant to Section 14 before the expiration of the then current Satisfaction Date.  In the event the Conditions are not satisfied by the Satisfaction Date, Buyer shall, within three (3) business days thereafter, give Seller written notice that such conditions have not been satisfied and either (i) waive any unsatisfied Condition(s) and proceed to Closing of the purchase and sale; or (ii) notify Seller that Buyer has elected not to attempt to further resolve or satisfy such Condition(s) and that Buyer will not complete the purchase and sale, in which case neither party shall have any further obligation hereunder.  The Conditions are as follows:

(a)           Status of Title.  Buyer shall have received the Title Commitment and Survey, as each is hereinafter defined, in the condition and as required under Sections 5 and 6 of this Agreement.

(b)           Zoning and Approvals.  Buyer shall have determined, in its sole discretion, that the Property is suitably zoned to a zoning classification compatible with Buyer’s intended use of the Property with all necessary classifications, variances, permissions, exceptions, conditional uses, and other approvals having been obtained from all applicable governmental agencies and such approvals being final, non-appealable and in full force and effect.  In the event Buyer determines that it requires any approvals, consents or other documentation with respect to the zoning of the Property and/or a variance to permit Buyer’s proposed use of the Property, Buyer shall have the right, at Buyer’s expense, to file such petitions for such approvals as Buyer deems necessary or appropriate.  In such a case, the Seller agrees that it will execute all necessary consents and other documents necessary for the filing of zoning and/or variance petitions and obtaining the appropriate governmental approvals.

(c)           Utilities.  Buyer shall have determined, in its sole discretion, that utilities, including, but not limited to, gas, electricity, water, sanitary sewer, storm sewer, telephone and other telecommunication utilities, are available at the Property, in such capacities and in such locations as are satisfactory to Buyer.

(d)           Access.  Buyer shall have determined, in its sole discretion, that the Property has free, unrestricted and direct legal rights of access and ingress and egress to one or more public roads or highways, with access drives and curb cuts in such number and at such locations as is deemed necessary or desirable by Buyer.

(e)           Permits and Approvals.  Buyer shall have determined, in its sole discretion, that all site plan approvals, permits, consents, approvals and other things required or desired by Buyer to be obtained from all federal, state and local governmental, municipal, public and other authorities, bodies and agencies and under any restrictions applicable to the Property and Buyer’s proposed use thereof (collectively the “Approvals”) either have been obtained and remain in full force and effect or will be obtainable by Buyer.  Seller shall cooperate with and furnish Buyer with all information necessary to obtain any and all such Approvals.  Seller’s obligations in this regard shall include, but will not be limited to, preparing, filing, and joining in any applications therefore and attending and participating in any meetings or hearings of administrative officials and legislative bodies with respect to Buyer’s obtaining all such permits.

(f)           Environmental Condition.  Buyer shall have received or obtained at Buyer’s expense a Phase I environmental report or other form of environmental site assessment acceptable to Buyer (which shall include a delineation of any wetlands on the property and any other information that the Buyer deems relevant to its proposed use of the Property) which is satisfactory to Buyer in its sole discretion.

(g)           Improvements.  Buyer shall have determined that any and all improvements, structures, facilities and fixtures on the Property (which, if any, are collectively referred to herein as the “Improvements”) are located entirely within the bounds of the Property and that there are no encroachments upon the Property by improvements or appurtenances on any property adjoining the Property.

(h)           Release of Deed of Trust and Fixture Filing.  The Property is subject to a certain Deed of Trust, as amended by that certain First Amended and Restated Credit Agreement dated as of October 19, 2012, and fixture filing for the benefit of Fifth Third Bank, as Agent for various secured creditors.  Seller shall obtain a release of the Deed of Trust and fixture filing from Fifth Third Bank in a form satisfactory to Buyer.

  

2

  

5.           Seller’s Title.

(a)           Within seven (7) days after the Agreement Date, Buyer will obtain, at its expense, a commitment for an owner’s policy of title insurance (the “Title Commitment”) issued by a title insurance company of Buyer’s choosing on standard ALTA Owner’s Policy Commitment Form, if available (otherwise in a form acceptable to Buyer), in which the Title Company shall agree to insure, for the full amount of the Purchase Price, merchantable fee simple title to the Property in the name of Buyer, free from the Schedule B standard printed exceptions and all other exceptions except those exceptions which are acceptable to the Buyer, in its sole discretion (the “Permitted Exceptions”) after delivery of the Deed (as defined in Section 11) to Buyer from Seller.  The Title Commitment shall be updated prior to the Closing to reflect the state of the title not more than five (5) days prior to the Closing.  Buyer shall pay any and all costs and expenses related to the title insurance, including all search fees, closing fees and the premium for the owner’s title insurance policy and all endorsements (the “Title Policy”) issued pursuant to the Title Commitment.  The cost of any title insurance policy issued to any lender in connection with the recordation of any mortgage or deed of trust will also be the responsibility of the Buyer.

(b)           If (1) the Title Commitment reflects any exceptions to title which are not acceptable to Buyer, in Buyer’s sole discretion, or (2) the Survey delivered to Buyer pursuant to Section 6 below discloses any state of fact not acceptable to Buyer, in Buyer’s sole discretion, or (3) at any time prior to the Closing, title to the Property is encumbered by any exception to title not acceptable to Buyer, in Buyer’s sole discretion (with any such exception or unacceptable state of fact being referred to herein as a “Title Defect”), then Buyer shall, on or before the Satisfaction Date, give Seller written notice of such Title Defect.  Seller shall have the right, but no obligation (except as specifically set forth below), during the ten(10) day period after receipt of such notice, to remove such Title Defect or obtain affirmative title insurance coverage acceptable to Buyer, insuring and defending Buyer against any loss, cost or expense arising out of or related to such Title Defect (“Affirmative Coverage”).  On or before the Closing, Seller shall provide Buyer with reasonable evidence of such removal or provide reasonable evidence that such Title Defect will be removed or that such Affirmative Coverage shall be obtained.  Notwithstanding anything contained herein to the contrary, Seller shall be obligated to expend whatever sums are required to cure or obtain Affirmative Coverage for the following Title Defects prior to, or at, the Closing:

(i)           All mortgages, security deeds or other security instruments encumbering the Property;

(ii)           All past due ad valorem taxes and assessments of any kind, whether or not of record, which constitute, or may constitute, a lien against the Property; and

(iii)           Judgments against the Seller (which do not result from acts or omissions on the part of Buyer) which have attached to and become a lien against the Property.

(c)           Seller shall have the right, at its sole election, to extend the Closing Date (as defined in Section 10, below), for a period not to exceed twenty (20) days in order to cure or obtain Affirmative Coverage for any Title Defect.  In the event Seller is unable to cure or obtain Affirmative Coverage for any Title Defect within such period, Buyer shall have the option to either (i) waive any such Title Defect and proceed to Closing, or (ii) terminate this Agreement, in which case neither party shall have any further obligations hereunder.

6.           Survey.  Within ten  (10) days after the Agreement Date, Buyer, at its expense, shall order a staked boundary survey of the Property (the “Survey”) prepared by a registered land surveyor satisfactory to Buyer.  The Survey shall (1) be completed in accordance with ALTA/ACSM minimum standards for an “urban” class survey; (2) have one perimeter description of the Property; (3) show all easements, rights-of-way, set-back lines, encroachments and other matters affecting the use or development of the Property; (4) disclose on the face thereof the acreage of the Property; (5) contain such other matters as are required for the Title Company to delete the standard exceptions on Schedule B to the Title Commitment; (6) show the location of any and all Improvements; and (7) be certified to Seller, Buyer, Title Company,  and Buyer’s lender.

  

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7.           Cooperation of Seller and Property Information.  Seller shall assist Buyer and its representatives, whenever reasonably requested by Buyer, in obtaining information about the Property.  In this regard, the Seller hereby agrees that it shall, within ten (10) days following the date of this Agreement, deliver to Buyer the following documents and/or information to the extent that such documents and/or information is within the Seller’s custody or control: (i) copies of all real estate tax bills applicable to the Property; (ii) copies of any utility bills pertaining to the Property; (iii) copies of any plans or specifications pertaining to any Improvements on the Property; (iv) copies of any warranties and/or service contracts pertaining to any Improvements on the Property; (v) copies of any existing surveys, geotechnical reports, maps, or other reports pertaining to the physical condition of the Property, including, without limitation, structural reports, maintenance reports, environmental reports, soils reports and similar test or inspection reports; (vi) copies of any permits or approvals pertaining to the Property; and (vii) a copy of any  title insurance policy previously obtained by Seller.  In addition, the Seller will cooperate with the Buyer in the Buyer’s efforts to procure an estoppel certificate covering the compliance of the Property, and the Improvements that are a part of the Property and/or any buildings or other improvements that the Buyer intends to build on the Property, with any restrictive covenants applicable to the Property and covering the status of any necessary contributions to cover any type of “common area” or similar costs under any such restrictive covenants.

8.           Taxes.  Buyer will assume and agree to pay that portion of the real estate taxes and personal property taxes applicable to the Property which accrue on and after the Closing Date, and Seller shall pay the balance of such taxes for the tax year in which Closing occurs and for all prior tax years.  For Closing purposes, the tax rate and valuation assessment existing on the Closing Date shall be used to pro rate the real estate taxes and personal property taxes for the tax year in which Closing occurs.  At Buyer’s option, any taxes for which Seller is responsible under such proration and not due and payable at the time of Closing shall be allowed to Buyer as a credit against the cash payment required at Closing, and Seller shall not be further liable for such taxes.

9.           Insurance, Condemnation and Risk of Loss.  Seller’s insurance on the Property shall be cancelled as of the Closing Date.  In the event that, prior to Closing, all or any portions of the Property, any interests therein, or any rights appurtenant thereto are (a) damaged or destroyed by any fire or other casualty, or (ii) taken or appropriated (either permanently or for temporary periods) under the power of eminent domain or condemnation by any authority having such power, or by virtue of any actions or proceedings in lieu thereof, or if any notice or threat of such taking or appropriation has been given or is pending at the Closing, then Buyer, at its option, may either (a) cancel this Agreement by written notice to Seller, in which event neither party shall have any further obligation hereunder, or (b) elect to proceed with Closing, in which event the Purchase Price shall be reduced by an amount equal to any sums previously paid or then payable to Seller by the insurance carrier (plus an amount equal to the amount of the deductible feature of the Seller’s insurance policy) or by the condemning authority, by reason of any such casualty or by reason of any such taking, appropriation or action or proceeding in lieu thereof, and Seller shall transfer and assign to Buyer at Closing any and all further insurance or condemnation proceeds, claims, demands, actions and chooses in action which may exist by virtue of such casualty, taking, appropriation or action or proceeding in lieu thereof; provided, however, that until the earlier of (i) the Closing Date, or (ii) termination of this Agreement, Seller shall not make any voluntary settlement or agreement regarding any casualty loss, taking, appropriation or action or proceeding in lieu thereof with any insurance carrier or any condemning authority, without first obtaining Buyer’s written consent to such settlement or agreement.

10.           Closing.  The closing of the purchase and sale of the Property (the “Closing”) shall occur at the offices of Hunter, Smith & Davis, LLP, 1212 N. Eastman Road, Kingsport, Tennessee, or another location selected by both Seller and Buyer, on or before December 24, 2012 (the “Closing Date”), unless Buyer and Seller mutually agree upon a different date for the Closing.  If the Closing is not consummated on or before December 24, 2012, Seller shall be entitled, as its sole and exclusive remedy hereunder, to terminate this Agreement, whereupon the parties shall have no further rights or obligations hereunder, except for those which expressly survive any such termination.

                11.           Closing Documents.  At the Closing, Seller shall execute and deliver to Buyer (a) a general warranty deed conveying fee simple title to the Property to Buyer subject only to the Permitted Exceptions and otherwise free and clear of all liens and encumbrances except such as have been approved in writing by Buyer (the “Deed”), (b) any and all applicable transfer tax declarations or other transfer or sale disclosure statements required by applicable law, (c) a title affidavit in a form satisfactory to the Buyer and the Title Company, suitable to permit the Title Company to delete the standard, pre-printed exceptions (that are identified in the Title Commitment) from the Title Policy, (d) a certification of non-foreign status pursuant to Section 1445(b)(2) of the Internal Revenue Code, (e) a closing statement and (f) such other instruments, certificates or affidavits as may be provided herein or as Buyer or Title Company may reasonably request to effect the intention of the parties hereunder.

12.           Possession.  Possession of the Property shall be delivered to Buyer on the Closing Date in the same condition as it is now, free and clear of the claims of any other party; provided, however, Buyer may obtain possession and the right to use the Property prior to Closing pursuant to such lease agreement as Seller, as landlord, and Buyer, as tenant, may enter into.

13.           Rights and Obligations.  The rights and obligations of Seller and Buyer herein contained shall inure to the benefit of and be binding upon the parties hereto and their respective assigns.

  

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14.           Notices.  All notices required or permitted to be given hereunder shall be in writing and delivered either in person or by certified or registered first-class prepaid mail, return receipt requested, or by nationally recognized overnight courier service, to Seller or Buyer at their respective addresses set forth below, or at such other address, notice of which may have been given to the other party in accordance with this Section 14.

 

	 	Seller:
	 	
Donihe Graphics, Inc.

c/o Champion Industries, Inc.

P.O.Box 2968

2450 1st Avenue

Huntington, WV 25704

Attn.: Todd R. Fry, Senior Vice President and Chief Financial Officer

	 	 
	 	 
	 	 
	 	Buyer:
	 	
Graphics International, LLC

Attn: Mr. William B. Troutman

2318 Crown Centre Drive

Charlotte, NC 28227

 

Any notice given in accordance with this paragraph shall be deemed to have been duly given or delivered on the date the same is personally delivered to the recipient or received by the recipient as evidenced by the return receipt.

  

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15.           Representations and Warranties.  Seller hereby warrants and represents to Buyer as follows:

(a)           Seller is the legal and equitable owner of fee simple title to the Property and will convey such fee simple title by Deed to Buyer on the Closing Date free and clear of all options, rights, covenants, easements, liens and other rights in favor of third parties, other than the Permitted Exceptions.

(b)           The execution, delivery and performance by Seller of its obligations under this Agreement will not conflict with or result in a breach of, or constitute a default under, any of the provisions of any law, governmental rule, regulations, judgment, decree or order by which the Seller is bound, or by any of the provisions of any contract to which the Seller is bound, or, by the organic agreements establishing and regulating the Seller’s business affairs and the Seller has full power and authority to enter into and consummate the transactions contemplated by this Agreement, and all consents and approvals necessary therefor have been obtained.

(c)           There is no claim against any portion of the Property or Seller for or on account of work done, materials furnished or utilities supplied to the Property which have not been paid.

(d)           There are no violations or threatened or pending violations of any laws, statutes, ordinances, rules or regulations with respect to the Property open, noticed or existing.

(e)           The Property is not subject to any outstanding agreements of sale, or any options, liens, or other rights of third parties to acquire any interest therein. The Property is not subject to any ground lease or other lease, or other encumbrances (other than the Permitted Exceptions).

(f)           There are no unpaid assessments for public improvements pertaining to the Property.

(g)           To Seller’s knowledge, there are no public plans or proposals for changes in road grade, access or other municipal improvements which would affect the Property or result in any assessment against or encumbering the Property.  To Seller’s knowledge, no ordinance authorizing improvements, the cost of which might be assessed against Buyer or the Property, is pending. To Seller’s knowledge, there is no appellate tax proceeding pending for the reduction or increase of the assessed real estate tax valuation to the Property or any portion thereof.

(h)           To Seller’s knowledge, no litigation, condemnation proceedings, eminent domain proceedings or similar actions or proceedings are now pending or threatened against the Property nor does Seller know of or have reasonable grounds to know of any basis for any such action or claim.

(i)           There are no real estate, management, supply, promotional, operating, leasing, maintenance, security and service contract, equipment lease, signage lease, or other agreements relating to the ownership of the Property, which are in force with respect to the Property.

(j)           To Seller’s knowledge, but without independent investigation or inquiry, there are no hazardous, toxic or infectious wastes, substances or materials present on the Property in quantities or concentrations or otherwise stored or used in violation of any applicable Environmental Laws (as herein defined).  For these purposes, the term “Environmental  Laws” shall mean and refer to Comprehensive Environmental Response, Compensation and Liability Act of 1980 and the Super Fund Amendments and Reauthorization Act (42 USC § 9601 et seq.), the Hazardous Materials Transportation Act (49 USC § 1801 et. seq.), the Resource Conservation and Recovery Act of 1976 (42 USC § 6901 et seq.), the Federal Water Pollution Control Act (33 USC § 1251 et seq.), the Clean Air Act (42 USC § 7401 et seq.), the Toxic Substances Control Act of 1976 (15 USC § 2601 et. seq.), the Safe Drinking Water Act (42 USC § 300F-300J-11 et. seq.), the Occupational Safety and Health Act of 1970 (29 USC § 651 et seq.) and the Emergency Planning and Community Right to Know Act (42 USC § 11001 et seq.), each as heretofore and hereafter amended or supplemented, and any analogous future or present local, state or federal statutes, rules or regulations.

(k)           To Seller’s knowledge, there are no underground storage tanks on the Property.

(l)           The Property has direct legal and perpetual rights of access to and from the Property to one or more public roads and any amounts due for improvements (including, without limitation, construction of access roads have either been paid by Seller or will be paid by Seller at or prior to the Closing Date.

(m)            Utility services for water, sanitary sewer, natural gas, electricity, and telephone and telecommunications services are available either at the Property or in the vicinity of the Property in locations wherein the Buyer can connect to such existing utility infrastructures and extend the same to the Property through perpetual private easements that benefit the Property or through public rights-of-way.

Seller shall indemnify, defend and hold Buyer harmless from and against any and all claims, demands, liabilities, damages, suits, actions, judgments, fines, penalties, loss, costs and expense (including, but not limited to, attorneys’ fees) arising or resulting from, or suffered, sustained or incurred by Buyer as a result (direct or indirect) of the untruth or inaccuracy of any of the foregoing representations and warranties by Seller to Buyer or the breach of any of the foregoing representations and warranties of Seller, which indemnity shall survive the Closing hereof.

  

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16.           Assignment.  Buyer may assign this Agreement and all of its interests herein to an entity related to Buyer or affiliated with Buyer without obtaining the consent of Seller.  Upon such assignment, the assignee shall have and be subject to all the rights, benefits, duties and obligations of Buyer hereunder but the Buyer shall not be released from any of its obligations under this Agreement.

17.           Complete Agreement.  This Agreement represents the entire agreement between Seller and Buyer covering everything agreed upon or understood in this transaction.  There are no oral promises, conditions, representations, understandings, interpretations or terms of any kind as conditions or inducements to the execution hereof or in effect between the parties.  No change or addition shall be made to this Agreement except by a written agreement executed by Seller and Buyer.

18.           Partial Invalidity.  If any term, covenant or condition of this Agreement is held to be invalid or unenforceable in any respect, such invalidity or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid or unenforceable provision had never been contained herein.

19.           Use of Brokers.  Seller and Buyer hereby warrant that neither party has an obligation to pay an outside brokerage commission for the sale of the Property.  Buyer and Seller hereby agree to indemnify, defend and hold harmless the other party from and against any liability, cost or expense, plus all costs of collection, including litigation expenses and attorneys’ fees, as a result of a claim for a commission, fee or other compensation made by any real estate broker, finder or other person and asserted against the other party by reason of an arrangement made or alleged to have been made by the indemnifying party.

20.           Attorneys’ Fees.  In the event that either party shall bring an action or legal proceeding for an alleged breach of any provision of this Agreement or any representation, warranty, covenant or agreement herein set forth, or to enforce, protect, determine or establish any term, covenant or provision of this Agreement or the rights hereunder of either party, the prevailing party shall be entitled to recover from the nonprevailing party, as a part of such action or proceedings, or in a separate action brought for that purpose, reasonable attorneys’ fees and costs, expert witness fees and court costs as may be fixed by the court or jury.

21.           Governing Law; Construction.

(a)           This Agreement shall be interpreted and enforced according to the laws of the State of Tennessee.

(b)           All headings and sections of this Agreement are inserted for convenience only and do not form part of this Agreement or limit, expand or otherwise alter the meaning of any provisions hereof.

(c)           This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same agreement.

(d)           The provisions of this Agreement are intended to be for the sole benefit of the parties hereto and their respective successors and assigns, and none of the provisions of this Agreement are intended to be, nor shall they be construed to be, for the benefit of any third party.

(e)           Any and all transfer taxes or conveyance fees due and payable upon the transfer of title contemplated herein shall be the responsibility of and shall be paid by the Buyer.

22.           Binding Effect.  In the event Seller does not execute and deliver this Agreement, without revision, to Buyer within five (5) business days after the date of submission of this document to Seller, or in the event Buyer delivers oral or written notice to Seller revoking its offer to purchase the Property, this Agreement shall terminate and expire and Buyer shall have no further liability or obligation hereunder.

  

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23.           Default and Remedies.

(a)           Buyer’s Default.  In the event of a default by Buyer under the terms of this Agreement, Seller shall be entitled, as its sole and exclusive remedy hereunder, to terminate this Agreement, whereupon the parties shall have no further rights or obligations hereunder, except for those which expressly survive any such termination.  In the event of any such default, the Seller shall give the Buyer written notice of the occurrence of such default (a “Buyer Default Notice”) and the Buyer shall have ten (10) days following its receipt of such Buyer Default Notice in which to cure such default hereunder.  Provided however, Buyer must cure any such default on or before December 24, 2012.

(b)           Seller’s Default.  In the event of a default by Seller under the terms of this Agreement, Buyer shall be entitled to pursue all remedies available at law or in equity, including, without limitation, the right to terminate this Agreement, or to seek specific performance of Seller’s obligations under this Agreement.  In the event of any such default, the Buyer shall give the Seller written notice of the occurrence of such default (a “Seller Default Notice”) and the Seller shall have ten (10) days following its receipt of such Seller Default Notice in which to cure such default hereunder.  Provided however, Seller must cure any such default on or before December 24, 2012.

IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the date first above written.

DONIHE GRAPHICS, INC.

By: /s/ Todd R. Fry

Name: Todd R. Fry

Vice President

GRAPHICS INTERNATIONAL, LLC

By: /s/ WB Troutman

Name: WB Troutman

Title: Member/Mgr

  

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EXHIBIT A

Located in the City of Kingsport (Parcel 2 only), 11th Civil District of Sullivan County, Tennessee, to-wit:

Parcel No. 1:

BEGINNING at an iron pin in the westerly sideline of Brookside Road, corner to property of Kingsport Power Company; thence with the line of Kingsport Power Company the following eight (8) calls:  N. 84° 27’ W., 16.14 feet to an iron pin at the p.c. of a curve with radius 123.70 feet; thence along said curve to the left an arc distance of 43.18 feet to an iron pin; thence S. 75° 33’ W., 92.12 feet to an iron pin at the p.c. of a curve with radius of 421.97 feet; thence along said curve to the right an arc distance of 294.59 feet to an iron pin; thence N. 64° 27’ W., 21.79 feet to an iron pin at the p.c. of a curve with radius of 437.36 feet; thence along said curve to the left an arc distance of 152.70 feet to an iron pin; thence N. 84° 27’ W., 98.00 feet to an iron pin; thence S. 15° 54’ W., 264.39 feet to an iron pin; thence leaving the boundary line of Kingsport Power Company S. 81° 18’ 57” E., 703.38 feet to an iron pin in the westerly sideline of Brookside Road; thence along said sideline N. 14° 20’ 02 “ E., 307.28 feet to the point of BEGINNING, containing 4.30 acres, more or less.

Parcel No. 2:

BEGINNING at an iron pin in the westerly sideline of Brookside Road, corner to Donihe property; thence along the westerly sideline of the said Brookside Road the following two calls:  S. 16° 26’ 05” W., 206.32 feet to a point; thence S. 19° 51’ 34” W., 514.88 feet to an iron pin in the westerly sideline of Brookside Road, corner for Slaughter-Pierce property and the property herein conveyed; thence with a new divisional line of the Slaughter-Pierce property the following two calls:  N. 75° 41’ W., 278.39 feet to a point; thence N. 44° 48’ 27” W., 639.22 feet to an iron pin, corner for the General Shale Corporation property and the property herein conveyed; thence with the divisional line of the General Shale Corporation property, N. 18° 24’ E., 320.96 feet to an iron pin, corner for General Shale Corporation property, Kingsport Power Company property and the property herein conveyed; thence along the divisional line of the Kingsport Power Company property the following two calls:  S. 74° 06’ E., 161.42 feet to a point; thence N. 15° 54’ E., 5.89 feet to an iron pin, corner for Kingsport Power Company property, Donihe Property and the property herein conveyed; thence with the divisional line of the Donihe property S. 81° 18’ 57” E., 703.38 feet to an iron pin in the westerly sideline of Brookside Road, the point of BEGINNING, containing 11.18 acres, more or less.

BEING the same property conveyed to Donihe Graphics, Inc. by deed dated January 3, 1985 of record in the Register of Deeds Office for Sullivan County at Blountville, Tennessee in Deed Book 431-C, page 111.

Description taken from prior deed – no new survey.

Tax Map Identification No.: Map 047, CTL Map 047, Parcels 002.10 and 002.20

  

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