Document:

exv10w3

 

Exhibit 10.3

AGREEMENT FOR THE PURCHASE AND SALE OF PERSONAL GOODWILL

     This AGREEMENT FOR THE PURCHASE AND SALE OF PERSONAL GOODWILL (this “Agreement”) is entered
into as of the 15th day of September, 2006 (the “Signing Date”), to be effective as of July 1, 2006
(the “Effective Date”), between Trade Source International, Inc., a Delaware corporation
(“Purchaser”) and Robert W. Lackey, Jr. (“Seller”).

RECITALS

     WHEREAS, Purchaser and Home Impressions, Inc. (“HI”) were parties to that Operating Agreement
of Prime/Home Impressions, LLC (the “LLC”), dated as of January 1, 1998 (the “LLC Agreement”).
Pursuant to the LLC Agreement, Purchaser and HI each owned 50% of the membership interests in the
LLC.

     WHEREAS, prior to the date hereof, HI transferred all of its interest in the LLC to MARKETING
IMPRESSIONS, INC., a Georgia corporation (“MI”);

     WHEREAS, contemporaneously with this Agreement, Purchaser is acquiring all of the outstanding
capital stock in MI pursuant to that certain Stock Purchase Agreement, to be effective as of the
Effective Date, between Purchaser and Robert W. Lackey (the “Stock Purchase Agreement”),

     WHEREAS, following its purchase of all the outstanding capital stock in MI, Purchaser will
directly and/or indirectly control the LLC and the business conducted by MI, including without
limitation the business conducted by the LLC;

     WHEREAS, the Seller has independently developed and owns close personal and ongoing business
relationships, in connection with the business conducted by MI, including without limitation the
business conducted by the LLC, through his personal ability, personality, reputation, skill and
integrity, and other information relating thereto (collectively, the “Personal Goodwill”), which
Seller desires to sell to Purchaser as hereinafter provided; and

     WHEREAS, Purchaser desires to acquire all of the Personal Goodwill, as hereinafter provided.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual promises and covenants
contained herein, and other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties agree as follows:

     1. Assignment of Goodwill. In exchange for the consideration set forth in Section
2.03(f) of the Stock Purchase Agreement, Seller hereby sells, assigns, transfers, conveys and
delivers to Purchaser, all of Seller’s right, title and interest in the Personal Goodwill.

     2. Representations and Warranties of Seller. Seller represents and warrants to
Purchaser as follows:

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     2.1 Personal Goodwill. All of the Personal Goodwill owned by Seller is free
and clear of all liens, encumbrances, claims, options, security interests, calls and
commitments of any kind, and the sale and assignment of the Personal Goodwill to Purchaser
hereunder will transfer to Purchaser all of Seller’s title thereto, free and clear of all
liens, encumbrances, claims, options, security interests and commitments of any kind.

     2.2 Approval and Authorization. Seller has full legal rights, power, capacity
and authority to enter into this Agreement and to sell, assign and transfer all of his
right, title and interest in the Personal Goodwill to Purchaser, and this Agreement is a
legal, valid and binding obligation of Seller, enforceable against Seller in accordance with
its respective terms.

     2.3 No Conflicts. The execution and delivery of this Agreement by Seller does
not, and the consummation by Seller of the transactions contemplated hereby does not and
will not, violate or conflict with, or result (with the giving of notice or the lapse of
time or both) in the violation of, or constitute a default under any provision of, or result
in the acceleration or termination of, or entitle any party to accelerate or terminate
(whether after giving of notice or lapse of time or both), any obligation or benefit under,
or result in the creation or imposition of any lien, pledge, security interest or other
encumbrance upon the Personal Goodwill pursuant to any material contract, law, ordinance,
regulation, order, arbitration award, judgment or decree to which Seller is a party, or by
which Seller or his assets (including the Personal Goodwill) are bound and does not and will
not violate or conflict with any other material restriction of any kind or character to
which Seller is subject or by which any of Seller’s assets (including the Personal Goodwill)
may be bound.

     3. Representations and Warranties of Purchaser. Purchaser represents and warrants as
follows:

     3.1 Existence and Good Standing. Purchaser has been duly organized and validly
exists in good standing as a corporation under the laws of the State of Delaware.

     3.2 No Default. The execution of this Agreement by Purchaser and the
performance of its obligations hereunder will not violate or result in a breach of, or
constitute a default under any material agreement to which Purchaser is a party or by which
it or its assets are bound.

     3.3 Approval and Authorization. The execution and delivery of this Agreement
and the performance of the transactions contemplated herein have been duly and validly
authorized by all necessary action on the part of Purchaser, and this Agreement is a legal,
valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with
its terms.

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     4. Additional Agreements and Covenants: Seller shall cooperate with Purchaser after
the Signing Date in connection with all reasonable actions deemed necessary by Purchaser to vest in
Purchaser title to the Personal Goodwill.

     5. Survival. The representations, warranties and covenants of the parties contained
in this Agreement shall survive for the period ending two years after the Effective Date.

     6. General.

     6.1 Execution. This Agreement may be executed simultaneously in two or more
counterparts, each of which shall be deemed an original and all of which together shall
constitute but one and the same instrument. Execution and delivery of this Agreement by
facsimile or as an attachment to an electronic mail shall constitute a valid and binding
execution and delivery of this Agreement by such party. Such facsimile copies or electronic
mail attachments shall constitute enforceable original documents.

     6.2 Brokers. Each party represents and warrants that it employed no broker or
agent in connection with this transaction and shall indemnify the other against all loss,
cost, damage or expense arising out of claims for fees or commissions of brokers or agents
employed or alleged to have been employed by such indemnifying party.

     6.3 Notices. Any notice or communication required or permitted hereunder shall
be sufficiently given if sent by facsimile, or first class mail, postage prepaid to:

	 	 	 
	If to Purchaser:

	 	Copy to:
	 
	 	 
	Attn: Marcus Scrudder

	 	Brian D. Barnard
	650 South Royal Lane, Suite 100

	 	201 Main Street, Suite 2200
	Coppell, TX 75019

	 	Fort Worth, TX 76102
	Facsimile: (972) 304-3754

	 	Facsimile: 817-348-2303
	 
	 	 
	If to Seller:

	 	Copy to:
	 
	 	 
	Robert W. Lackey, Jr.

	 	Robinson, Bradshaw & Hinson, P.A.
	420 Third Avenue NW

	 	Attn: Robert. M. Bryan
	Hickory, NC 28601

	 	101 North Tryon Street, Suite 1900
	Facsimile: 828-328-5250

	 	Charlotte, NC 28246
	 

	 	Facsimile: 704-373-3910

     6.4 Applicable Law. This Agreement will be governed by the laws of the State
of Delaware without regard to conflicts of laws principles.

     6.5 Captions. The captions in this Agreement are for convenience only and
shall not be considered a part hereof, or affect the construction or interpretation of any
provisions of this Agreement.

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     6.6 Construction. Each party acknowledges that such party and its attorneys
have been given an equal opportunity to negotiate the terms and conditions of this Agreement
and that any rule of construction to the effect that ambiguities are to be resolved against
the drafting party or any similar rule operating against the drafter of an agreement shall
not be applicable to the construction or interpretation of this Agreement.

     6.7 Entire Agreement. This Agreement shall constitute the entire agreement and
understanding between Seller and Purchaser and supersedes any prior agreement and
understanding, written or oral, relating to the subject matter of this Agreement. Seller
acknowledges that he has (a) had the opportunity to seek the advice of independent counsel,
including independent tax counsel, regarding the consequences of this Agreement; and (b)
received no representations from Purchaser or its counsel regarding the tax consequences of
this Agreement. This Agreement may be modified or amended only by a written instrument
executed by the parties hereto.

*****

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     IN WITNESS WHEREOF, the parties have entered into this Agreement for the Purchase and Sale of
Personal Goodwill as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	SELLER:	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Robert W. Lackey Jr.	 	 
	 	 	 	 	 
	 	 	Robert W. Lackey, Jr., individually	 	 
	 
	 	 	 	 	 	 
	 	 	PURCHASER:	 	 
	 
	 	 	 	 	 	 
	 	 	TRADE SOURCE INTERNATIONAL, INC.,	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Marcus Scrudder
 

	 	 
	 	 	Name: Marcus Scrudder	 	 
	 	 	Title: Chief Financial Officer	 	 

LACKEY, JR. AGREEMENT FOR THE PURCHASE AND SALE OF PERSONAL GOODWILL

5exv10w4

 

Exhibit 10.4

INTELLECTUAL PROPERTY ASSIGNMENT

     This Intellectual Property Assignment (the “Assignment”) is entered into as of September 15,
2006 (the “Signing Date”), to be effective as of July 1, 2006 (the “Effective Date”), by and
between Trade Source International, Inc., a Delaware corporation (“TSI”) and Robert W. Lackey, as
an individual (“Mr. Lackey”), Robert W. Lackey, Jr. (“Lackey Jr.”), RWL Corporation, f/k/a Robert
W. Lackey Corporation, a North Carolina corporation (“RWL Corporation”), and R.L. Products
Corporation, a Georgia corporation (“R.L. Products”) (Mr. Lackey, Lackey, Jr., RWL Corporation and
R.L. Products collectively referred to as the “Lackey Entities”).

RECITALS

     Pursuant to that certain Stock Purchase Agreement (the “Stock Purchase Agreement”) dated as of
the Signing Date, Mr. Lackey has sold to TSI all of the outstanding capital stock in MARKETING
IMPRESSION, INC., a Georgia corporation (“MI”), which is the owner of a 50% interest in Prime/Home
Impressions, LLC (“PHI”). Capitalized terms used herein without definition shall have the meanings
given to such terms in the Stock Purchase Agreement.

     Pursuant to the terms of the Stock Purchase Agreement, Mr. Lackey has agreed to cause the
transfer to TSI all right, title and interest in and to the intellectual property rights owned by
the Lackey Entities that are used in any Fan Accessories that were, are, or have been conceived to
be manufactured, marketed or sold in connection with the Business as conducted by PHI and/or MI,
including without limitation those listed in attached Exhibit A (collectively, the “Intellectual
Property”).

     NOW THEREFORE, in consideration of the sum of Ten Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

	 	1.	 	Assignment. The Lackey Entities do hereby, without reservation, irrevocably:

	 	a.	 	sell, assign, transfer and convey to TSI, and its successors and
assigns, all of their right, title and interest (past, present, future, and
throughout the world) in and to (i) the Intellectual Property, together with all
corresponding goodwill and any patents and patent applications, trademark
registrations and applications, and registered copyrights and copyright
applications covering same; (ii) the legal files and drawings related to same; and
(iii) the right to sue for any past, present or future infringement or violation of
the Intellectual Property transferred hereby; and
	 
	 	b.	 	acknowledge that, except as set forth in the Stock Purchase Agreement,
the Shareholder Non-Competition Agreement and the RLJ Non-Competition Agreement,
the Lackey Entities shall hereafter have no ownership, license rights, right to
use, or any other right, title or interest in or to any part of the Intellectual
Property.

	 	2.	 	Further Assurances. The Lackey Entities shall, without charge to TSI but at TSI’s
expense, perform such acts as TSI may reasonably request to vest title to the Intellectual
Property in TSI. In addition, by no later than one (1) week after the Signing Date, the
Lackey Entities shall cease all use of the Intellectual Property except to the extent such
use may be permitted under the Stock Purchase Agreement, the Shareholder Non-Competition
Agreement or the RLJ Non-Competition Agreement.

 

 

	 	3.	 	Representations and Warranties. The Lackey Entities jointly and severally represent
and warrant that:

	 	a.	 	they have not executed, and will not execute, any agreement in conflict
herewith;
	 
	 	b.	 	the information listed in attached Exhibit A is true and
correct in all material respects; and
	 
	 	c.	 	RWL Corporation and R.L. Products are corporations duly organized,
validly existing and in good standing under the laws of the State of North Carolina
and the State of Georgia, respectively, and have all requisite corporate power and
authority to own their assets and to conduct their business as currently conducted.

	 	4.	 	Miscellaneous.

	 	a.	 	Entire Agreement. This Assignment and the Stock Purchase Agreement
constitute the entire agreement among the parties and supersedes any prior
understandings, agreements, or representations by or among the parties, written or
oral, to the extent they relate in any way to the subject matter hereof.
	 
	 	b.	 	Succession and Assignment. This Assignment shall be binding upon and
inure to the benefit of the parties named herein and their respective successors
and assigns.
	 
	 	c.	 	Counterparts. This Assignment may be executed in one or more
counterparts (including by means of facsimile or electronic mail), each of which
shall be deemed an original but all of which together shall constitute one and the
same instrument.
	 
	 	d.	 	Governing Law. This Assignment shall be governed by and construed in
accordance with the domestic laws of the State of Delaware without giving effect to
any choice or conflict of law provision or rule that would cause the application of
the laws of any jurisdiction other than the State Delaware.
	 
	 	e.	 	Submission to Jurisdiction. Each of the parties submits to the
jurisdiction of any state or federal court sitting in New Castle County, Delaware,
in any action or proceeding arising out of or relating to this Assignment and
agrees that all claims in respect of the action or proceeding may be heard and
determined in any such court.
	 
	 	f.	 	Amendments and Waivers. No amendment of any provision of this
Assignment shall be valid unless the same shall be in writing and signed by all of
the parties. No waiver by any party of any provision of this Assignment or of any
default, misrepresentation, or breach of warranty or covenant hereunder, whether
intentional or not, shall be valid unless the same shall be in writing and signed
by the party making such waiver nor shall such waiver be deemed to extend to any
prior or subsequent default, misrepresentation, or breach of warranty or covenant
hereunder or affect in any way any rights arising by virtue of any prior or
subsequent such default, misrepresentation, or breach of warranty or covenant.
	 
	 	g.	 	Construction. The parties have participated jointly in the negotiation
and drafting of this Assignment. In the event an ambiguity or question of intent
or interpretation arises, this Assignment shall be construed as if drafted jointly
by the parties and no presumption or

 

 

burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any of the provisions of this Assignment.

* * * *

 

 

     IN WITNESS WHEREOF, the parties have executed this Intellectual Property Assignment and caused
the same to be duly delivered on their behalf as of the Signing Date.

	 	 	 	 
	TSI:

TRADE SOURCE INTERNATIONAL, INC.

 	 
	By:  	/s/ Marcus Scrudder
 	 
	 	Name:  	Marcus Scrudder 	 
	 	Title:  	Chief Financial Officer 	 
	 
	LACKEY ENTITIES:

RWL CORPORATION

 	 
	By:  	/s/ Robert Lackey
 	 
	 	Name:  	Robert Lackey 	 
	 	Title:  	 	 
	 
	R.L. PRODUCTS CORPORATION

 	 
	By:  	/s/ Robert Lackey
 	 
	 	Name:  	Robert Lackey 	 
	 	Title:  	 	 
	 
	 	 
	 	      /s/ Robert W. Lackey
 	 
	ROBERT W. LACKEY, an individual 	 
	 	 
	 
	 	 
	 	      /s/ Robert W. Lackey Jr.
 	 
	ROBERT W. LACKEY, JR., an individual

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