Document:

ex4-2.htm

Exhibit 4.2

 

 

GANKIT CORPORATION 

 

PROMISSORY NOTE

	
April 11, 2012

	
$50,000.00

 

FOR VALUE RECEIVED, GankIt Corporation, a Nevada corporation (the “Company”), promises to pay to the order of Hillsmere S.A. or its permitted assigns, transferees and successors as provided herein (the “Holder”), or as the Holder may direct, at such location as the Holder may designate,  Fifty  Thousand  Dollars  and  Zero  Cents  ($50,000.00) plus  simple  interest  on  such principal amount from the date of this Promissory Note (the “Note”) at an annual interest rate equal to fifteen percent (15%).

 

Interest will be computed on the basis of a year of 365 days for the actual number of days elapsed from the date of this Note. The number of days used to compute the interest will include the first day but exclude the last day during which any principal is outstanding.

 

ARTICLE I.

 

THE NOTE & SECURITY INTEREST

 

Section 1.01  This Note is issued by the Company on April 11, 2012 (the “Issuance Date”).  On April 11, 2012, Holder hereof made advances to the Company in the aggregate amount of $50,000.00.

 

Section  1.02  As  security  for  the  due  performance  and  payment  of  Company's obligation under this Note, Company has granted to Holder a security interest in any and all of the assets, properties, goods, inventory, equipment, furniture, fixtures, leases, supplies, records, money, documents, instruments, chattel paper, accounts, intellectual property rights (including but not limited to, copyrights, moral rights, patents, patent applications, trademarks, service marks, trade names, trade secrets) and other general intangibles, whether owned by Company on the date of this Note or hereafter acquired, and all proceeds thereof.

 

ARTICLE II.

 

PRINCIPAL AND INTEREST PAYMENTS.

 

Section 2.01  The entire principal amount of this Note together with accrued and unpaid interest thereon will be due and payable on April 10, 2013 (the “Repayment Date”).

 

Section 2.02  The principal and interest on this Note will be payable in the lawful currency of the United States of America by wire transfer or other such immediately available funds and without set-off or counterclaim, free and clear of and without deduction for any present or future taxes, restrictions or conditions of any nature.

 

Section 2.03 All payments under this Note prior to demand or acceleration will be applied first, to any and all costs, expenses or charges then owed by the Company to the Holder, second, to accrued and unpaid interest, and third, to the unpaid principal balance. All payments so received after demand or acceleration will be applied in such manner as the Holder may determine in its sole and absolute discretion.

 

  

  

  

Section 2.04     Whenever any payment on this Note is stated to be due on a day which is not a business day, the payment will be made on the next succeeding business day and the extension of time will be included in the computation of the payment of interest of this Note.

 

Section 2.05     Overdue principal and interest will bear interest at a rate equal to the greater of (i) twenty-five percent (25%) or  (ii) the highest rate permitted by applicable law. Overdue principal and interest will be payable on demand.

 

Section 2.06  This Note may be prepaid at any time.

ARTICLE III. DEFAULT; ACCELERATION

 

The occurrence of any one or more of the following events with respect to the Company constitutes an event of default hereunder (“Event of Default”):

 

Section 3.01     The Company fails to pay: (a) the principal of this Note or the accrued interest thereon when due; or (b) the principal or the accrued interest on any other obligation of the Company to the Holder when due.

 

Section 3.02     The   Company   breaches,   in   any   materially   respect,   any   covenant, representation or warranty in this Note or the term of any other existing instrument or agreement between the Company and the Holder.

 

Section 3.03     The Company (a) voluntarily becomes subject to any proceeding under the Bankruptcy Code or any similar remedy under state statutory or common law, or (b) admits in writing its inability to pay debts generally as they become due.

 

Section 3.04     Within  60  days  after  the  commencement  of  proceedings  against  the Company seeking any bankruptcy, insolvency, liquidation, dissolution or similar relief under any present or future statute, law or regulation (a) such action has not been dismissed or all orders or proceedings thereunder affecting the operations or the business of the Company stayed, or (b) the stay of any such order or proceedings has been set aside, or, within 60 days after the appointment without the consent or acquiescence of the Company of any trustee, receiver or liquidator of the Company or of all or any substantial part of the properties of the Company, the appointment has not been vacated.

 

Section 3.05     Any litigation is commenced against the Company by a person other than Holder, any of its affiliates, or any person acting in concert with them, if: (a) the damages sought are in excess of $250,000.

 

Section 3.06    The Company  defaults under any  instrument or  agreement between the Company and any third party evidencing indebtedness of the Company in excess of $250,000.

 

  

  

  

Upon the occurrence of an Event of Default under this Note, the entire unpaid principal balance of this Note, together with all accrued interest thereon, shall become immediately due and payable regardless of any prior forbearance and without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Company. The Holder may exercise any and all rights and remedies available to the Holder under applicable law, including, without limitation, the right to collect from the Company all amounts due under this Note.

ARTICLE IV. MISCELLANEOUS

 

Section 4.01     The Company waives diligence, presentment, protest, demand and notice of protest, demand, dishonor and nonpayment of this Note, and expressly agrees that this Note, and any payment under it, may be extended by the Holder from time to time without in any way affecting the liability of the Company.

 

Section 4.02     Any term of this Note may be amended or waived only with the written consent of the Company and the Holder; provided, however, that, in no event shall the principal amount of this Note be amended without the written consent of the Holder of this Note. By acceptance hereof, the Holder acknowledges that in the event consent is obtained pursuant to the foregoing sentence, any  term of  this Note  (other than  the  principal  amount  thereof) may  be amended  or  waived  with  or  without  the  consent  of  the  Holder.  Any  amendment  or  waiver effectuated in accordance with this Section 4.02 shall be binding upon the Company, the Holder and each transferee of this Note.

Section 4.03     All rights and obligations of the Company and the Holder shall be binding upon and benefit the successors, assigns, heirs and administrators of the parties. As used in this Note, the Company includes any corporation, partnership, Limited Liability Company or other entity that succeeds to or assumes the obligations of the Company under this Note. “Holder” means any person who is at the time the registered holder of this Note.

 

Section 4.04     The Company agrees to reimburse the Holder for all attorneys’ fees and expenses incurred by the Holder in connection with the collection and enforcement of this Note.

 

Section 4.05     The rights and remedies of the Holder under this Note and as may otherwise be available at law or in equity are cumulative and concurrent and at the sole discretion of the Holder may be pursued singly, successively or together and exercised as often as the Holder desires.

 

Section 4.06     This Note will be governed in accordance with the laws of the State of Texas. Section 4.07Any notice required or permitted hereunder shall be given in writing and shall be conclusively deemed effectively given upon personal delivery or delivery by courier, or five days after deposit in the United States mail, by registered or certified mail, postage prepaid.

 

Section 4.08     Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Note and, in the case of loss, theft or destruction, upon receipt of an indemnity reasonably satisfactory to the Company, or in the case of mutilation, upon surrender and cancellation of this Note, the Company, at its expense, will make and deliver a new Note, of like tenor, in lieu of the lost, stolen, destroyed or mutilated Note.

 

  

  

  

Section 4.09     If one   or   more   provisions  of  this  Note   are  held  unenforceable under applicable law, the unenforceable provision  will be excluded from  this Note  and the balance of this Note  will be interpreted as if such provision  were so excluded and will be enforceable  in accordance with its terms. The  parties to this Note  agree to replace any void or unenforceable provision  of this Note  with a valid and enforceable  provision  that will achieve, to the extent  possible,  the economic, business and other  purposes  of the void or unenforceable provision.

 

IN WITNESS WHEREOF, the Company has executed this Note by its duly authorized officer as of the date and year first written above.

 

Gankit Corporation

By:  John W. Arnold

Chairman  and Presidentex10-1.htm

Exhibit 10.1

 

ASSET PURCHASE AGREEMENT

 

THIS AGREEMENT (the “Agreement”) is made and entered into and effective as of this 30th day of March 2012, by and between GankIt Corporation, a Nevada Corporation, (“Purchaser”) and Jack Arnold, a Texas resident, (“Seller”).

 

Background

Seller is the owner of certain assets and intellectual property related to the penny auction website GankIt.com, formerly operated by GankIt, LLC, (the “Auction Website”).  Seller wishes to sell, and Purchaser wishes to purchase all of the assets used in the Auction Website of the Seller upon and subject to the terms and conditions set forth in this Agreement.

 

Agreement

Now, therefore, for and in consideration of the mutual representations, warranties, covenants, and agreements contained herein and for other good and valuable consideration, the receipt and legal sufficiency of which is hereby acknowledged, the parties hereto agree:

 

Section 1.   PURCHASE AND SALE OF ASSETS

 

Section 1.1  Purchase of Assets. On and subject to the terms and conditions of this Agreement, Purchaser hereby purchases and Seller hereby sells, assigns, grants, transfers, and conveys to Purchaser or Purchaser’s assign all of the right, title, and interest of Seller in and to all of the assets of Seller used exclusively in the Auction Website (collectively, the “Purchased Assets”) free and clear of any and all liens, claims, charges, security interests, and encumbrances as the same exist on the Closing Date as follows:

 

	
a.  

	
All intellectual property, trade name, trade secrets, trademarks, personnel contracts, web site domain and content, strategic partnerships, publications, operating model, manuals, licenses, and all other confidential information relating to the Auction Website; and

 

	
b.  

	
All current, past and future clients.

 

	
c.  

	
All assets of the Seller as identified in Schedule 1.1 hereto

 

	
d.  

	
All software programs and copyrighted products, systems and processes used in the Auction Website

 

Section 1.2 Assumption of Debt and Excluded Liabilities.  Purchaser shall take title to the assets listed in Schedule 1.1 free and clear of all liabilities, except those liabilities specifically assumed pursuant to Schedule 1.2 of this Agreement. All other liabilities of Seller are hereinafter referred to as “Excluded Liabilities”.

 

Section 2.  PURCHASE PRICE AND CLOSING

 

Section 2.1  Purchase Price. The Purchase price for the Purchased Assets shall be $20,000USD to be paid via certified funds on the date of closing per Section 2.2 herein.

  

  

  

Section 2.2  Time and Place of Closing.  The closing of the purchase and sale of the Purchased Assets (the “Closing”) will be upon delivery of all signed documentation as required under this Agreement, and all documentation necessary to perfect the delivery of the assets.  The effective time of the closing and the transfer of the Purchased Assets to Purchaser is March 30th 2012.

 

Section 2.3  Transfer and Closing Expenses.  Each party shall be responsible for the payment of any closing expenses incurred by that party in connection with this transaction.

 

             SECTION 3.  REPRESENTATIONS AND WARRANTIES OF SELLER

For the purpose of inducing the Purchaser to purchase the Purchased Assets, Seller represents and warrants to Purchaser as follows:

 

Section 3.1  Authority.  Seller has full power and authority to enter into this Agreement and to consummate the transactions contemplated hereby.  The execution, delivery, and performance of this Agreement by Seller has been duly and validly authorized and approved by all necessary action on the part of Seller.  This Agreement is the legal, valid, and binding obligation of Seller enforceable against Seller in accordance with its terms.

Section 3.2  Personal Property.  Seller, to the best of its knowledge, has good and marketable title to all of its Assets free and clear of all liens, claims, charges, security interests, and other en­cumbrances of any kind or of any nature.  The Purchased Assets include all rights, properties, interest in properties, and assets necessary to permit Purchaser to carry on the Auction Website as the same has heretofore been previously conducted by Seller.

 

Section 3.3  Compliance with Laws.  Seller, to the best of its knowledge, is not subject to any judgment, order, writ, injunction, or decree that adversely affects, or might in the future reasonably be expected to adversely affect any of the Purchased Assets or the Auction Website. 

 

Section 3.4  Litigation.  There are no formal or informal complaints, investigations, claims, charges, arbitration, grievances, actions, suits, or proceedings pending, or to the knowledge of Seller threatened against any of the Purchased Assets at law or in equity or admiralty, or before or by any federal, state, municipal, or other governmental department, commission, board, bureau, agency, or instrumentality, domestic or foreign which would affect the purchased assets materially.  To the best of its knowledge, Seller is not subject to any order, writ, injunction, or decree of any federal, state, municipal court, or other governmental department, commission, board, bureau, agency, or instrumentality, domestic or foreign, affecting the Purchased Assets.

 

Section 3.5  Brokers and Finders.  Seller has not incurred any obligation or liability to any party for any brokerage fees, agent’s commissions, or finder’s fees in connection with the transactions contemplated hereby. 

 

  

  

  

           Section 4.  REPRESENTATIONS AND WARRANTIES OF PURCHASER

Purchaser hereby represents and warrants to Seller as follows:

 

Section 4.1  Organization and Qualification.  Purchaser is a corporation duly organized, validly existing, and in good standing under the laws of the State of Nevada.

 

Section 4.2  Authority.  Purchaser has full power and authority to enter into this Agreement and to consummate the transactions contemplated hereby.  The execution, delivery, and performance of this Agreement by Purchaser has been duly and validly authorized and approved by all necessary action on the part of Purchaser, and this Agreement is the legal, valid, and binding obligation of Purchaser enforceable against Purchaser in accordance with its terms, except as enforceability may be limited by applicable equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting creditors’ rights generally, and by the exercise of judicial discretion in accordance with equitable principles. 

 

Section 4.3.  Litigation.  There is no suit, action, proceeding, claim or investigation pending, or, to Purchaser’s knowledge, threatened, against Purchaser that would prevent Purchaser from consummating the transactions contemplated by this Agreement.

 

Section 4.4.  Brokers and Finders.  Purchaser has not incurred any obligation or liability to any party for brokerage fees, agent’s commissions, or finder’s fees in connection with the transactions contemplated hereby.

 

Section 5.  General Provisions

 

Section 5.1   Bulk Sales Law Waiver. Purchaser and Seller each agree to waive compliance by the other with the provisions of the bulk sales law or comparable law of any jurisdiction to extent that the same may be applicable to the transactions contemplated by this Agreement.

 

Section 5.2  Expenses.  Except as set forth in Section 2 hereof, all expenses incurred by the parties hereto in connection with or related to the authorization, preparation, and execution of this Agreement and the Closing of the transaction contemplated hereby, including without limiting the generality of the foregoing, all fees and expenses of agents, representatives, counsel, and accountants employed by any such party, shall be borne solely and entirely by the party which has incurred the same. 

 

Section 5.3  Binding Effect.  This Agreement shall be binding upon the parties hereto and their respective successors or assigns, as permitted herein.

 

Section 5.4  Headings.  The Section, subsection, and other headings in this Agreement are inserted solely as a matter of convenience and for reference, and are not a part of this Agreement.

 

Section 5.5  Counterparts.  This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one counterpart has been signed by each party and delivered to the other party hereto and such execution shall be conclusively evidenced by a facsimile transmitted copy or electronic mail transmitted copy of the execution page hereof.

 

  

  

  

Section 5.6   Governing Law.  This Agreement shall be construed under the laws of the State of Texas, without giving effect to applicable principles of conflicts of law.

Section 5.7  Additional Actions. Each party covenants that at any time, and from time to time, it will execute such additional instruments and take such actions as may be reasonably requested by the other parties to confirm or perfect or otherwise to carry out the intent and purposes of this Agreement.

Section 5.8  Entire Agreement. This Agreement constitutes the entire agreement among the parties hereto and supersedes and cancels any prior agreements, representations, warranties, or communications, whether oral or written, among the parties hereto relating to the transactions contemplated hereby or the subject matter herein. Neither this Agreement nor any provisions hereof may be changed, waived, discharged or terminated orally, but only by an agreement in writing signed by the party against whom or which the enforcement of such change, waiver, discharge or termination is sought.

Section 5.9  Preparation of Agreement.  This Agreement shall not be construed more strongly against any party regardless of who is responsible for its preparation. The parties acknowledge each contributed and is equally responsible for its preparation.

Section 5.10Assignment    This Agreement shall not be assigned by operation of law or otherwise. However, the assets and liabilities being acquired by the Purchaser may be transferred to a newly formed corporation at the sole discretion of the Purchaser.

Section 5.11Third Parties  Nothing in this Agreement, whether express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any persons other than the parties hereto and their respective administrators, executors, legal representatives, heirs, successors and assignees.  Nothing in this Agreement is intended to relieve or discharge the obligation or liability of any third persons to any party to this Agreement, nor shall any provision give any third persons any right of subrogation or action over or against any party to this Agreement.

Section 5.12  Notices.  All notices and other communications hereunder shall be in writing and shall be deemed to have been given (i) on the date they are delivered if delivered in person; (ii) on the date initially received if delivered by facsimile transmission with independent confirmation of receipt followed by confirmation of notice by registered or certified mail or overnight courier service; (iii) on the date delivered by an overnight courier service; or (iv) on the fifth business day after it is mailed by registered or certified mail, return receipt requested with postage and other fees prepaid, to the address set forth herein of such other addresses provided by each party to the other parties in accordance with the terms or provisions hereof.

 

Section 5.13  Partial Invalidity.  Wherever possible, each provision hereof shall be interpreted in such manner as to be effective and valid under applicable law, but in case any one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision or provisions had never been contained herein unless the deletion of such provision or provisions would result in such a material change as to cause completion of the transactions contemplated hereby to be unreasonable.

 

  

  

  

Section 5.14  Arbitration. Any controversy, dispute, or claim arising out of or relating to this Agreement or a claimed default hereunder, other than requests for injunctive relief or damages for a breach of a Restrictive Covenant shall be resolved by arbitration in accordance with the rules of the American Arbitration Association (the “AAA”), by which each party will be bound.

IN WITNESS WHEREOF, each party hereto has executed this Agreement, or caused this Agreement to be executed on its behalf by its duly authorized officers, all as of the Closing Date.

 

 

  

  

  

SCHEDULE 1.1

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