Document:

ex109.htm

EXHIBIT 10.9

AGREEMENT FOR THE PURCHASE AND SALE OF ASSETS

OF THE BRAINY BABY COMPANY, LLC

 

THIS AGREEMENT (the "Agreement") made and entered into this 23rd day of September, 2010, by and among ASSET RECOVERY ASSOCIATES, LLC as Assignee for the benefit of creditors of THE BRAINY BABY COMPANY, LLC. (the "Seller") and BRAINY ACQUISITIONS, INC. a Georgia corporation (hereinafter referred to as ''Buyer").

 

WITNESSETH

 

WHEREAS, prior to the execution of this Agreement, THE BRAINY BABY COMPANY, LLC (the "Assignor""), by Deed of Assignment (the "Deed of Assignment"), dated September 21, 2010, has assigned all of its assets to Seller. as Assignee, pursuant to Georgia Law;

 

WHEREAS, Seller, as Assignee. presently continues to conduct the business of the Assignor for the benefit of the creditors of the Assignor and not for its own account;

 

WHEREAS, the Assignor has been engaged in the business of producing and distributing DVDs and related items (the "Business");

 

WHEREAS, Buyer desires to purchase from Seller the certain assets of the Assignor set forth on Schedule I attached hereto (the "Purchased Assets");

 

WHEREAS, all sales proceeds payable to Seller, as a result of the transaction in this Agreement., shall he for the benefit of the creditors of Assignor; and

 

WHEREAS, upon the terms and subject to the conditions hereinafter set forth, Seller desires to sell, assign, convey and transfer to Buyer, and Buyer desires to purchase and acquire from Seller, the Purchased Assets.

 

NOW, THEREFORE, in consideration of the premises, and the mutual representations, warranties, covenants and agreements hereinafter set forth, and each intending to be legally bound hereby, the parties hereto agree as follows:

 

1.            Sale of Assets and Excluded Assets.

 

1.1 Sale of Assets. The Seller shall sell, convey, assign, transfer and deliver to Buyer, free and clear from all liens, mortgages, pledges, restrictions. security interests, charges, claims and other encumbrances whatsoever, (listed on Schedule I) and Buyer agrees to purchase from Seller, all of Seiler's right, title and interest in and to the Purchased Assets. Buyer acknowledges that there is a Lien on the Purchased Assets. as listed on Schedule 2, "Liens disclosed by The Brainy Baby Company, LLC to Asset Recovery Associates as Assignee for The Brainy Baby Company, LLC".

 

  

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1.2  Excluded Assets. The Purchased. Assets do not include any other assets of the business equipment not specifically listed on Schedule I.

 

2.            Purchase Price and Payment.

 

2.1 Purchase Price. Subject to the terms and conditions set forth herein, the

 

purchase price ( the "Purchase Price") for the Purchased Assets shall be $87,500.

 

2.2 Payments at Closing. On the Closing. the Buyer shall wire funds to:

 

Asset Recovery Associates, LLC Wachot ia Bank

Sandy Springs Branch

Atlanta, Georgia 30328

ABA 4061000227

Account 112000028629775

 

2.4 Expenses. Buyer and Seller shall he solely responsible for all of its own

respective expenses in order to consummate the transactions contemplated herein, including independent broker fees, legal and financial advisor's fees.

 

3.            Buyer Does Not Assume Any Liability.

 

Buyer is not assuming any debt. account payable. contract, agreement, commitment, or other obligation or liability of the Seller or the Business, with the exception of those listed on Schedule III, ("Retained Liabilities").

 

4.            Closing and Deliveries.

 

The closing of the purchase and sale provided for herein (the "Closing") shall take place on the date hereof at a mutually agreed upon location by both parties.

 

4,1Closing Deliveries. At the Closing (or within thirty (30) days of Closing in the case of Section 4.1(a)(vii) below):

 

(a) The Buyer shall deliver to the Seller:

 

(i) the amount set' orth in Section 2.1;

 

(ii) a counterpart to the bill of sale (the "Bill of Sale") attached hereto as Exhibit A, duly executed by the Buyer:

 

(b) The Seller shall deliver to the Buyer:

 

(1)physical possession of the Delivered Purchased Assets (as identified on Schedule 1); a counterpart to the Bill of Sale, duly executed by the Seller;

 

4.2Further Assurances. The respective parties shall, from time to time after

the date of closing, execute and deliver to each other any additional instruments and documents, in a form reasonably satisfactory to counsel for Buyer and for Seller, as may he necessary or appropriate to more effectively transfer and assign to and invest in the Buyer full, good and marketable title to the Purchased Assets or to consummate the transactions contemplated by this Agreement or the Bill of Sale.

 

5.              Representations and Warranties of the Seller.

 

5.1Title to Purchased Assets. The Seller has good and marketable title to all

 

of the Purchased Assets, and the complete and unrestricted power and the unqualified right to sell, assign, transfer. convey and deliver the Purchased Assets to the Buyer, and will transfer and convey to the Buyer at the Closing, and the Buyeracquire at the Closing, good, valid and

 

marketable title to the Purchased Assets free and clear of all known liens, restrictions, security interests, charges, claims and encumbrances except as disclosed on Schedule 2.

 

5.2Valid and Binding Agreement. The Seller has all requisite corporate

power and authority to enter into this Agreement and the Bill of Sale (collectively, the "Transaction Documents"), to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby . All necessary action on the part of the Seller, its board of directors, its shareholders. its creditors or otherwise, has been taken to authorize the execution and delivery of the Transaction Documents, the performance of its obligations hereunder and thereunder and the consummation of the transactions contemplated hereby and thereby. The Transaction Documents have been duly and validly executed and delivered by the Seller, and each constitutes a valid and binding agreement of the Seller, enforceable in accordance with its terms.

 

5.3Consents and Approvals. Except as set forth on Schedule 5.3, no permit,

application, notice. transfer_ consent, approval, order, qualification_ waiver from or authorization of, or declaration, filing or registration with, any governmental or regulatory authority or third party is required to be made or obtained by the Seller in connection with the execution, delivery and performance of the Transaction Documents or the consummation of the transactions contemplated hereby or thereby.

 

5.5No Other contracts. The Seller has not entered into any other contract o

sell any of the Purchased Assets.

 

5.6Bulk Sales Law. The transactions contemplated by this Agreement are

exempt from the provisions of the Georgia Uniform Commercial Code Bulk Transfers Act, O.C.G.A. §11-6-10, etsue. pursuant to 0.C.G.A. § 11-6-103(2) and any other bulk sale or transfer laws.

 

  

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5.7Absence of Undisclosed Liabilities. 1 he Seller has no material liabilities

or obligations of any nature, except those liabilities and obligations fully disclosed in the Deed of Assignment.

 

6.            Seller's Obligations.

 

6.1Telephone and Fax Numbers. Seller will assign to the Buyer, to the extent

assignable, at Closing the Seller's business telephone numbers, for the Business and fax number. Seller shall cooperate with Buy-er in obtaining a transfer of said telephone number(s) to Buyer, and Seller shall sign the necessary documents to effect such transfer.

 

6.2 Use of Business Name. The Seller agrees that. as of the Closing Date, it will cease to use the name "Brainy Baby", any derivative or combination thereof and any other trade names or trademarks included in the Purchased Assets in connection with their business activities. No later than five (5) business days alter the Closing Date. the Seller shall, at its expense, take all action required to change the name of the Seller in its jurisdiction of incorporation, evidence of which shall be promptly delivered to the Buyer.

 

7.            "AS IS" Transaction. BUYER HEREBY ACKNOWLEDGES AND AGREES THAT EXCEPT AS SET FORTH IN THE TRANSACTION DOCUMENTS, SELLER MAKES NO REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO ANY MATTER RELATING TO THE PURCHASED ASSETS INCLUDING, WITHOUT LIMITATION, INCOME TO BE DERIVED OR EXPENSES TO BE INCURRED IN CONNECTION WITH THE PURCHASED ASSETS, THE PHYSICAL CONDITION OF ANY PURCHASED ASSETS, THE ENVIRONMENTAL CONDITION OR OTHER MATTER RELATING TO THE PHYSICAL CONDITION OF ANY REAL PROPERTY OR IMPROVEMENTS WHICH ARE THE SUBJECT OF ANY REAL PROPERTY LEASE, THE ZONING OF ANY SUCH REAL PROPERTY OR IMPROVEMENTS, THE VALUE OF 'H III PROPERTY (OR ANY PORTION 'THEREOF), THE MERCHANTABILITY OR FITNESS OF THE PERSONAL PROPERTY OR ANY OTHER PORTION OF THE PROPERTY FOR ANY PARTICULAR PURPOSE, OR ANY OTHER MATTER OR THING RELA-TING TO THE PROPERTY OR ANY PORTION THEREOF. WITHOUT IN ANY WAY LIMITING THE FOREGOING, SELI FR HEREBY DISCLAIMS ANY WARRANTY, EXPRESS OR IMPI IED OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE AS TO ANY PORTION OF THE PROPERTY. ACCORDINGLY, EXCEPT AS SET FORTH IN "THE TRANSACTION DOCUMENTS, BUYER WILL ACCEPT THE PROPERTY AT THE CLOSING "AS IS," "WHERE IS," AND "WITH ALL FAULTS."

 

  

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9.   Entire Agreement: Modification.

 

This Agreement sets forth the entire agreement and understanding of the parties concerning the subject matter hereof, and supersedes all prior agreements, arrangements and understandings relative to said subject matter. No term or provision hereof may be changed, modified, terminated or discharged, in whole or in part. except by a writing which is dated and

signed by all parties hereto. No waiver of any of the provisions or conditions of this Agreement or of any other rights, powers or privileges of a party hereto, shall be effective or binding unless in writing and signed by the party claimed to have consented or given such waiver.

 

10.   Miscellaneous.

 

(a) Survival of Representations and Ktrranties. All representations and warranties of the Seller contained in this Agreement or in any certificate executed and delivered by the Seller in connection with this Agreement shall survive one (1) year from the Closing Date; provided however that any intentional misconduct or intentional breach of representations and warranties or intentional non-fulfillment of any covenant on the part of the Seller contained in this Agreement, or any intentional misrepresentation or omission prom or non-fulfillment of any covenant on the part of the Seller contained in ally agreement, certificate or other instrument furnished or to be furnished to the Buyer from the Seller pursuant to this Agreement shall survive the Closing Date indefinitely, or for the maximum amount of time permitted by applicable law.

 

(h) Governing Law. This Agreement shall be construed and enforced in

accordance with the laws of the State of Georgia.

 

(c) Successors and Assigns. This Agreement may not be assigned by either

 

party without the prior written consent of the other party. provided, however, that the Buyer may assign its rights hereunder to any of its lenders. as collateral security for its obligations to any such lenders and the Seller hereby consent to each such assignment. Notwithstanding anything herein to the contrary. (a) all covenants, representations, warranties and agreements of the parties contained herein shall be binding upon, inure to the benefit of and be enforceable by their respective successors and permitted assigns and (h) all obligations of the assignor shall continue to he enforceable against any such assignor notwithstanding such assignment.

 

(d) Notices. Should the Buyer or Seller be required under the terms of this

 

Agreement to send notice or payment to the other party. then the Buyer or Seller may deliver such notice in person or send it certified mail, return receipt requested to:

 

	 	Asset Rectnery Associates ATTN: Katie Goodman
	 Seller: 	333 Sandy Springs Circle, Suite 106
	 	Atlanta, Georgia 30328
	 	 
	                          Buyer:	Brainy Acquisitions. inc.       Tony Erwin
	 	1000 Peachtree Industrial Blvd, Suite 6-482
	 	Suwanee, GA 30024

 

        (e) Counterparts. This Agreement may be executed in two () or more counterparts, each of which shall be deemed an original. but all of which together shall constitute

one and the same instrument.

 

  

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(1)Time of the Essence. Time is of the essence as to all provisions of this

Agreement.

 

(g) Further Assurances. Buyer and Seller agree to fully cooperate and adjust for clerical errors, if any, and all closing documentation if deemed necessary or desirable to correct the documents executed in accordance with the Closina.

 

(h) Specific Performance. Each party hereto acknowledges and agrees that the other party hereto would be irreparably damaged in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. Accordingly, each party agrees that, in addition to any other remedy to which such party may be entitled at law or in equity, such party shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically this agreement, and the terms and provisions hereof:

 

Entire Agreement. The Transaction Documents, the schedules and exhibits hereto and thereto, and any other agreements or certificates delivered pursuant hereto constitute the entire agreement of the parties hereto with respect to the matters contemplated hereby and supersede all previous written or oral negotiations, commitments, representations and agreements.

 

(j)No Third Party Beneficiary. This Agreement is intended and agreed to be

 

solely for the benefit of the parties hereto, and except as otherwise expressly set fOrth in this Agreement, no other party shall accrue any benefit, claim or right of any kind whatsoever pursuant to, under, by or through this Agreement.

 

 

 

 

 

 

 

 

 

[Remainder 0f Page Intentionally Left Blank]

 

  

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IN WITNESS WHEREOF, the parties duly authorized officers have executed this agreement as of the day and year first above written,

 

	 	SELLER:
	                                     	ASSET RECOVERY ASSOCIATES, LLC
	                                                                                                                                                 	 
	                                                                 	
	 	 
	 	 
	 	BUYER:
	 	 
	                                                                                                                                                 	 BRAINY ACQUISITIONS, INC
	                                     	 
	                                     	
	 	 

 

  

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Schedule I

 

Purchased Assets

 

All assets of The Brainy Baby Company, LLC including all of the assets conveyed to the Assignee of The Brainy Baby Company, LLC, in the Assignment for the Benefit of Creditors dated September 22. 2010. This includes any and all

 

Accounts Receivable Chattel Paper

Goods

Instruments

Documents

Commercial Tort Claims

Deposit Accounts Investment Property Inventory

Furniture and Fixtures Cash

Goodwill

Telephone numbers Facsimile number Website

Name

Prepaid expenses and Deposits

Customer Lists

General Intangibles

Film / Tape Master Libraries / DI.Ts

Broadcast Licenses. to the extent assignable

Computer Data and other information contained on the Seller's servers

Contracts, to the extent assignable

Insurance policies. to the extent assignable, and

Proceeds and Products of the foregoinu

[End of Text.]

 

  

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Schedule II

 

Liens disclosed by The Brainy Baby Company. LLC to Asset Recovery Associates as Assignee

 

 

for The Brainy Baby Company, LLC

 

	Lienholder	Amount
	 	 
	JP Morgan Chase	$ 49,220.76, Commercial Business Loan $ 40,077.00, Server Equipment Lease
	 	 
	HP Financial Services Avid	Business Equipment Lease which has been paid in full, UCC-1 to be released

 

First Citizens Bank as Successor to Georgian Bank has a lien in the amount of $345,575.94, such lien will be satisfied in receipt of payment of $82,500.

 

[End of Text.]

 

  

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Schedule III

Retained Liabilities

 

	HP Financial Services 	 Server Equipment Lease $40,077.00

 

 

[Remainder of Page Intentionally Left Blank]

 

  

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Exhibit A

	
Bill of Sale

 

  

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BILL OF SALE

 

For and in consideration of the sum of Ten and. No! I00 ($10.00) Dollars, receipt and sufficiency of which are hereby acknowledged, ASSET RECOVERY ASSOCIATES, Assignee for the benefit of creditors of THE BRAINY BABY COMPANY, LLC. (hereinafter collectively referred to as "Seller"), hereby transfers, conveys and assigns unto BRAINY ACQUISITIONS, INC, a Georgia Corporation (hereinafter "Buyer"), all of its right, title and interest in and to the following:

 

All those certain assets described in Schedule Ito the Agreement for the Purchase and Sale of Assets of The Brainy Baby Company, LLC between the parties (the "Agreement") including, but not limited to: (i) accounts receivable, (ii) inventory (iii) furniture and fixtures, (iv) goodwill, telephone number, facsimile number, and website. (iii) name, (iv) prepaid expenses and deposits, (v) customer lists and eneral intangible assets, of which Schedule Ito the Agreement is hereby incorporated herein by reference as though fully recited herein (All of the foregoing property and assets being hereinafter referred to collectively as the "Property").

 

Except as either warranted herein or in the Agreement, the Property herein described is conveyed AS IS, WHERE IS.

 

IN WITNESS WHEREOF, the undersigned has affixed its signature on this 23rd day of September, 2010.

 

	 	

"SELLER"

	 
	 	 	 
	
 

	

ASSET RECOVERY ASSOCIATES, 

Assignee for the benefit of the creditors of 

The Brainy Baby Company, LLC.

 

	 
	 	
	 	 	 
	 	 	 

 

 

The undersigned, as Buyer. hereby accepts this Bill of Sale upon the conditions stated herein this 23rd day of September. 2010.

 

	 	
	 	 	 
	 	 	 

 

  11ex1010.htm

EXHIBIT 10.10

Letter of Agreement

 

This LETTER OF AGREEMENT is entered into as of November 15, 2010 by and between Wall & Madison LLC, a New York Limited Liability Corporation with offices at 63 Murray Avenue, Port Washington, New York, 11050 (“Agency”) and Brainy Acquisitions, Inc., with corporate offices at 460 Brogdon Road, Suite 400, Suwanee, Georgia, 30024 (Client”).

 

1.           SCOPE OF SERVICES

 

Client hereby retains Agency to provide Marketing consulting and related services in connection with the ramp-up of Client’s Conventional sales initiatives and Direct to consumer marketing and promotion efforts. Such services shall include, but not be limited to the following.

 

Agency shall:

 

	
  

	
•

	
acquaint itself with the Client’s “product lines” (initially to include Brainy Baby and related product lines) as well as their markets, competitors and trends relevant to Client’s products and services to enhance the planning and execution process and strive to continually improve its understanding of issues and opportunities.

 

	
  

	
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function as a consultant and general contractor to provide access to its Marketing , Advertising, and Promotional industry resources and services of the type customarily rendered by an Online Advertising and traditional Marketing agency, or as otherwise directed by Client.

 

	
  

	
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develop and execute online and offline direct to consumer advertising and marketing strategies, plans and initiatives on behalf of Client, including initial concept through Client approval process, launch and ongoing management of marketing campaigns.

 

	
  

	
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participate and drive the process of developing Client’s consumer facing position statement, creative work orders, logo design initiative, brochure and sales materials, and selling strategies and selling scripts, integrated advertising and marketing programs.

 

	
  

	
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assist Client in the development of content specific to Client and its services and benefits.

 

	
  

	
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manage and/or advise Client on the development and execution and optimization of Client website.

 

	
  

	
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manage and/or advise Client on the execution and delivery of an optimized customer acquisition landing page.

 

	
  

	
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create and execute initial e-mail campaigns inclusive of creative, CPA media strategy and purchase, and e-com optimization.

 

	
  

	
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create and execute initial Banner and Banner Re-Targeting campaigns inclusive of creative designs and alternatives, pricing negotiation and purchase, execution and ongoing optimization.

 

	
  

	
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manage and optimize Search Engine Marketing (SEM) strategy, bidding and purchase.

 

	
  

	
•

	
provide initial guidance and recommendations regarding alternative consumer outreach initiatives; i.e. online and offline social networking and community outreach, television, and radio.

 

2.           FEES

 

 Client shall pay Agency a flat fee in the amount of $12,000 per month commencing upon execution of this Agreement, and due and payable on the 1st of each month thereafter.

 

In addition to its fees, Agency shall be entitled to reimbursement by Client for Agency’s reasonable and customary disbursements incurred in connection with the provision of services under this Agreement.  Expenses beyond the usual course of business as well as Business travel, must be approved by Client in advance and in writing.

 

It is anticipated and understood that Agency will negotiate a commission directly with the entities with which Agency places Client advertising/outreach programs.

 

  

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3.           TERM

 

The duration/ initial term of this agreement shall be eighteen months, after which it will continue on a monthly basis unless otherwise mutually renegotiated and/ or terminated by either party at any time upon sixty days written notice.

 

4.           SUBCONTRACTS

 

Agency shall not subcontract out any part of the services to be provided under this Agreement or enter any agreements on behalf of Client without the prior written approval of Client.   The granting of such approval by Client shall not relieve Agency of its obligations under this Agreement or of its liability for the quality and performance of the services provided under this Agreement.  Agency shall ensure that all vendors, subcontractors and agents of subcontractor providing services in connection with this Agreement accept and agree to be bound by the confidentiality provisions contained in Section 7 herein.

 

5.           INTELLECTUAL PROPERTY

 

Client shall be deemed the owner of all designs, logos, fonts, website content and other materials developed for Client pursuant to this Agreement without restriction on subsequent use.

 

6.           NON-COMPETITION AND CONFIDENTIALITY

 

Agency agrees that it will not, at any time during or after the termination of this Agreement, use for any purpose other than the performance of its duties under this Agreement, reveal, divulge or make known to any person (other than the Client) any records, data, trade secrets, know-how, methods of operations, strategies, processes, computer programs, personnel information or any other confidential or proprietary information of the Client (the "Confidential Information") used by the Client and made known to the Agency by reason of Agency’s performance of work under this Agreement

7.           MODIFICATION

 

No change, termination or purported waiver of any of the provisions of this Agreement shall be binding unless in writing and signed by the party to be bound.

 

8.           WAIVER

 

No failure to enforce or exercise any right, remedy, privilege or recourse accorded to either party under this Agreement shall diminish or waive the right, remedy, privilege or recourse, or affect the entitlement of either party thereafter to enforce or exercise the same in the event of another situation, whether or not similar.

 

9..           SUCCESSORS; ASSIGNMENT

 

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors.  Neither party may assign this Agreement without the prior written consent of the other.

 

10.           GOVERNING LAW, JURISDICTION AND VENUE

 

This Agreement shall be governed by and interpreted and construed in accordance with the laws of the State of Georgia.  Any action, suit or proceeding relating to such matters shall be commenced, pursued, defended and resolved only in such courts and any appropriate appellate court having jurisdiction to hear an appeal from any judgment entered in such courts.

 

11.           NOTICES

 

All notices, consents, waivers or other communications required or permitted to be given pursuant to any of the provisions of this Agreement (collectively, “Notices”) shall be in writing and shall be deemed to have been duly given or made for all purposes when sent by certified or registered mail, return receipt requested, and postage prepaid, hand delivered, sent by confirmed telecopy or other confirmed electronic means or by express mail service or other verified overnight courier service to the party at its address set forth below, or at such other address as either party may specify by Notice given to the other party in accordance with this Paragraph.

 

	       For Client:	Brainy Acquisitions, Inc      
	 	460 Brogdon Road, Suite 400
	 	Suwanee, Georgia, 30024

 

	       For Agency:	Wall & Madison Media, LLC
	 	63 Murray Avenue
	 	Port Washington, New York 11050
	 	Tel: 212-419-7749
	 	Fax:

 

	
12.

	
Nothing in this Agreement shall be deemed to prevent John Benfield from serving as an officer or director of Client or any affiliate of Client at any time.

 

13.           COUNTERPARTS

 

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

 

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

 

	 	WALL AND MADISON,  LLC	 
	 	 	 	 
	
 

	
By: 

	/s/John Benfield	 
	 	 	John Benfield	 
	 	 	 	 
	 	 	 	 

	 	BRAINY ACQUISITIONS, INC	 
	 	 	 	 
	
 

	
By: 

	/s/John Benfield	 
	 	 	John Benfield	 
	 	 	 	 
	 	 	 	 

 

 

 

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