Document:

Exhibit 10.6

 

TRADEMARK LICENSE CONTRACT

 

Between

 

天华阳光控股有限公司

Sky Solar Holdings Co., Ltd.

(as Licensor)

 

and

 

Sky Power Holdings Ltd.

(as Licensee)

 

Dated        , 2013

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE 1   - GENERAL PROVISIONS
    	
3
    
	
 
    	
 
    	
 
    
	
ARTICLE 2   - DEFINITIONS
    	
3
    
	
 
    	
 
    	
 
    
	
ARTICLE 3   - CONTENTS AND SCOPE   OF LICENSE
    	
4
    
	
 
    	
 
    	
 
    
	
3.1
    	
LICENSE
    	
4
    
	
 
    	
 
    	
 
    
	
3.2
    	
CONSIDERATION
    	
4
    
	
 
    	
 
    	
 
    
	
3.3
    	
RETAINED RIGHTS
    	
4
    
	
 
    	
 
    	
 
    
	
ARTICLE 4   - COVENANTS OF THE PARTIES
    	
4
    
	
 
    	
 
    	
 
    
	
4.1
    	
USE BY LICENSEE
    	
4
    
	
 
    	
 
    	
 
    
	
4.2
    	
NO IMPAIRMENT
    	
4
    
	
 
    	
 
    	
 
    
	
4.3
    	
TRADEMARK REGISTRATION
    	
5
    
	
 
    	
 
    	
 
    
	
4.4
    	
RECORDATION OF CONTRACT
    	
5
    
	
 
    	
 
    	
 
    
	
ARTICLE 5   - REPRESENTATIONS; DEFENSE; THIRD PERSON INFRINGEMENT
    	
5
    
	
 
    	
 
    	
 
    
	
5.1
    	
REPRESENTATIONS
    	
5
    
	
 
    	
 
    	
 
    
	
5.2
    	
DEFENSE AGAINST INFRINGEMENT   CLAIMS
    	
5
    
	
 
    	
 
    	
 
    
	
5.3
    	
THIRD PERSON INFRINGEMENT
    	
5
    
	
 
    	
 
    	
 
    
	
ARTICLE 6   - COMPLIANCE
    	
6
    
	
 
    	
 
    	
 
    
	
ARTICLE 7   - CONFIDENTIALITY
    	
6
    
	
 
    	
 
    	
 
    
	
7.1
    	
CONFIDENTIALITY
    	
6
    
	
 
    	
 
    	
 
    
	
7.2
    	
EXCEPTIONS
    	
6
    
	
 
    	
 
    	
 
    
	
7.3
    	
MEASURES OF PROTECTION
    	
6
    
	
 
    	
 
    	
 
    
	
7.4
    	
BREACH
    	
7
    
	
 
    	
 
    	
 
    
	
7.5
    	
SURVIVAL
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE 8   - TERM, TERMINATION, BREACH
    	
7
    
	
 
    	
 
    	
 
    
	
8.1
    	
EFFECTIVE DATE
    	
7
    
	
 
    	
 
    	
 
    
	
8.2
    	
TERM
    	
7
    
	
 
    	
 
    	
 
    
	
8.3
    	
TERMINATION
    	
7
    

 

 

	
8.4
    	
UPON EXPIRATION OR   TERMINATION
    	
7
    
	
 
    	
 
    	
 
    
	
8.5
    	
CONTINUING OBLIGATIONS UPON   EXPIRATION OR TERMINATION
    	
7
    
	
 
    	
 
    	
 
    
	
8.6
    	
BREACH
    	
8
    
	
 
    	
 
    	
 
    
	
ARTICLE 9   - GOVERNING LAW
    	
8
    
	
 
    	
 
    	
 
    
	
ARTICLE 10   - DISPUTE RESOLUTION
    	
8
    
	
 
    	
 
    	
 
    
	
10.1
    	
CONSULTATION
    	
8
    
	
 
    	
 
    	
 
    
	
10.2
    	
ARBITRATION
    	
8
    
	
 
    	
 
    	
 
    
	
ARTICLE 11   - MISCELLANEOUS
    	
9
    
	
 
    	
 
    	
 
    
	
11.1
    	
NO AGENCY/PARTNERSHIP
    	
9
    
	
 
    	
 
    	
 
    
	
11.2
    	
COSTS AND EXPENSES
    	
9
    
	
 
    	
 
    	
 
    
	
11.3
    	
AMENDMENT
    	
9
    
	
 
    	
 
    	
 
    
	
11.4
    	
WAIVER
    	
9
    
	
 
    	
 
    	
 
    
	
11.5
    	
ASSIGNMENT AND TRANSFER
    	
9
    
	
 
    	
 
    	
 
    
	
11.6
    	
SUB-LICENSING
    	
9
    
	
 
    	
 
    	
 
    
	
11.7
    	
NOTICES
    	
9
    
	
 
    	
 
    	
 
    
	
11.8
    	
HEADINGS
    	
10
    
	
 
    	
 
    	
 
    
	
11.9
    	
SEVERABILITY
    	
10
    
	
 
    	
 
    	
 
    
	
11.10
    	
ENTIRE AGREEMENT
    	
10
    
	
 
    	
 
    	
 
    
	
11.11
    	
BINDING EFFECT
    	
10
    
	
 
    	
 
    	
 
    
	
Schedule A
    	
 
    	
 
    

 

 

TRADEMARK LICENSE CONTRACT

 

ARTICLE 1 - GENERAL PROVISIONS

 

This TRADEMARK LICENSE CONTRACT, dated as of this day of September 6 , 2013, is made by and between天华阳光控股限公司 (Sky Solar Holdings Co., Ltd.) (the “Licensor”), a corporation organized and existing under the laws of the Cayman Islands, and Sky Power Holdings Ltd. (the “Licensee”), a corporation organized and existing under the laws of the Cayman Islands.

 

WHEREAS, Licensor is willing to grant to Licensee, and Licensee is willing to obtain from Licensor, such a license on the terms and subject to the conditions hereof.

 

NOW, THEREFORE, in consideration of the premises and mutual agreements and covenants set forth herein, the Parties hereby agree as follows:

 

ARTICLE 2 - DEFINITIONS

 

As used in this Contract, the following terms shall have the following meanings:

 

2.1                     “Affiliate” means, with respect to any specified Person, any other Person that directly, or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such specified Person; “control” (including the terms “controlled by” and “under common control with”) in this definition means the possession, directly or indirectly, of the power to direct or cause the direction of the affairs or management of a Person, whether through the ownership of 50% or more voting stocks, appointment of directors or by contract;

 

2.2                     “Confidential Information” has the meaning set forth in Article 7.1;

 

2.3                     “Contract” means this Trademark License Contract between Licensor and Licensee, as the same may be amended or supplemented from time to time;

 

2.4                     “Group” means Licensee and its subsidiaries;

 

2.5                     “License” has the meaning set forth in Article 3.1;

 

2.6                     “Licensee” has the meaning set forth in Article 1;

 

2.7       “Licensed Trademarks” means the words, marks and logos that Licensee is licensed by Licensor to use hereunder, as more specifically set forth in Schedule A;

 

2.8                     “Licensor” has the meaning set forth in Article 1;

 

2.9                     “Notice” has the meaning set forth in Article 11.7;

 

2.10              “Party” means Licensor or Licensee;

 

2.11              “Parties” means collectively Licensor and Licensee;

 

2.12              “Person” means any individual, partnership, firm, corporation, association, trust, unincorporated organization or other entity or institution;

 

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2.13              “subsidiary” has the meaning ascribed to it in section 2 of the Companies Ordinance (Chapter 32 of the Laws of Hong Kong); and

 

2.14              “Term” has the meaning set forth in Article 8.2.

 

ARTICLE 3 - CONTENTS AND SCOPE OF LICENSE

 

3.1                     License

 

On the terms and subject to the conditions hereof, Licensor hereby grants to Licensee non-exclusive right and license, at the Consideration set out in Article 3.2 below, to use the Licensed Trademarks in the jurisdiction(s) where the respective Licensed Trademarks were registered as set out in Schedule A for its lawful business activities during the Term hereof, specifically, in or on Licensee’s corporate name, trade name, logo, symbol, letterhead, envelopes, brochures, printed materials and on such promotional souvenirs and Licensee’s products as well as packages thereof (the “License”).

 

3.2                     Consideration

 

The annual consideration (the “Consideration”) of the License shall be US$1 and shall be paid by Licensee to Licensor on an annual basis starting from October 1, 2013.

 

3.3                     Retained Rights

 

Licensee shall have no right to continue to use any of the Licensed Trademarks upon any termination of this Contract for whatever reason, and all rights licensed to Licensee hereunder shall automatically revert to Licensor upon such termination.

 

ARTICLE 4 - COVENANTS OF THE PARTIES

 

4.1                     Use by Licensee

 

During the Term hereof, Licensee shall only use the Licensed Trademarks for the benefit and purpose contemplated hereby and only in such a manner as to preserve and enhance the image, reputation and goodwill of the Licensed Trademarks as well as of the Parties, in each case in accordance with the terms and conditions hereof.

 

4.2                     No Impairment

 

(a)                       Licensee shall not arbitrarily modify the texts, graphics or a combination thereof of the Licensed Trademarks or any time do, or cause or suffer to be done, any other act or thing which may impair or dilute the image, value, reputation or goodwill of the Licensed Trademarks or the effectiveness thereof as trade names, trademarks or service marks.

 

(b)                       Licensor has the right to monitor Licensee’s quality of goods on which the Licensed Trademarks are used (including a right to inspect production and production condition) and Licensee shall guarantee the quality of such goods.

 

(c)                        Licensee shall state its company name and place of origin of goods on which the Licensed Trademarks are used.

 

4

 

4.3                     Trademark Registration

 

Unless the Licensed Trademarks have been registered in the relevant jurisdictions set forth in Schedule A, Licensor undertakes to apply for the registration of the Licensed Trademarks at its own cost, and shall maintain the registrations of the Licensed Trademarks throughout the Term hereof.

 

4.4                     Recordation of Contract

 

Upon registration of the Licensed Trademarks or, if the Licensed Trademarks have been duly registered, as soon as is practicable after the date of this Contract, Licensor shall record this Contract with the relevant regulatory authority or trademark office.  Upon written request by Licensor, Licensee shall assist Licensor in effecting the recordation of this Contract, including, but not limited to, executing and making available to Licensor any and all relevant documents, instruments or materials.

 

ARTICLE 5 - REPRESENTATIONS; DEFENSE; THIRD PERSON INFRINGEMENT

 

5.1                     Representations

 

(a)                       Licensor represents to Licensee that it is the legitimate owner of the Licensed Trademarks and has the legal right to grant to Licensee the right to use the Licensed Trademarks in accordance with the terms and conditions hereof.

 

(b)                       Licensor represents that Licensee shall be entitled to all economic benefits, directly or indirectly, arising out of the usage by Licensee of the Licensed Trademarks.

 

5.2                     Defense Against Infringement Claims

 

Licensor and Licensee shall each take various necessary and reasonable actions with a view to avoiding infringement of other Person’s intellectual property rights as a result of Licensee’s use of the Licensed Trademarks in accordance with this Contract.  To the extent possible, Licensor agrees to defend Licensee from and against third Person trademark infringement claims arising from Licensee’s use of the Licensed Trademarks in accordance herewith (the “Infringement Claims”) or direct the defense of the Infringement Claims by Licensee, subject to the following:

 

(a)                       upon the occurrence of any Infringement Claims, Licensee shall give Licensor immediate written notice thereof and afford Licensor the opportunity to defend the same, at its own expense, through counsel of its own choice, and shall not challenge the ownership right of Licensor in and to the Licensed Trademarks causing damage to Licensor’s rights with respect to the Licensed Trademarks; and

 

(b)                       Licensee shall cooperate with and assist Licensor in the defense of the Infringement Claims, including, among other things, furnishing relevant evidence and testimony necessary or helpful in such defense, or defend against such claims at the direction of Licensor, in each case at Licensee’s own expense.

 

5.3                     Third Person Infringement

 

Licensee shall immediately notify Licensor of any possible infringement of Licensor’s rights in and to the Licensed Trademarks which comes to Licensee’s attention.  With respect to any such infringement relating to any products of Licensee, Licensee shall use its best efforts to assist and cooperate fully with Licensor in investigating, stopping, pursuing and prosecuting any infringers of the Licensed Trademarks by all administrative and/or judicial means available (including, but not limited to, participating in Licensor’s prosecution).  If the lawsuit or the administrative action, as the case may

 

5

 

be, is successful, the award shall first be used to reimburse Licensee for its expenses incurred in the lawsuit or the administrative action, and the remainder shall belong to Licensor.

 

ARTICLE 6 - COMPLIANCE

 

Licensee shall be solely responsible for complying with all laws, rules and regulations applicable to the manufacture, labeling, government registration, transportation, performance and/or use of any products Licensee produces using any of the Licensed Trademarks in accordance with Article 3.1 above.

 

ARTICLE 7 - CONFIDENTIALITY

 

7.1                     Confidentiality

 

During the Term of this Contract, each Party may disclose to the other Party confidential or proprietary information or other confidential matters (collectively, the “Confidential Information”).  With respect to its Confidential Information disclosed hereunder, each Party shall indicate as such to the extent possible.  Any Party receiving any Confidential Information from the other Party shall:

 

(a)                       maintain the confidentiality of the Confidential Information;

 

(b)                       limit access to the Confidential Information to only those of its officers, directors, and employees as are necessary for the implementation of this Contract;

 

(c)                        not disclose, convey, assign, transfer, license or deliver, directly or indirectly, to any other Person any Confidential Information; and

 

(d)                       not use any of the Confidential Information for any purpose other than for the implementation of this Contract.

 

7.2                     Exceptions

 

The restrictions provided for in Article 7.1 regarding non-disclosure shall not apply to:

 

(a)                       confidential communications between Licensor and Licensee and any members of their corporate groups in which they hold controlling interests (i.e. interests of 30% or more in the relevant company’s share capital), professional advisors or bankers that are under an equivalent obligation of confidentiality for the purpose of implementing this Contract;

 

(b)                       disclosure required to be made by applicable law or regulatory requirements (including the requirements of an international stock exchange);

 

(c)                        information which has become public knowledge through no fault of either Party; and

 

(d)                       any information which was disclosed to the receiving Party in good faith by a third Person who is not subject to any obligation of confidentiality.

 

7.3                     Measures of Protection

 

Each of the Parties shall advise its directors, officers and employees having access to any Confidential Information of the existence and the requirements of Article 7.1 and formulate rules and regulations to cause its directors, officers and employees and the directors, officers and employees of its Affiliates to comply with the confidentiality obligations set forth in Article 7.1.  The Parties shall sign a confidentiality agreement with each of its directors, officers and employees who may have access to

 

6

 

any Confidential Information.

 

7.4                     Breach

 

If, without the prior written consent of the Party providing the Confidential Information, any Party discloses or permits or suffers to be disclosed any Confidential Information to any unauthorized third Person, such Party shall be in breach of this Contract and shall indemnify and hold the other Party harmless in accordance with Article 8.6(b) of this Contract, and the Party providing the Confidential Information shall have the right to terminate this Contract.

 

7.5                     Survival

 

The obligations of the Parties under this Article shall survive the expiration or any termination of this Contract for an additional period of six (6) years (unless the Parties agree in writing to a longer period) and shall continue to be binding during such additional period on the Parties and their respective successors and permitted assigns.

 

ARTICLE 8 - TERM, TERMINATION, BREACH

 

8.1                     Effective Date

 

Upon execution hereof by the duly authorized representatives of the Parties, this Contract shall become effective as of the date of this Contract.

 

8.2                     Term

 

This Contract, unless earlier terminated pursuant to the terms and conditions hereof, shall continue in full force and effect for a period consistent with the validity period of the trademark registrations of the Licensed Trademarks (as renewed, as applicable) (the “Term”).

 

8.3                     Termination

 

This Contract may be terminated by mutual written agreement of both Parties but may not be unilaterally terminated by Licensor.

 

8.4                     Upon Expiration or Termination

 

If this Contract expires or terminates for any reason in accordance herewith, Licensee shall (a) immediately cease using the Licensed Trademarks, (b) within fifteen (15) business days of the Licensor’s notice after the expiration or termination, return to Licensor or destroy, at Licensor’s option and at Licensee’s expense, any physical embodiments of the Licensed Trademarks, including, but not limited to, letterhead, envelopes, brochures, promotional information, printed materials and product packages (if any), and (c) shall not use at any time on any products or otherwise any word or term in any language, any symbol or label which may be deemed similar to any of the Licensed Trademarks.

 

8.5                     Continuing Obligations Upon Expiration or Termination

 

Upon expiration or termination of this Contract, neither Party shall have any further obligation to the other hereunder, but the expiration or termination shall not excuse either Party from (a) liabilities for a breach of this Contract, (b) obligations provided in Article 7, (c) obligations which by their terms are to be performed after the expiration or termination of this Contract and/or (d) any obligations or liabilities arising prior to or in connection with the expiration or termination.

 

7

 

8.6                     Breach

 

(a)                       A Party shall be in breach of this Contract if it fails to perform fully, or suspends its performance of, any of its material obligations under this Contract.  In the event of a breach of this Contract by either Party, and if such Party fails to correct such breach within thirty (30) days of its receipt of a written notice thereof from the other Party, the other Party shall have the right to terminate this Contract.

 

(b)                       If the non-breaching Party suffers any cost, liability or loss in connection with a breach of this Contract, the Party in breach shall indemnify and hold the non-breaching Party harmless in respect of any such cost, liability or loss incurred by the non-breaching Party, including, without limitation, interest paid or lost as a result of such breach, and reasonable attorneys’ fees and expenses.

 

ARTICLE 9 - GOVERNING LAW

 

The formation of this Contract, its validity, interpretation, execution and settlement of any disputes arising hereunder shall be governed by and constructed in accordance with the laws of the PRC.

 

ARTICLE 10 - DISPUTE RESOLUTION

 

10.1              Consultation

 

If a dispute arises from or in connection with this Contract, the Parties shall attempt in the first instance to resolve such dispute amicably through friendly consultation between the Parties.  The claiming Party shall promptly notify the other Party in a dated notice that a dispute has arisen and describe the nature of the dispute.

 

10.2              Arbitration

 

(a)                       If no settlement can be reached through such consultation within thirty (30) days after the date of such notice of dispute referred to in Article 10.1 above, the dispute shall be submitted to the Beijing Arbitration Committee in the PRC for arbitration.

 

(b)                       The arbitral award shall be final and binding upon the Parties and enforceable by any court having jurisdiction for this purpose.

 

(c)                        The Parties shall use their best efforts to effect the prompt execution of any such award and shall render whatever assistance as may be necessary to this end.  The arbitral award shall be enforced by any court of competent jurisdiction, if necessary.

 

(d)                       The losing Party shall be responsible for the costs of arbitration, including the fees of the arbitrators, the expenses of the arbitration proceedings and all costs and expenses of enforcement of any arbitral award.  The arbitration tribunal shall take reasonable attorneys’ fees and expenses into consideration in rendering any arbitral award in respect of such fees and expenses.

 

8

 

ARTICLE 11 - MISCELLANEOUS

 

11.1              No Agency/Partnership

 

Nothing in this Contract shall be construed so as to constitute either Party hereto the agent or partner of the other.  On no account may a Party create on behalf of the other Party (or hold itself out to a third Person as being able to create) any binding obligation without the prior written consent of the other.

 

11.2              Costs and Expenses

 

Each Party shall bear its own costs (including attorney’s fees) and expenses incurred in the preparation and execution of this Contract.

 

11.3              Amendment

 

Any amendments or modification to this Contract shall be effective only after a written amendment agreement is signed by the Parties, and Licensor shall record such amendment with the registration authorities.

 

11.4              Waiver

 

No delay or failure by either Party hereto to exercise any of its powers, rights or remedies under this Contract shall operate as a waiver of any of them, nor shall any single or partial exercise of any such powers, rights or remedies preclude any other.  Any waiver by any Party of any provisions of this Contract shall not be construed as a waiver of any other provision of this Contract, nor shall such waiver be construed as a waiver of such provision with respect to any other event or circumstances, whether past, present or future.  Further, the remedies provided for in this Contract are cumulative and not exclusive of any provided for by law.

 

11.5              Assignment and Transfer

 

Subject to Article 11.6, neither this Contract nor any of the rights and obligations arising hereunder may be assigned or transferred by either Party and any such purported assignment shall be null and void except that Licensor may assign this Contract and the rights and obligations arising hereunder to any of its Affiliates, provided that such Affiliate shall have the ability to continue to perform this Contract and Licensor shall inform Licensee of such assignment in advance.  Subject to the foregoing, all covenants, agreements, representations and indemnities contained in this Contract shall bind and inure to the benefit of the successors or permitted assigns.  Unless expressly provided by Article 11.6 and operated thereunder, Licensee shall have no right, and shall not attempt, to sub-license, convey or pledge any of the Licensed Trademarks licensed hereunder to any third Person (including its Affiliates).

 

11.6                        Sub-licensing

 

Licensee shall have the right to grant to its Subsidiaries and Affiliates a non-exclusive sub-license of any of its rights under this Contract, provided that (a) Licensee shall ensure that the terms of any non-exclusive sub-license are in writing and are substantially the same as the terms of this Contract (except that the sub-licensee shall not have the right to sub-license its rights) and Licensee shall provide Licensor with a copy of the non-exclusive sub-license on request; and (b) all non-exclusive sub-licenses granted shall terminate automatically on termination or expiry of this Contract.

 

11.7                        Notices

 

Notices and communications between the Parties hereunder (each a “Notice”) shall be in writing and shall be sent by personal delivery, prepaid airmail, prepaid air courier or facsimile to the Parties’

 

9

 

addresses set forth below.  Any Notice given by personal delivery shall be deemed to have been received on the date of receipt; any Notice given by airmail shall be deemed to have been received fifteen (15) days after it is sent; any Notice given by air courier shall be deemed to have been received ten (10) days after it is delivered to an air courier agent; and any Notice given by facsimile shall be deemed received after electronic answerback has been received and twenty-four (24) hours have elapsed at the place of the Party receiving such notice.

 

(a)                       in the case of Licensor to:

 

	
Address:
    	
17F, GIFC II, 1438 Hongqiao Road, Shanghai   200336, China
    
	
Facsimile:
    	
+86-21 61638808
    
	
Attention:
    	
Mr. SU Weili
    

 

(b)                       in the case of Licensee to:

 

	
Address:
    	
17F, GIFC II, 1438 Hongqiao Road, Shanghai   200336, China
    
	
Facsimile:
    	
+86-21 61638808
    
	
Attention:
    	
Mr. Andrew   Wang
    

 

During the Term of this Contract, either Party may change its address from time to time, provided that it shall notify the other Party of such change promptly in writing.

 

11.8                        Headings

 

The headings in this Contract are inserted for the convenience of reference only and shall not constitute part of this Contract or be taken into consideration in the interpretation or construction of this Contract.

 

11.9                        Severability

 

If any term or provision of this Contract shall be held to be invalid or unenforceable in whole or in part under any applicable law, it shall be excluded from this Contract (to the extent of such invalidity or unenforceability only), and all other terms and provisions of this Contract shall continue to be in full force and effect.  Under such circumstances, the Parties shall use their best efforts to implement both the letter and spirit of this Contract and replace the invalid or unenforceable term or provision with a valid and enforceable term or provision that corresponds as far as possible to the spirit and purpose of the invalid or unenforceable term or provision.

 

11.10                 Entire Agreement

 

This Contract, with its Schedule, constitutes the entire agreement between the Parties with respect to the subject matter, and supersedes all previous oral or written agreements, contracts, letters of intent, undertakings and communications between the Parties in respect of the subject matter of this Contract.  The Schedule hereto shall form an integral part of this Contract and shall be construed accordingly.

 

11.11                Binding Effect

 

This Contract shall constitute valid and binding obligations of both Parties, and the Parties shall perform all their respective obligations under this Contract strictly in accordance with the provisions hereof.

 

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IN WITNESS WHEREOF, the Parties have caused this Contract to be executed in three originals by their representatives, duly authorized hereunto, on the date first above written in Shanghai, the PRC.

 

 

	
天华阳光控股有限公司
    	
 
    	
Sky Power Holdings Ltd.
    
	
Sky Solar Holdings   Co., Ltd.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Weili Su
    	
 
    	
By:
    	
/s/   Amy Zhang
    
	
Name:
    	
Weili Su
    	
 
    	
Name:
    	
Amy   Zhang
    
	
Title:
    	
 
    	
 
    	
Title:
    	
 
    

 

 

SCHEDULE A

 

The Licensed Trademarks

 

South Africa

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
4
    	
 
    	
2010/22605
    	
 
    	
October 4, 2020
    
	

    	
 
    	
36
    	
 
    	
2010/22606
    	
 
    	
October 4, 2020
    

 

France

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
4, 9, 36, 40, 42
    	
 
    	
103771678
    	
 
    	
October 5, 2020
    

 

Germany

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
4, 36
    	
 
    	
60805/2010
    	
 
    	
October 11, 2020
    

 

South Korea

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
11
    	
 
    	
45-0038400
    	
 
    	
February 13, 2022
    

 

Africa

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
36
    	
 
    	
65997
    	
 
    	
May 30, 2021
    
	

    	
 
    	
4
    	
 
    	
65998
    	
 
    	
May 30, 2021
    

 

United Kingdom

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
4, 36
    	
 
    	
2561051
    	
 
    	
July 18, 2021
    

 

 

Hong Kong

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
4, 36
    	
 
    	
301723266
    	
 
    	
July 18, 2021
    

 

Portugal

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
4, 36, 39, 40
    	
 
    	
475813
    	
 
    	
March 2, 2021
    

 

Tunisia

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
4, 36
    	
 
    	
2001-36
    	
 
    	
November 29, 2011
    

 

Romania

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
4, 36
    	
 
    	
113834
    	
 
    	
October 25, 2020
    

 

Australia

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
4, 36
    	
 
    	
1387700
    	
 
    	
October 9, 2020
    

 

Greece

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
4, 36
    	
 
    	
154730
    	
 
    	
November 3, 2020
    

 

Bulgaria

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
4, 36
    	
 
    	
78921
    	
 
    	
October 15, 2020
    

 

 

Taiwan

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
4, 36
    	
 
    	
01462420
    	
 
    	
June 15, 2020
    

 

Switzerland

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
4, 36
    	
 
    	
610581
    	
 
    	
October 11, 2020
    

 

Belgium, Luxembourg, Netherlands

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
4, 36
    	
 
    	
1212026
    	
 
    	
October 18, 2020
    

 

Japan

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
36, 40
    	
 
    	
5386702
    	
 
    	
January 28, 2021
    

 

Slovakia

 

	
Trademark
    	
 
    	
Class
    	
 
    	
Trademark No.
    	
 
    	
Expiry Date
    
	

    	
 
    	
4, 36
    	
 
    	
230438
    	
 
    	
August 15, 2021Exhibit 10.38

 

		
California Association of Business Brokers

Professional Service since 1987

www.cabb.org

	 
	 	 	 
	 	
Asset Purchase Agreement

	 

	  	  
	
INTRODUCTION: This is an offer and an agreement to buy and sell business assets, dated June 20, 2014.

	  	  
	
1.

	
DEFINITIONS: The following definitions and designations shall apply regardless of number or gender:

	  	  	  
	  	
BUSINESS

	
     Huber Precision

	  	  	  
	  	
Address

	
  585 Taylor Way # 5

	  	  	  	  	  	  
	  	
BUYER

	
  Pro-Dex, Inc. A Calif. Corporation

	  	
SELLER 

	
Hans
Huber, an individual

	  	  
	  	
SIGNING: Signing of this Agreement by both Buyer and Seller.

	 	 
	  	
CLOSING: Transfer of ownership of business assets from Seller to Buyer.

	 	 
	  	
COP: Change of possession of business assets from Seller to Buyer.

	 	 
	  	
DAYS: Calendar days.

	 	 
	  	
INVENTORY: Current raw material, work in process, saleable finished goods and consumable supplies valued at lower of cost or market. Work in process and finished goods shall be valued at the actual cost of material and direct labor incurred by Seller.

	 	 
	  	
ASSETS: Assets of the Business include, but are not limited to, Inventory, equipment, trade fixtures, leasehold, leasehold improvements, contract rights, business records (with Seller retaining a reasonable right of inspection), software and software licenses, transferable governmental licenses and permits, other licenses, franchises, goodwill, covenant not to compete, trade secrets, patents, intellectual property, trade name, customer lists, marketing materials, telephone and fax numbers, web sites, URL’s, email addresses, sales order backlog and N/A. Assets being sold shall not include bank accounts, deposits, cash, accounts receivable (unless specified in paragraph 4), financial records (but Buyer shall have a right to make copies prior to Closing), or N/A.

	  	  
	
2.

	
SALE OF BUSINESS ASSETS: Seller agrees to sell to Buyer and Buyer agrees to buy from Seller the Assets for the price and on the terms and conditions set forth below.

	  	  
	
3.

	
CONSIDERATION: The Consideration shall be $ 225,000 paid or credited as follows:

	  	  	  	  	  
	  	
a. $

	
      10,000

	  	
as a deposit by Buyer upon signing this Agreement and included as part of the down payment, Broker is authorized to: (Broker is not in possession of check which will be given upon 

o hold deposit check uncashed until escrow instructions are signed, or acceptance) 

x deposit check Into escrow trust account or broker trust account upon acceptance of offer.

	 	 	 	 
	 	 	 	 
	  	  	  	  	  
	  	
b. $

	
     10,000

	  	
additional cash deposited in escrow upon signing of escrow Instructions.

	  	  	  	  	  
	  	
c. $

	
   205,000

	  	
additional cash deposited in escrow 10 days before Closing.

	  	  	  	  	  
	  	
d. $

	
      N/A

	  	
additional down payment provided from third party financing as described in paragraph 5.d.

	  	  	  	  	  
	  	
e. $

	
   225,000

	  	
Total down payment o See attached addendum for details of the down payment.

	  	  	
(a + b + c +d)

	  	  
	  	  	  	  	  
	  	
f. $

	
         N/A

	  	
assumption of specified liabilities, as detailed in attached addendum. If the actual balance differs at Closing, the o Seller note, or o down payment, shall be adjusted accordingly.

	 	 	 	 
	  	  	  	  	  
	  	
g. $

	
         N/A

	  	
approximate balance of a non-negotiable Seller note payable in equal monthly installments, including N/A % per annum interest computed from COP, so as to fully amortize over N/A months (i.e., $ N/A per month), with payments to begin one month from COP. Note shall be secured by a security agreement on the Assets, contain a right to prepay without penalty and be assumable with Seller’s consent, which shall not be unreasonably withheld. Seller note shall be subordinated to any third-party financing described in 5.d. If Buyer is a corporation or other entity, its owners shall personally guarantee this note.

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	  	  	  	  	
o See attached addendum for details of the Seller note.

	  	  	  	  	  
	  	
h. $

	
     225,000

	  	
Total

	  	  	
(e + f + g)

	  	  

 

    	Page 1 of 6

    	 

    
 

 

	
Business

	  	
   Pro-Dex, Inc.

	  	
Buyer

	  	
   Huber Precision

	  	
Date

	
6/20/2014

	  	  	  
	
4.

	
INVENTORY AND ACCOUNTS RECEIVABLE:

	  	  	  
	  	
x

	
The Consideration shall include inventory of $ 23,000 and collectable accounts receivable of $ N/A. If the actual amount of inventory and accounts receivable at COP is less than the tolal of these figures, the Consideration shall be decreased accordingly, and if the actual amount is more than these figures, then the Consideration shall be increased accordingly.

	  	  	  
	  	
o

	
At Closing, the Consideration and o cash down payment or o Seller note, shall be increased by the cost of inventory.

	  	  	  
	  	
Notwithstanding the above, the inventory shall not exceed $ 25,000 (and Buyer can reject any part of the inventory over that amount) or be less than $ 20,000. The inventory count shall be made on COP x by Buyer and Seller, or o by an independent inventory service with the fees to be divided equally between Buyer and Seller.

	  	  	  
	
5.

	
CONDITIONS: This Agreement is subject to the following conditions:

	  	  	  	  
	  	
a.

	
Buyer’s due diligence:

	  	  	
i.

	
Within 5 days of Signing, Buyer shall request in writing any and all information and appointment(s) for access to inspect the premises as may reasonably be required to evaluate the Business.

	  	  	
ii.

	
Within 5 days of Buyer’s request, Seller shall provide all requested information and access.

	  	  	
iii.

	
Within 20 days of Buyer’s receipt, Buyer shall review and approve in writing the information requested and provided, and the condition of the Assets and premises.

	  	  	  	  
	  	
b.

	
Seller’s due diligence:

	  	  	
i.

	
Within 5 days of Signing, Seller shall request in writing any and all information as may reasonably be required to evaluate Buyer’s qualifications to purchase and operate the Business.

	  	  	
ii.

	
Within 5 days of Seller’s request, Buyer shall provide all requested information.

	  	  	
iii.

	
Within 20 days of Seller’s receipt, Seller shall review and approve in writing information requested and provided.

	  	Should either party not approve in writing, as provided in 5.a.iii or 5.b.iii, as applicable, within 20 days from Signing, the other party may terminate this Agreement with written notice and failure to cure within 48 hours of such notice, and the Buyer’s total deposit will be returned less any escrow costs.
	  	  	  	  
	  	
c.

	
Lease contingency: Within 15 days from Signing or upon COP if sooner.

	  	  	
x

	
Written consent of the landlord to assignment of the existing premises lease or

	  	  	
o

	
The making of a new lease between the landlord and Buyer which is acceptable to Buyer.

	  	  	  	  
	  	
d.

	
Financing contingency: N/A

	  	  	
i.

	
Buyer submitting complete loan application(s) to N/A lenders within N/A days from Signing.

	  	  	
ii.

	
Buyer receiving a commitment letter for third party financing in the amount of $ N/A within N/A days from Signing.

	  	  	
iii.

	
Buyer receiving funding in the amount indicated in 5.d.ii within N/A days after Signing.

	  	  	
Buyer shall use its best efforts to obtain said financing and Seller shall fully and promptly comply with lender requests for information and access to the Business.

	  	  	  	  
	  	
e.

	
Licenses: Closing is contingent upon the transfer or issuance of any necessary permits and licenses.

	  	  	  
	  	
f.

	
Other contingencies: Seller’s delivery to Buyer of all third party consents and approvals: truth and accuracy of Seller representations and warranties at Closing. An assignment & assumption agreement & Management Consulting Agreement with Hans Huber in form in substance reasonably acceptable to Buyer.

	  	
If Buyer is unable to satisfy conditions 5.c, 5.d, 5.e or 5.f within the specified time limits, either party may terminate this Agreement by giving written notice to the other party or his or her Broker, and the Buyer’s deposit will be returned less any escrow costs.

	  	  	  	  
	
6.

	
ESCROW: The Consideration, closing costs and closing adjustments shall be paid through an escrow to be established with Business and Escrow Service Center, the escrow holder. Upon removal of conditions 5.a, 5.b and 5.c, Buyer and Seller agree to sign separate escrow instructions that define the duties of the parties and the escrow holder. All parties shall cooperate with the escrow holder in completing any documents and performing any acts necessary to complete the transfer of the Business Assets, including compliance with the Bulk Sale law if applicable. The Broker(s) is/are a party to the escrow as to the payment of any broker’s fees and an irrevocable assignee(s) of the sale proceeds to the extent of such fees.

 

    	Page 2 of 6

    	 

    
 

	  	  	  	  	  	  	  	  
	
Business

	
   Huber Precision

	  	
Buyer 

	
Pro-Dex, Inc.

	  	
Date 

	
6/20/2014

 

	  	  	  	  
	
7.

	
CLOSING: The estimated date for Closing is July 31, 2014. Buyer and Seller shall make their best efforts to complete Closing on or before that date. COP shall occur at Closing.

	  	  
	
8.

	
PURCHASE PRICE ALLOCATION: Before Closing, Buyer and Seller shall endeavor to allocate the purchase price among the Assets purchased and submit the allocation to escrow.

	  	  
	
9.

	
SELLER AND BUYER DISCLOSURE STATEMENTS:

	  	  	  	  
	  	
a.

	
o

	
Buyer has received and read the completed Seller’s Disclosure Statement, or

	  	  	
x

	
Seller shall provide to Buyer the completed Seller’s Disclosure Statement within 3 days from Signing.

	  	  	  	  
	  	
b.

	
o

	
Seller has received and read the completed Buyer’s Disclosure Statement, or

	  	  	
x

	
Buyer shall provide to Seller the completed Buyer’s Disclosure Statement within 3 days from Signing.

	  	  	  	  
	  	
The parties warrant the accuracy and completeness of their respective Disclosure Statements. The parties warrant that these representations are true, shall be true as of Closing and shall survive Closing.

	  	  	  
	
10.

	
SELLER REPRESENTATIONS & WARRANTIES: Except as noted in paragraph 10.j, Seller and its owners acknowledge and represent as follows:

	  	  	  
	  	
a.

	
Seller is operating the Business in compliance with all applicable laws and environmental regulations. This compliance will not be violated by this sale and the Business will pass all applicable inspections upon COP. If any inspection by a government agency is required to complete Closing, Seller shall make whatever remedies are required to satisfy said inspection, and if remedies are not complete and paid for by Closing, then sufficient monies shall be held in Escrow to pay for the completion of such remedies.

	  	  	  
	  	
b.

	
There are no claims, legal proceedings or investigations pending which would affect the Business or Assets being sold or do any facts or circumstances exist that could give rise to any such claim, legal proceedings or investigation.

	  	  	  
	  	
c.

	
The Business is in compliance with all material contracts relevant to the ownership and operation of the Business. All such contracts have been furnished to Buyer and are complete and in effect, and there are no undisclosed amendments.

	  	  	  
	  	
d.

	
All financial information and statements furnished or to be furnished to Buyer are complete, accurate, prepared in a manner consistent with prior statements and fairly present the financial condition of the Business as of the dates stated on them. Since the date of the last financial statements furnished, there have been no material adverse changes in the aggregate in the assets, liabilities, revenues, expenses or any other items shown on such statements.

	  	  	  
	  	
e.

	
All accounts receivable of the Business, if included in the sale, arose from the normal course of business, none have been previously assigned and they are fully collectable.

	  	  	  
	  	
f.

	
All Inventory of the Business is marketable and in good condition.

	  	  	  
	  	
g.

	
All Assets currently used in the Business are owned by Seller free from liens and encumbrances, and they are in good working condition, except as otherwise noted in 10.j.

	  	  	  
	  	
h.

	
(see “j.” below)

	  	  	  
	  	
i.

	
There are no liabilities of the Business for which Buyer will be liable, except as stated herein or in a further written agreement of the parties. Seller will honor and discharge when due, all excluded liabilities.

	 	 	 
	 	
j.

	
Seller’s relationship with its employees is good. There are no facts or circumstances that could give rise to a claim by any current or former employee of Seller against seller, the Business or the Assets. Seller understands that, except as may be set forth in a separate written agreement, Buyer does not intend to hire any of the employees of the business.

	  	  	  
	  	
Seller warrants that these representations are true, shall be true as of Closing and shall survive Closing. Prompt notice will be given to Buyer of any event which materially alters the accuracy of the above Seller Representations & Warranties or the Seller’s Disclosure Statement. Seller shall indemnity and hold Buyer and Broker harmless from any damage resulting from their falsity.

	  	  	  
	
11.

	
CONTINUITY: Pending Closing, Seller shall continue to operate the Business in the usual way, protect and preserve its Assets and goodwill, maintain the equipment in good working order, maintain good relations with suppliers, customers and employees and allow Buyer to make reasonable inspections.

	  	  
	
12.

	
PRORATIONS, CREDITS, TAXES and EXPENSES:

	  	  	  
	  	
a.

	
Except as otherwise noted in this Agreement, each party shall pay when due all operating costs and taxes incurred while that party is in possession and hold the other party harmless therefrom.

	  	  	  
	  	
b.

	
Seller shall pay all wages, salaries and benefits, including without limitation, vacation, sick leave and other paid time off, payable to its employees prior, and after Closing. Except as may be set forth in a separate written agreement, Buyer does not intend to hire any employees of the Business.

	  	  	  
	  	
c.

	
Prorations: Utilities, personal property taxes, other taxes, insurances, rents, and other prepaid and accrued expenses of the Business transferred to Buyer shall be prorated to COP.

	  	  	  
	  	
d.

	
Credits: Buyer shall credit Seller at Closing for lease deposits and other deposits transferred to Buyer, and Seller shall credit Buyer at Closing for customer deposits, unredeemed gift certificates and warranty claims assumed by Buyer.

 

    	Page 3 of 6

    	 

    
 

	  	  	  	  	  	  	  	  
	
Business

	
   Huber Precision

	  	
Buyer 

	
Pro-Dex, Inc.

	  	
Date 

	
6/20/2014

 

	  	  	  
	  	
e.

	
Buyer shall pay any transfer or issue fees for permits and licenses required.

	  	
f.

	
Franchise transfer fee, if applicable, shall be paid by ____________, and training fee, if applicable, by ____________.

	  	
g.

	
Each party shall pay its own accountants, attorneys and other advisors.

	  	
h.

	
Buyer shall pay at Closing any sales taxes assessed on the sale of the Business Assets.

	  	
i.

	
Seller shall obtain and pay for any smog certificates needed and Buyer shall pay DMV fees assessed on registered vehicles included in the sale.

	  	
j.

	
Buyer and Seller shall pay equally all escrow fees and costs and other transfer costs except ____________________________________ _________________________________________________________________ _______________________________________________.

	  	
k.

	
Seller shall be responsible for any warranty obligations arising from products manufactured or delivered prior to the Closing, which includes, without limitation, to the extent such warranty  

	  	
l.

	
After COP, Buyer shall remit to Seller upon receipt any refund of overpayments of worker’s compensation premiums, taxes, trade payables or the like which relate to the period prior to COP.

	  	
m.

	
Seller
shall defend and indemnify Buyer from any liability to the California Employment Development Department, the California Franchise
Tax Board or the California State Board of Equalization arising from the operation of the Business until COP. Prior to the receipt
by the escrow holder of releases of transferee liability from these agencies, the Buyer shall be protected from the possible imposition
of transferee liability by a reserve set by the taxing agencies or approved by the Buyer and retained in escrow until such releases
are obtained.

	  	  	  
	
13.

	
MATERIAL CONTRACTS: Seller shall transfer to Buyer the following contracts used in the operation of the Business, and the Buyer shall assume obligation for them:

	  	  	  	  	  
	  	
o

	
Advertising contracts, including yellow pages

	
o

	
Vehicle agreements

	  	
o

	
Alarm system agreements

	
o

	
Web site agreements

	  	
o

	
Copier agreements

	
x

	
Real Property Lease

	  	
o

	
Telephone agreements

	
x

	
All contracts lists on Exhibit , which Exhibit may be modified by Buyer

	  	
o

	
Other equipment leases

	
o

	
(by either adding or deleting contracts) up to two days prior to Closing.

	  	
o

	
Other equipment service agreements

	
o

	  
	  	
o

	
Software maintenance agreements

	
o

	  
	  	
(“k” cont’d) obligation is traceable to work in progress prior to the Closing.

	  	  	  	  	  	  
	
14.

	
BROKER: Buyer acknowledges that Broker has furnished to Buyer financial and other information obtained from Seller and other sources, the accuracy and completeness of which have not been verified by Broker, and that Buyer without limiting the representations, warranties and obligations of Seller under this Agreement, Buyer is relying solely on his own inspection of the Business, its Assets, financial statements, business records, contracts, any assumed liabilities, operational history, future profitability and the representations by the Seller, and not on any representations of the Broker. Seller acknowledges that he is relying solely on his own investigation of the Buyer’s creditworthiness and ability to complete this transaction and to successfully operate the Business, and not on any representations of the Broker. Should any such representations of Seller or Buyer be untrue, Buyer and Seller agree to look solely to each other for relief and shall release, hold harmless, indemnify and defend the Broker from any such claims. Buyer and Seller acknowledge and agree that Broker may receive a referral fee, from an institutional lender.  

	  	  
	
15.

	
AGENCY RELATIONSHIP CONFIRMATION: The following agency relationships are hereby confirmed for this transaction, and supersede any prior agency relationships:

	  	  	  	  	  	  
	  	
BUYER’S BROKER  

	
Business Team

	  	
SELLER’S BROKER   

	
Business Team

	  	
Agent for o Buyer only or x both Buyer and Seller

	  	
Agent for o Seller only or x both Buyer and Seller

	  	
Phone 

	
408-385-0402

	  	
Fax 

	
408-246-2219

	  	
Phone 

	
408-385-0515

	  	
Fax 

	
408-246-2219

	  	
Email

	
     farley@business-team.com

	  	
Email

	
hiren@business-team.com

	 	
Broker’s Agent

	
Farley Gouner DRE # 01271117

	  	
Broker’s Agent

	
Hiren Dave 01381381

 

	  	  
	
16.

	
TRAINING: Seller and N/A, individually, shall train Buyer in the operation of the Business for a period of 2 consecutive weeks from COP, for 40 hours per week, without additional cost to Buyer.

	  	  
	
17.

	
COVENANT NOT TO COMPETE: Seller and N/A, individually, shall not directly or indirectly carry on a similar business x within a radius of 100 miles of the present location of the Business, or x within five years, attempt to hire any existing employees of the Business, solicit any customers of the Business or assist anyone else except the Buyer to do so within these limits, or have any interest, directly or indirectly, in such business, except as an employee of the Buyer, for a period of five consecutive years from COP. This covenant shall become an asset of the Business and may be transferred as part of any future transfer of the Business.

 

    	Page 4 of 6

    	 

    
 

	

Business

	

  Huber Precision, Inc.

	  	

Buyer

	

  Pro-Dex, Inc.

	  	

Date

	

  6/20/2014

	
18.

	 	
MEDIATION OF DISPUTES: Except as reasonably necessary for a party to seek equitable relief from a Court, such as an injunction or other expedited relief (writ of attachment, specific performance, appointment of a receiver or similar remedies), as a condition precedent to initiation of any legal action or arbitration proceeding by either party, Buyer and Seller shall mediate any dispute or claim between them arising out of this Agreement or any resulting relationship or transaction between such parties. Either party may demand mediation by notice to the other party, which notice shall state the nature of the dispute to be resolved. From the date such notice is given, the parties shall agree upon a mediator not later than the tenth business day thereafter. If the parties cannot agree upon a mediator, the matter shall be submitted to the JAMS for appointment of a mediator and to conduct the mediation. Mediation shall occur in the county in which the Seller’s Broker’s office is located. The parties shall have 45 days from the selection of the mediator to commence the first mediation session. The parties shall share all mediation costs equally. The parties agree that any mediated settlement agreement may be converted to an arbitration award or judgment (or both) and enforced according to the governing rules of civil procedure. Should either party fail to participate timely and in good faith in the selection process for the mediator, or in the mediation process, such party will be deemed to have refused mediation, and that party shall not be entitled to attorney fees that might be otherwise available to it in any subsequent court action or arbitration.

	 	 	 
	
19.

	 	
BROKER FEES and LIQUIDATED DAMAGES: The Broker(s) identified In paragraph 15 has/have acted as the only Broker(s) for this sale and earned a broker fee. Seller agrees to pay Broker Fee(s) for services as follows:

	 	 	
o  _________ percent of the Consideration to ______________________________________________, Broker, and

	 	 	
o  _________ percent of the Consideration to ______________________________________________, Broker, or

	 	 	
x as per representation agreement between Seller and Seller’s Broker.

	 	 	
Broker Fees shall be payable (a) at Closing, or (b) if Closing is prevented by default of Seller, upon Seller’s default, with the deposit returned to Buyer. If Buyer fails to complete this purchase because of Buyer’s default, Buyer shall relinquish and Seller shall retain, as liquidated damages, the entire sum of deposits paid under 3.a and 3.b, payable first to the Broker Fees and any remaining amount released to Seller. Buyer and Seller agree that this amount is a reasonable sum given that it is impractical or extremely difficult to establish the amount of damages that would actually be suffered by Seller in the event Buyer were to default under this Agreement. In any action, proceeding or arbitration relating to the payment of such a fee, the prevailing party shall be entitled to reasonable attorney’s fees and costs.

	 	 	 
	
20.

	 	
SUMMARY: The entire agreement of the parties relating to the sale of the Business is set forth in this Agreement and can only be modified in writing signed by the parties. There are no other representations, agreements, arrangements or understandings, either oral or written, between or among the parties hereto relating to the subject matter of this Agreement that are not fully expressed herein. This Agreement shall bind and benefit the parties and their legal successors and shall supersede any prior written or oral agreements. Buyer may not assign any rights under this Agreement without prior consent of Seller, except to an entity owned and controlled by the Buyer. Any unauthorized assignment will be void and unenforceable. Any assignment shall not relive Buyer of Buyer’s obligations pursuant to this Agreement. This Agreement may be signed in counterparts and faxed and electronic signatures may be considered as originals. Captions in this Agreement are for convenience only and shall not be considered in construing its meaning. This Agreement shall be governed by the laws of the State of California. In any action, proceeding or arbitration between Buyer and Seller arising out of this Agreement, the prevailing party shall be entitled to reasonable attorney’s fees and costs, except as provided in paragraph 18. Venue shall be the county in which the Seller’s Broker’s office is located.

	 	 	 
	
21.

	 	
NOTICES: All notices or approvals required or permitted by this Agreement shall be in writing and shall be addressed to the parties, at the respective addresses set forth below. Notice shall be sufficiently given for all purposes when: (a) personally delivered to the recipient; (b) delivered by an overnight delivery service, charges prepaid or charged to the sender’s account; or (c) delivered by verifiable electronic transmission. Any party or Broker may change its address by giving written notice of the change to the other parties and Brokers in accordance with the provisions of this paragraph.

	 	 	 
	
22.

	 	
ACKNOWLEDGMENT AND PERSONAL GUARANTEE: By signing below, Buyer and Seller each acknowledge that they have carefully read and fully understand this Agreement and have received a copy of it. The undersigned warrant that their signatures are legally sufficient to bind the Buyer and Seller.

	 	 	 
	
23.

	 	
ACCEPTANCE: This offer shall expire unless it is accepted in writing by Seller and that acceptance is delivered to Buyer or Buyer’s agent by 6:00 o a.m. x p.m. on Tuesday June 24, 2014. Any later acceptance shall constitute a counteroffer. Any offer can be withdrawn or revoked before acceptance is delivered to Buyer or Buyer’s agent. The undersigned Seller accepts and agrees to sell the Business on the above terms and conditions.

 

    	Page 5 of 6

    	 

    
 

 

	

Business

	

  Huber Precision, Inc.

	  	

Buyer

	

  Pro-Dex, Inc.

	  	

Date

	

  6/20/2014

 

THE CALIFORNIA ASSOCIATION OF BUSINESS BROKERS MAKES NO REPRESENTATION AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION OF THIS FORM IN ANY SPECIFIC TRANSACTION. A BUSINESS BROKER IS NOT LICENSED OR QUALIFIED TO PROVIDE LEGAL, ACCOUNTING OR TAX ADVICE. SELLER AND BUYER ARE ADVISED TO CONSULT WITH INDEPENDENT ATTORNEYS, ACCOUNTANTS AND OTHER COMPETENT PROFESSIONALS WHEN ENTERING INTO AND COMPLETING THE TRANSACTION.

	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
x Subject to attached addendum

	  	
o Subject to attached counteroffer

	  	  	  
	
BUYER

	  	
SELLER

	  	  	  
		  	
Hans Huber, an individual dba Huber Precision

	
Print Name

	  	
Print Name

		  	
  6/20/14

	  		  	
  6/23/14

	
Signature

	  	
Date

	  	
Signature

	  	
Date

	  	  	  
	
Print Name

	  	
Print Name

	  	  	  	  	  	  	  
	
Signature

	  	
Date

	  	
Signature

	  	
Date

	  	  	  	  	  
	
Pro-Dex, Inc.

	  	  
	
Corporation (or other entity)

	  	
Corporation (or other entity)

	  	  	  	  	  	  	  	  	  	  	  
	
by:

	  	  	  	  	  	
by:

	  	  	  	  
	
Print Name and Title

	  	
Date

	  	
Print Name and Title

	  	
Date

	  	  	  	  	  	  	  
	
Address

	
  2361 McGaw Avenue

	  	
Address

	
  585 Taylor Way # 5

	  	  	  	  	  	  	  	  	  
	
City, State Zip

	
   Irvine, CA 92614

	  	
City, State Zip

	
   San Carlos, CA 94070

		
DRE# 01271117

	  	
  6/23/14

	  		  	
  6/23/14

	
Signature of Broker’s Agent (for Buyer)

	  	
Date

	  	
Signature of Broker’s Agent (for Seller)

	  	
Date

	  	  	  	  	  	  	
DRE# 01381381

	  	  

 

	
LIST OF ATTACHMENTS:

	  
	
o

	
Equipment List

	  
	
o

	
Seller’s Disclosure Statement

	  
	
o

	
Buyer’s Disclosure Statement

	  
	
o

	
Agency Disclosure

	  
	
x

	
Management Consulting Agreement

	  
	
o

	  	  
	
o

	  	  
	
o

	  	  

 

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