Document:

fs1a8ex10lxiv_chinabct.htm

Exhibit 10.64

 

广西柳州百草堂药业有限公司全体股东__

GENERAL BODY OF SHAREHOLDERS OF GUANGXI LIUZHOU BAICAOTANG PHARMACY CO., LTD.

(委托人Trustor)

与and

  张晓艳 Xiaoyan Zhang

(受托人Trustee)

关于Re.

委托持股合同

Entrust Shareholding Agreement

  

1

  

 

合同号 号

Contract No.:_______

本合同由以下双方于  2008年【7】月【21】日在中国【柳州】签署

This Agreement is entered into in Liuzhou city, the People’s Republic of China as of July 21, 2008, by the following two Parties:

委托人:唐恢天 江有如 李景华 刘春林 韦文德 王邦福 赵明安 张庆秋 (以下简称“甲方”)

杨晓俭 蒙源钢 蒋旗峰 何文亨 刘功纯 贾俊文 谭钰菁 叶远箭

Trustor:

Tang Huitian, Jiang Youru, Li Jinghua, Liu Chunlin, Wei Wende, Wang Bangfu, Zhao Ming’an, Zhang Qingqiu, Yang Xiaojian, Meng Yuangang, Jiang Qifeng, He Wenheng, Liu Gongchun, Jia Junwen, Tan Yujing, Ye Yuanjian.                                                            (Hereinafter “Party A”)

住所:广西柳州市城站路102号

ADDRESS: No.102, Chengzhan Road, Liuzhou City, GUANGXI

身份证件号码:452701196108240331

ID NO.: 452701196108240331

受托人:张晓艳  (以下简称“乙方”)

Trustee:Xiaoyan Zhang   (hereinafter “Party B”)

住所:香港新界上水保荣路1号威尼斯花园1座11楼E室

ADDRESS: ROOM E ,LEVEL 11,TOWER 1,VENICE GARDEN ,NO.1 BAORONG ROAD,SHANGSHUI ,NEW TERRITORIES,HONG KONG

身份证件号码:R062138(1)

ID NO.: R062138 (1)

 

  

2

  

 

甲方基于对乙方的信任,愿委托乙方以乙方自己名义代为持有甲方在 Ingenious Paragon  Global  Limited 公司(以下简称“BVI”)所持的100%的股份(股东持股比例见附表),乙方愿 意接受甲方的 委托。 为充分保障甲方的财产权益,规范乙方的代理行为,本着自愿、公平、诚实信用和效率的原则,经协商一致,就本委托持股事宜达成如下合同条款:

Based on the trust to Party B, Party A hereby entrusts Party B to hold Party A’s 100% of the shares (the shareholders listing see attached list) of Ingenious Paragon  Global  Limited (hereafter refer to as “BVI”) in Party B’s name, Party B accepts Party A’s entrustment. In order to fully protect the property rights of Party A and regulate the behaviors of Party B, therefore, after friendly consultations between Party A and Party B on the principle of voluntariness, fairness, honesty and efficiency, the Parties hereby agree on the entrustment of shares as follows:

第一条 委托事项

Article 1 Matters entrusted

	
1.1

	
甲方基于对乙方的信任,将甲方在BVI出资:港币(壹万)元委托乙方代为持有,代为持 有上述 委托投资形成的BVI 100%股份,并要求乙方按本合同规定,代为行使相关 东 权利。

	
  

	
1.1            Based on the trust to Party B, Party A entrusts Party B to hold its investment HK$10,000 in BVI on behalf of Party A, which represented by 100% shares of BVI.  Party B will exercise related shareholder’s rights on Party A’s behalf according to this agreement.

	
1.2

	
甲方委托乙方代为行使的权利包括:在BVI股东登记名册上具名,以BVI股东身份 参与BVI相应活动,代为收取股息或者红 利,并经甲方的书面特别授权出 席股东会 并行使表决权,以及行使法律与BVI章程授予股东的其他权利。

	
  

	
1.2              The rights entrusted by Party A to Party B include: Party B shall register as shareholder on the Share Register of BVI., participate in relevant activities as the shareholder of BVI., receive dividend or bonus on Party A’s behalf, participate the shareholder meeting and perform voting right with Party A’s special written authorization and perform shareholder’s other rights granted by laws and BVI.’s Articles of Association.

	
  

	
1.3            乙方接受甲方的指令处置该股票,并在处理结束后三个工作日内将所得收益划至甲方指定 帐户。

	
  

	
1.3           Party B accepts Party A’s orders to dispose the shares and the proceeds of such disposition shall be wire to Party A’s designated accounts within 3 working days.

 

  

3

  

 

第二条 股份情况说明

Article 2  Shares Introduction

 

	
2.1

	
BVI,即Ingenious Paragon  Global  Limited公司,是一家在英国维京群岛(请列入英 文地名)注册并合法成立的公司,注册资金为 5 万美元。

	
  

	
2.1            BVI, which represents Ingenious Paragon Global Limited, is a company registered and legally incorporated in British Virgin Islands (English Address), the registered capital is 50,000 USD.

	
2.2

	
甲方为BVI股东,持有BVI 100%股份。

	
  

	
2.2            Party A is the shareholder of BVI and holds 100 % of BVI shares.

第三条 委托期限

Article 3  Term of Entrustment

 

	
  

	
 3.1         本合同规定之委托期限自本合同生效之日起至本合同受托股份依甲方指令完成转让并 将所得收益划至甲方指定帐户之日或甲方书面通知乙方终止委托之日止。

	
  

	
3.1        The term of entrustment shall start from the effective date of this agreement and end when the entrusted shares are transferred per Party A’s instruction and the proceeds have been wired to Party A’s designated accounts or when Party A issues the written notice to Party B for termination.

	
  

	
3.2          在本合同规定的委托期期限内,甲方可以在事先给予乙方【五】天书面通知的情况下,随时 依据本合同无条件终止与乙方的委托代理关系。乙方在接到甲方发出的前述关于终止委托代理关系的书面通知后的【五】个工作日内,应当将受托股份的权属凭证以及所有与该受托股份有关的文件和资料全部移交给甲方,并无条件地将受托股份过户登记为甲方或甲方指定的其他受让人。

	
  

	
3.2             During the term of entrustment in this agreement, Party A can give Party B a five day prior written notification to terminate the entrustment per this Agreement without other conditions. Within 5 days of receipt of the above written notification for termination, Party B shall transfer all the stock certificates of the entrusted shares and all the documents and materials related to the entrusted shares to Party A, and unconditionally transfer the entrusted shares to Party A’s name or any third Party designated by the Party A.

  

4

  

第四条 合同双方的权利和义务

Article 4 Rights and Obligations of Two Parties

4.1    甲方的权利和义务

4.1      Rights and Obligations of Party A

	
  

	
4.1.1    甲方作为本合同规定受托股份的实际持有人,对BVI享有实际的股东 权利并有权获得相应 的股份收益;乙方仅得以自身名义代甲方持有该受托股份,而对该受托股份的股东权益不享有任何收益权或处置权(包括但不限于股东权益的转让、质押)。

	
  

	
4.1.1       As the actual owner of the entrusted shares, Party A has the right to enjoy actual shareholder’s rights of BVI and obtain relevant investing income. Party B, in the name of itself, holds the shareholder’s rights of the entrusted shares on behalf of party A, on which it shall not enjoy any beneficial or disposition rights (including but not limited to the transfer and pledge the shares).

	
  

	
4.1.2   在委托持股期限内,甲方有权在条件具备时,将相关股东权益转移到自己或自己指定的任 何第三人名下,届时涉及到的相关法律文件,乙方须无条件同意,并无条件签发。在乙方代为持股期间,因代持股份产生的相关费用及税费(包括但不限于与代持股份相关的律师费、审计费、资产评估费等)均由甲方承担;在乙方将代持股份转为以甲方或甲方指定的任何第三人持有时,所产生的变更登记费用也应由甲方承担。

	
  

	
4.1.2         During the term of entrustment, Party A has the right to transfer the related shareholder’s rights to its own name or to any third party appointed by it as it deems appropriate, and Party B shall agree and sign any the relevant legal documents unconditionally. During Party B’s  share-holding period, Party A shall assume all of relevant expenses and taxes (including but not limited to the counsel fee, audit fee and assets evaluation fee related to the entrustment); Party A shall also bear the costs for change of registration when Party B transfers the shares back to Party A or any third Party designated by Party A.

	
  

	
4.1.3   作为实际持股人,甲方负有按照BVI章程、本合同及公司法的规定履行 股东义务,并实际 承担股东责任。

	
  

	
4.1.3         As the actual holder of the share, Party A should perform shareholder’s obligations and bear the actual shareholders’ liabilities according to BVI ’s Articles of Association, this agreement and the regulations of Company Law.

 

  

5

  

 

	
  

	
4.1.4   甲方作为受托股份的实际所有人,有权依据本合同对乙方不适当的受托行为进行监督与 纠正,并有权基于本合同约定要求乙方赔偿因受托不善而给甲方造成的实际损失。

	
  

	
4.1.4          As the actual owner of the entrusted share, Party A has the right to supervise and correct the inappropriate behavior of Party B in accordance with this Agreement, and also has the right to claim on compensation for actual loss from Party B due to Party B’s inappropriate behavior.

4.2      乙方的权利和义务

4.2       Rights and Obligations of Party B

	
  

	
4.2.1   作为受托人,乙方不得利用名义股东的身份为自己谋取任何私利。

	
  

	
4.2.1         As the trustee, Party B shall not use the identity of nominal shareholders for its self-interest and benefit.

	
  

	
4.2.2   未经甲方事先书面同意,乙方不得转委托第三方持有上述受托股份及其股东权益。

	
  

	
4.2.2          Without Party A's prior written consent, Party B shall not assign the entrustment of the shareholders' rights and interests to any third party.

	
  

	
4.2.3   乙方应当依本合同规定持有受托股份。乙方在收到任何有关BVI召开 会议(包括但不限于股东 大会、董事会及监事会)的通知后,应于【三】个工作日内,转告甲方,并详细说明该会议的性质、内容、拟召开的时间、地点及拟出席的人员等资料,以便甲方派人员或授权乙方选派人员出席该会议。任何乙方选派参加该等会议的人员在未取得甲方授权前,不得对该等会议的议题和/或决议进行表决。

	
  

	
4.2.3          Party B shall hold the shares in accordance with the provisions of this agreement. After receiving any notification of meetings (including but not limited to the shareholder, board of directors and the board of supervisors) from BVI.  Party B should notice Party A in 3 working days, and give Party A a detailed description about the nature,content, time, place and attending persons of the meeting, so that Party A could send people or authorize Party B send people to attend the meeting. Any person from Party B shall not vote on issues and/or resolutions without party A’s authorization.

 

  

6

  

 

	
4.2.4

	
乙方承诺将其未来所收到的因受托股份所产生的任何全部收益(包括现金股息、红 利或 任何其他收益分配)均全部转交给甲方,除非甲方以书面方式通知乙方外,乙方不得放弃任何可以或可能从受托股份上获得的股权收入。乙方承诺将在获得该收益后【三】日内将该收益支付予甲方。如果乙方未能及时支付的,除应当继续向甲方履行支付义务外,还应当按照应付款项的 10%向甲方承担违约责任,并应按中国人民银行同期流动资金贷款利 率向甲方另行支付利息。

	
  

	
4.2.4          Party B promises to deliver total income in the future received from entrusted shares(including cash dividends, bonuses or any other distributions) to Party A. Unless Party A’s written notice to Party B, Party B shall not give up any equity income that may be obtained from the trusted shares. Party B promises to pay the income to Party A in three days after receiving the income. If Party B fails to pay them timely, besides the payment obligation shall continue to perform, Party A shall pay 10 % of such amount as breaching of agreement, and pay additional interest according to the liquidity loan interest rate of People's Bank of China.

	
  

	
4.2.5   在甲方拟向BVI之股东或股东以外的人转让受托股份时,乙方应对此提供必要的协助及 便利。

	
  

	
4.2.5          When Party A transfers entrusted shares to shareholders of BVI or other people,Party B shall provide necessary assistance and convenience.

 

  第五条 适用法律及争议解决

  Article 5 Applicable Law and Dispute Settlement

	
5.1  

	
本合同以中华人民共和国香港特别行政区法律为适用依据。

	
  

	
5.1  This agreement shall be governed by the laws of Hong Kong special administrative region of People's Republic of China.

	
5.2  

	
因履行本合同发生之争议,由甲乙双方友好协商解决,协商不成的,应当提交中华人民共和国香港特别行政区法院裁决。

	
  

	
5.2  Any dispute in performing this agreement shall be settled through friendly consultation by both Parties. If Parties cannot settle it by consultation, the dispute shall be submitted to the court of Hong Kong special administrative region of People's Republic of China for judgment.

 

  

7

  

 

第六条 其他

Article 6 Others

 

	
  

	
6.1         鉴于甲乙双方根据本合同约定形成委托持股关系,甲乙双方于2008年 7 月 21 日订立的《Earn-in Agreement》实际为乙方向甲方返还所代持甲方实际享有BVI公司股份的形式的约定,甲乙 双方均共同遵守。

	
  

	
6.1          In consideration of the entrusted shareholding relationship between Party A and Party B hereby, the Parties entered into an Earn-In Agreement on July 21, 2008 which is actually an agreement that Party B returns the BVI shares held on Party A’s behalf back to Party A. The two Parties should abide by it.

	
  

	
6.2        本合同一式 三 份,甲乙双方各执 一 份,香港律师 一 份,经甲乙双方签字即生效。

	
  

	
6.2         The agreement is executed in triplicate, each party will keep one copy, the Hong Kong lawyer keeps one copy and the agreement will become effective from the day it is signed.

	
  

	
6.3         对本合同文本任何未经甲乙双方共同书面确认的改动均无效。

	
  

	
6.3         Any alteration in the written agreement without written confirmation between two parties is invalid.

	
  

	
(文件签署页)

	
  

	
(Document signature page)

	
  

	
甲方:

	
  

	
Party A:

	
  

	
乙方:

	
  

	
Party B:

     张晓艳       2008年7月21日于广西柳州

	
  

	
     Xiaoyan Zhang, July 21, 2008 in Liuzhou, Guangxi

 

 

 

  

8

  

 

Signature page:

Party A  ( All Shareholders )

	
No

	
Shareholder Name

	
ID Number

	
Shareholder Contribution

	
Percentage to Total Investment

	
Shareholder Signatures

	
1

	
Tang Hui Tian

	
452701196108240331

	
2,383,439

	
23.8344

	  
	
2

	
Jiang You Ru

	
450202195407020311

	
680,981

	
6.8098

	  
	
3

	
Liu Chun Lin

	
450202631205031

	
680,981

	
6.8098

	  
	
4

	
Wei Wen De

	
452701610922031

	
680,981

	
6.8098

	  
	
5

	
Wang Bang Fu

	
45020219521225031X

	
680,981

	
6.8098

	  
	
6

	
Zhao Ming An

	
45020319540608001X

	
264,826

	
2.6483

	  
	
7

	
Zhang Qing Qiu

	
450204195611010017

	
87,002

	
0.8700

	  
	
8

	
Yang Xiao Jian

	
452701631102040

	
255,146

	
2.5515

	  
	
9

	
Meng Yuan Gang

	
450202196608070336

	
473,189

	
4.7319

	  
	
10

	
Jiang Qi Feng

	
450204641114033

	
163,494

	
1.6349

	  
	
11

	
He Wen Heng

	
452522195510180034

	
473,192

	
4.7319

	  
	
12

	
Liu Gong Chun

	
45270119600921031X

	
253,988

	
2.5399

	  
	
13

	
Jia Jun Wen

	
450205630103006

	
88,094

	
0.8809

	  
	
14

	
Tan Yu Jing

	
452701196309190349

	
1,089,705

	
10.8971

	  
	
15

	
Li Jing Hua

	
450404195409020378

	
1,343,999

	
13.4400

	  
	
16

	
Ye Yuan Jian

	
450106197002050831

	
400,002

	
4.0000

	  
	
TOTAL

	
10,000,000

	
100.0000

	  	  

Party B:________________

Zhang Xiao Yan       2008.7.21  Guang Xi Liu Zhou

 

 

 9f8k120410ex10i_feelgolf.htm

Exhibit 10.1

 

ASSET PURCHASE FINAL AGREEMENT-12-4-10

 

THIS ASSET PURCHASE AGREEMENT (the “Agreement”), is entered into as of this 4th day of December, 2010, by and between Pro Line ports, Inc, a Florida corporation, (hereinafter referred to as “Seller”), having its principal place of business at 107 Commerce Way, Sanford, FL 32771, and Feel Golf Company, Inc., a public company incorporated and domiciled in the State of California (hereinafter referred to as “Buyer”), having its principal place of business at 1354-T Dayton Street, Salinas, CA. 93901

WITNESSETH: 

 

WHEREAS, Seller owns tangible and intangible assets necessary for operation of the Seller’s business;

WHEREAS, Seller desires to sell and Buyer desires to buy free and clear title and interest in these assets; and

WHEREAS, the respective Boards of Directors of the Seller and Buyer deem it in the best interests of each Company to complete the transaction herein contemplated.

 

NOW, THEREFORE, in consideration of the promises and of the mutual agreements, provisions, covenants, representations and warranties herein contained, the parties hereby agree as follows:

1.          Purchase and Sale of Assets. 

 

1.01     Purchase and Sale. 

 

Subject to the terms and conditions of this Agreement, Buyer agrees to purchase from Seller and Seller agrees to sell, transfer, convey and deliver to Buyer one hundred percent (100%) of the right, title and interest in Seller’s tangible and intangible assets listed on Exhibits A, B, C, D, and E attached hereto and made a part hereof (hereinafter referred to as the “Acquired Assets”), for the consideration set forth below.

1.02     Purchase Price 

 

The Buyer agrees to purchase the Acquired Tangible and Intangible Assets, free of all liens and encumbrances, from the Seller at Closing (as defined in Section 2 below) for a non-refundable total purchase price of $225,000.00 (the “Total Purchase Price”). The total purchase price shall be delivered to Seller as a cashier’s check or wire transfer on the day of Closing.

 

  

  

  

 

1.03     Audit Expense 

 

Buyer shall cause and pay for a PCAOB audit to be conducted and completed within 71 days after the Closing Date, as required by the U.S. Securities and Exchange Commission (“SEC”).

1.04     THIRD PARTY LICENSES FOR PRODUCT 

(a)Seller is the exclusive licensee under U.S. Patent No. 5,265,926 entitled GOLF BALL RETRIEVER, which patent covers a retriever product sold by Seller and which patent is necessary for the continued operation of the business being purchased by Buyer. At closing, Seller will provide to Buyer an exclusive license to U.S. Patent No. 5,265,926 under the same terms and conditions as granted to Seller and providing that Seller shall pay the license fees directly to the patent owner for the term of the patent.

(b)I Gotcha Holdings, LLC owns additional patents and trademark rights (the “IP”) that are also used in the business. Seller will provide exclusive licenses to Buyer for the use of the IP. Upon full payment of the compensation set forth in this Agreement and the attached Consulting and Marketing Agreement, the exclusive licenses for the IP will be converted to full assignments of the IP to any entity designated by Buyer.

 

1.05     Accounts Receivable 

 

All accounts receivables earned prior to the closing date will remain the property of the Seller, and are not transferred to Buyer at closing. Seller assumes all collection risk for these receivables without recourse or offset.

1.06     No Assumption of Liabilities. 

 

In no event shall Buyer assume or be responsible for any known or unknown current or future liabilities, liens, security interests, claims, obligations or encumbrances of Seller, contingent or otherwise.

 

1.07     Closing. 

 

Closing of the transactions contemplated by this Agreement will be at the offices of Pro Line Sports, on or before December 1st, 2010, or at such other date and place as shall be mutually agreed upon in writing by Buyer and Seller (the “Closing” or “Closing Date”).

 

1.08     Management Agreement 

 

At or prior to Closing, the Buyer and I Gotcha Holdings, LLC will enter into that certain Consulting Agreement (“Consulting Agreement”) set forth on Exhibit F Attached hereto.

1.09     Inventory of Salable Product

 

Buyer acknowledges that certain salable inventory of products (finished goods and new inventory from October and November, 2010) distributed by Seller is in the possession and ownership of I Gotcha Holdings, LLC and is not part of the Assets being purchased under this Agreement. Buyer agrees to buy and Seller agrees to sell such inventory to Buyer at Seller’s landed cost in accordance with the Consulting Agreement. Buyer acknowledges that inventory held by IGH may be encumbered by Seller’s credit line and that such credit line, if any, will be paid at the same time as the inventory is purchased by Buyer.

 

 

  

  

  

 

2.         Representations and Warranties of Buyer.

 

Buyer represents and warrants to Seller that, to the best of Buyer’s knowledge, the statements contained in this Agreement are correct and complete as of the date of this Agreement and will be correct and complete as of the Closing Date, as though made then, and as though the Closing Date were substituted for the date of this Agreement throughout this Section 2.

2.01     Authority. 

 

The Buyer has all requisite power and authority to execute and deliver this Agreement and all agreements, instruments and documents to be executed and delivered by the Buyer hereunder, to consummate the transactions contemplated hereby and to perform all terms and conditions hereof to be performed by Buyer. The execution and delivery of this Agreement by Buyer and all agreements, instruments, and documents to be executed and delivered by Buyer hereunder, and the performance by the Buyer of all the terms and conditions hereto to be performed by Buyer and the consummation of the transactions contemplated hereby have been duly authorized and approved by Buyer and no other corporate proceedings of Buyer are necessary with respect thereto. All persons who have executed and delivered this Agreement, and all persons who will execute and deliver the other agreements, documents and instruments to be executed and delivered by Buyer hereunder, have been duly authorized to do so by all necessary actions on the part of Buyer. This Agreement constitutes, and each other agreement and instrument to be executed by the Buyer hereunder when executed and delivered by the Buyer will constitute, the valid and binding obligation of Buyer enforceable against Buyer in accordance with its terms.

2.02     Non-contravention.

 

Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (i) violate any statute, regulation, rule, judgment, order, decree, stipulation, injunction, charge or other restriction of any federal, state or local government, governmental agency or court to which the Buyer is subject or (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel or require any notice under any contract, lease, sublease, license, sublicense, franchise, permit, indenture, agreement or mortgage for borrowed money, instrument of indebtedness, security interest or other arrangement to which Buyer is a party or by which Buyer is bound, or to which any of Buyers assets are subject or which would result in the imposition of any security interest upon any of Buyer’s assets.

 

2.03    Disclosure.

 

The representations and warranties contained in this Section 2 do not contain any untrue statement of fact, or omit to state any fact that would make the statements and information contained in this Section 2 misleading.

 

2.04    Representation.

 

The Buyer represents and warrants that in making the decision to purchase the Acquired Assets, Buyer relied upon Buyer’s own independent investigation and the independent investigation by Buyer’s representatives, including buyer’s own professional legal, tax, and business advisors, and that the Buyer and Buyer’s representatives have been given the opportunity to examine all relevant documents and to ask questions of and to receive answers from Seller.

  

  

  

3.         Representations and Warranties of Seller.

 

Seller represents and warrants to Buyer that, to the best of Seller’s knowledge, the statements contained in this Section 3 are correct and complete as of the date of this Agreement and will be correct and complete as of the Closing Date, as though made then, and as though the Closing Date were substituted for the date of this Agreement throughout this Section 3.

3.01    Authority.

 

Seller has all requisite power and authority to execute and deliver this Agreement and all agreements, instruments and documents to be executed and delivered by Seller hereunder, to consummate the transactions contemplated hereby and to perform all terms and conditions hereof to be performed by Seller. This Agreement constitutes, and each other agreement and instrument to be executed by Seller hereunder when executed and delivered by Seller will constitute, the valid and binding obligation of Seller, enforceable against it in accordance with its terms.

 

3.02    Non-contravention.

 

Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (i) violate any statute, regulation, rule, judgment, order, decree, stipulation, injunction, charge or other restriction of any government, governmental agency or court to which Seller is subject or (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel or require any notice under any contract, lease, sublease, license, sublicense, franchise, permit, indenture, agreement or mortgage for borrowed money, instrument of indebtedness, security interest or other arrangement to which Seller is a party or by which Seller is bound or to which any of Seller’s assets are subject or result in the imposition of any security interest upon any of Seller’s assets. Seller is not required to give any notice to, make any filing with, or obtain any authorization, consent or approval of any federal, state or local government, governmental agency, bank, financial institution or other party in order for Seller and Buyer to consummate the transactions contemplated by this Agreement or if required, will provide such authorization, consent or approval at closing.

 

3.03    Title.

 

Seller has, and upon the Closing Date will have, valid and binding contractual rights to all of the Acquired Assets, free and clear of all liens, claims, mortgages, security interests, pledges, encumbrances or restrictions on transfer of any kind or nature. The Seller’s outstanding bank line of credit, and any other outstanding liens or encumbrances that prevents transfer of asset title to the Buyer at closing, shall be paid in full and closed prior to closing of this agreement.

3.04     Governmental Approvals. 

 

No consent, approval, waiver, order or authorization of, or registration, declaration or filing with, any federal, state or local governmental authority (including, without limitation, any department, bureau or agency), is required to be obtained or made in connection with the execution and delivery of this Agreement by Seller or the consummation by Seller of the transactions contemplated hereby, the failure of which to obtain would have a material adverse affect on the Acquired Assets, the Buyer or the Buyer’s ability to own, operate or exploit the Acquired Assets.

  

  

  

3.05    Disclosure.

 

The representations and warranties contained in this Section 3 do not contain any untrue statement of fact, or omit to state any fact that would make the statements and information contained in this Section 3 misleading.

 

3.06    Approvals; Consents.

 

Seller has, and on the Closing Date will have, the right, power and authority to enter into this Agreement and to sell, transfer and deliver the Acquired Assets and to perform all undertakings and obligations hereunder. No approval, authorization, consent, order or other action of, or filing with, any third party, including without limitation, any public, governmental, administrative or regulatory authority, agency or body (collectively, “consents”), is required in connection with the execution, delivery and/or performance of this Agreement by Seller or the consummation of the transactions contemplated hereby.

3.07    Liens.

 

Seller has or will have good and marketable title to the Acquired Assets and has full power and authority to sell, assign and transfer to Buyer, all of the Acquired Assets free and clear of restrictions on or conditions to transfer or assignment, and free and clear of mortgages, liens, pledges, charges, encumbrances, equities, claims, covenants, conditions, or restrictions. All of the Acquired Assets are in good operating condition and repair sufficient to continue the business as the seller represents, ordinary wear and tear excepted.

3.08 Taxes Seller has filed all federal, state, local, foreign or other tax returns which are required Taxes to be filed by any of them, or has been approved for an extension of same, and such returns are, to the best knowledge of Seller, true and correct. There is no material liability for the payment of any federal, state, local, foreign or other taxes whatsoever (including any interest or penalties) with respect to Seller, except for which non-compliance would not have a material adverse effect on the business, operations or financial condition of Seller.

4.          Conduct and Transactions prior to Closing.

4.01     Covenants of Seller. 

 

Between the date of this Agreement and the Closing Date or, if earlier termination of this Agreement:

 

(a) Seller agrees to give Buyer and Buyers agents and representatives, full access to theAcquired Assets and all of Seller’s premises and books and records relating to theAcquired Assets and Seller’s operations, and to timely furnish Buyer with suchfinancial and operating data and other information with respect to the Acquired Assets and Seller’s ownership and operations as Buyer shall from time to time request; provided, however, that any such investigation shall not affect any of the representations and warranties of Seller hereunder; and provided further, that any such investigation shall be conducted in such manner as not to interfere unreasonably with the operation of the business of Seller. In the event of termination of this Agreement, Buyer will return to Seller all documents, work papers, and other material obtained from Seller in connection with the transactions contemplated hereby and will keep confidential any information obtained pursuant to this Agreement unless such information is ascertainable from public or published information or trade sources.

 

 

  

  

  

 

 

(b)Seller will conduct its business relating to the Acquired Assets only in the ordinarycourse and will not engage in any practice, take any action or enter into anytransaction relating to the Acquired Assets outside the ordinary course of business.

5.          Conditions to Closing.

5.01     Conditions to Obligations of the Seller. 

 

The obligation of Seller to affect the Closing of the transactions contemplated by this Agreement shall be subject to the following conditions:

a) Seller shall have furnished Buyer with duly executed copies of resolutions duly adoptedby its Board of Directors authorizing all necessary and proper corporate actionapproving the execution, delivery and performance of this Agreement.

b) Except to the extent waived hereunder, (i) the representations and warranties ofSeller contained herein shall be true and correct in all material respects at theClosing Date with the same effect as though made at such time; and (ii) Seller shallhave performed all obligations and complied with all covenants required by this Agreement to be performed or complied by them prior to the Closing Date.

c) Seller shall have obtained and delivered to the Buyer all consents requiredprior to consummating the transactions contemplated by this Agreement.

d) There shall not have occurred (i) any material adverse change in the AcquiredAssets or the business, properties, results of operations or financial condition ofSeller, (ii) any loss of or damage to any of the Acquired Assets (whether or notcovered by insurance) of Seller which will materially affect or impair the ability of the Buyer to own or operate the Acquired Assets and ability to continue the business as it is represented.

 

e) All statutory requirements for the valid consummation by Seller of the transactionscontemplated by this Agreement shall have been fulfilled and all authorizations,consents and approvals of all federal, state or local governmental agencies andauthorities required to be obtained in order to permit consummation by Seller of the transactions contemplated by this Agreement and to permit the business now or previously carried on by Seller with the Acquired Assets to continue unimpaired to any material degree immediately following the Closing Date shall have been obtained. Between the date of this Agreement and the Closing Date, no governmental agency, whether federal, state or local, shall have instituted (or threatened to institute) an investigation or other proceeding which is pending at the Closing Date relating to the transactions contemplated by this Agreement and between the date of this Agreement and the Closing Date no action or proceeding shall have been instituted or, to the knowledge of Seller, shall have been threatened by any party (public or private) before a court or other governmental body to restrain or prohibit the transactions contemplated by this Agreement or to obtain damages in respect thereof.

 

f) Seller shall have complied with the delivery requirements set forth in Section 6.03 of this Agreement.

 

  

  

  

 

 

5.02     Conditions to Obligations of Buyer. 

 

The obligation of Buyer to affect the Closing of the transactions contemplated by this Agreement shall be subject to the following conditions:

a. Buyer shall have furnished Seller with certified copies of resolutions duly adoptedby its Board of Directors or Trustee, as required, authorizing all necessary andproper corporate action approving the execution, delivery and performance of thisAgreement.

 

b.Except to the extent waived hereunder, (i) the representations and warranties ofBuyer contained herein shall be true in all material respects at the Closing Date withthe same effect as though made at such time; and (ii) Buyer shall have performed allmaterial obligations and complied with all material covenants required by this Agreement to be performed or complied with by it prior to the Closing Date.

c.All statutory requirements for the valid consummation by Buyer of the transactions contemplated by this Agreement shall have been fulfilled and all authorizations, consents and approvals of all federal, state, local and foreign governmental agencies and authorities required to be obtained in order to permit consummation by Buyer of the transactions contemplated by this Agreement shall have been obtained. Between the date of this Agreement and the Closing Date, no governmental agency, whether federal, state or local, shall have instituted (or threatened to institute) in a writing directed to Seller, the Buyer or any of their subsidiaries, an investigation which is pending at the Closing Date relating to the transactions contemplated by this Agreement and between the date of this Agreement and the Closing Date no action or proceeding shall have been instituted or, to the knowledge of the Buyer, shall have been threatened by any party (public or private) before a court or other governmental body to restrain or prohibit the transactions contemplated by this Agreement or to obtain the damages in respect thereof.

6.          Actions at Closing. 

 

6.01     Transactions at the Closing. 

 

At the Closing, the following events shall occur, each event under the control of one party hereto being a condition precedent to the events under the control of the other party, and each event being deemed to have occurred simultaneously with the other events.

6.02     Deliveries by the BUYER. 

 

At Closing, Buyer will deliver to Seller:

 

(a) Payment by wire transfer or certified check for the purchase price noted in 1.02

 

(b) Certified copies of corporate resolutions and other corporate proceedings taken byBuyer to authorize the execution, delivery and performance of this Agreement,including copies of stock registration date for filings showing free trading shares.

 

6.03     Deliveries by Seller. 

 

At Closing, Seller shall deliver to Buyer:

 

  

  

  

 

 

(a) A Deed of Assignment of one hundred percent (100%) interest in and unto theunencumbered Acquired Assets in the form(s) attached as Exhibits A through Eand other instruments of transfer, assignment and conveyance as Buyer shallreasonably request to vest in Buyer good and marketable title to the Acquired Assets; and

(b)The Seller shall maintain general liability insurance (loss of assets) on the assetsand contents acquired by the Buyer until 30 days after the Closing Date. Thereafter,Buyer will assume blanket liability insurance coverage of assets

(c) Certified copies of corporate resolutions and other corporate proceedings taken bySeller to authorize the execution, delivery and performance of this Agreement.

7.          Termination. 

 

7.01     Termination of the Agreement. 

 

The parties may terminate this Agreement as provided below:

 

	
(a)   

	The Buyer and Seller may terminate this Agreement by mutual written consent atany time prior to the Closing.

 

	
(b)   

	
The Buyer may terminate this Agreement for any reason during the period of due diligence, which shall be completed no later than 30 days from the parties signing this agreement.

7.02     Effect of Termination. 

 

If either Buyer or Seller terminate this Agreement pursuant to Section 8.01(a) above, all rights and obligations of the parties hereunder shall terminate without any liability of any party to the other party.

8.          Indemnification. 

 

8.01     Indemnification. 

 

Seller shall indemnify, defend and hold Buyer and each of the officers, agents and directors and current shareholders of Buyer as of the Closing Date, harmless against and in respect of any and all claims, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries and deficiencies, including, without limitation, reasonable attorneys' fees (collectively, “Losses”), that it shall incur or suffer, which directly or indirectly arise out of, result from, or relate to any breach, or failure to perform, any of Seller’s representations, warranties, covenants, or agreements in this Agreement or in any schedule, certificate, exhibit, or other instrument furnished or to be furnished by Seller under this Agreement. The indemnification described herein shall also apply in the event of an assertion against the Buyer, or the Acquired Assets, by any person, entity, government or subdivision thereof, of any claim, demand, penalty, fine, or tax accruing prior to the Closing. The indemnification provided for in this paragraph shall survive the Closing and consummation of the transactions contemplated hereby and termination of this Agreement.

 

  

  

  

   

9.          Miscellaneous.

9.01     Governing Law. 

 

This Agreement shall be governed by and construed in accordance with the laws of the State of California, county of Monterey, without regard to conflict of laws principles. Any action brought to enforce any provision of this Agreement may be heard in either Florida or California, wherever first filed.

9.02     Notices. 

 

Any notices or other communications required or permitted hereunder shall be sufficiently given if sent by registered mail or certified mail, postage prepaid if addressed as follows:

 

 

	 
If to: BUYER:

	 
Feel Golf Company, Inc 

1354-T Dayton 

St. Salinas, CA 93901

  

Attn: Lee Miller, CEO and/or David Otterbach, COO

	 	 
	 	 
	 
If to: SELLER:

	 
Pro Line Sports, Inc 

107 Commerce Way 

Sanford, FL 32771

  

Attn: Albert J. Light, President

	 	 
	 	 

 

9.03     No Assignment. 

 

This Agreement may not be assigned by either party or by operation of law or otherwise unless expressly agreed to in advance and in writing by both parties hereto and, in the event of an attempted assignment, this Agreement shall terminate.

9.04     Entire Agreement. 

 

This Agreement (including the documents referred to herein) constitutes the entire agreement among the parties and supersedes any prior understandings, agreements or representations by or among the parties, written or oral, to the extent they related in any way to the subject matter hereof.

9.05     Confidentiality. 

Both Buyer and Seller further agree that the amounts and contributions described herein, and all terms and conditions of this Agreement, are and shall remain strictly privileged and confidential and shall not be communicated or published in any manner to any person not a party to this Agreement except (i.) as permitted by the parties’ prior written authorization; (ii.) ordered by a court of competent jurisdiction or (iii.) as required in connection with the disclosure guidelines of material events under the Securities Act of 1933, as amended. This Agreement shall not, by itself, be filed in any court of record nor shall it be entered into evidence in any action at any time without the express written consent of all parties to this Agreement or upon court order. The parties each acknowledge that Buyer will be required to file this Agreement as an exhibit to Buyer’s Current Report on Form 8-K and Annual Report on Form 10-K filed with the SEC and that these filings are exempt from the requirements of this Section. Buyer and Seller agree to use their best efforts prior to closing to agree upon the contents of a press release or other announcement to be made by Buyer and Seller, accordance with the requirements of the Securities Act of 1933, as amended.

 

  

  

  

 

9.06     Counterparts. 

 

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

9.07     Headings. 

 

The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

9.08     Amendments and Waivers. 

 

No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by Buyer and Seller. No waiver by an party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

9.09     Severability. 

 

Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.

9.10     Expenses. 

 

Except as otherwise expressly provided herein, each of the parties will bear, his or its own costs and expenses (including legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby.

9.11     Construction. 

 

The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. Any reference to any federal, state, local or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The word “including” shall mean including, without limitation. The parties intend that each representation, warranty and covenant contained herein shall have independent significance. If any party has breached any representation, warranty or covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the relative levels of specificity) which the party has not breached shall not detract from or mitigate the fact that the party is in breach of the first representation, warranty or covenant.

 

 

 

  

  

  

 

 

9.12     First Right of Refusal. 

 

Buyer is granted the first right of refusal to acquire additional claims and rights controlled by Seller before they are offered to other potential acquirers. Buyer will have sixty (60) days to respond to any first rights of refusal before being offered to any other party.

 

9.13     Current Employees of Seller-

 

Buyer has the option to retain the current staff of the Seller at its sole discretion. However, it is the Buyer’s intent to utilize the services of Fran (Admin) for a period of several months until the assets are relocated to CA or other; and Mark (Sales) who will have the option to enter into an agreement for one year with the Buyer on terms to be negotiated. Mark and the Buyer may mutually decide to continue their agreement beyond a period of 1 year.

[-Remainder of Page intentionally Left Blank-] 

  

  

  

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above.

	
SELLER:

 

 

 

	 	 	 	 
	
Pro Line Sports, Inc.

 

 

	 	 	 	 
	
/s/  Albert J. Light

	 	Date:	
12/04/2010

	 
	
Albert J, Light, President

	 	 	
 

	 
	
(Signature on File)

	 	 	
 

	 

	
BUYER:

 

 

 

	 	 	 	 
	
Feel Golf Company, Inc.

 

	 	 	 	 
	
/s/  R. Lee Miller

	 	Date:	
12/04/2010

	 
	
R. Lee MIller, Chief Executive Officer

	 	 	
 

	 
	
 

	 	 	
 

	 

	
Board of Directors Consent: (Signatures are on File)

 

 

 

	 	 	 	 
	 	 	 	
 

	 

Lee MIller, Chairman

 

David Otterback, Chief Operating Officer

 

David Worrell, Director

 

 

  

  

  

EXHIBITS 

Attached to and made a part of that certain Asset Purchase Agreement dated November 4, 2010 by and between Pro Line Sports, Inc as Seller and Feel Golf Company, Inc., as Buyer are the following exhibits: 

 

Exhibit A - Intangible Assets 

 

• o    Current Customer Records 

 

• o    Current Supplier Records

 

• o    Evaluations 

 

• o    Web Site 

 

• o    Any and all Intellectual Property, owned by Pro Line Sports, Inc

 

• o    Product Costing records 

 

• o   Accounting records 

 

• o    800 toll free phone number(s) 

 

• o   Corporate backgrounder 

 

• o    List of 2010 Product Returns under warranty 

OTHER: 

  

  

  

Exhibit B - Tangible Assets 

Included are all USA and Foreign assets stored and/or maintained off premise: 

	  o	
Unassembled and/or partial assembled

 

	  o	
Components, hand tools, fixtures, on hand or stored elsewhere

 

	  o	
Production Tooling for reproducing the Pro Line Sports product line and tooling by any other name if so exist

 

	  o	
All Assembly tooling, nests,

 

	  o	
All Misc such as : on site and off site assembly tables, storage racks, pallet jacks, fork lifts (both manual and powered)

 

	  o	
All Plastic and wooden pallets

 

	  o	
All printed and non printed collateral materials

 

	  o	
Trade Show Exhibits with Ancillary

 

	  o	
All Assets as named or unnamed required continuing the business as represented ~ Computers, Soft ware with assigned licenses if required, with all support equipment.

 

OTHER: 

  

  

  

Exhibit C -Miscellaneous Assets 

	  o	
FF&E fully depreciated and not fully depreciated

 

	  o	
All personal property not classified as real property

 

	  o	
Corporate accounting records and back up

OTHER: 

  

  

  

EXHIBIT “D”

 

 

Asset list as represented in SELLERS corporate Tax returns and is attached and all corporate owned assets on the books as of June1st, 2010 balance sheet and thereafter. 

  

  

  

EXHIBIT E- Inventory List- To be attached(Not yet provided by the Seller) 

 

    a) Outstanding Purchase Orders for Raw Materials, foreign and domestic 

    b) On site and off site finished goods, WIP, Raw materials 

    c) Inventory that is not salable needs to be identified 

    d) Any consigned inventory 

OTHER:

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