Document:

exv10w18

 

Exhibit 10.18

AGREEMENT FOR SALE AND PURCHASE OF ASSETS

THIS AGREEMENT, made and entered into this 22nd day of November, 2004 by and between BMR-Raleigh
Restaurants, LLC, hereinafter referred to as “Seller,” and North Carolina Fox & Hound, Inc., a
North Carolina corporation, hereinafter referred to as “Purchaser.”

WHEREAS, Seller desires to sell and Purchaser desires to purchase certain assets in accordance with
the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and other
valuable consideration, the parties hereto agree as follows:

	1.  	Seller shall sell, convey, transfer, assign and deliver to Purchaser, and Purchaser shall
purchase, the following assets of Seller (the Assets):

	 	A.  	All right, title and interest in and to a certain Lease, entered into between
Shannon Oaks Partnership, predecessor of R.E.C. Properties, L.L.C. (as “Landlord”) and
BMR- Raleigh Restaurants, LLC (as “Tenant”) dated July 8, 1999, and as amended on May
30, 2000, for the property located at 111 Shannon Oaks Circle, Cary, North Carolina
27513.
	 
	 	B.  	All right, title and interest in and to all improvements located on the
premises described in 1.A. above.
	 
	 	C.  	All right, title and interest in and to all furniture, fixtures and equipment,
including pole and monument signs currently located on the premises, including transfer
of any warranties.

	 	   	Purchase Price: The price for the assets listed in 1.A., B.,
and C shall be Five
Hundred Sixty-Seven Thousand Eight Hundred Twelve Dollars and 50/100 ($567,812.50)
(the “Purchase Price”) payable at closing.

	   	Notwithstanding any provision in this Agreement to the contrary, the parties acknowledge and
agree that Purchaser does not assume and shall have no liability or obligation whatsoever,
whether accrued, absolute, contingent, or otherwise, and whether due or to become due, with
respect to the following liabilities and obligations of Seller: (i) any federal, state or
local taxes of Seller; (ii) any liability arising prior the Closing Date resulting from or
claimed to have been incurred by reason of an alleged defect in any of the Assets or the
operation of the business by Seller prior to the Closing Date; (iii) any existing, pending
or threatened litigation against Seller, whether or not disclosed to Purchaser; and (iv) any
other liability not specifically assumed hereunder. Seller will be responsible for the
payment of all taxes, including local or state personal property taxes, up to and through
the Closing Date. All personal property taxes for 2004 assessed to the Assets shall be
prorated as of the Closing Date, and paid by Purchaser when due. Seller shall be
responsible for all personal property taxes related to the Assets that are due and unpaid
with respect to any year prior to 2004. If taxes for 2004 are not known as of the Closing
Date, the proration shall be based on the taxes for the year 2003.
	 
	   	In the event the Purchaser shall fail to fulfill its obligation hereunder, the Seller shall,
as its sole remedy, cancel this Agreement. Provided, however, that in the event the Seller
is unable to furnish title acceptable to Purchaser or the contingencies set forth herein are
not satisfied this Agreement shall be null and void and of no further force and effect. If
Seller fails to perform in accordance with this Agreement, Purchaser shall be entitled to
sue for specific performance and/or damages.

	3.  	Closing: The sale provided for in this Agreement shall close on or before December 13, 2004
at the offices of North Carolina Fox & Hound, Inc., or such other time and place as the
parties shall mutually agree. Purchaser shall have the right to waive any or all
contingencies and accelerate closing upon written notice to Seller. At closing:

	 	A.  	Purchaser shall pay to Seller the full amount of the Purchase Price described
in paragraph 2 above;
	 
	 	B.  	Seller shall execute and deliver to Purchaser a Bill of Sale for the leasehold
improvements, furniture, fixtures and equipment free and clear of all liens and
encumbrances;

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EXHIBIT 10.19

	 	C.  	Seller shall execute and deliver to Purchaser an Assignment and Assumption of
Lease and such other documents or instruments as may reasonably be necessary or
appropriate to perfect Purchaser’s title in the assets;
	 
	 	D.  	Seller shall deliver to Purchaser vacant possession and keys to the premises at closing;
	 
	 	E.  	Seller shall deliver to Purchaser a Certificate of Good Standing for BMR-Raleigh
Restaurants, LLC from the North Carolina Secretary of State, and appropriate written evidence of
Seller’s authority to enter into this Agreement and consummate the transactions contemplated
hereby; and
	 
	 	F.  	Prorations for personal property taxes and utilities shall be made at closing.
	 
	 	G.  	All prorations for rent and additional rent (defined in the lease as real
estate taxes, insurance and CAM charges) shall be made at closing.

	4.  Contingencies: This Agreement and closing hereunder are subject to and conditioned upon
Purchaser receiving on or before closing the following:

	 	A.  	An Amendment to the Lease on terms and conditions solely acceptable to
Purchaser;
	 
	 	B.  	An Assignment of the Lease, together with the written consent and approval of
the Landlord of the above referenced Lease and to the assignment of said Lease from
Seller to Purchaser and approving the new use of the premises, including new tradename,
approving alteration of the premises, and further warranting that Purchaser’s use is
not in violation of any current exclusive use restriction in any deeds, leases or
covenants; and estoppel certificates certifying the Lease is in full force and effect
with no existing defaults;
	 
	 	C.  	Purchaser obtaining all necessary approvals, licenses (including a full service
liquor license and late hours permit), permits for the operation of a minimum of two
(2) pool tables at the Premises, and permits for the remodeling/renovation/signage and
operation of a typical Fox and Hound Pub & Grille on the premises;
	 
	 	D.  	Purchaser obtaining any third party approvals, including Landlord’s lender;
	 
	 	E.  	Purchaser reviewing the terms and conditions contained in the existing Lease
and determining that such are acceptable to Purchaser;
	 
	 	F.  	Purchaser obtaining Subordination, Non-Disturbance and Attornment Agreements
from any existing lenders and ground lessors; and
	 
	 	G.  	Purchaser determining that no hazardous materials are in the Premises.
Further, Seller shall provide a copy of any environmental documentation in Seller’s
possession, if any.
	 
	 	Purchaser reserves the right to waive any or all contingencies and accelerate closing by
giving Seller fifteen (15) days written notice.
	 
	 	In the event all of the contingencies contained in this Section 4 have not been fulfilled or
waived by Purchaser by December 13, 2004, this Agreement shall be deemed null and void and
neither party shall have any obligation to the other.

	5.  	Seller’s Warranties: The Seller hereby warrants to Purchaser as follows:

	 	A.  	Seller warrants that as of closing of this transaction, all bills, debts and claims due by
the Seller which were incurred in the operation of the Seller’s business which would prevent
transfer of the property free and clear of liens or encumbrances will have been paid and the Seller
agrees to submit an affidavit attesting to said fact and further agrees to indemnify and hold
Purchaser harmless and provide at Seller’s expense reasonable attorney’s fees to defend the Buyer
against any claim for debts or taxes incurred by Seller in the operations;

	 	B.  	Seller is the current tenant under the above described Lease and that as of the
effective date of this Agreement, and at closing, shall not be in default under the
terms of said Lease;
	 
	 	C.  	Seller is the owner of all leasehold improvements, personal property,
furniture, fixtures and equipment located on the premises free and clear of liens and
encumbrances;

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	 	D.  	Seller warrants that all of the leasehold improvements, personal property,
furniture, fixtures and equipment located on the premises shall become the property of
the Purchaser upon Closing free and clear of liens and encumbrances;
	 
	 	E.  	Seller warrants that there are no material violations of any kind, pending or
threatened regarding the premises including health department, building code, or zoning
violations, and that the premises are in compliance with all codes and ordinances and
Seller is not aware of any contemplated eminent domain proceedings;
	 
	 	F.  	Seller is not a defendant in any litigation, pending or threatened, regarding
any of the assets being conveyed herein;
	 
	 	G.  	That at the time of closing, Seller shall assign to Purchaser all warranties
which it may have relating to assets being conveyed to Purchaser;
	 
	 	H.  	Seller has not deposited nor disposed of any hazardous materials or wastes on
the premises, and has no knowledge of any. Seller shall pay for an asbestos survey of
the Premises and shall further be responsible for any asbestos abatement required;
	 
	 	I.  	Seller shall comply with all bulk sales or similar laws, if applicable, and
indemnify and hold Purchaser harmless from any and all loss, expense, or damage
resulting from the failure to comply with any such laws; and
	 
	 	J.  	Seller warrants that the Lease is in full force and effect and the initial term
commenced on February 1, 2000 and ends on January 31, 2005. Seller has exercised its
first option to extend to extend the term of the Lease commencing on February 1, 2005
through January 31, 2010.

	     Seller shall indemnify and hold Purchaser harmless from any breach of the foregoing
representations and warranties. All warranties and representations made herein shall survive
closing.

	6.  A copy of all plans and specifications, current surveys, site plans, and environmental tests, if
any, currently in the possession or control of Seller shall be provided to Purchaser within ten
(10) days of the date of last execution of this Agreement;

	7.  	Risk of Loss: Seller assumes all risk of loss prior to the date of closing.
	 
	8.  	Notices: Any notice to be given hereunder shall be in writing, mailed, United States
certified mail, postage prepaid, or sent by receipted overnight delivery service or facsimile
transmission, addressed to Seller at 13900 Conlan Circle, Suite 245, Charlotte, NC 28277,
Attn: Dennis Thompson, and addressed to Purchaser at 9300 E. Central, Suite 100, Wichita, KS
67206 Attn: Kim Fowles. Any party, by written notice to the other party, may designate a
different address to which notices to that party are to be addressed.
	 
	9.  	Assignment: Purchaser shall have the absolute right to assign its rights under this
Agreement to any affiliated company of Purchaser.
	 
	10.  	Real Estate Brokers: The parties hereto agree that no real estate brokers are involved in
this transaction. Seller and Purchaser represent and warrant, each to the other, that neither
has contacted, consulted, or become in any way connected with any broker, finder, or other
such party in connection with this Agreement or the sale contemplated herein. Seller and
Purchaser shall each defend, indemnify, and hold harmless the other, against any and all
claims of brokers, finders, or the like and against the claims of all parties asserting the
right to a commission or similar fee through the acts of the other, the other’s partners,
agents, or affiliates in connection with this Agreement. Each party’s indemnity obligation
shall include all damages, losses, costs, liabilities, and expenses, including reasonable
attorney’s fees, which may be incurred by the other is indemnified hereunder. The provisions
of this paragraph shall survive the closing or other termination of this Agreement.
	 
	11.  	Entire Agreement: This Agreement represents the entire understanding and agreement of the
parties hereto with respect to the subject matter hereof, supersedes all prior negotiations
between the parties, and cannot be amended, supplemented, or changed orally but only by an
agreement in writing signed by the party or parties against whom enforcement is sought and
making specific reference to this Agreement. The parties hereto may at any time waive
compliance with any of the agreements or conditions contained herein. Any agreement on the
part of the party

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	   	hereto to any such extension or waiver shall be valid if set forth in writing and signed on
behalf of such party. Waiver of any provision of this Agreement or of any breach hereof
shall be a waiver of only said specific provision or breach and shall not be deemed a waiver
of any other provision or any future breach hereof. Time is of the essence of this
Agreement. Each party hereto agrees that it will, from time to time, as may reasonably be
requested by any party hereto, execute, acknowledge, obtain and deliver such documents,
bills of sale, assignments, consents, and other instruments as may be required in order to
complete and effect the transactions contemplated by this Agreement. This Agreement may not
be assigned by either party without the prior written consent of the other and shall be
binding upon and shall inure to the benefit of the parties hereto and their successors and
permitted assigns. This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be one and the same instrument.
	 
	12.  	Attorney’s Fees: If any suit or action is brought to enforce any of the terms of this
Agreement or to enforce any of the obligations set forth herein, the prevailing party in such
suit or action, and in any appeal therefrom, shall be entitled to recover reasonable
attorney’s fees and costs. This paragraph shall survive closing.
	 
	13.  	Successors: This Agreement shall bind and inure to the benefit of the parties and their
respective successors and assigns.
	 
	14.  	This Agreement shall be governed by the laws of the state in which the real estate is
located.
	 
	15.  	Each party warrants to the other that they have the proper authority to enter into this
Agreement.
	 
	16.  	This Agreement may be executed in counterpart, and any signature on a document sent by
facsimile shall be binding upon transmission by fax and the fax copy can be utilized for the
purposes of this Agreement.
	 
	17.  	This Agreement shall survive the closing of the transactions contemplated hereby.
	 
	This Agreement shall be null and void unless accepted by Seller on or before November 23, 2004.

IN WITNESS WHEREOF, the parties have executed this Agreement effective the date first set forth
above.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	SELLER:
	 	 	 
	 	 	 	 	 	 	BMR-RALEIGH RESTAURANTS, LLC
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/Dennis L. Thompson
	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Dennis L. Thompson
	 	 	 	 	 	 	Date Executed:	11/22/04
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	PURCHASER:
	NORTH CAROLINA FOX & HOUND, INC

	 	 	.	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/James K. Zielke
	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	James K. Zielke, Secretary
	 	 	 	 	 	 	Date Executed:	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 

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GUARANTY

     As an inducement to North Carolina Fox & Hound, Inc. to enter into the foregoing Agreement for
Purchase and Sale of Assets (“Agreement”), which it is unwilling to do but for this Guaranty, the
undersigned individually and, if more than one Guarantor, jointly and severally, guarantee the
payment and performance of all obligations of the Seller under the Agreement. This shall be an
unconditional, irrevocable, and continuing guaranty.

     Each of the undersigned agrees that he is willing to remain fully bound by this Guaranty
notwithstanding any action or inaction of the Seller and Purchaser in connection with the
Agreement, and that his obligation shall not be modified, waived, or released by any modification,
amendment, or departure from the terms of the Agreement, or by any forbearance, extension of time,
waiver, or release granted by Purchaser to Seller or any Guarantor or with respect to any security
held by Purchaser. The undersigned expressly waives any notice of all such matters and agree to
pay and performs the obligations of Seller without notice or demand from the Purchaser and without
any requirement that Purchaser first proceed against Seller or any other Guarantor.

     IN WITNESS WHEREOF, the undersigned has executed this Guaranty as of the date of the
Agreement.

	 	 	 
	     /s/William B. Duckes

	 	     /s/Dennis L. Thompson
	 

	 	 
	William B. Dukes

	 	Dennis L. Thompson
	 
	 	 
	     /s/Robert M. Kendall

	 	     /s/James F. Haun
	 

	 	 
	Robert M. Kendall

	 	James F. Haun
	 
	 	 
	

	 	“Guarantors”

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EXHIBIT 10.19

February 28, 2005

Total Entertainment Restaurant Corp.

9300 E. Central, Ste. 100

Wichita, KS 67206

		
	Re: 	Bookkeeping Services Agreement/March 1, 1999 to February 28, 2002
And extension March 1, 2005 to February 28, 2006

Gentlemen:

The parties to the Bookkeeping Services Agreement referenced above mutually agree to extend the
term of the agreement for one year at the expiration of the current term on February 28, 2005,
under the same terms and conditions. The extended term shall commence on March 1, 2005 and extend
through February 28, 2006.

TENT Management, Inc.

	 	 	 	 	 	 	 
	By:

	 	/s/ James K. Zielke	 	 	 	 
	

	 	 	 	 	 	 
	

	 	James K. Zielke, Secretary	 	 	 	 
	 
	 	 	 	 	 	 
	Franchise Services Company, LLC	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Dale Hoyer	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Dale Hoyer, President

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