Exhibit 10.12
ASSET PURCHASE AGREEMENT
AGREEMENT (the "Agreement") made as
of this 15 th day of May, 2008 by and among, BPA ASSOCIATES
LLC, a Massachusettes Limited Liability Company having an
address at 208 Common Street, Watertown, Massachusettes 02172
("Seller") and a SAHARA MEDIA INC., a Delaware Corporation,
having an address at 75 Franklin Street, 2 nd Floor, New York, New York 10013
("Purchaser").
WHEREAS, Seller desires to sell and
Purchaser desires to buy a database consisting of a subscription
base list of approximately 3,660,000 subscribers in connection with
its media related business (the "Business") on the terms and
conditions set forth in this Agreement;
NOW THEREFORE, in consideration of
the mutual representations, covenants and agreements hereinafter
contained, Purchaser and Seller, each intending to be legally
bound, hereby agree as follows:
1. Purchase and Sale of the
Assets. Subject to the terms and conditions contained herein,
upon execution hereof, Seller agrees to sell and transfer to
Purchaser and Purchaser agrees to purchase from Seller:
(a) all of Seller's
right, title and interest in and a database consisting of a
subscriber list of approximately 3.66 million members and or
potential subscribers (the "Database").
(b) all of Seller's
right; title and interest in the goodwill associated with the
Database (the "Goodwill");
(c) The Database and Goodwill
associated with it are hereinafter collectively referred to as the
"Assets".
2.
Purchase Price and Allocation.
In consideration for the sale,
assignment, transfer and delivery as well as the pledging of the
Assets as collateral for Purchaser's bridge financing, Purchaser
shall pay to Seller's order, in certified funds, cashies check or
money order, the aggregate amount of Eight Hundred Twenty Five
Thousand Dollars ($825,000) and One Million Four Hundred
Thousand (1,425,000) founder shares at .00001 par value, of which
350,000 shall include piggy back registration rights (the "Purchase
Price"). The Purchase Price shall be payable as follows:
$50,000 upon achieving Bridge Financing which
shall occur on or before July 1, 2008;
$775,000 and 1.425 Million founder shares, of
which 350,000 shall include piggy back registration rights, upon
closing which shall occur on August 15, 2008.
3.
Closing. The Closing shall occur at the office of
Purchaser's counsel on August 15, 2008 or at a certain date, time
and or other location mutually agreed to by the parties.
3.1 Purchaser
has inspected the Database and agrees that the Database is a valid
asset with value that Purchaser desires to acquire.
4.
Intentionally Omitted.
5.
Seller's Representations and Warranties. Seller hereby
represents and warrants to Purchaser as follows:
(a) Seller is an
entity duly organized, validly existing and in good standing under
the laws of the State of Massachusetts.
(b) Seller has full
corporate power and authority to execute, deliver and perform this
Agreement in accordance with its terms. The execution, delivery and
performance of this Agreement by Seller have been validly
authorized by corporate action on the part of Seller. This
Agreement has been duly executed and delivered by Seller and
constitutes the legal, valid and binding obligation of Seller,
enforceable against it in accordance with its terms.
(c) That neither the
execution and delivery of this Agreement nor compliance with the
terms and provisions of this Agreement will conflict with or result
in a breach of any of the terms, conditions or proAsions of any
contract or other instrument to which Seller is a party or by
which' Seller may be bound or constitutes a default
thereunder.
(d) This Agreement
constitutes the legal, valid, and binding obligation of the Seller,
enforceable against it in accordance with its terms. Seller has the
absolute and unrestricted right, power, authority, and capacity to
execute and deliver this Agreement and to perform his obligations
under this Agreement. Neither the execution nor delivery of this
Agreement will, directly or indirectly (with or without notice or
lapse of time):
(i) contravene, conflict with, or
result in a violation of (a) any provision of the organizational
documents of the Seller, or (b) any resolution adopted by the board
of directors or the stockholders of the Seller;
(ii) contravene, conflict with, or
result in a violation of, or give any person the right to challenge
this Agreement or to exercise any remedy or obtain any relief
under, any legal requirement or any order to which either the
Seller or any of the Assets may be subject.
(e) Seller is the sole and
unconditional owner of, and has good marketable title to the
Assets, and Purchaser is receiving good, marketable and legal title
to the Assets free and clear of any and all liens, security
interests or encumbrances. This Agreement, and the instruments of
transfer to be executed and delivered pursuant thereto, will
effectively vest in Purchaser such title to the Assets free and
clear of all encumbrances.
(f) To the best of
Seller's knowledge, there are no litigations, proceedings,
investigations, suits, judgments, claims or violations pending or
threatened against the Assets, or the Seller which may, in any
manner, prevent, curtail or restrict Seller from completing the
transactions contemplated by this Agreement and Seller is not aware
of any facts or circumstances which could result in any material
adverse change in the financial condition, business, operations or
prospects of the Business, the Assets or the Seller.
(g) To the best of
Seller's knowledge, Seller has complied with all laws, ordinances,
regulations, orders or other legal requirements in its ownership of
the Assets, the noncompliance of which could have a material
adverse effect on the value of the Assets.
(h) To the best of
Seller's knowledge, Seller is not aware of any material fact or
circumstance related to these Assets which on the basis of good
faith has not been disclosed in writing and might if so disclosed
be reasonably expected to affect the decision of an intending
purchaser of these Assets. The representations and warranties
herein do not knowingly contain any untrue statement of fact or
omit to state facts necessary to make such representations and
warranties, in light of the circumstances under which they have
been made, not misleading, and Seller has not knowingly withheld
knowledge of any fact or event that has occurred or is about to
occur which has had or will have an adverse effect on these
Assets.
(i) Intentionally
Omitted.
(j) Seller represents that, to the
best of its knowledge, the Business is being operated in accordance
with all laws, ordinances and rules affecting said Business, and
there are no present litigations against the Seller affecting the
operation of the Business.
(k) Seller represents that it is not
in default with respect to any order or decree of any court or
governmental agency.
(1) Seller represents and
acknowledges that Purchaser is not assuming any liability or
obligation of any nature of the Seller whether absolute, accrued,
contingent or otherwise, and whether due or to become due, and
Purchaser shall not be subject to any such liabilities or
obligations except as otherwise expressly set forth
herein.
(m) Seller has entered
into no collective bargaining agreement with any union representing
its employees in connection with the Business.
(n) Seller has not
employed any broker or finder or incurred any liability for any
brokerage fees, commissions or finders' fees in connection with the
transaction contemplated by this Agreement.
6.
Purchaser's Representations and Warranties.
Purchaser hereby represents and warrants to Seller as
follows:
(a) Purchaser is an
entity duly organized, validly existing and in good standing under
the laws of the State of Delaware and is duly qualified to conduct
business in the States of Delaware and New York.
(b) Purchaser has full
corporate power and authority to execute, deliver and perform this
Agreement in accOrdance with its terms. The execution, delivery and
performance of this Agreement by Purchaser have been validly
authorized by all corporate action on the part of Purchaser. This
Agreement has been duly executed and delivered by Purchaser and
constitutes the legal, valid and binding obligation of Purchaser,
enforceable against it in accordance with its terms.
(c) Neither the
execution nor delivery of this Agreement nor compliance with the
terms and provisions of this Agreement will conflict with or result
in a breach of any of the terms, conditions or provisions of any
contract or other instrument to which Purchaser is a party or by
which Purchaser may be bound or constitutes a default
thereunder.
(d) This Agreement
constitutes the legal, valid,