Exhibit 10.4
AGREEMENT: CR#SM 266
AGREEMENT
AGREEMENT made
this 10 day of December by and between LIMELIGHT MEDIA GROUP, INC,
a Nevada corporation (hereinafter “SELLER”) and
AMERICAN MARKETING COMPLEX, INC. (hereinafter
“AMC”)
IT IS HEREBY
AGREED AS FOLLOWS:
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1.
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TRANSFER OF
ASSETS: PURCHASE PRICE
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1.1
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At the Closing
referred to in Section 3.1, SELLER shall sell to AMC and AMC shall
purchase, the inventory as listed on Exhibit A (hereinafter the
“GOODS”).
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1.2
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As full
consideration for the GOODS, AMC shall issue to SELLER CREDITS (
hereinafter the “CREDITS”) in the aggregate amount of
One Million Five Hundred Thousand Dollars ($1,500,000) to purchase
merchandise and services to be selected by SELLER as provided in
Section 4. (See Exhibit A for details)
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1.3
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All of the
goods shall be sold packed in the master cartons as they would be
in the normal course of Seller’s distribution. Product
packaging shall be in the retail packaging if normally used for
retail sales to consumers ( containing all normal printed
warranties and labels) except as may be disclosed by Seller prior
to Closing.
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2.
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REPRESENTATIONS AND WARRANTIES
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2.1
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AMC represents
and warrants that (i) it is a corporation duly organized, validly
existing and in good standing under the laws of New York, (ii) it
has full power and authority to enter into and perform this
AGREEMENT in accordance with its terms; (iii) the execution,
delivery and performance of this AGREEMENT by AMC have been duly
authorized by all requisite corporate action of AMC, and (iv) this
AGREEMENT is a valid and binding obligation of AMC, enforceable in
accordance with its terms.
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2.2
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SELLER
represents and warrants that (i) it is a corporation duly
organized, validly existing and in good standing under the laws of
NEVADA: (ii) it has full power and authority to enter into and
perform this AGREEMENT in accordance with its terms; (iii) the
execution, delivery and performance of this AGREEMENT by SELLER
have been duly authorized by all requisite corporate actions of
SELLER; (iv) this AGREEMENT is a valid and binding obligation of
SELLER enforceable in accordance with its terms, and (v) SELLER
has, and at the closing AMC will obtain, good and marketable title
to all of the GOODS, free and clear of any claims, liens or
encumbrances. SELLER agrees to indemnify AMC and to litigate all
claims against AMC at SELLER’S expense which concern
SELLER’S good and marketable title to all of the
GOODS.
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2.3
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SELLER
represents, warrants and agree that (i) no consent of any person or
entity, including any lender, secured or unsecured, is required in
order for SELLER to effectuate the transaction contemplated
hereunder. SELLER agrees that AMC will no suffer any financial harm
from SELLER’S failure to obtain any consent and further
agrees to indemnify AMC, as well as litigate on behalf of AMC at
SELLER’S expense to insure that AMC will not suffer any harm
from the failure to obtain any consent. AMC shall have the right to
sell the GOODS using the SELLER’S name or any other trade
name attributed to the GOODS by SELLER in the same manner of any
other trade name attributed to the GOODS by the SELLER will be done
in connection with the registration symbol, LMMG, and will be used
in a manner to protect the ownership rights to such name or trade
name. AMC expressly disclaims any right, title or interest in any
name, trade name or trademark owned by SELLER.
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Page 1 of 8 initial
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3.1
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The CLOSING
(the “CLOSING”) under the AGREEMENT shall be held in
NEW YORK/ TENNESSEE on Dec 10, 2004 or at such other place as the
parties agree.
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3.2
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At the CLOSING,
SELLER shall deliver to AMC a Bill of Sale conveying the GOODS in
the form of Exhibit B, and AMC shall issue the credits to
SELLER’S account with AMC.
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4.
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AVAILABILITY
OF CREDITS
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4.1
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Not less
frequently then every ninety (90) days, AMC shall deliver to SELLER
written material describing the merchandise and services that can
be purchased by SELLER for credits, or, for a combination of
credits and cash. These descriptions may or may not be for the
merchandise and services previously submitted to SELLER by AMC.
Such merchandise and services shall include any merchandise and
services which AMC makes available to any third party. In addition,
if SELLER desires to purchase for credits, or, a combination of
cash and credits, merchandise or services through AMC other than
those described in the material, SELLER shall notify AMC and AMC
shall then determine within a reasonable period of time whether the
merchandise and services requested can be purchased for credits (or
for a combination determined by AMC, of cash and credits) and shall
notify SELLER.
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4.2
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AMC shall
exercise its best efforts, and SELLER agrees to accept AMC’s
best efforts, to offer merchandise and services which shall be
competitive and prices quoted to SELLER in proposed arm’s
length transactions with unrelated third parties for the same
merchandise and services. Such merchandise and services shall be of
comparable quality to those offered in the marketplace. Every
request for AMC to provide merchandise and services shall be
accompanied by written prices quoted to SELLER for similar
merchandise and service at arm’s length transactions with
unrelated third parties.
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4.3
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AMC agrees to
use its best efforts, and SELLER agrees to accept AMC’S best
efforts, to obtain merchandise or services which SELLER can
purchase for credits, or, a combination of cash and credits. If AMC
is able to obtain merchandise or services to submit to SELLER for
its consideration, or, is able to obtain merchandise or services
which SELLER may request, AMC will then advise SELLER of the cost
at which AMC can obtain such merchandise or services, and if such
cost is lower than SELLER would normally pay, AMC will acquire the
merchandise or services for SELLER (with SELLER approval), upon
prepayment by SELLER to AMC of AMC’S cost. However, AMC makes
no representation as to the obtainability of any merchandise or
services. The difference between AMC’S cost and the cost at
which the merchandise or services are made available to SELLER
shall be charged against SELLER’s credits.
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4.4
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AMC shall
deliver to SELLER quarterly statements indicating (i) the amount of
each credit used by SELLER to purchase merchandise and services
that quarter, and (ii) the aggregate
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