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Stock Purchase Agreement

 

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Title:

Stock Purchase Agreement

Entities:

Date:

2002

Size:

Preview shows 4KB of 21KB total

Price:

$35

ID:

#1053176

 

 

► Purchase & Sale ► Purchase ► Stock Purchase Agreements

 

 

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                            STOCK PURCHASE AGREEMENT


THIS STOCK PURCHASE AGREEMENT (the "Agreement") is made and entered into as
of February 21, 2002, by and between Logistics Management Resources, Inc.
("Buyer"), and Midwest Merger Management LLC ("Seller").

RECITALS

A. Buyer desires to purchase from Seller and Seller desires to sell to
Buyer 990 shares of the issued and outstanding shares of capital stock (the
"Shares") of Interstate University, Inc. (the "Company");

B. It is desired that the sale of the Shares by Seller to Buyer be subject
to the terms and conditions of this Agreement.

AGREEMENT

In consideration of the provisions contained in this Agreement and with
reference to the foregoing recitals, Buyer, Seller and Company agree as follows:

ARTICLE 1

PURCHASE AND SALE OF STOCK

1.1 Sale of Stock. Seller agrees to sell, and Buyer agrees to purchase,
subject to the terms and conditions set forth in this Agreement, the Shares,
which Shares collectively represent 99% of the issued and outstanding shares of
the capital stock of the Company.

1.2 Purchase Price. The purchase price for the Shares shall be $200,000
(the"Cash Consideration") and contingent consideration as described below
(collectively, the "Purchase Price"). The Cash Consideration is payable by
delivery of a mutually agreeable promissory note (the "Note") providing for
payment commencing on the anniversary date and ending on the fifth anniversary
date, which note shall be secured by a pledge of the Shares. The contingent
consideration shall be an amount equal to ten percent (10%) of the Company's net
income for the period commencing on March 1, 2002 and ending on December 31,
2006, which amounts shall be payable not later than March 30 of the year
following the year in respect of which they are due. "Net income" shall mean the
consolidated net income--as computed for federal income tax purposes without any
deduction for any federal, state or other income taxes--of the Company and any
subsidiaries that may be consolidated with Company for federal income tax
purposes, as determined by the Buyer's independent public accountants. Buyer
shall not permit Company to be merged or consolidated with any other entity, or
dissolved, without the prior written consent of Seller.


<PAGE>



If Buyer shall default with respect to any payment obligation hereunder or
be in default under the Note, Seller may rescind the sale of the Shares effected
hereby by delivering to Buyer a notice thereof, along with a cash payment of all
amounts received in respect of the Purchase Price, along with interest on such
amount at four percent (4%) per annum.

1.3 Closing. At the Closing, Seller shall surrender to Buyer all of the
outstanding certificates theretofore representing shares of Company Common Stock
in exchange for the Purchase Price payable to it at Closing as provided for
herein. The effectiveness of the Closing shall be conditioned on the delivery to
Buyer of 100 shares of Company capital stock with 100:1 voting rights and no
economic rights, which shares Buyer shall have the option to purchase upon
satisfaction of all of Buyer's payment obligations pursuant to a mutually
agreeable option agreement.

ARTICLE 2

REPRESENTATIONS AND WARRANTIES OF
THE SELLER

The Seller represents and warrants to Buyer as follows:

2.1 Organization and Standing. The Company is a corporation duly
incorporated, validly existing and in good standing under the laws of the State
of Kentucky, is qualified as a foreign corporation in good standing under the
laws all other jurisdictions where the failure to be so qualified could have a
material adverse effect on the Company. The copies of the Company's Articles of

 

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