gi joe's asset purchase agreement

8/9/2019 GI Joe's Asset Purchase Agreement

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EXHIBIT 3

Case 3:10-cv-00639-ST Document 7-3 Filed 06/07/10 Page 1 of 13 Page ID#: 111


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ASSET PURClIASEAGREEMENTTBIS AGltEMENT has been entered into as of the 24th day of July, 2009.

BETWlJ:EN:G.I. JOE'S, INC. and G~ JOE'S BOLDING CORP., oo%porations subsistingunder the laws of the Sta~ of Delaware, U.S.A.(collectively the "Sellers")- -AND-t1F~ HOLDINGS, INC., a corporation subsisting under the laws of the State ofUtah. U.S.A. .(the "Pun:baser")

WHEREAS pUl'SUllUt to an.off$!to purchase made by the Purchaser to the Sellers and approvedby the U.ni~ Stales Bankruptcy Court for the S~e of Dol aware as of July 14. 2009. the Sellershave agreed to sell and the Purchaser has agreed to purchase certain assets of the Sel lers , uponthe tenns and subject to the conditions set out herein;NOW TH.Jl)REFORE, in consideration of the mutual covenants and agreements containedherein, the partles hereby agree with each other as follows:

ARTICLE 1INTERPRETATION. . 1.1 Definitions.

Unless th e con tex t o1herwise requ ires, the following terms and expressions sball have themeanings set forth below wherever. used in tbis Agreement:IIAgreement" means this Asset Purchase Agreement, toge ther with all Schedu le s attachedhereto, as the same may be mod!fled in accordance with the provisions herein contained;"Assets" means aU of the trademarks, trade names, dornain names and service marks(including logos) and related IntellectUli1 Property rights therein. and all goodwillassocia ted therewith . as more panic tt lw;ly Set forth in Schedule "A" hereto;"Closing Date" means July 29, 2009 ot such other date as may be agreed to in writingbetween the Sel lers and the Purohaset ;IIC iosing Time" means 11;00 a.m. CST on the Closing Date , or suoh other time .asmaybe agreed to in writ ing between the Sellers and the Purchaser; -"Closing" means the sale, transfer and/or assignment of the Assets by the Sellers to thePurchaser and the delivery by the Purchaser TOthe sellers oflbat portion of the Fu:rohase

PAC. !l2S684v,3 01/2JJ).00'ii 5:07 PIll

Ramsden Decl. Exhibit 3 Page 1Ramsden Decl. Exhibit 3 Page 1



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. .Price due' on the Closing.Dam and the oompletion of a ll matters inoldenm.i thereto as. heeeln provided; . .lfCOurt Ordel'" Ine&mi the oIder ofthe'United States :BaJlkruptcy Court for the Sta te o fDelaware referred to in the first preambular pamgmph above;"l>eplIsit A ulou nt" ha s th e m eanin g IP VeJ1 o such termin Section 4.1(11);"Intellectual Property!) means in'respect of the A sse~ all proprietaryrlghu an.ywhere inthe w01'ld provided '\tt1der ttadllmark, trade secret or Other statutoiY or: common law.,nnclples ~plicable to llitelleotual property. and all applieatl.ons and reglstrations in1'$peCt thereof; '..,"Lot A Assets" has the meaclng given to it ~ Sobednle "A";"Lot:O sets" has the meaning given to it in Schedule "A";nPersOAlf means any indiviquaf, COl}roration, fum, pattnershiP, sole proptietoxship,syndicate. joint ventare, trustee, tl'Ust, govemmen1al. department or agenoy and anyuninclorporared orgrmizs1ion or associations;"P'm'chlWt Price" m e an s th e p ur ch as e p ri qe for th e A ss ots a s s et f o.r tb in Section 2.2r"Transaction" IneMS the sale oltho AsseTStothe 1?urchaser pursuant to this Agreement,

1.Z lleadings. . .. The d i'V is l. on oftbis A .g re el ne n1 in to A rt ic le s, Sec tio ns a nd p ar ag ra ph s a nd the in se rt io n o fheadings' is for .convenience of reference only and t iball not 4lft"oot the construction -orintetpretation heJ:eof.' Unle$S otherwise stated, aU tefe.cenccs berein to Articles orSections are to those ofthill Agreement.

1.3 Schedules.The following Scliedule forms part of this Agreement:

~.4 Plurality and Gender,Wotd3 used herein impoI1ing the singular number only:shal l include the plural and 'ViceVlll'SR and words impo. t' ting gender shall include all genders.

1.5" Goveb liDgLaw ; Attormnetltnu s Agreement shal l be govemeO.by, and conshued and enforced ill acccrdenee with,arid the 1'ightsofthe partiell shall be govemed by. tho laws ofth~ Slaw of Dell'/-warc andthe fed~ laws of1he t1nlted States of America appUca131e therein. The part ies a~11ltothe t>elaware courts for any -d isputoo a r is ing hereunder.




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1.6 Cnnency.All amounts stated herein are slated hi the currency of the United' Slates of America,unless otherwise specifically required.

ARTICLE 2SALE AND PURCHASE2.1 Sale and :Purchase of Assets.

Subject to the terms and condittons hereo~ as of the C losing Time the Sellers shall sell,assign and transfer to the Puxcimserandthe Purcbaser shall purchase and take assignmentfrom the Sellers of a ll titles, tlghrs. equitiesand interest of the Sellers (includiug,. withoutlimitation all Intellec'tl.lal Property rights) in and to 1heAssets, for in consideration of thoPurchase Price.z.Z Purchase Prloo.

The Purchase Price is equal to the flrirm.arket 'Value of the Assets, as at the date here~. which value the parties has detexmined to be $215,000. The Purchase Price shall bepayable pursuant to Section 4.1 below.2.3 Taxes

Any and a ll taxes and duties whatsoever arising with respect to the sale and purchase ofthe Assets herein shall be borne by the Purchaser, save and except taxes arising on theSeUers' net Income or gain. ' .AltT ICLE 3 .CLOSING

3.1 Time and Plaee of Closing.The Closing s l:1alItake p laoe a t the Closing Time at the. offices o f Potter, Anderson &Corroon LLP. Wilmingto~ Delaware or as otherWise agreed to by the Sellers and thePurchaaer in wrlting.

3.2 Sellers' De1ivenes at Closing.At the Closing, the Sel le ts shall denver to the Purohaser the following documents:(a) bil ls of sale , 't ransfers , assignments, conveyances and such other documents withrespect to the Assets as may reasonab ly be required by the Purchaser to effect thetransactions contemplated herein. including, ~out litnitation. all third partyconsents required to effect the sale and pnrchase herein;

Ramsden Decl, Exhibit 3 Page 3Ramsden Decl. Exhibit 3 Page 3



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(b) certlfioates signed by..a senior officer of eaoh of the .SeUers~ng thilt therepresentations and warranties made by the Sellers in this Agreement are trse andcotrect: as oithe ClosingTime:(e) a copy 'of the Com Orderas enteredby the nppncable court and a copy of 831Yapproval ot(ler iasued by the applicable coUrtafter execution hei:cof;(d) tcasonabl~ evidence of1h~tmnination of any conUacts. ammgemell11s, licences orother bindingcommitmentll ~e betweenthe Sellers and any third partiesaffecting O~ relating to 1heAssets Ondtor thls ~OD; ,(el such


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terminate and no party shall be farth.er liable beteunder. In the event the CloSingdoes not oecur as a result of the SeUers:fulling to fulfill their obligations hmlri orfor any other reason (other than a breach hereof by the Purchaser), then theDeposi t Amount an ti. ~cOtUed ln terest shall be repaid forthwUh to the Purchaser,this Agreement sball 1ennl:oateIlI1d no party shall be iimher liable hereunder; and

(b) the l11rohase Prlce, less the Deposit Am.O\J11t, shall be paid and satisfied by.payment at the Closing time in all by bank draft or solioitGr's trust chequepayable to Potter~ Anderson & Corrool1'LLP. in trus t fo r the Vendors.

. ARTICLESllEPRF.J8EN'l'ATIONS. WAgR .ANrm s MfD 'COVENANTS5.1 , Rep re sentation s, Wro:ranties and Covenants of the SeJ]et'8.

The Sellers t 'eprc.sent . warrant and covenant as of the Closing Date to the Purchaser andaoknowledge and conflrm that tnt? Purohaser ;is r~lying upon such representations,warran tie s and rvenants in, connection wi~ the p\lrQhase oftbe Asset~:(a) the sale and mmsfel' fot-'the Assets to the Purehsser on the- Closing Date shal l befte6 and clear of any and all encumbrances, seourl.ty interests" oharges., l iens)

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adverse claims, restric tive covenants. options Of p rivi leg es Or any ag re ement to. otelUe any, of the foregoing; ,1':s:O :h:> *"" ~~\t!.."'!l.' k."olAl~~..>. (b) }:.neither the exeeu tion and delivery of th ls Agreement. nor the completion of theT.ta11saotion shall: .(I) . violate, nor be in Ol)nflict'With, any provlslon (I f any agreement orinstrument to whioh the Sellers are partiesOJ: by whioh t1iey are bound, orany of the tenns of the to'nStatipg'documents of the Vendors. or any order,decree, statute. ,by-law, regulation, covenan1, or restrictioD, applicable to,

lhe Sellers or ~nyof the Ass et S; O J. ',(li) give. any person any rlght to tenninate,' cancel, or remove any of the'Assets;

(0) this Ag:reement bas been duly eXCQtrtedend deHveredby the Seller$ and all otherdoouments (\louted end delivered by tbe Sellers pursuant hereto shall have beenduly execute(! and (ieliveredby the Sellers. This A,greement. does and suchdeeuments will const imte legal ; \'alid and binding


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-1"0 ~ 1>e~-t"o~ x\\C.CS'l''''Ol)oJt~;$'C)(h) the Assets, where registeNli pursuant to Sch~ul6 "N hezeto, a re duly registeredin the names of the SelletS and any applications for registratiofi. of the Assets arein their names; ,

(f)

the Sellers bave not commeneed any c:laim:I1proeeedings, actions. lawsuits orinquiries challenging the intelleetaal property r ights of any othel! Person insofar asthe same relate to the &sets and, to the best o f the Sellers' Rnowledgo, no o ilierPeJ.'St)n is 'USing any intellectual property whicli 'conflict with .infrjnge upon orviolate 'the rlglm; of1he Vendors in and to the Assets and the Inte1leetual Propertyrights therein;

'P:rD . .ex~pt pmsuant to the teI1l1li hereof, no'l?erson bas any written or oral agreement,option. understanding 0,... comtnitmon t, o r any right or privilege capable ofbecoming an agreement. for tbeputOhase of all or Hny of the Assets; ,ere are no claims, proceedings, actlotlS. lawsuits, governmental oradntinistrative p 1'Q ce ed in gs O f inquir.ies,existing or, to. the best of the Sellers'1a1.owl~d8e. lleq.ding or threatened again$t it pr wi1h respect to the Assets thatwould have an adverse effect on the Assets' Or the Transaction; and.'f'J't) '. '(1) are nb Clontnlcts or licenses In effect tbat perndn to the Assets, all of Whichcontracts and lloen


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5:3 ConditionIt is understood and agreed tl"tat the~sale and purahnse oithe Assets shall be meAe on'an"as iSfi basi$ \Uld the Sellers .make no' representations or warranties whatsoever to :the

(,Purobaser as to the oondition, meIClmmabUity, quality oditness, for purpose of the Ass~oratty of them

~ ART1CLE(i\. ~~ INDEMlSl'fIES6.l ers'lrtdemmtyo

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exp that the Purchasex may suffer, sustain, payor incut;(b) indemnify d$fWe hannless the Purohllser and i ts affilla and their respectivedirectors, C) rs, employees, semmts and agen1s :fro and a~st any and allclaims, lililiUi aotions, proceedings, demllnds. sses, costs, &mages andexpen5W wh .that.mJJYe broughtagainst 0 ffered or incurred;as '8 result of any matter arising'out o~connected with a material b r or inaccuracy 0 Y l'pJ:eSentation or warranty or amaterial breach or non-pcrfi:>nnane fan}! cove t o f the Sellars in this Agreement andaU claims. demands. fines, penalti oostS d expenses of' any nature whBjsoever(mcluding. without limitation, ttlXable I ohatges and disbursemen1s on and asbetween a solicitor and his own client basi on t8Sl*t of the foregOing.

6.2 pll1'Challe~$ ,Indemnity. / .The Purchaser sha ll :(8) be 691ely liable _._.1 "sponsible for any and losses, costs, damages andexpenses tbat ~)7t:~ysuffer,suStain. pay or eur~ and .(b) jndemnify~save harmless the Sellers and their resp . live direotors, officet'S,employees, ervants and uge:nfS-~ and against any an claims, lia.blliti~notions~ aeedmgs , demands, losses, ~osts,(l1ltl111ges llI1a e eases whatsoeverwhioh ~y be brought a.gainst or suffered or incurred;- ,as a teSUJ~f any' matter or thing arising cu t of, resulting from. llttri table to orCOMootct1 wlth a rnatetia1 'breach or inaCCllt'8O)' of auy f$pX'esentation or ty, or ama~eft..a\b reach or 1l01l.petfonn~"Oe of any oovenant, of the l'\itcl1aser in this A ementBUY-all claimS. demands, 'fine$, penalties costs and expenses of any nature wlla ~er

)mCIUding. wlthout,tirni1ation. tIOOlble legal fees. charges and disburSements OIl anetween a solioitor and 'his own client basis) in ~ of1he foregoing.




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~ -------.. Nothing contained in thi~ il31po~n any party forconsequential, indirect or punitive


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,ARTICLESMlSCELL6NEOUS

8.1 Enurement.'this Agreement shan' be bindingupon and enure to the benefit of the parties hereto andtheir tespective, successors and pm~ assigns, Thi&Agreement may m~tbe ~signedby any par ty hereto , by operat ion of law Ci' otherwise, witho-nt the ptiorwrlUen consent ofthe other parties hCl 'e to and any requfred eo'llrt order.

8.2 EntireAgreementThis Agreement, including the SChedule,. togethe r with the agreemen1s and otherdocuments to be exeouted 'lUld delivo...ell as referred to herein. constitute the entireagreement among the paniea with 1(lspect' to the transactionS CO!llemplm:ed hereby andsupersedes cit othtlr prior agreements, undertakings. negotiations and discussiom.whether oral or ~ of 1b~ pat1ies ,w ith respect to tile transactions coDtemp{atedhefeby (lllcluding without limi1atlon any ofi'er.l to pnrchase) and there are no wammties.representations. covenants or other agreements among the paI tis . ex.ept lIS specificallyset fol1b h~ein.

8.3 SevembUlty.In case ~y provision m. tbis A~eemep.t shall. be prohibited; invalid" illegal orunenfuroeable m any jurisdiction. such provision shall bp ineffective qnIy to theexWnt ofsuch lllollibition, invalidity, filegality Ot ~roeability in such jurisdiotion withoutaff'ectinif or impairing the validity, legality or e!lorea'bllity of the remaining provisionshereof; and any such proliibi tion, inval id ity, il lega lity or uuenfotecabll ity shall not -affec tor impair sueh p rov ision in any other jurisdiotion.

8.4 lJ'nrtherAssurances.Each of the parties hereto, l''t the reQuest and expense of the other pllrties hereto shiil ldeliver sltCh further or additional (IoOllOlentB and instruments as may reasonably beconsidered necesslIl)' or desirable to pt'Operly reflect and carry out tile tmelntent andmeaning of this Agreement. . 8.5 Sui'vl'va.l.

The representations, wattant tes . covenants and agreements made by the parties each tothe other in or pursuant to this ~ent $ball survive the ClosinlJi of the transactionsherein piovided. for. .8.6 Time o!Essence.

Time shall be of tho essence ot'1bis Agreement.8.7 WaiteI'.

PAC.92.51i84v.3 07/2212OO!1 S:07.pm




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FaiJuxe by any party bereto to insist in anyone or mOte Instances upon. the ~ctpt.fQrmance of auy one of'the llOvenlmtSllOnbiined herein sbnll. not be cODlll.tued as awaiver or relinquIsbtnent l)f such covenant No waiver byany party hereto ,of any suchcovenant lIlulll be deemed tQ hllve been made unless expressed in writing and signed bythe waiving party. .

8.8 Amendment..This Agreement may not be amended. modified or terminated ell:ceptby an mstroxnenf inwriting signed by aU of the parties h eret o .

8.9' . Counblrparts aud Jl'aeshnile.ThIs 'AgJ:eement may b e e xe cu te d i n c ou nt er pa rts . ej1Ch o f w hi ah when 110 e xe cu te d s ha llbe deemed to be an original and 11'11 oounterpatts together shall 90nst ltute one and '!hesame instn'llnent. A signed counterpart provided by way of fllO$itnile ttansmission shaUbe 8S binding upon the parties !IS an originally signed counterpart.




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~11-IN WITNESS WHEREOF the parties hereto have ClUl9ed'thi$ Agreement to be. el{ecuted;anddel iv~d e :ff ea tive a s o f'fh e date fust written above. '

'G.I. JOESllNC.

Per: ~tf?J1i.~Ch/ .~ 'Ke- ~ff~i).rl 'q ' O~UJ jTitle:G.I;JOE'S HOLDING CORP.

Per: a~9-C!1/.~CJtlf:f..f. 7Ce~~"1 O~~Title:

Per:UF~

OWJ5"t-.


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SCHEDULE "AnASSETS

NextSorla.l, Rtal"t4t/on ResfsMtlCI1 R9n~1LatA-Go I.,TGC's e1.otA"}. N\IlIlbe,r. NIlRl~r Dlllb ate

www,gjJ0e;9.uom wdlslte ~'18/J9~6 3/l9f.!014OJ.'loe's{'n::lll) Ulldemark 13153358 1126617 11/611!n9 111S12009Ol.loo'& tbo SpIll1:I el:. AIltO StotO lI1IJemark 1~89m 2962544 61141200' 6113f.2/HIO.~,oe'; SPQfW, OUtdoor &. Mot'll lflv.lomark 'le339li070 '32227311, 271051'2007

'l.!>tB -Joa'. Sportf FlAt B,

WWWJOessporlMOlll web$ltc 12I2IJI'JOO6 ' 111412012l ods Sport s Gea r (Logo) lrlldelll!lX 78358960 ~629S4 6Il4~O(lS 6/13/2011Joe's Ouldoors (Logo) tnldcrnatl: 783S90SS 2%2356 6I1412QO$ 611312011100'8 On Declc SerillS (1Ago)' ~emalk ?&3S90:!1 2962355 CiJJ4I.200:; 6f13('!'OIl1$ SPQftSOut\loQl"~ Mote (Logo) tradansl'k 1 iiY/ I791 . !44~no 6I1C)!2008 61912014l~Il'S Spcntll OUldoor &MOTQ(relit) tntdc:mark mml4 3+16102 611012008' 51912014Joo'sSJ>

gi joe's asset purchase agreement

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