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ARTICLErr
PURCHASE
PlUCE
Section2.01.
Purchase
Price.
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(a)
In
consideration
of
thesaleandtransfer
of
theCompanyComonStock
by
theShareholders,subject
to
thetermsandconditions
of
this
Agreement
andon
thebasis
of
therepresentationsandwarranties
of
theShareholders
contained
herin,Buyershall
pay
considerationas
follows:
(1)
To
ElizabethCoco)
ten
thousand
(10,000)
shares
of
Buy
r's
common
stock,$.0Iparvalue
("Buyer'sCommonStock).
(ii)
ToBrunswick,
(A)
cash
in
theamount
of
Thee
Hun
ThousandDollars($300,000),
Brunswick
and
Cocoshall
delivertoBuyeClosing
irrevocableinstructionsdirectingpayment
of
thatportion
of
the
payablepursuant
to
thissubsectiontoCoco
in
fullpayment
of
Brunswick's
dated
March
30,2000
issued
to
Cocoandthe
remaining
cash
payablepursuthissubsectionshallbepaidtoBrunswick;
(B)
sixthousand(6,000)shan
Buyer's
Common
stock,whichshallbe
issued
astothreethousand(3,000)sb
to
Joseph
and
Kathleen
Magno,
joint
tenants
with
right
of
survivorship,and
tothreethousand(3,000)shares
to
Joseph
L.
Bruno;
and
(C)jf
the
Company
sall
have
grossrevenues(determined
in
accordance
with
generallyace
led
accounting
principles
consistently
applied
("GAAP
'')
from
the
Business'
w
ich
exceedFiveHundredThousand
Dollars'
($500,000)forthe
six-month
peiod
October
I,
2001
toMarch31,
2002
(the
"Measuring
Period")withearningsbe
ore
tax,
interest,
depreciation
and
amortization
("EBITDA")
of
fifteenpercent
(l
%)
ormore,theBuyershallcausetobepaid.
to
Brunswick
additionalashconsideration
in
the
amount
of
ThreeHundredThousand
Dollars'($300,000).
If
theCompany'sgross
revenuesfrom
theBusinessfortheMeasuringPerioiareless
than
Five
HundredThousandDollars
($506,000)
and/or
BBITDA
is
less
anfifteenpercent(15%),
but
its
gross
revenues'from
theBusinessduring
the
MeasuringPeriodareequaltoat
least
Four
Hundred
Thousand
D9
lars
-
( ~ 4 0 0 . 0 0 0 )
and
if
the
EBITDA
is
atleasttenpercent
'(1
0%),
the
Buyer
shalluse
to
be-pa
idT
o"
Brw
lSWick'
' a d d i t i o n a l - ( ; a s b
- c o D s i d e r a t i O Q j l
L
t b
~ m o
, u n t
of
ne
HundredFiftyThousandDollars($150,000.00).
Any
payment
required
underthis-·
section2.01(c)shallbe
m ~ d e
onorbefore
May
15
.2002.
.
I
(b)In
measuringEBITDA
for.
purposes
oflhis
Section
2.01,
thefOllotmgcostsandexpensesshallnotreducethe
Company's
earningsorbeconsidered
c o s ~
OC
.
expenses:
any
corporate
overhead
orotherchargesofthe
Buyer
allocated
toorassesedupontheCompanyotherthanthosecategories
of
expenseswhichwereincurredbtheCompany'priortotheacquisitionbutareincurred
by
the
Buyer
ona
corporate-wide
asis
subsequent
totheClosing,suchasinsurance,
benefit
planadministration,etc.,
w
ich
shallbe
chargedtothe
Company
ona
reasonable
andequitablebasis;
provided,
bow
ver,
2
05677
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