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Standard
Buyer's Confidentiality Agreement and Warranty Agreement
The undersigned
(the "Buyer") understands and acknowledges that Del Lingco International,
Inc., (the "Broker") has a valid agreement with the owner(s) (the
'"Seller") of the business and/or property described below, whether
stock or assets, (the "Business") whereby Broker has been retained,
for an agreed upon commission, to represent Seller in the sale of
the Business. Buyer understands and acknowledges that Broker
is acting as the agent of the Seller and that Broker's primary duty
is to represent the interests of the Seller. The Businesses
that are the subject of this Standard Buyer's Confidentiality and
Warranty Agreement (the "Agreement") are described below.
In order to
induce Broker or Seller to furnish information regarding the Business
(the "Information") to Buyer for the Buyer's evaluation and possible
purchase of said Business and in consideration for Broker's or Seller's
furnishing such Information, Buyer understands, agrees, represents
and warrants to Broker and Seller as follows:
1. The word
"Buyer," as used herein, shall mean and include the undersigned
individually, as a member of a partnership, as an employee, stockholder,
officer or director of a corporation, as an agent, adviser or consultant
for or to any business entity and in any other capacity whatsoever.
2. The Information
is of a proprietary and confidential nature, the disclosure of which
to any other party will result in damage to the Seller and/or Business,
and Buyer further represents and warrants as follows:
(A) The Information
furnished by Broker or Seller has not been publicly disclosed,
has not been made available to Buyer by any party or source other
than Broker or Seller and is being furnished only upon the terms
and conditions contained in this Agreement.
(B) Buyer
will not disclose the Information, in whole or in part, to any
party other than persons within Buyer's organization, including
independent advisers/consultants, who have a need to know such
Information for purposes of evaluating or structuring the possible
purchase of the Business. Buyer accepts full responsibility for
full compliance with all provisions of this Agreement by such
other persons.
(C) Buyer
will not disclose, except to the extent required by law, to any
parties other than the persons described in Paragraph 2 (B) above
that the Business is available for purchase or that evaluations,
discussions or negotiations are taking place concerning a possible
purchase.
(D) Buyer
will not utilize, now or at any time in the future, any trade
secret(s), as that term may be defined under statutory or common
law, that is/are included in the furnished Information for any
purpose other than evaluating the possible purchase of the Business,
including, without limitation, not utilizing same in the conduct
of Buyer's or any other party's present or future business(es).
(E) In addition
to the prohibition against utilizing trade secret(s), Buyer will
not utilize any other furnished Information for any purpose other
than evaluating the possible purchase of the Business, specifically
including, without limitation, not utilizing same to enter into
and/or engage in competition with the Business or assisting or
promoting other party(s) in so doing. The foregoing prohibition
against utilizing said Information in competing with the Business
shall remain in effect for three (3) years from the date hereof
and shall be applicable to competition within the presently existing
marketing area of the Business. Buyer agrees that Seller is a
third-party beneficiary coupled with an interest with respect
to this Agreement.
(F) If Buyer
decides not to pursue the possible purchase of the Business, Buyer
will promptly return to Broker all Information previously furnished
by Broker or Seller, including any and all reproductions of same,
and, further, shall destroy any and all analyses, compilations
or other material that incorporates any part of said Information.
3. Buyer will
not contact the Seller or Seller's employees, customers, supplier
or agents, other than Broker, for any reason whatsoever, without
the prior consent of Broker. All contacts with the Seller or such
other parties will be made through or by Broker unless otherwise
agreed to by Broker, in writing.
4. The Information
furnished by Broker has been prepared by or is based upon representations
of the Seller and Broker has made no independent investigation or
verification of said Information. Buyer hereby expressly releases
and discharges Broker from any and all responsibility and/or liability
in connection with accuracy, completeness or any other aspects of
the Information and accepts sole and final responsibility for the
evaluation of the Information and all other factors relating to
the Business.
5. The Information
is subject to change or withdrawal without notice and the Business
is being offered for sale subject to prior sale or the withdrawal
of said offering without notice.
6. Buyer will
indemnify and hold harmless the Broker and Seller from any and all
claims or actions arising from Buyer's acts or failures to act in
pursuing the possible purchase of the Business including, without
limitation, reasonable attorney's fees and other expenses incurred
by Broker.
7. Buyer will
not, for a period of three (3) years from date hereof, enter into
any agreement for the purchase of the Business, in whole or in part,
or assist or promote any other party in so doing, unless such agreement
to purchase provides for commission to be paid Broker, with the
commission being defined as the amount agreed upon by Broker and
Seller in the "Listing Agreement" or similar agreement between those
parties. The phrase "agreement for the purchase of the Business"
as used herein shall mean and include any agreement, specifically
including, but not limited to, offers to purchase, letters of intent,
and similar agreements, that provides for the transfer, conveyance,
possession of, or disposition of the Business, its capital stock,
assets, of any portion thereof, and the commission amount to be
paid Broker shall be the greater of either the minimum commission
or the commission based upon the sale price (or purchase price),
as these amounts are defined in the aforesaid agreement between
Broker and Seller. Further "sale price (or purchase price)" as used
herein shall mean and include the total amount of consideration
paid or conveyed to Seller or for Seller's benefit, including, without
limitation, cash, capital stock, notes, personal property of any
kind, real property, leases, lines of credit, loans, contingent
payments (e.g., license agreements, royalty agreements, payments
based upon future profits. etc.), employment or management contracts,
consulting agreements, non-competition agreements, assumption or
discharge of any or all liabilities, and any combination of the
foregoing and/or other consideration. The commission amount agreed
upon by Broker and Seller in the aforesaid agreement between those
parties will be made known to Buyer by Broker, upon Buyer's request,
when and if an agreement for the purchase of the Business is made
by Buyer. If Buyer violates the foregoing provision, Buyer will
be liable for and pay said commission to Broker upon demand without
any obligation on Broker's part to first exhaust any legal remedies
against Seller.
8. Buyer represents
that Buyer has sufficient financial resources to complete the transaction
for the asking price and terms set forth herein. Buyer agrees to
provide, upon request by Broker or Seller, financial statements,
reference and other pertinent information evidencing such financial
sufficiency.
9. The performance
and construction of this Agreement shall be governed by the laws
of the State of Texas. All sums due hereunder shall be payable it
the office of the Broker in Harris County, Texas and all parties
hereto agree to forebear from filing a claim in any other jurisdiction.
10. This Agreement
shall be binding upon the Buyer, Buyer's heirs, executors, successors,
assigns, administrators or representatives. If any provision of
this Agreement shall be held to be invalid, void or unenforceable,
the remainder of the provisions hereof shall remain in full force
and effect and this Agreement shall be construed as if such invalid,
void or unenforceable provision had not been contained herein.
11. In any litigation
arising under the terms and conditions of this Agreement, the prevailing
party shall be entitled to reasonable legal fees and expenses in
addition to any amount of the judgment.
12. The terms
and conditions of this Agreement shall also apply to any other business
and/or property on which Broker has been retained to represent the
owner(s) in the sale thereof and on which Broker or such owner(s)
has furnished information to Buyer. Further, it shall not be necessary
for Buyer to execute any additional agreement(s) to that effect
and any terms and conditions of this Agreement that refer to the
date hereof shall be automatically adjusted to reflect the date
on which Broker or owner(s) initially furnished information to Buyer
on such other business and/or property.
13. The provisions
hereof cannot be modified, amended, supplemented or rescinded without
the written consent of Broker and this Agreement sets forth the
entire agreement and understanding between Buyer and Broker.
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This Agreement For Your Records And Sign Below
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