ASSET%PURCHASE%&%SALE%AGREEMENT%

A.%PARTIES%

This%agreement%(“agreement”)%is%entered%into%this%___

%

day%of%July,%201_%by%and%between%XXX%LLC,%a%

California%limited%liability%company%(“The%LLC”%or%“buyer”)%and%YYY%Inc.%(“ X X X ”%o r %“s e ller ”),%a %C a lifo rn ia %

compa ny.%Buyer%and%seller%will%be%referred%to%at%times%as%“the%parties.”%

%

B.%RECITALS%AND%SUMMARY%

applicable%intellectual%property%(if%any),%accounts%receivable,%telephone%num bers%and%good%will.%

Collectively,%all%items%purchased%shall%be%referred%to%herein%as%the%“assets.”%This%agreement%will%also%be%

referred %to%h ere in% at%times%as% “this%transaction.”%A%copy%of%the%licensing% agreement%is%attached%hereto%as%

Exhibit%“A”%and%in corporated%herein%by%this%reference.%%

Buyer%may% specifically%decline%in%writing%to%purchase%a% portion%of%the%assets%described%above%prior%to%the%

conclusion%of%the%Due%Diligence%period%(see%section%D.%below).%This%includes,%but%is%not%limited%to,%

existing%employee,%client%and%independent%contractor%relationships,%as%well%as%the%licenses.%

Buyer%is%not%offering%to%purchase%any%debt%or%legal%obligation%of%seller,%exc e p t%as %m a y %be %ex p r e ss ly %

agreed%upon%prior%to%closing.%

%%%

is%op en e d ,%th e re %ar e%n o %e n cu mbranc es %o f%a n y%n a tu re %o r%k in d%on%the%asse ts%an d%a ll%rights%of%a ny%n atu re%

and%governmental).%%

The% LLC,% in% acquiring%full% right%and%title% to% the% assets% and%all%rights%of%any% nature% thereto,%is% free% to% utilize%

all%such%rights%and%title%to%the%fullest%extent%permitted%by%law.%

Price%and%Terms:%%

Subject% to%D.%2.%and%D.%6.,% b elow,%the% purchase% price%of% the%assets%is% ________________________dollars%

_________________%dollars% ($_____________.00)% is%due%prior%to%closing,%by%certified,% cashier’s% check%or%

payments%are%due%no%later%than%the%10

th

be%accelerated%unless%buyer%becomes%at%least%2%monthly%payments%delinquent.%There%w ill%be%no %preZ

payment%penalty.%There%is%a%5%%penalty%added%to%any%late%payment.%

previous%paragraph)%is%payable%in%coZequal%m onthly%payments%of%$_ _______% until%the%remaining%balance,%

plus%interest,%is%paid%in%full%(the%“note”).%The%note%is%p ayable%with%six%percent%(6%)%simple%inter es t,%

compo unded %annually.%Upon%the%timely%receipt%of%all%such%monthly%payments,%the%note%(and%the%

purchase%price%of%the%transaction)%will%be%paid%in%full.%These%payments%are%due%n o%later%than%the%10

th

occurrence%of%certain%events%as%described%in%D.%2.%below.%In%the %eve n t %the %pu r ch a s e%p ric e%in cr ea s es ,%the %

additional%sum%will%be%added%to%the%note%principal%due%at%that%time,%payable%at%the%same%interest%rate%

and%monthly%payment%until%the%entire%principal%am ount%is%paid.%

!

Buyer%will%deposit%the%sum%of%_______________%dollars%($________.00)%as%“earnest%m oney”%upon%

buyer’s%entry%into%a%legally%binding%agreement%w ith%the%lessor%of%the%businesses%premises%(“lessor”)%to%

lease %th e %tw o %p re mises%on %te rms%agree ab le %to %b u ye r%(s h ou ld %th is %tra n sa c tio n %clo se ). %The%earnest%money%

is% re fu n d ab le ,%minu s %escrow%ex p en s es ,%if%th is %transa ct io n%does%not%close%and%refundable%in%full%to%buyer%if%

The%earnest%money%shall%b e%deposited%at%ZZZ!(“escrow %hold er” ),%___ __ __ _ __ __ __ _ __ __ _ __ __ _ __ __ %

and%the%escrow%h older)%shall%be%deposited%in%escrow%within%seven%(7)%days%after%the%signing%of%this%

inclu d ed %h e re w ith %a s %Ex h ib it%“ C ”%for%ease%of%reference.%

Tax%clearance%certificates,%e.g.%Franchise%Tax%Board%and%B oard%of%Equalization ,%to%the%extent%required,%

receive d%d urin g%the %Du e%D iligen ce %pe riod %no t%use d%in%th e%o rdin ary%c ou rse%o f%the %bu sine ss%sh all%be %

retaine d%in%th e%seller’s%ch ec king%a cco un ts%an d%tran sfe rred %directly %to%bu yer%upo n %closin g.%%%%%

This%transaction%shall%close%the%next%business%day%after%written%notice%of%the%release%of%all%contingencies%

listed %in%D.%belo w %is%receive d %by%Selle r%(“C los in g ”%or%“Clo s ing %Da te ” ). %The% “D ue% Diligence% period”%shall% not%

exceed%sixty%(60)%days%from%the%date%first%written%above%unless%m ore%time%is%need ed%to%com plete%all%

otherwise%reasonably%arranged%by%the%parties.%

defined%in%C.%above%and%within%section%K.%below)%for%the%_________________%premises%of%the%

businesses.%Any%such%agreement(s)% will% be% binding%upon% buyer% only%if% this% transaction%closes%and% shall%be%

deposited%with%the%escrow%holder%prior%to%closing.%The%terms%of%any%such%agreem ent(s)%are%as%reasonably%

acceptable%to%buyer.%%

In%the %cas e %of%th e %__ _ __ _ _ _ _ _ _ _ __ %p re mises%( cu r re n t%lea se %ex p ire s%in %ab o u t%3%ye a rs ),%bu y er %m u st %en te r%

into %a%leas e%o r %su bZlease %fo r%the%premises%p rio r%to %t h e%exp ira tio n %o f%th e %le a se %fo r%th e%a dd itiona l%

$_____________.00%to%the%purchase%price%to%apply.%The%lease%or%sublease%terms%shall%be%reasonable,%at%

least %10 %yea rs %an d%n o%m o r e%th an %$1 .7 5 %pe r%foo t .%If%the %__ _ _ _ _ __ _ _ _ _ %lea se %ex p ire s,%bu y e r%m a y%tra n s fe r%

any%an d%all%assets%therein%located%to%the%___________%location.%If%bu ye r %ent er s%int o %a%lease %or%su b Z le a se %

3.%This%Agreement%is%contingent%upon%the%transfer%of,%or%assurance%of%transfer%of,%license%agreement(s),%

any%conditional%use%permits%(“CUPs”)%and%all%other%governm ental%licenses%and%permits%for%the%

businesses.%All%such%transfer%or%assurances%(or%w aiver%of%same%by%buyer)%shall%be%deposited%with%the%

escrow%holder%prior%to%closing.%It%is %unders to o d %tha t%t h e %C U P s %a re %“site%spe cific ” %a n d %d o%not%app ly%or%

4.%This%Agreement%is%contingent%upon%the%placement%in%escrow%of %a%notice%from%buyer%releasing%all%

contingencies%and%a%final%list%of%assets%included%in%this%transaction%prior%to%closing.%

5.%This%Agreement%is%contingent%upon%the%placement%in%escrow%of%a%notice%from%buyer%stating%that%the%

disclosed%information%and%m aterial,%and%with%any%necessary%adjustments%to%this%agreement%resulting%

6.%This%Agreement%is%contingent%upon%proof%from%seller%that%the%purchase%price%is%fair%and%supported%by%

parties%agree%to%bargain%in%good%faith%to%reduce%the%purchase%price%of%the%assets%if%the%purchase%price%

b.% Buyer% w ill%utilize% the% Due%Diligence%period% to% investigate% all% factors%it% considers%relevant,% in%relation% to%

%

E.%RESPONSIBILITIES%OF%THE%PARTIES%

The%parties%agree%to%complete%all%required%steps%toward%a%possible%conclu sion%of%this%proposed%

The%parties%agree%to%hold,%protect%and%preserve%all%materials%and%information%received%in%the%course%of%

of%the%parties%only,%to%be%viewed%and%utilized%only%by%the%pa rties%an d%th eir%resp ective %pro fessio na l%

receive d%by %them%from%the%o the r%party .%%

manager,%_________________(“Mr.%____________”),%existing%prior%to%the%close%of%this%transaction.%

damage%arising%out%of%the%tim e%in%which%Mr.%____________%was%an%independent%contractor%of%seller.%%

1.%Gen e ra l,%Mutua l%R e le a s e ;%NonJAdmission%of%Liability%

This%M utual%General%Release%shall%not%in%any%w ay%be%construed%as%an%admission%that%either%party%has%

acted%wrongfully%with%respect%to%the%other%party%or%any%other%person,%and%both%parties%specifically%

disclaim%any%liability%to%or%wrongful%acts%against%the%other%party%or%any%other%person,%on%the%part%of%

himself,%itself%and%their%respective%em ployees%or%agents,%if%any.%In %fa ct,%t h e%p a rt ie s%a re %n o t%a ware%of%

having%done%anything%to%harm%the%interests%of%the%other%party.%

liabilitie s ,%o b lig a tio n s,%pro mises,%a gre e ments,%con tro v er sie s,%da m a g e s,%actio n s ,%c a u se s%of%action,%s uit s,%

rights,%dem an ds,%costs,%losses,%debts%and %expe nse s%(includin g%attorn eys'%fees%and %costs%actually%incu rred)%

of%any%nature%whatsoever,%known%or%unknow n,%suspected%or%unsuspected,%including,%but%not%limited%to,%

rights%a rising %o ut%of%a lleged %violations %of%a n y%con tra ct s,%expr es s%or%implie d ,%any%cove n an t %of%g oo d %faith%

and%fair%dealing,%express%or%implied,%or%an y%tort,%or%an y%federal,%state%or%o ther%governmental%statute,%

regulatio n,%o r%ord ina nce .%Th is%pa ragra ph %sha ll%ha ve%n o%a pp licab ility%to%C laim s,%if%any,%based%totally%on%

events%occurring%after%the%d ate%of%closing%of%this%Agreement%nor%affect%any%rights%or%obligations%arising%

%(b)%Ex cep t%a s%h ere in%otherwise%agreed,%ea ch %pa rty%hereby%irrevo ca bly%and%un con d itiona lly%

release s,%acq uits%an d%forever%d ischarges%the%oth er%from %any%an d%all%charges,%com plaints,%claims,%

rights,%dem an ds,%costs,%losses,%debts%and %expe nse s%(includin g%attorn eys'% fees%and% costs% a ctually% incurred)%

of%any%nature%whatsoever,%known%or%unknown,%suspected%or%unsuspected%as%of%the%date%of%the%execution%

of%this%Agreement,%by%reason%of%any%act%or%omission%concerning%any%matter,%cause,%or%thing.%

exist%in%his%favor%at%the%time%o f%executing%the%release,%w hich%if%know n%by%him%mu st%h ave %ma terially%

affected%his%settlement%with%the%debtor."%

Thus,%notwithstanding%the%provisions%of%Section%1542,%and%for%the%purpose%of%implementing%a%full%and%

complete%release,%the%parties%expressly%ackn owledge %that%this%Mutual%General%Release%is%intended%to%

inclu d e%in%its%effe ct ,%with o u t%lim it at ion ,%all%claims%which%the %part ies %do %not %kno w%or%su sp e ct %to%exis t%at%

any%such%claim%or%claims%and%an y%right%to%su e%reg arding%any%such%claim%or%claims%(except%for%un cured%

breaches%of%this%Agreement%occurring%after%the%date%first%w ritten%above).%

G.%REPRESENTATIO NS%AND%WARRANTIES%OF%BUYER%

Buyer%represents%and%warrants%that%it%is%a%company%in%good%standing%in%the%state%of%California%and%has%

Buyer%agrees%to%comply%with%all%applicable%provisions%of%the%Bulk%Sales%Act.%

of%membership%sales%prices,%during%the%pendency%of%this%transaction%and%further%agrees%that%it%will%sign%

no%other%agreement%for%the%pu rch ase %or%oth er%d ispo sition %of%the %assets %durin g%the %Du e%D iligen ce %perio d.%

record s%includ e,%but%are %not%limite d%to%(in%the%po ssess ion %of%seller%and%an y%agen ts%and %profe ssio na ls),%all%

books% and%records%of%seller,%a ll%g en eral%ledgers,%b oo kke ep ing %re co rds,%audit%an d %a cco un ting %work%p ap ers%

and%notes,%financial%statements,%worksheets,%spreadsheets,%budgets,%projections,%price%lists,%client%lists,%

matters%of%seller;%equipment%sale,%lease,%maintenance%and%repair%records;%in%sum,%any%information%of%a%

material% nature%in% assisting%buyer%in%determining%whether% to%move%forward%with%this%transaction%and%to%

determine%w hat%assets%to%purchase.%

Seller%represents% and%warrants% that%it% will% take% n o%conscious% actions% (or% om issions)%that%will% intentionally%

devalue%the%assets,%the%prem ises%an d%the %b usinesses.%Seller%agrees%to%defend%and%protect%the%assets,%

Seller%w ill%deliver%actual%possession%of%all%assets%an d%businesses%p urchased%by%seller.%

premises%upon%closing.%

Except%as%disclosed%by%seller%to%b uyer%in%writing%during%the%Due%Diligence%period,%all%assets%of%seller%are%

undamaged%and%serviceable%for%normal%use%in%the%businesses,%and%except%for%reasonable%wear%and%tear,%

property),%franchise%relationships%and%the%City%of%___________.%

businesses%to%the%membership%at%closing.%The%form%of%such%notice%shall%be%deposited%in%escrow%and%

reason ab ly%ap pro ve d%by %bu yer%p rior%to%clo sing .%