EXHIBIT 2
AGREEMENT REGARDING SALE OF ASSETS
(As Amended)
This AGREEMENT, made on the 23rd day of May 2005, and amended on June 30,
2005, by and between OnTV, Inc. ("the Company") and Xxxxxx X. Xxxxxx ("the
Purchaser") is made for the purpose of setting forth the terms and conditions
upon which the Company will sell certain of its assets to Xxxxxx.
THE PARTIES AGREE AS FOLLOWS:
1. Subject to the terms and conditions of this Agreement, the Company
agrees to sell, and the Purchaser agrees to buy the following assets:
o All of the issued and outstanding shares of Seen On TV, Inc. (the
"Subsidiary")
o the trademarks, "XxXxxxXxXX.xxx", "XxxxXxXX.xxx", "What a", "What a
Saw" and " What a Product",.
o the trade names, "ONTV", "XxXxxxXxXX.xxx", "XxxxXxXX.xxx" and "What a
Product"
o the internet domain addresses "XxxxXxXX.xxx" , "XXxxxXxXX.xxx" and
"XxXxxxXxXX.xxx".
o all of the Company's office equipment
2. For the assets described above, Xx. Xxxxxx will pay the Company
$300,000 ("the Cash Purchase Price") and will also assume all liabilities of the
Subsidiary. The Cash Purchase Price will be paid in the following manner:
o The unpaid amount of the Cash Purchase Price will bear interest at
5.75% per year.
o 25% of the net, after-tax income from the operations of the Subsidiary
will be paid to the Company until the Cash Purchase Price, plus
accrued interest, is paid in full.
o Xx. Xxxxxx may, at any time, and in his sole discretion, elect to
assume all or a certain amount of the Company's liabilities in which
case the Cash Purchase Price will be reduced by the amount of the
liabilities assumed.
At the request of the Company, the Purchaser will provide the Company with
copies of the tax returns of which it files with the Internal Revenue Service.
3. Prior to the closing the Company and the Subsidiary will conduct their
business in the normal course, and shall not sell, pledge, or assign any assets,
without the prior written approval of the other party, except in the regular
course of business. Neither the Company nor the Subsidiary shall amend its
Articles of Incorporation or By-laws, declare dividends, redeem or sell stock or
other securities, incur additional or newly-funded material liabilities, acquire
or dispose of fixed assets, change senior management, change employment terms,
enter into any material or long-term contract, guarantee obligations of any
third party, settle or discharge any balance sheet receivable for less than its
stated amount, pay more on any liability than its stated amount, or enter into
any other transaction other than in the regular course of business.
4. The obligations of the Company and the Purchaser hereunder shall be
subject to the satisfaction at the Closing of all of the following:
o The liabilities of the Subsidiary will not exceed $400,000.
o The sale of the assets referred to in Section 1 will have been
approved by the shareholders of the Company.
o Shareholders owning less than 500,000 shares of the Company's common
stock will have exercised dissenter's rights with respect to the sale
of the assets.
AGREED TO AND ACCEPTED ONTV, INC.
By /s/ Xxxxxx X. Xxxxxx
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Xxxxxx X. Xxxxxx, President
/s/ Xxxxxx X. Xxxxxx
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Xxxxxx X. Xxxxxx
