Company acquires Beach.org, but it’s more like a lease with option to buy.
Publicly traded Generation Zero Group, Inc. has entered into a purchase agreement for the Beach.org domain name for $95,000. But there’s a catch. The company only has to pay $50 a month until the end of 2011, at which point the balance is due. Here’s the information from the company’s 8k:
On or around June 8, 2010, Generation Zero Group, Inc. (“we,â€ “us,â€ and the “Companyâ€) entered into an agreement to acquire the Uniform Resource Locator (“URLâ€) www.beach.org (“Beach.orgâ€), which includes full and unrestricted control over the URL. The purchase price for Beach.org is $95,000, payable by us at any time prior to December 31, 2011.
Beginning on the date of the agreement, we have the right to have the Beach.org URL pointed to wherever we desire; however, the seller will retain ownership and control over the URL until the full purchase price is paid, and will have the right to terminate the agreement and take back full control of the URL if an event of default occurs under the agreement. Additionally, we agreed to pay the seller a license fee of $50 per month (beginning on July 1, 2010) for the use of Beach.org (until such time as the entire purchase price is paid in full) and to pay all costs associated with the operations of Beach.org, and the seller agreed that we would retain 100% of the revenue (if any) generated by Beach.org prior to the consummation of the purchase.
$50 a month is a very low amount compared to the purchase price. That makes this deal seem a bit fishy. Or is that oily?
To its credit, Generation Zero didn’t disclose the price in its press release. It plans to use the domain to report on the BP oil spill.