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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT Pursuant
to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): May 4, 2007
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CirTran Corporation
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(Exact Name of Registrant as Specified in Its Charter)
Nevada
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(State of Other Jurisdiction of Incorporation)
0-26059 68-0121636
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(Commission File Number) (IRS Employer Identification No.)
4125 South 6000 West, West Valley City, Utah 84128
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(Address of Principal Executive Offices) (Zip Code)
801-963-5112
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(Registrant's Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
Item 1.01 Entry Into a Material Definitive Agreement
Item 2.03 Creation of a Direct Financial Obligation
Item 8.01 Other Events
Sale of Building
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On May 4, 2007, PFE Properties LLC ("PFE"), a Utah limited liability
company and subsidiary of CirTran Corporation (the "Company"), entered into a
commercial real estate purchase contract (the "Purchase Contract") with Don L.
Buehner (the "Buyer") relating to the sale by the Company of a parcel of real
property (the "Property"), together with any improvements, rents and profits
thereon or associated therewith, located at 4125 South 6000 West, West Valley
City, Utah, 84128, where the Company presently has its headquarters and
manufacturing facility.
Under the Purchase Contract, the purchase price for the Property was
$2,500,000. Of that amount, an aggregate of $1,233,287.75 went to repay PFE's
mortgage loan, taxes, fees, commissions, and other expenses. The net amount to
PFE was $1,266,712.25, which was paid at closing.
In connection with the Purchase Contract, the Company entered into a
Triple Net Lease (the "Lease") whereby the Company agreed to lease the Property
from the Buyer. The term of the lease is for 10 years, with an option to extend
the lease for up to three additional five-year terms. The monthly lease payment
will be $17,083.33. The Company agreed to pay all charges for heat, hot and cold
water, air conditioning, electricity and other utilities in the Property, and
for trash, landscape services and snow removal incurred during the term of
Lease. The Company and the Buyer agreed that the Lease could not be assigned and
the Property could not be sublet, in whole or in part, by the Company, without
first obtaining the written consent of the Buyer, which consent would not be
unreasonably withheld. In any such event, the Company will remain primarily
liable for the payment of rent and for the performance of all of the other terms
of the Lease required to be performed by the Company.
As previously disclosed in the Company's public reports, on March 31,
2005, the Company entered into a Membership Acquisition Agreement (the
"Acquisition Agreement") to purchase one hundred percent (100%) of the
membership interests in PFE. Under the Acquisition Agreement, the Company agreed
to issue twenty million (20,000,000) shares of its restricted common stock, with
a fair value of $800,000 on the date of issuance. No registration rights were
granted. The shares were issued without registration under the 1933 Act in
reliance on Section 4(2) of the Securities Act of 1933, as amended (the "1933
Act"), and the rules and regulations promulgated thereunder.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
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99.1 Commercial Real Estate Purchase Contract between Don L.
Buehner and PFE Properties, L.L.C., dated as of May 4,
2007.
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99.2 Triple Net Lease between CirTran Corporation and Don L.
Buehner, dated as of May 4, 2007.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CirTran Corporation
Date: May 10, 2007 By: /s/ Iehab Hawatmeh
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Iehab J. Hawatmeh, President
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