A G R E E M E N T
EXHIBIT
10.2
A G R E E M E N T
THIS
ASSET PURCHASE AGREEMENT ("Agreement") is made and executed effective this
--27th
day of
January, 2006 ("Execution Date"), by, between, and among:
(1) |
SIERRA
PRECISION SERVICES LLC, a Nevada limited liability company ("Sierra"
or
"Seller");
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(2) |
CHAPEAU,
INC., a Utah corporation doing business as BLUEPOINT ENERGY, INC.
("BluePoint" or "Buyer").
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The
foregoing individuals and / or entities may be referenced by the term "party"
or
"parties" in this Agreement where and whenever necessary.
R E C I T A L S
WHEREAS,
Seller is a Nevada limited liability company located at 00 Xxxxxxxxxx Xxxxxxx;
Xxxxx Xxxxx, Xxxxxx 00000-0000; and
WHEREAS,
Buyer is a Utah corporation with its principal place of business headquartered
in California and located at 0000 Xxxxxxx Xxxx, Xxxxx 0, Xx Xxxxxx Xxxxx,
Xxxxxxxxxx 00000; and
WHEREAS,
Seller desires to sell to Buyer, and Buyer desires to buy from Seller, certain
business assets of Seller; and
WHEREAS,
the parties wish to jointly and separately make certain representations,
warranties, and agreements in connection with this Agreement, and also set
forth
certain conditions precedent to the Agreement's rights and obligations;
NOW
THEREFORE, in consideration of the foregoing and mutual covenants,
representations, and warranties contained in this Agreement, and intending
to be
legally bound, the parties agree to the following:
C O V E N A N T S
1.
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ASSET
PURCHASE AND SALE.
Seller agrees to sell to Buyer, and Buyer agrees to purchase from
Seller,
on or before the Closing Date (defined below), all of the Seller's
right,
title, and interest in and to the assets listed on Schedule "A" ("Assets")
(attached to this Agreement and incorporated into its terms by reference).
For purposes of this Agreement, any Asset not itemized on Schedule
"A"
shall be an excluded Asset ("Excluded Asset"). Buyer shall not acquire
any
interest in an Excluded Asset under this
Agreement.
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2.
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LIABILITIES.
Except as this Agreement may otherwise specifically provide, Buyer
shall
not assume or become liable for any Seller debts, obligations,
liabilities, or commitments, whether known or unknown, absolute,
contingent, matured, unmatured, or otherwise, and whether related
to
Assets, including (without limitation) any employment, business,
sales, or
use tax relating to the Seller's business operations, use, and ownership
before the Closing Date.
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2.1.
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Assumed
Liabilities.
On the Closing Date and at all times thereafter, Buyer shall not
assume
responsibility for the performance and satisfaction of any Seller
executory obligation(s), liability(ies), or other such item(s) except
as
itemized on Schedule "B" ("Assumed Liabilities") (attached to this
Agreement and incorporated into its terms by reference).
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3.
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PRICE.
Buyer will pay Seller Three Hundred Fifty Thousand and No/100 Dollars
($350,000.00) for the Assets ("Purchase Price").
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3.1.
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Payment.
Buyer will pay Seller the Purchase Price in US Dollars or their cash
equivalent.
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4.
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ESCROW
AND CLOSING.
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4.1.
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Escrow.
Buyer and Seller agree to open an escrow account ("Escrow") with
Xxxxxxxx
& Associates PC ("Escrow Agent"), using Escrow Agent's client trust
account. The Assets sale contemplated by this Agreement shall be
conducted
through Escrow according to this Agreement's terms. The parties will
each
execute and acknowledge any appropriate instructions, instruments,
or
other documents that the Escrow Agent may reasonably require to complete
this Agreement's transaction(s).
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4.2.
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Buyer
Deposit.
Prior to or concurrent with the Closing, Buyer shall deposit Fifty
Thousand Dollars ($ 50,000) ("Deposit") into Escrow to be credited
towards
the Purchase Price. The Deposit shall be paid to Seller as set forth
below
in Section 4.5.
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4.3.
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Closing
Date.
The Closing for this Agreement ("Closing") shall be January 27, 2006,
("Closing Date") or on such other time as the parties may mutually
agree.
At Closing, Seller shall convey Asset title to Buyer in the method
provided by this Agreement. Pursuant to the provisions of Section
13.1,
Closing is subject to the termination of the Agreement by either
party if
the Closing has not occurred on or before March 1, 2006.
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4.4.
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Seller's
Closing Obligations.
At Closing, Seller shall execute, acknowledge, and provide each of
the
following items to Buyer:
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(a)
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Xxxx
of Sale.
A
duly executed xxxx of sale ("Xxxx of Sale"), in substantially the
form as
provided in Schedule "C" (attached to this Agreement and incorporated
into
its terms by reference), conveying to the Buyer, and the Buyer accepting,
all of the Seller's right, title, and interest in and to the Assets
set
forth in Schedule "A."
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(b)
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Possession.
Possession of all of the Assets.
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(c)
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Notice
of Sale.
To the extent required by law, Seller shall notify all of Seller's
suppliers, utilities, vendors, and other parties with whom Seller
has
dealt, that Seller has sold the
Assets.
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(d)
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Remaining
Materials.
All other instruments and documents of conveyance and transfer, including
documents of title, as shall be necessary and effective to transfer,
convey, and assign to Buyer at Closing all of Seller's right, title,
and
interest in and to the Assets, free and clear of any liens or encumbrance,
as required by this Agreement's terms.
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4.5.
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Buyer's
Closing Obligations.
Buyer shall execute, acknowledge, and provide each of the following
items
to Seller:
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(a) |
Purchase
Price.
At Closing, Fifty-Thousand and no/100 Dollars ($50,000.00) of the
Purchase
Price will have been allocated to Seller as payment to settle claims
and
redeem equity pursuant to the terms of a Settlement and Equity Redemption
Agreement, a copy of which is attached hereto and incorporated herein
by
reference as Exhibit "A". Further, at Closing, Buyer shall pay to
Seller
the balance of the Purchase Price according to the terms and conditions
set forth in a concurrently-executed promissory note ("Note"). A
copy of
the Note is attached hereto and incorporated herein by reference
as
Exhibit "B".
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(b)
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Remaining
Materials.
All other instruments and documents necessary to consummate the
transactions contemplated by this
Agreement.
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4.6.
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Risk
of Loss:
Seller assumes all risk of loss, damage, injury, or destruction of
any and
all the Assets, by any cause whatsoever, at all times prior to the
Closing. Buyer assumes all risk of loss, damage, injury, or destruction
of
any and all the Assets, by any cause whatsoever, at all times after
the
Closing.
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4.7.
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Material
Loss Prior to Closing:
In the event there is any material loss or damage to all or any portion
of
the Assets prior to the Closing, Buyer may either terminate this
Agreement, or negotiate with Seller for a reduction in the Purchase
Price
to reflect the loss or damage.
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5.
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SELLER'S
REPRESENTATIONS AND WARRANTIES.
Seller warrants, represents, and covenants to Buyer that all of the
following facts, circumstances, representations, and warranties are,
and
at all times up to and including the Closing will be, true and correct,
and hereby acknowledges that such facts, circumstances, representations,
and warranties constitute a material part of the basis upon which
Buyer is
induced to enter into and perform Buyer's obligations pursuant to
this
Agreement; each of the following representations, warranties, and
covenants contained in this Section (5) shall survive the Closing
and any
investigation made by or on behalf of
Buyer.
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5.1.
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Standing.
Seller
is a limited liability company, duly organized, validly existing,
and in
good standing under the laws of the state of its organization, and
is
qualified to transact business in the State of Nevada. A copy of
Seller's
Certificate of Good Standing is attached hereto and incorporated
herein by
reference as Exhibit "C" (Certificate of Good
Standing).
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5.2.
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Authority.
Seller has full legal power and authority to enter into and perform
this
Agreement. This Agreement has been duly authorized, executed, and
delivered by Seller, and constitutes a legal, valid, and binding
obligation of Seller, enforceable in accordance with the Agreement's
terms; no consent of any federal, state, municipal, or other governmental
authority is required by Seller for the execution, delivery or performance
of this Agreement by Seller. No consent of any party to any contract
or
agreement to which Seller is a party or by which any of their respective
property or assets are subject is required in connection with Seller's
right, power, legal capacity, and authority to enter, execute, deliver,
or
perform this Agreement. A
copy of Seller's minutes authorizing and ratifying this Agreement
is
attached hereto and incorporated herein by reference as Exhibit
"D"
(Unanimous Consent).
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5.3.
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Conflict.
The
execution and delivery of this Agreement will not violate or conflict
with, breach, or constitute a default under (or give rise to any
right of
termination, cancellation, or acceleration under) the terms, conditions
or
provisions of any note, bond, lease, mortgage, obligation, agreement,
understanding, arrangement, or restriction of any kind to which Seller
is
a party or by which Seller or its properties may otherwise be bound,
and
will not result in the creation of any lien, security interest, or
encumbrance on any of the Assets. The execution and delivery of this
Agreement, the consummation by Seller of the transactions contemplated
hereby, nor the compliance with any provisions hereof, will violate
any
statute, law, rule, regulation, order, judgment, writ, injunction,
or
decree of any court or governmental
authority.
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5.4.
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Other
Pending Proceedings.
To the best of Seller's knowledge without any duty of investigation
or
inquiry, there are no actions, suits, proceedings, contingent liabilities,
arbitrations, or claims now pending, or, to the best of Seller's
knowledge, threatened against Seller or the Assets that would affect
Seller's ability to fulfill its obligations under this Agreement
or that
would impair the value of the
Assets.
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5.5.
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Undisclosed
Liabilities.
Seller is aware of no material liabilities or obligations of any
nature
relating to the Assets, whether fixed, contingent, matured, or unmatured,
which are not shown or otherwise expressly disclosed in this Agreement,
or
within its attachments, except for liabilities and obligations arising
in
the ordinary course of business, none of which are materially
adverse.
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5.6.
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Marketable
Title.
Seller
has, and will have at Closing, good and marketable title to the Assets
free and clear of all liens, charges, and encumbrances, and Seller
will
transfer such title, and possession, to Buyer at
Closing.
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5.7.
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Contracts.
Seller
has provided Buyer with true and correct copies of all Contracts,
if
applicable. To Seller's knowledge, all of the Contracts are in full
force
and effect, have been duly executed by the parties, and neither Seller
nor
any other party is in default under any
Contract.
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5.8.
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Tangible
Property.
All of the tangible items included in the Assets shall be in good
and
working order and condition as of Closing
Date.
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5.9.
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Financial
Statements, Taxes, and Figures.
To the best of Seller's knowledge and belief, any financial statements
provided to Buyer are accurate. Seller is not actually aware of any
material inaccuracies in the financial statements, tax returns,
information, facts, or figures which may have been provided by Seller
to
Buyer.
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5.10.
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Investigations.
To the best of Seller's knowledge without any duty of investigation
or
inquiry, there are no investigations or disciplinary actions by any
governmental agencies related to the Assets, or, to the best of Seller's
knowledge, threatened against Seller or the Assets that would affect
Seller's ability to fulfill its obligations under this Agreement
or that
would impair the value of the
Assets.
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5.11.
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Violations
of Law.
To the best of Seller's knowledge without any duty of investigation
or
inquiry, there are no ongoing violations of any applicable federal,
state,
or local statutes or regulations related to the Assets, that would
affect
Seller's ability to fulfill its obligations under this Agreement
or that
would impair the value of the
Assets.
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5.12.
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Insolvency
Proceedings.
Seller has not been the subject of bankruptcy filing, assignment
for the
benefit of creditors, or insolvency proceedings of any kind during
the
last two (2) years, nor has Seller consulted with any attorney or
advisor
regarding such proceedings during that time
period.
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5.13.
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Tax
Matters.
To the best of Seller's knowledge, Seller has filed all federal,
state,
and local tax or related returns and reports due, or required to
be filed,
by appropriate law or regulation. The filed reports accurately and
materially reflect in all respects the tax amounts. Seller has paid
all
amounts of taxes or assessments which would be delinquent if not
paid as
of this the Execution Date, other than those taxes or charges that
are
being contested in good faith or that have not yet been finally
determined.
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5.14.
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Binding
Obligation of Seller.
This Agreement constitutes a valid and binding agreement by Seller,
enforceable in accordance with its terms, except as such enforcement
may
be limited by applicable bankruptcy, insolvency, moratorium, and
other
similar laws relating to, limiting, or affecting the enforcement
of
creditors' rights generally.
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5.15.
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Full
Disclosure.
At the Execution Date, and at all times after, until Closing, Seller
will
disclose to Buyer all known events, conditions, and facts that materially
affect the Assets. Seller has not and will not, at the Execution
Date, or
any time until Closing, withhold disclosure of any events, conditions,
or
facts of which it actually has knowledge, which may materially and
adversely affect the Assets.
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5.16.
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Correctness
of Representations.
No representation or warranty of Seller in this Agreement or any
other
information furnished by Seller pursuant to this Agreement contains
any
untrue statement of material fact or fails to state any fact necessary
in
order to make the statements not misleading in any material respect.
All
statements, representations and other information provided by Seller
to
Buyer shall be true and correct on and as of the Closing Date as
though
made on that date.
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5.17. Intellectual
Property.
Seller
warrants and represents that Seller has not secured a patent, copyright,
trademark, or similar perfected interest in and for any Asset. Seller further
warrants and represents that Seller has not applied for patent, copyright,
trademark or similar protection for any Asset at any time prior to Closing.
Notwithstanding the foregoing, Seller warrants and represents that any Asset,
whether or not said Asset is later determined to have been patented,
trademarked, or copyrighted, is "work made for hire" and belongs solely to
Seller. If by operation of law or otherwise, any Asset is not "work made for
hire" or if ownership of all right, title and interest in the Asset does not
vest exclusively in Seller, Seller warrants that it has irrevocable assignment
from any inventor, artist or creator of all right, title and interest to the
Asset and ability to require any such author, inventor or creator to execute
all
documents necessary to affect the transfer of the Asset to Buyer.
6.
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BUYER'S
REPRESENTATIONS AND WARRANTIES.
Buyer warrants, represents, and covenants to Seller that all of the
following facts, circumstances, representations, and warranties are,
and
at all times up to, and including, the Closing will be, true and
correct,
and hereby acknowledges that such facts, circumstances, representations,
and warranties constitute a material part of the basis upon which
Seller
is induced to enter into and perform Seller's obligations pursuant
to this
Agreement; each of the following representations, warranties, and
covenants contained in this Section (6) shall survive the Closing
and any
investigation made by or on behalf of
Seller.
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6.1.
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Standing.
Buyer
is a corporation, duly organized, validly existing, and in good standing
under the laws of the state of its organization, and is qualified
to
transact business in the State of California.
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6.2.
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Authority.
Buyer has full legal power and authority to enter into and perform
this
Agreement. This Agreement has been duly authorized, executed, and
delivered by Buyer, and constitutes a legal, valid, and binding obligation
of Buyer, enforceable in accordance with the Agreement's terms; no
consent
of any federal, state, municipal, or other governmental authority
is
required by Buyer for the execution, delivery or performance of this
Agreement by Buyer. No consent of any party to any contract or agreement
to which Buyer is a party or by which any of their respective property
or
assets are subject is required in connection with Buyer's right,
power,
legal capacity, and authority to enter, execute, deliver, or perform
of
this Agreement.
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6.3.
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Voluntary
Purchase.
Buyer is purchasing the Assets voluntarily based upon Buyer's own
judgment
and evaluation, and other than Seller's warranties and covenants
expressed
in this Agreement, Buyer is not relying on any verbal or written
representation of Seller or Seller's agents regarding the
Assets.
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6.4.
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Conflict.
The
execution and delivery of this Agreement will not violate or conflict
with, breach, or constitute a default under (or give rise to any
right of
termination, cancellation, or acceleration under) the terms, conditions
or
provisions of any note, bond, lease, mortgage, obligation, agreement,
understanding, arrangement, or restriction of any kind to which Buyer
is a
party or by which Buyer or its properties may otherwise be bound,
and will
not result in the creation of any lien, security interest, or encumbrance
on any of the Assets. The execution and delivery of this Agreement,
the
consummation by Buyer of the transactions contemplated hereby, nor
the
compliance with any provisions hereof, will violate any statute,
law,
rule, regulation, order, judgment, writ, injunction, or decree of
any
court or governmental authority.
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6.5.
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Other
Pending Proceedings.
There are no actions, suits, proceedings, contingent liabilities,
arbitrations, or claims now pending, or, to the best of Buyer's knowledge,
threatened against Buyer that would affect Buyer's ability to fulfill
its
obligations under this Agreement.
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6.6.
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Undisclosed
Liabilities.
Except as this Agreement may otherwise specifically provide, Buyer
is
aware of no material liabilities or obligations of any nature, whether
fixed, contingent, matured, or unmatured, which would affect Buyer's
obligations under this Agreement.
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6.7.
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Full
Disclosure.
At the Execution Date, and at all times after, until Closing, Buyer
will
disclose to Seller all known events, conditions, and facts that materially
affect Buyer's obligations under this Agreement. Buyer has not and
will
not, at the Execution Date, or any time until Closing, withhold disclosure
of any events, conditions, or facts of which it may have knowledge,
or
have had reasonable grounds to know, which may materially and adversely
affect Buyer's obligations under this
Agreement.
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6.8.
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Correctness
of Representations.
No representation or warranty of Buyer in this Agreement or any other
information furnished by Buyer pursuant to this Agreement contains
any
untrue statement of material fact or fails to state any fact necessary
in
order to make the statements not misleading in any material respect.
All
statements, representations, Schedules, and other information provided
by
Buyer to Seller shall be true and correct on and as of the Closing
Date as
though made on that date.
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7.
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SELLER'S
COVENANTS.
Seller,
as a material inducement to Buyer to enter into this Agreement, and
consummate the transactions contemplated in this Agreement, covenants,
promises, and agrees to the following from the Execution Date until
Closing Date.
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7.1.
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Retaining
Assets.
Seller will not assign, sell, lease or otherwise transfer, dispose
of, or
encumber any of the Assets.
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7.2.
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Access
and Information.
Seller shall promptly provide Buyer with all information concerning
the
Assets that Buyer may reasonably request, and Buyer and its accountants
and other representatives shall have access during normal business
hours
to all of the Assets and to Seller's books and
records.
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7.3.
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Consents.
On or before the Closing Date, Seller, at its expense, shall obtain
all
necessary consents required to assign Seller's interest in any of
the
Assets to Buyer as contemplated by this
Agreement.
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7.4.
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Discharge
of Liens.
All liens, claims, charges, security interests, pledges, assignments,
or
encumbrances relating to the Assets shall be satisfied, terminated,
and
discharged by Seller on or prior to the Closing Date, and evidence
reasonably satisfactory to Buyer and its counsel of the satisfaction,
termination, and discharge shall be delivered to Buyer at or prior
to the
Closing.
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7.5.
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Seller
Actions.
Seller shall not take, or fail to take, any action within its reasonable
control that would cause a breach of any representation or warranty
of
Seller contained in this Agreement, or prevent fulfillment of any
conditions set forth in this
Agreement.
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8.
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BUYER'S
COVENANTS.
Buyer,
as a material inducement to Seller to enter into this Agreement,
and
consummate the transactions contemplated in this Agreement, covenants,
promises, and agrees to the following from the Execution Date until
Closing Date.
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8.1.
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Buyer
Actions. Buyer shall
not take, or fail to take, any action within its reasonable control
that
would cause a breach of any representation or warranty of Buyer contained
in this Agreement, or prevent fulfillment of any conditions set forth
in
this Agreement.
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9.
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MUTUAL
COVENANTS.
Buyer
and Seller, as material inducements to each other to enter into this
Agreement, and consummate the transactions contemplated in this Agreement,
covenant, promise, and agree to the
following.
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9.1.
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Further
Assurances Prior to Closing:
Seller
and Buyer shall, prior to Closing, execute any and all documents
and
perform any and all acts reasonably necessary, incidental, or appropriate
to effect the transactions contemplated by this
Agreement.
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9.2.
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Notification
of Changed Circumstances.
At any time after the Execution Date and prior to Closing, if either
party
becomes aware of any fact or circumstance that would materially change
a
representation or warranty made under this Agreement, the party with
knowledge of those facts shall notify the other in writing as soon
as
possible after the discovery of the changed
circumstances.
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9.3.
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Notification
of Certain Matters.
Seller and Buyer shall each give prompt notice to the other party
of any
notice of, or other communication relating to, a default or event
which,
with notice, lapse of time, or both, would become a default, received
by
either party subsequent to the Execution Date and prior to the Closing
Date, where such a notice could be reasonably expected to have a
material
adverse effect upon either party. Each party shall give the other
prompt
notice, without limitation, of:
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(a) |
Any
notice or other communication from a third party alleging that the
consent
of such third party is or may be required in connection with this
Agreement or any other transactions contemplated by this Agreement;
or
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(b) |
Any
notice or other communication from any third party alleging and act
or
thing which could be reasonably expected to have a material adverse
effect
upon Seller or a material adverse effect upon
Buyer.
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9.4.
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Expenses.
Except as expressly set forth in this Agreement, Seller and Buyer
shall
each bear their respective expenses incurred in connection with this
Agreement, including, without limitation, the preparation, execution,
and
performance of this Agreement and the transactions contemplated hereby;
this provision also applies to all fees and expenses of investment
bankers, finders, brokers, agents, representatives, counsel and
accountants.
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9.5.
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Failure
to Take Action.
Neither Seller nor Buyer will take any action, or fail to take any
action,
if such action (or failure to act) would reasonably be expected to
cause
this Agreement, or any of its provisions, to
fail.
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10.
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CONDITIONS
PRECEDENT TO OBLIGATIONS OF BUYER.
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10.1.
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Buyer's
Conditions.
The obligation of Buyer to consummate the transactions contemplated
by
this Agreement shall be subject to the satisfaction, on or before
the
Closing Date, of each of the following
conditions:
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(a) |
Accuracy
of Representations and Warranties.
The representations and warranties of Seller set forth in Section
5 shall
be true and correct as of the Closing
Date;
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(b) |
Seller's
Performance.
Seller shall have performed and complied with all of the agreements,
covenants, and conditions required of Seller by this Agreement on
or
before the Closing Date;
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(c) |
No
Pending Proceeding.
No action, suit, or proceeding before any court or any governmental
body
or authority that would in any way affect the Assets or the ability
of
Seller to consummate the transactions contemplated by this Agreement
shall
have been instituted or threatened on or before the Closing
Date;
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(d) |
Condition
of Assets.
The Assets shall be in substantially the same condition on the Closing
Date as on the Execution Date, and there shall be no loss or damage
to the
Assets prior to the Closing;
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(e) |
Consents.
Seller shall have obtained all necessary agreements and consents
of any
parties required to consummate the transactions contemplated by this
Agreement;
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(f) |
Settlement
and Redemption Agreement.
Seller shall have executed and consummated the Settlement and Redemption
Agreement, as shall have all other parties thereto, in a form
substantially equivalent to the Exhibit "A", attached to this agreement
and incorporated herein by reference (Settlement and Redemption
Agreement).
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10.2.
|
Failure
to Satisfy Buyer's Conditions.
Any of Buyer's conditions precedent may be waived in whole or in
part by
Buyer in writing at any time on or before the Closing Date. In the
event
all Buyer's conditions precedent have not been waived by Buyer or
satisfied in full on or before the Closing Date, Buyer may elect
to
terminate this Agreement as provided in Section 13 of this
Agreement.
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11.
|
CONDITIONS
PRECEDENT TO OBLIGATIONS OF SELLER.
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11.1.
|
Seller's
Conditions.
The obligation of Seller to consummate the transactions contemplated
by
this Agreement shall be subject to the satisfaction, on or before
the
Closing Date, of each of the following
conditions:
|
(a) |
Deposit.
Buyer shall have placed the Deposit in Escrow as provided in Section
4.2
above;
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(b) |
Accuracy
of Representations and Warranties.
The representations and warranties of Buyer set forth in Section
6 of this
Agreement shall be true and correct as of the Closing
Date;
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(c) |
Buyer's
Performance.
Buyer shall have performed and complied with all of the agreements,
covenants, and conditions required of Buyer by this Agreement on
or before
the Closing Date;
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(d) |
No
Pending Proceeding.
No action, suit, or proceeding before any court or any governmental
body
or authority that would in any way affect the Assets or the ability
of the
parties to consummate the transactions contemplated by this Agreement
shall have been instituted or threatened on or before the Closing
Date;
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11.2.
|
Failure
to Satisfy Seller's Conditions.
Any of Seller's conditions precedent may be waived in whole or in
part by
Seller in writing at any time on or before the Closing Date. In the
event
all Seller's conditions precedent have not been waived by Seller,
or
satisfied in full on or before the Closing Date, Seller may elect
to
terminate this Agreement as provided in Section
13.
|
12.
|
POST-CLOSING
OBLIGATIONS.
Buyer
and Seller, as material inducements to each other to enter into this
Agreement and consummate the transactions contemplated in this Agreement,
covenant, promise, and agree to the following, which shall survive
the
Closing Date:
|
12.1.
|
Additional
Assurances.
Each party agrees to do all acts and things and to make, execute,
and
deliver such written instruments as shall be reasonably necessary
to carry
out the terms and provisions of this Agreement.
|
13.
|
TERMINATION.
This
Agreement may be terminated and the Agreement may be abandoned at
any time
prior to the Closing Date as set forth in this Section
(13).
|
13.1. |
Termination.
This Agreement may be terminated as follows:
|
(a)
|
By
the mutual written consent of Buyer and Seller at any time prior
to the
Closing;
|
(b)
|
By
Buyer at any time prior to the Closing as expressly provided in this
Agreement, or if any condition precedent to Buyer's obligations set
forth
in Section 10 has not been satisfied in full due to no fault of Buyer
or
breach by Buyer of this Agreement or previously waived by Seller
in
writing at or prior to the Closing;
|
(c)
|
By
Seller at any time prior to the Closing as expressly provided in
this
Agreement, or if any condition precedent to Seller's obligations
set forth
in Section 11 has not been satisfied in full due to no fault or breach
of
this Agreement by Seller or previously waived by Buyer in writing
at or
prior to the Closing; or
|
(d) |
By
either party if the Closing has not occurred due to no fault or breach
by
the terminating party on or before March 1,
2006.
|
13.2. |
Effect
of Termination.
In the event of the termination of this Agreement pursuant to the
provisions of this Section (13), this Agreement shall become void
and have
no effect, and no party shall have any liability or further obligation
to
any other party to this Agreement, except that nothing herein shall
relieve any party from liability for any breach of this
Agreement.
|
13.3. |
Remedies
Cumulative.
The remedies set forth in this Agreement are cumulative and not exclusive
of any other legal or equitable remedy otherwise available to any
party.
|
14. |
INDEMNIFICATION.
In
addition to any other agreements on the part of the parties to indemnify
each other as set forth in this Agreement, Buyer and Seller agree
to the
following indemnification
provisions.
|
14.1.
|
Seller's
Indemnification.
Seller shall defend, indemnify and hold Buyer, and Buyer's successors,
assigns, and agents, harmless from and against any and all loss,
cost,
damage, claim, liability, obligation, or expense, including, but
not
limited to, reasonable attorney fees and costs, in any way arising
from or
related to the Assets including:
|
(a)
|
Seller's
ownership or use of the Assets prior to the Closing Date;
|
(b)
|
The
failure or falsity of any representation or warranty of Seller contained
in this Agreement; or
|
(c)
|
The
failure by Seller to observe or perform any other covenant or agreement
to
be observed or performed by Seller under this
Agreement.
|
14.2.
|
Buyer's
Indemnification.
Buyer shall defend, indemnify and hold Seller, and Seller's successors,
assigns, and agents, harmless from and against any and all loss,
cost,
damage, claim, liability, obligation, or expense, including, but
not
limited to, reasonable attorney fees and costs, in any way arising
from or
related to Buyer's ownership or use of the Assets from and after
the
Closing Date.
|
14.3.
|
Notice.
If any claim is asserted against an indemnified party that would
give rise
to a claim of indemnity against the indemnifying party under the
provisions of this Section (14), the indemnified party must notify
the
indemnifying party in writing, within a reasonable time, concerning
such
claim. Upon receiving such notice, the indemnifying party shall,
at no
expense to the indemnified party, defend the claim as set forth pursuant
to the provisions of this Section
(14).
|
14.4.
|
Survival
of Indemnities.
The mutual agreements to indemnify set forth in this Section (14)
shall
survive the Closing.
|
15.
|
ADDITIONAL
DOCUMENTS.
All parties agree to cooperate fully and execute any and all supplementary
documents and to take all additional actions which may be necessary
or
appropriate to give full force and effect of this Agreement's terms.
Seller and Buyer, at any time before or after the Closing, shall execute,
acknowledge, and deliver any further assignments, conveyances, and
other
assurances, documents, and instruments of transfer reasonably requested
by
Buyer or Seller. Seller shall take any other actions consistent with
the
terms of this Agreement that may be reasonably requested by Buyer
for the
purposes of assigning, transferring, granting, conveying, and confirming
to Buyer, or reducing to possession, any and all property and assets
to be
conveyed and transferred to Buyer pursuant to the terms of this Agreement.
|
16.
|
CONSTRUCTION
OF AGREEMENT.
Each party, having reviewed and discussed this Agreement thoroughly,
agrees that any question of construction shall not be resolved by
any rule
of interpretation providing for interpretation against the drafting
party,
and that any ambiguity shall not be assumed by a court of competent
jurisdiction to be construed for or against any specific party to
this
Agreement.
|
17.
|
ARMS'-LENGTH
NEGOTIATION. This
Agreement is the product of informed negotiations between parties
of equal
bargaining power, and may involve compromises of the parties' previously
stated positions.
|
17.1.
|
THE
PARTIES WARRANT THAT THEY HAVE READ THIS ENTIRE AGREEMENT, UNDERSTAND
ALL
OF ITS TERMS AND PROVISIONS, AND HAVE HAD OR WAIVED THE ADVICE OF
INDEPENDENT COUNSEL AND SIGNED THE SAME VOLUNTARILY WITH FULL KNOWLEDGE
OF
ITS LEGAL SIGNIFICANCE AND WITH THE INTENT TO BE FULLY AND LEGALLY
BOUND
BY ITS TERMS.
|
18.
|
WAIVER.
No waiver of any provision of this Agreement, or the Schedules hereto,
or
of any rights or obligations of any party to them, shall be effective,
except pursuant to a written instrument signed by the party or parties
waiving compliance. Any such waiver shall be effective only in the
specific instance and for the specific purpose so stated in such
a written
document. The failure of any party to this Agreement to seek redress
for
violation, or to insist on strict performance, of any covenant or
condition of this Agreement, or the Schedules hereto, shall not prevent
a
subsequent act which would have constituted a violation from having
the
effect of an original violation.
|
19.
|
SUCCESSORS This
Agreement and the Schedules hereto shall be binding upon and inure
to the
benefit of all successors and assigns of the parties, and likewise
extend
to all officers, directors, shareholders, agents, employees, and
attorneys
of each undersigned party.
|
19.1.
|
Assignment.
The
respective rights and obligations of the parties to this Agreement
may not
be assigned by any party without the prior written consent of the
other,
which consent may not be unreasonably withheld or delayed.
|
20.
|
JURISDICTION
AND VENUE.
The laws of the State of California shall govern the interpretation
and
application of this Agreement. In the event that any suit is brought
arising out of or in connection with this Agreement, the parties
irrevocably consent to the jurisdiction of, and agree that sole venue
will
lie in, the Superior Court of El Dorado County, California, or the
United
States Federal Court for the Eastern District of California. The
parties
further waive any objection to the venue of such a proceeding, and
covenant and agree not to challenge the enforceability of this Agreement
on that or any other basis.
|
21.
|
NOTICE.
All notices and communication in connection with this Agreement shall
be
effective on the earlier of the date when received or on the third
day
following mailing by certified or registered mail, return receipt
requested and delivered to the following
addresses:
|
Seller: Sierra
Precision Services LLC, Attention: Xxxxx Xxxxxxx - Managing Member, 00
Xxxxxxxxxx Xxxxxxx; Xxxxxx Xxxx, Xxxxxx 00000 XXX.
Buyer: BluePoint
Energy, Inc.,
Attention: Xxx Xxxxxxxx - Chief Executive Officer, 0000 Xxxxxxx Xxxx, Xxxxx
0,
Xx Xxxxxx Xxxxx, Xxxxxxxxxx 00000 XXX.
22.
|
INTEGRATION.
This Agreement and the Schedules hereto constitute the entire written
expression of the agreement between the parties with respect to the
subject matter hereof, and supersede all prior discussions, agreements,
and understandings, whether written or oral, among the parties with
respect hereto. Each party acknowledges that (s)he (it) is not entering
into this Agreement on the basis of any representations not contained
within this document.
|
22.1.
|
Modification.
This Agreement may only be modified, amended, or otherwise altered
by a
written instrument mutually signed by all parties.
|
23.
|
SEVERABILITY.
If any provision or clause of this Agreement is held unenforceable
by a
court of competent jurisdiction, such a finding shall not impair
the
validity or enforceability of this Agreement's remaining
provisions.
|
24.
|
AUTHORITY.
All parties warrant and represent that they are authorized to enter
into
this Agreement on their own behalf and on behalf of their respective
directors, officers, employees, agents, current or former subsidiaries,
divisions, affiliates, predecessors-in-interest, successors-in-interest,
assigns, and all persons or entities acting through or under any
of them,
and that they have the legal authority to bind such persons and entities
to this Agreement's terms. The parties also represent and warrant
that the
person whose signature is affixed to this document on behalf of each
respective party is authorized to sign this Agreement on behalf of
the
respective party and has the legal authority to so bind that
party.
|
25.
|
COUNTERPARTS.
This Agreement may be executed in several counterparts, each of which
shall be deemed an original, but all of which shall constitute one
and the
same instrument.
|
26. |
BREACH.
The prevailing party in any action or proceeding to enforce the terms,
covenants or conditions of this Agreement, or to confirm or enforce
any
judgment entered pursuant thereto, or to procure an adjudication
or
determination of the rights of the parties, shall be entitled to
recover
and be awarded its reasonable attorney fees and costs incurred in
connection with such proceedings or efforts. This shall apply to
any
arbitration, trial, appeal, bankruptcy, or any other
proceeding.
|
27.
|
TIME.
Time shall be of the essence with respect to the obligations of the
parties to this Agreement. Absent express language to the contrary,
the
term "days" as used in this Agreement shall mean calendar
days.
|
28.
|
HEADINGS,
GENDER, AND PLURALITY.
All section headings contained in this Agreement are for convenience
of
reference only, do not form a part of this Agreement, and shall not
affect
in any way the meaning or interpretation of this Agreement. Wherever
from
the context it appears appropriate, each term stated in either the
singular or the plural shall include the singular and the plural,
and the
pronouns stated in either the masculine, feminine, or the neuter
gender
shall include the masculine, the feminine and the
neuter.
|
29.
|
JOINT
REPRESENTATION.
Buyer and Seller have requested XXXXXXXX & ASSOCIATES PC ("Counsel"),
whose attorneys drafted this Agreement, to jointly represent the
parties
with respect to the drafting of this Agreement. After consultation
and
full disclosure by Counsel, the parties have executed a written conflict
waiver regarding Counsel's joint representation, a copy of which
is
attached and incorporated herein as Exhibit "E". Notwithstanding
the
foregoing:
|
THE
PARTIES WARRANT THAT THEY HAVE READ THIS ENTIRE AGREEMENT, UNDERSTAND ALL OF
ITS
TERMS AND PROVISIONS, AND HAVE HAD OR WAIVED THE ADVICE OF INDEPENDENT COUNSEL
AND SIGNED THE SAME VOLUNTARILY WITH FULL KNOWLEDGE OF ITS LEGAL SIGNIFICANCE
AND WITH THE INTENT TO BE FULLY AND LEGALLY BOUND BY ITS TERMS.
IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date and
year first above written.
SELLER
|
BUYER
|
||
By:
|
/s/ Xxxxx
Xxxxxxx
|
By:
|
/s/ Xxx
Xxxxxxxx
|
Xxxxx
Xxxxxxx - Managing Member
|
Xxx
Xxxxxxxx - Chief Executive Officer
|
||
Sierra
Precision Services LLC
|
Chapeau,
Inc. d/b/a BluePoint Energy, Inc.
|
SCHEDULE
"A"
(Assets)
Sierra
Precision Service Asset List.
|
||
All
Sierra Precision Service computer related hardware and software,
including, but not limited to all monitors, operating systems,
licenses,
programs, data files, code, and accessories are included as
part of the
asset inventory.
|
||
|
|
|
|
|
|
Description
|
Model
Number
|
Serial
Number
|
Lifting
Equipment
|
|
|
JBC
Telescoping fork lift
|
530B
HL
|
530B4584114
|
Royal
18,000 Riggers Fork Lift
|
T180B
|
1088l191
|
Hov-Air
Equipment Mover 8000lb
|
TR4
000
|
0000000
|
Man
Lift Cage with fall protection
|
NA
|
NA
|
Multi-ton
Electric Lift
|
SM20-130
|
0894677u02140
|
SpanCo
Gantry Xxxxx 5 ton
|
NA
|
NA
|
Lift
Rite Pallet Xxxx 8000lb
|
NA
|
NA
|
Crown
Electric fork Lift
|
30500
|
20
MT
|
4
Mohawk Lifts Sychronized
|
Mp184724f
|
2453
|
Shuttle
Lift 33000 lb travel crane
|
240799
|
SL15
|
SpanCo
Jib Crane
|
2312400
|
10012121414
|
Vestil
Loading dock leveler
|
FM
2072
|
NA
|
|
|
|
Macnine
Shop
|
|
|
Accurpress
250 ton 14 ft press brake
|
7025014
|
7481
|
Accurpress
60 ton 6ft press brake
|
7606
|
7482
|
Accurshear
1/4 x 14ft
|
625014
|
4502
|
Accurpress
tooling
|
N/A
|
N/A
|
Amada
turret press / Plasma with 6 M controller
|
Coma
567
|
67599
|
Amada
Dust collector
|
4-168
|
502209
|
Metalsoft
turret software
|
N/A
|
N/A
|
Turret
tooling
|
N/A
|
N/A
|
Amada
tooling grinder
|
N/A
|
N/A
|
Xxxxxxxxx
surface grinder
|
FSG
2A618
|
N/A
|
Vertical
Mill
|
|
|
6"
Swing Metal Lathe
|
|
|
Vertical
mill and lathe tooling
|
|
|
Xxxxx
insertion hardware press
|
824
|
8PL
00575
|
Xxxxxxxxx
Xxxx air compressor
|
SSR
EP30SE
|
JE7804U02204
|
Xxxxxxxxx
Xxxx Air Dryer
|
TSI
50
|
DR10013030
|
Trailer
100 cfm air compressor
|
|
|
Installed
Jib Crane 1 ton & electric chain hoist
|
N/A
|
N/A
|
Installed
Jib crane 2 ton & electric chain hoist
|
N/A
|
N/A
|
Xxxxxx
Plasma Cutter Spectrom
|
701
|
2
Xx
|
Xxxxx
notcher
|
CS
220
|
N/A
|
Air
Compressor
|
Xxxxxxx-Denver
|
|
Lors
spot welder 75kva
|
175AP
|
9772199
|
Standard
spot welder 75kva
|
AR3-36-75
|
2383
|
Hyd
mech S20A horiz band saw
|
S
20A
|
11087199
|
Xxxxxx
CP302 Mig wire feed welder
|
CP302
|
LC292526
|
Xxxxxx
CP302 Mig wire feed welder
|
CP302
|
LC292515
|
Xxxxxx
Tig welder
|
350
LX
|
348538
|
Xxxxxx
Tig welder
|
Di-Arc
250
|
JF866798
|
Xxxxxx
Delta weld 400 mig wire feed welder
|
450
|
JE771980
|
Welding
wire inventory
|
|
|
Air
Flow Systems air cleaner
|
T-140
|
|
Portable
welding smoke & air vacuum
|
|
|
Welding
tables
|
N/A
|
N/A
|
Welding
turntable
|
|
|
Rotating
welding positioners and fixtures
|
|
|
Gas
welding equipment
|
|
|
Tumble
deburr barrel
|
N/A
|
N/A
|
Barrel
deburr
|
|
|
Xxxx
Xxxx belt abrater
|
760
|
N/A
|
Cabinet
sand blaster
|
|
|
Xxxx
60 inch 14ga roller
|
Model
B
|
N/A
|
Cat
5000 lb forklift
|
GP25K
|
AT17B-85637
|
Panel
Saw
|
H-5C
|
N/A
|
Slip
Roller
|
SR-2024N
|
205006
|
Wilton
Disc grinder
|
4400A
|
12120028
|
Hypertherm
plasma cutter
|
|
|
Xxxxxx
magnetic base drill
|
|
|
Misc
portable power tools
|
|
|
Misc
work tables
|
|
|
Xxxxxxxx
Dual head drill press
|
|
|
Floor
drill press
|
|
|
Compaq
work stations 3x
|
|
|
E
size copier
|
|
|
E
size plotter
|
|
|
Ricoh
laser network printer
|
|
|
HP
7410 copier / fax
|
|
|
Pallet
racking 5 sets 14ft
|
|
|
Cantillever
racking 14ft ht
|
|
|
Porta
cool blowers 6 ea
|
|
|
Sound
meter
|
|
|
1987
Ford 1 ton stake bed truck
|
|
|
Digital
scales 6x
|
|
|
Ceiling
sound dampening blankets 130 ea
|
|
|
Inventory
metal
|
|
|
Inventory
fasteners and hardware
|
|
|
|
|
|
Tools
and Equipment
|
|
|
Trancell
Xxxxxxxxxx Xxxxx Xxxxx
|
X0-000
|
0XX00
|
Toledo
Scale
|
4182A
|
7721790.7XX
|
Xxxxxxxx
Xxxx Air Compressor
|
SSREP15
|
1x4677u02140
|
Air
Dryer Pneumatech
|
AD50
|
0202T136937ST
|
Pallet
Racking 180'
|
000
|
0000000
|
Ridgid
Pipe Threader
|
1224
|
EB13820F98
|
Grrenlee
Pipe Xxxxxx
|
4"
|
XX
|
Xxxxx
Flamabel Liquids Cabnet
|
|
|
Tyrn
Pro Horizonal Saw
|
BS
250
|
204066
|
Saw
Accessories
|
|
|
Dayton
18" Verticle Ban Saw
|
4TK02
|
9901
|
Xxxxxxx
Iron Worker 55 Ton
|
55-4
|
NA
|
Wilton
Square Wheel Sander
|
72"
|
25876
|
Grove
Lock
|
MOD
10-1007
|
G1003004
|
Ridgid
Pipe Stands 10 Each
|
|
|
Ridgid
Roller Stands 2 each
|
|
|
Xxxxxx
450
|
MD450
|
Je771980
|
Xxxxxx
Matic Welder 250
|
903603
|
KK265167
|
Dayton
Drill Press 20"
|
6W281D
|
NA
|
Spraytech
Airlless sprayer
|
SW419
|
NA
|
Life
Pak Energency Difibulator
|
|
|
Dayton
Battery Changers 3 each
|
|
|
Welding
Bechnes 3 each
|
Fabricated
|
|
Tool
Boxes 5 Each
|
|
|
Pallet
Racking 180'
|
14x9'
|
|
Shelving
Units 10 each
|
|
|
Lifing
Slings Misc
|
|
|
Misc
Power tools
|
|
|
Wrok
Becnches 8 each
|
|
|
Bebch
Vices 4 each
|
|
|
Ridgid
258 Pipe Cutter
|
|
|
Xxxxxx
Xxxxx Set
|
|
|
Xxxxxxxx
Hydrolic Hole Punch Set
|
|
|
Pipe
Wrenches
|
|
|
Retractabel
Air Reels 5 each
|
|
|
Wedling
Curtains
|
|
|
Misc
Carts
|
|
|
Banding
Dispensor
|
|
|
Robinair
CFC recovery
|
|
|
Mag
Drill
|
|
|
Misc
Cutters
|
|
|
Ridgid
Pipe Vice 2 each
|
|
|
Goodway
Tube Bundle Cleaner
|
na
|
na
|
Insturments
Multi Meter, Flow Meter etc.
|
|
|
Xxxxxx
Spectrum 701
|
701
|
kk255962
|
Offcie
and Administrative Equipment
|
|
|
5
Work Stations
|
|
|
Copier/FAX
|
|
|
Conference
Furnature
|
|
|
Digital
Projector
|
|
|
Break
room Equipment Coffee,Refrig,Tablle chairs
|
|
|
Phone
system
|
|
|
Computers
|
|
|
Office
Suplies On Hand
|
|
|
Laminator
|
|
|
Xxxxx
Label Machine and Software
|
|
|
Xxxxx
Wire Label Machines 2 each
|
|
|
Included
all computers, hard drives, installed files and associated
software
|
|
|
Zebra
Label Maker Z4M+
|
|
|
Inventory
|
|
|
Steel
Skids 6
|
|
|
2
30 to Thermax Chillers
|
LT
30
|
|
Pipe
Valve Fittings
|
|
|
Electrical
Supplies
|
|
|
Protection
Relay Equipment
|
3410
|
|
2
each sound atenuated enclosures
|
|
NA
|
Hardware
|
|
|
Test
Cell Cables
|
|
|
Gas
Regulators 4 each
|
|
|
SST
Hoses 35
|
|
|
Electronics
Regulators, Tranducers, Cts
|
|
|
24
Pumps Various Sizes 5 to 40 HP
|
|
|
Heat
echangers Alpha Laval 7 each
|
|
NA
|
Engine
Related Parts Mixers/Hump Hoses Etc
|
|
|
Generators
140 through 400KW Marathon 16 total
|
|
|
Lithum
Bromide Refrigerant 10each 55 Gallon
|
|
|
Expandables
Welding Supplies Abrasives Etc
|
|
|
15
Each Generators
|
|
|
SCHEDULE
"B"
(Assumed
Liabilities)
Buyer
shall assume no obligations or liabilities whatsoever pursuant to or as a result
of the transactions herein.
SCHEDULE
"C"
(Xxxx
of Sale)
For
good
and valuable consideration, receipt of which is hereby acknowledged, Sierra
Precision Systems LLC, a Nevada limited liability company ("Seller") has sold
and assigned, and by this Xxxx of Sale does hereby grant, sell, assign, and
transfer to Chapeau, Inc., a Utah corporation doing business as BluePoint
Energy, Inc. ("Buyer") all of the following assets related to Seller's business
located at 00
Xxxxxxxxxx Xxxxxxx; Xxxxx Xxxxx, Xxxxxx 00000-0000 XXX:
(a)
|
All
of the equipment, inventories, intangible property, and other assets
described on Exhibit "A" attached to this Xxxx of
Sale.
|
Sellers
hereby covenant with and warrant to Buyer that Sellers are the lawful owners
and
have good and marketable title to all of the items being sold, transferred,
and
assigned to Buyer, and that Sellers' interest in all of those items is held
free
and clear of any mortgage, lien, or other encumbrance and is free from the
rightful claims of others.
Dated:
_____________________,
2006
|
_____________________________
|
Xxxxx
Xxxxxxx - Managing Member
|
|
Sierra
Precision Services LLC
|
EXHIBIT
"A"
(Settlement
and Redemption Agreement)
EXHIBIT
"B"
(Promissory
Note)
PROMISSORY
NOTE
(Fixed
Rate, Installment Payments)
$300,000.00
|
Place:
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El
Dorado Hills, California
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Date:
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January
27, 2006
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FOR
VALUE
RECEIVED, CHAPEAU, INC., a Utah Corporation doing business as BLUEPOINT ENERGY,
INC., ("Maker"), hereby promises to pay to SIERRA PRECISION SERVICES LLC, a
Nevada limited liability company, ("Holder"), or order, at El Dorado Hills,
Cali-fornia, the sum of THREE HUNDRED THOUSAND AND NO/100 DOLLARS ($300,000.00)
("Principal"), plus interest at the rate of zero percent (0.00%) per
annum
from the
date hereof.
1.
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PAYMENT.
Maker shall pay the Principal to Holder in full by January 28, 2009
("Maturation Date"). Any unpaid Principal ("Unpaid Principal") at
the
Maturation Date shall be immediately due and
payable.
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2.
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INTEREST
ON UNPAID PRINCIPAL.
Unpaid Principal shall bear interest from the Maturation Date until
paid
at the rate of ten percent (10.00%) per
annum.
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3.
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ACCELERATION.
Should Maker breach any condition or covenant of this Note, the whole
sum
of principal shall, at the election of Holder, become immediately
due and
payable.
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4.
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ATTORNEYS'
FEES.
Whether or not suit is filed, Maker promises to pay all costs and
reasonable attorneys' fees, costs of collection, and expenses incurred
by
Holder in connection with the enforcement or collection of this Note.
Maker further agrees to pay all costs of suit, including reasonable
attorneys' fees, in any action to enforce payment of this Note or
any part
of it. In the event any action is taken to interpret or enforce this
Note,
includ-ing litigation or arbitration, the prevailing party shall
be
entitled to recover from the non-prevailing party its reasonable
expenses
and costs, includ-ing reasonable attorneys' fees and post-judgment
or
post-decision enforcement, collection, and appeal expenses. The term
"non-pre-vailing party" shall include a party filing a voluntary
dismissal
of an action.
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5.
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SECURITY.
This note is secured by (check one or
more):
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_X
_
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unsecured;
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____
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a
security interest in all personal property assets of the Maker, including,
without limitation, all assets of the Maker's business whether now
owned
or hereafter acquired, and the proceeds and products therefrom, including,
without limitation, cash, accounts receivable, inventory, supplies,
furniture, furnishings, fixtures, equipment, vehicles, tools, livestock,
and all other tangible and intangible assets pursuant to a Security
Agreement of even date executed by Maker in favor of Holder and the
filing
of a Form UCC-1 Financing Statement with the California Secretary
of
State; and / or
|
____
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a
Deed of Trust of even date describing certain real property owned
by Maker
commonly known as
__________________________.
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6.
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ADDITIONAL
DOCUMENTS.
All parties agree to cooperate fully and execute any and all supplementary
documents and to take all additional actions, which may be necessary
or
appropriate to give full force and effect to this Note's
terms.
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7.
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CONSTRUCTION.
Each party, having reviewed and discussed this Note thoroughly, agrees
that any question of construction shall not be resolved by any rule
of
interpretation providing for interpretation against the drafting
party,
and that any ambiguity shall not be assumed by a court of competent
jurisdiction to be construed for or against any specific party to
this
Note.
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8.
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ARMS-LENGTH
NEGOTIATION.
This Note forms the basis for significant legal rights and obligations
of
the parties executing it. Each party executing this Note acknowledges
by
such execution that (s)he (it) has read this Note, been afforded
the
opportunity to seek legal counsel, and has either obtained separate
legal
representation or waived her (his) (its) right to do
so.
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9.
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NO
WAIVER.
No waiver of any provision of this Note, or of any rights or obligations
of any party to it, shall be effective, except pursuant to a written
instrument signed by the party or parties waiving compliance. Any
such
waiver shall be effective only in the specific instance and for the
specific purpose so stated in such a writing. The failure of any
party to
this Note to seek redress for violation, or to insist on strict
performance, of any covenant or condition of this Note shall not
prevent a
subsequent act which would have constituted a violation from having
the
effect of an original violation.
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10.
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SUCCESSORS.
This Note shall be binding upon and inure to the benefit of all successors
and assigns of the parties, and likewise extends to all officers,
directors, shareholders, agents, employees, and attorneys of each
undersigned party.
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11.
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JURISDICTION
AND VENUE.
The laws of the State of California shall govern the interpretation
and
application of this Note. In the event that any suit is brought arising
out of or in connection with this Note, the parties irrevocably consent
to
the jurisdiction of, and agree that sole venue will lie in, the Superior
Court of El Dorado County, California, or the United States District
Court
for the Eastern District of California. The parties further waive
any
objection to the venue of such a proceeding, and covenant and agree
not to
challenge the enforceability of this Note on that or any other
basis.
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12.
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NOTICES.
All notices and communication in connection with this Note shall
be mailed
or otherwise delivered to the following
addresses:
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Holder:
Sierra Precision Services LLC, Attention: Xxxxx Xxxxxxx - Managing Member,
00
Xxxxxxxxxx Xxxxxxx; Xxxxxx Xxxx, Xxxxxx 00000 XXX.
Maker:
BluePoint Energy, Inc., Attention: Xxx Xxxxxxxx - Chief Executive Officer,
0000
Xxxxxxx Xxxx, Xxxxx 0, Xx Xxxxxx Xxxxx, Xxxxxxxxxx 00000 XXX.
13.
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INTEGRATION.
This Note constitutes the entire written expression between the parties
with respect to the subject matter hereof, and supersedes all prior
discussions, agreements, and understandings, whether written or oral,
among the parties with respect hereto.
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13.1.
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Modification.
This Note may only be modified, amended, or otherwise altered by
a written
instrument mutually signed by all parties.
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14.
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SEVERABILITY.
If any provision or clause of this Note is held unenforceable by
a court
of competent jurisdiction, such a finding shall not impair the validity
or
enforceability of this Note's remaining
provisions.
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15.
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AUTHORITY.
Maker warrants and represents that it is authorized to execute this
Note
on its own behalf and on behalf of its respective directors, officers,
employees, agents, current or former subsidiaries, divisions, affiliates,
predecessors-in-interest, successors-in-interest, assigns, and all
persons
or entities acting through or under any of them, and that they have
the
legal authority to bind such persons and entities to this Note's
terms.
Maker also represents and warrants that the person whose signature
is
affixed to this document on behalf of Maker is authorized to sign
this
Note on Maker's behalf and has the legal authority to so bind
Maker.
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IN
WITNESS WHEREOF, the undersigned has executed this Note as of the date and
year
first above written.
MAKER:
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/s/ Xxx X.
Xxxxxxxx
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Xxx
Xxxxxxxx - Chief Executive Officer
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Chapeau,
Inc. d/b/a BluePoint Energy, Inc.
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ACKNOWLEDGEMENT
STATE
OF CALIFORNIA
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)
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ss.
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County
of El Dorado
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)
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On
this
30th day of January, 2006, before me the undersigned, a Notary Public duly
licensed as such in the State of California, personally appeared Xxx Xxxxxxxx,
known or proven to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is (are) subscribed to the within and foregoing instrument, and
acknowledged to me that (s)he (they) executed the same in her (his) (their)
authorized capacity, and that by her (his) (their) signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
WITNESS,
THEREFORE, my hand and official seal on the day and year last above
written.
/s/ Okay
Onwuli
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NOTARY
PUBLIC IN AND FOR THE STATE OF CALIFORNIA
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Residing
at: El Dorado County,
California
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Printed
name: Okay
Onwuli
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My
commission expires: Dec. 22,
2009
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EXHIBIT
"C"
(Certificate
of Good Standing)
EXHIBIT
"D"
(Unanimous
Consent)
EXHIBIT
"E"
(Conflict
Waiver)