sample asset buy sell agreement

7/24/2019 Sample Asset Buy Sell Agreement

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dated as of March 5, 2008AGREEMENT FOR THE PURCHASE AND SAE OF ASSETS

!et"ee#

$ANE DOE CORPORAT%ON

a#d

$OHN DOE %NCORPORATED


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TABLE OF CONTENTS

Sect&o# Pa'e

() Rec&ta*s (

2) P+rchase Of Assets (

) P+rchase Pr&ce )

-) Re.rese#tat&o#s a#d /arra#t&es of the Se**er) 8

5) Re.rese#tat&o#s a#d /arra#t&es ofthe P+rchaser )(

) C*os' Co#d&t&o#s (1

1) Act&o#s to !e Tae# S+!se3+e#t to C*os' )(4

8) A'reee#ts Not to Co.ete, E.*o6e#t A'reee#t a#d ease 20

4) The C*os' 20

(0) Acco+#ts Rece&7a!*e 2(

(() E.*o6ees )22

(2) Rete#t&o# of Records )22

() S+r7&7a* of/Ta#t&es 2

(-) %#de#&f&cat&o# 2

(5) Sett*ee#t ofTh&rd P&6 C*a&s 2

() E.e#ses ofthe P&&es 24

(1) Cha#'e of Nae 24

(8) M&sce**a#eo+s 24


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AGREEMENT FOR THE PURCHASE AND SAE OF ASSETS


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TH%S AGREEMENT, dated as of the 5th

da6 ofMarch, 2008, !et"ee# $ANE DOE

CORPORAT%ON, a North Caro*a cor.orat&o# 9the P+rchaser:, a#d $OHN DOE

%NCORPORATED, a ;&r'&a cor.orat&o# 9the Se**er:)

() Rec&ta*s) The Se**er &s e#'a'ed the "&d'et s+..*6 !+sess at the *ocat&o#s set fO*&h o# Sched+*e

( attached hereto 9the Pre&ses:) The P+rchaser "&shes to .+rchase s+ch !+sess, c*+d'

s+!sta#t&a**6a** oftheassets ofs+ch!+sess9ece.ttheRetaedAssets asdefed!e*o": a#d &ts'ood"&**, a#d the Se**er "&shes to se** s+ch !+sess to the P+rchaser) Accord'*6, the .art&es a'reeas fo**o"s)

2) P+rchase OfAssets)

2)() S+!ed !6 the Se**er .r&or to the C*os' Date?

2)()2) a** of &ts f&ed assets &de#t&f&ed o# Sched+*e 2)()2 attached hereto 9the F&ed

Assets:?

2)()) a** *easeho*d &.ro7ee#ts at the R&cho#d *ocat&o#?

2)()-) a** of &ts acco+#ts rece&7a!*e that are #ot Retaed Assets 9the Acco+#ts

Rece&7a!*e:?

2)()5) a** of &ts .re.a&d a#d other &tes *&sted Sched+*e 2)()- attached hereto that

are +sea!*e !6 the P+rchaser 9the Pre.a&ds:?

2)()) a** of&ts 'ood"&**, off&ce a#d "areho+se s+..*&es, cata*o's, "e!s&te a#d doa#ae a#d re*ated r&'hts, co.6r&'hts a#d other r&'hts the @G+&de to


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/&d'ets,@ r&'hts to ro6a*t&es ofa#6 d a#d #at+re, .aca'' ater&a*s, c+stoer*&sts, 7e#dor f&*es, .erso##e* records, te*e.ho#e #+!ers, cred&t f&*es, fors a#dtrade #aes, c*+d' the #ae $OHN DOE %NCORPORATED, a#d the other#aes, &f a#6, *&sted o# Sched+*e 2)()5 attached hereto? a#d


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2)()1) a** of&ts records re*at' to the Assets a#d to .+rchases a#d sa*es of%#7e#tor6ade !6 the Se**er a#d a** records re*at' to *&a!&*&t&es ass+ed or c+rred !6 theP+rchaser .+rs+a#t to th&s A'reee#t)

2)2) The Se**er "&** reta the fo**o"' assets 9the Retaed Assets:= 9&: a** acco+#ts rece&7a!*e&de#t&f&ed o# Sched+*e 2)2 attached hereto? 9&&: a** rea* estate a#d &.ro7ee#ts 9s+!


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.a6 the Ass+ed Ca.&ta* ease O!*&'at&o#s a#d the Ass+ed Accr+a*s) The oa# O!*&'at&o#s


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"&** !e sat&sf&ed at the Se**erBs st*Uct&o# .+rs+a#t to Sect&o# ) !e*o")

2)-) ECEPT FOR THE ASSUMED CAP%TA EASE O%GAT%ONS AND THE ASSUMEDACCRUAS, THE PURCHASER %S NOT ASSUM%NG AN OF THE %A%%T%ES ORO%GAT%ONS OF THE SEER)

2)5) U.o#sat&sfact&o#ofa**oftheco#d&t&o#shere,theP+rchaser"&**!e deeed to ha7e .+rchased the Assetsa#d ass+ed the *&a!&*&t&es set forth Sect&o# 2)- a!o7e as ofthec*oseof!+sesso#No7e!er0,20019theEffect&7eT&e:) A** ofthecoea#d e.e#ses attr&!+ta!*e to the Assets.r&or to the Effect&7e T&e a#d to the Retaed Assets sha** !e*o#' to a#d !e the res.o#s&!&*&t6 oftheSe**er) A** ofthe coe a#d e.e#ses attr&!+ta!*e to the Assets after the Effect&7e T&e sha** !e*o#' toa#d !e the res.o#s&!&*&t6 ofthe P+rchaser)

) P+rchase Pr&ce)

)() The .+rchase .r&ce for the Assets sha** !e (,500,000 +s 9a: the ao+#t ofthe Ass+ed Ca.&ta*ease O!*&'at&o#s, a#d 9!: the 'reater of9&: the ao+#t 9&fa#6: !6 "h&ch the Se**erBs Net Asset ;a*+e o#the C*os' Date &s *ess tha# 8,45,000 a#d 9&&: the ao+#t 9&f a#6: !6 "h&ch the Se**erBs /or'

Ca.&ta* o# the C*os' Date &s *ess tha# 8,(02,000) S+ch .+rchase .r&ce sha** !e a**ocated accorda#ce"&th Sched+*e )( attached hereto a#d .a&d as .ro7&ded !e*o") S+ch a**ocat&o# sha** !e co.*eted a#dcor.orated here o# the C*os' Date 9s+!


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%D #+!er &s


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Se**erBs federa* ta %D #+!er &s


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%# the e7e#t th&s A'reee#t &s ass&'#ed !6 P+rchaser or Se**er to .erso#s or e#t&t&es aff&*&ated "&thP+rchaser or Se**er, the federa* ta %D #+!er of the ass&'#ee sha** !e .ro7&ded !6 the ass&'#or)


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)2) The Se**erBs @Net Asset ;a*+e@ sha** !e ca*c+*ated !6= 9&: deter' as ofthe C*os' Date thes+ of9A: the !oo 7a*+e of the Acco+#ts Rece&7a!*e 9#et ofa#6 reser7e for do+!tf+* acco+#ts:, 9:the Se**erBs cost for the +a*&f&ed %#7e#tor6 9as defed !e*o": a#d the 7a*+e ofother e#tor6dete*ed as .ro7&ded !e*o", 9C: the #et de.rec&ated !oo 7a*+e of the F&ed Assets, a** detered accorda#ce "&th 'e#era**6 acce.ted acco+#t' .rc&.*es accorda#ce "&th .ast .ract&ce a#d 9D:the 7a*+e ofthe Pre.a&ds as set forth Sched+*e 2)()-? a#d 9&&: s+!tract' therefro the ao+#t ofthe Ass+ed Accr+a*s) @/or' Ca.&ta*@ sha** !e the s+ ofthe Se**erBs %#7e#tor6, .*+s the Acco+#tsRece&7a!*e, .*+s the Pre.a&ds, +s the Ass+ed Ca.&ta* ease O!*&'at&o#s a#d the Ass+edAccr+a*s dete*ed as of the C*os' Date accorda#ce "&th the ethodo*o'6 a..*&ed deter' Net Asset ;a*+e)

)) The .&&es ha7e est&ated that the ao+#t of the Ass+ed Ca.&ta* ease O!*&'at&o#s &s 0, theao+#t of the Ass+ed Accr+a*s &s ,a#d the Se**erBs Net Asset ;a*+e as of the C*os' Date &s O#th&s !as&s, the est&ated .+rchase .*&ce 9the Est&ated P+rchase Pr&ce: &s ) The P+rchaser sha** .a6to, or for the acco+#t of, the Se**er o# the C*os' Date a# ao+#t e3+a* to the Est&ated P+rchasePr&ce +s the Escro" Ao+#t 9the C*os' Date Pa6e#t:) The P+rchaser sha** .a6 the C*os'Date Pa6e#t !6 "&re tra#sfer .+rs+a#t to the "&r' stt+ct&o#s set fO*&h Sched+*e ) attachedhereto, "h&ch c*+des .a6e#t of the ao+#t des&'#ated Sched+*e 2)) as s+ff&c&e#t to sat&sf6the


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oa# O!*&'at&o#s 9the Pa6off Ao+#t:) The Escro" Ao+#t &s (,50,000, "h&ch sha** !e


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a..*&ed or .a&d .+rs+a#t to the .roced+res .ro7&ded !e*o", a#d sha** !e ataed a#d d&str&!+ted !6The a#, as escro" a'e#t 9the Escro" A'e#t:, accorda#ce "&th the Escro" A'reee#t the forof Sched+*e ))2 attached hereto 9the Escro" A'reee#t:) The P+rchaser "&** de*&7er the Escro"Ao+#t !6 "&re tra#sfer to the acco+#t des&'#ated !6 the Escro" A'e#t for s+ch .+r.ose .+rs+a#t tothe "&r' str+ct&o#s set fO*&h Sched+*e )) attached hereto)

)-) The 7a*+e ofthe %#7e#tor6 &s !e' dete##ed !6 a .h6s&ca* e#tor6 "h&ch has !ee# co#d+cted !6

the P+rchaser a#d the Se**er a#d has the# !ee# ad


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for a#d s+!sta#ce reaso#a!*6 sat&sfactor6 to the P+rchaser 9the Sched+*e ofEte#ded


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%#7e#tor6:) The P+rchaser sha** ha7e a .er&od ofte# da6s fo**o"' the date of&ts rece&.t ofthe

Sched+*e ofEte#ded %#7e#tO*6 to re7&e" &t) The P+rchaser a#d &ts ad7&sors sha** ha7e the r&'ht to

s.ect the Se**erBs records a#d "or .a.ers .rod+ced .re.ar' s+ch Sched+*e) At or !efore the e#d

of s+ch te# da6 .er&od, the P+rchaser sha** #ot&f the Se**er "r&t' s.ec&f6' reaso#a!*e deta&*

those &tes the Sched+*e ofEte#ded %#7e#tor6 "&th res.ect to "h&ch the P+rchaser d&s.+tes the

7a*+e) U.o# t&e*6 de*&7er6 !6 the P+rchaser ofs+ch #ot&ce ofo#e or ore d&s.+ted &tes, the

P+rchaser a#d the Se**er sha** atte.t to reso*7e 'ood fa&th a#6 s+ch d&s.+ted &tes) %f a#6 s+ch

d&s.+te &s #ot reso*7ed "&th 0 da6s fro the date ofde*&7er6 of s+ch #ot&ce ofd&s.+te, the

+eso*7ed d&s.+ted &tes sha** !e refe*Ted for fa* !d' reso*+t&o# to Ha** Cert&f&ed P+!*&c

Acco+#ts, P 9the Dec&s&o#Ma' Acco+#t' F&*:) %ffor a#6 reaso# Ha** Cert&f&ed P+!*&c

Acco+#ts, P &s +#a!*e to ser7e as the Dec&s&o#Ma' Acco+#t' F&r or the .&&es are +#a!*e to

e#'a'e Ha** Ce*&&f&ed P+!*&c Acco+#ta#ts, P o# sat&sfactor6 ters, the Se**er a#d the P+rchaser

sha**


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)5)


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/&th te# da6s after co.*et&o# of the %#7e#tor6 7a*+at&o# .ro7&ded for


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Sect&o# )- a!o7e, the Se**er sha** de*&7er to the P+rchaser &ts ca*c+*at&o# ofNet Asset ;a*+e

as ofthe C*os'Date the f ofa c*os' date !a*a#ce sheet for the tra#sferred Assets a#d

ass+ed *&a!&*&t&es 9the C*os' Date a*a#ce Sheet: +s' the 7a*+at&o# ethodo*o'6 descr&!ed Sect&o# )2 a!o7e) /&th 0 da6s after s+ch de*&7er6 ofthe C*os' Date a*a#ce Sheet, &t sha** !ere7&e"ed !6 the P+rchaser) %# co#d+ct' s+ch re7&e", the P+rchaser sha** ha7e access to a** recordsa#d "or' .a.ers +sed or .re.ared the .re.arat&o# ofthe C*os' Date a*a#ce Sheet) %ftheP+rchaser recoe#ds a#6 cha#'e the C*os' Date a*a#ce Sheet a#d the Se**er does #ot a'ree tos+ch cha#'e, the &tes d&sa'reee#t sha** !e referred to the Dec&s&o#Ma' Acco+#t' F&* fordeterat&o#) The detetat&o# a#d dec&s&o# ofthe Dec&s&o#Ma' Acco+#t' F&r, "h&ch sha**!e de*&7ered "&th 0 da6s after s+ch referra*, sha** !e fa* a#d !d') The fees a#d e.e#ses ofthe Dec&s&o#Ma' Acco+#t' F&* sha** !e shared e3+a**6 !et"ee# the P+rchaser a#d the Se**er)

)) The fa* .+rchase .r&ce for the Assets 9the Fa* P+rchase P*&ce: sha** !e dete*ed !ased +.o#the C*os' Date a*a#ce Sheet as fa**6 a'reed or deteted .+rs+a#t to Sect&o# )5) /&th 0da6s fo**o"' the de*&7er6 ofthe C*os' Date a*a#ce Sheet to the P+rchaser or fo**o"' thereso*+t&o# of a#6 d&s.+te "&th res.ect to the C*os' Date a*a#ce Sheet, "h&che7er &s *ater, the.art&es sha** @h+e+.@ the C*os' Date Pa6e#t to ref*ect the Fa* P+rchase Pr&ce as fo**o"s= 9a: &fthe Fa* P+rchase Pt&ce eceeds the Est&ated P+rchase Pr&ce, the P+rchaser sha** .a6 the ao+#tofthe d&ffere#ce to the Se**er a#d 9!: &fthe Fa* P+rchase Pt&ce &s *ess tha# the Est&ated P+rchasePr&ce, the Se**er sha** .a6 the ao+#t ofthe d&ffere#ce to the P+rchaser)


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)1)


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The Escro" Ao+#t sha** !ehe*d s+!


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A'reee#t) The Escro" Ao+#t, .*+s ear#'s a#d #et ofe.e#ses as .ro7&ded the Escro"A'reee#t, sha** !e d&str&!+ted to the Se**er o#e 6ear after the C*os' Date after ded+ct&o# of theao+#t of+#co**ected acco+#ts rece&7a!*e as .ro7&ded Sect&o# (0)2 !e*o" a#d a#6 other c*a&sthe P+rchaser a6 ha7e asserted .r&or to the e#d ofthe o#e6ear .er&od as .ro7&ded Sect&o# (5!e*o") %f the Escro" Ao+#t &s s+ff&c&e#t to sat&sf6 the ao+#ts d+e to the P+rchaser the seco#dse#te#ce ofth&s Sect&o# )1, the Se**er a#d the %#d&7&d+a* %#de#&tors 9defed !e*o":,


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#o othera+thor&>at&o#!e'#ecessar6? th&sA'reee#thas!ee#d+*6eec+tedo#!eha*f ofthe


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Se**er a#d co#st&t+tes a *e'a*, 7a*&d a#d !d' o!*&'at&o# ofthe Se**er? a#d #e&ther the eec+t&o#ofth&s A'reee#t #or the tra#sact&o#s .ro7&ded for, c*+d' the sa*e ofthe Assets, "&** 7&o*ate, orres+*t a !reach of, or co#st&t+te a defa+*t +#der, a#6 *a" or a#6 a'reee#t or a#6 str+e#t, order,


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festat&o#s !6 "ood daa'' .ests the Pre&ses) Ece.t as other"&se d&sc*osed Sched+*e


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-)5 attached hereto, the Se**er has .ro.er*6 ataed a#d re.a&red a** heat', a&r co#d&t&o#',.*+!' a#d e*ectr&ca* s6stes the Pre&ses a#d a** s+ch s6stes a#d other e3+&.e#t, "hethero"#ed or *eased, are o.erat' sat&sfactor&*6 a#d o.erated sat&sfactor&*6 9s+!


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r&'hts ofothers thereto a#d, to the !est of the Se**erBs #o"*ed'e, &t &s #ot fr'' s+ch r&'htsofothers)


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-)4) The Se**er has de*&7ered to the P+rchaser co.&es of&ts fa#c&a* statee#ts for the 6ears e#ded$a#+at6 (, (444 thro+'h 2008 c*+s&7e a#d fa#c&a* statee#ts for the .er&od e#ded Octo!er (,2001) Ece.t as other"&se d&sc*osed Sched+*e -)4 attached hereto, a** s+ch fa#c&a* statee#ts areco#ect a#d co.*ete, ha7e !ee# .re.ared accorda#ce "&th 'e#era**6 acce.ted acco+#t' .rc&.*esco#s&ste#t*6 a..*&ed a#d fa&r*6 ref*ect the fa#c&a* co#d&t&o# a#d res+*ts fro o.erat&o#s of the Se**erat the dates a#d for the .er&ods d&cated) The fa#c&a* records oftheSe**erade3+ate*6d&sc*osea** of&tsassetsa#d*&a!&*&t&es a#da** forat&o# #ecessar6 to ref*ect .ro.er*6 &ts fa#c&a* co#d&t&o#)

-)( O) Ece.t as othe*"&se d&sc*osed Sched+*e -)( 0 attached hereto, sce $a#+ar6 (, 2008, thereha7e !ee# #o ater&a* ad7erse cha#'es the co#d&t&o#, fa#c&a* or othe*"&se, assets, *&a!&*&t&es,.ro.ert&es, *a!or re*at&o#s, !+sess or, to the !est of Se**erBs #o"*ed'e, .ros.ects of the Se**er, othertha# the 'e#era* !+sess do"#t+ affect' the U#&ted States eco#o6 a#d the "&d'et s+..*6!+sess as a "ho*e) Sce $a#+ar6 (, 2008, there has #ot !ee# a#6 daa'e, destr+ct&o# or *oss,"hether co7ered !6 s+ra#ce or #ot, ater&a**6 a#d ad7erse*6 affect' a#6 of the .ro.ert&es or the!+sess of the Se**er? #or has there !ee# a#6 crease the co.e#sat&o# .a6a!*e !6 the Se**er to

a#6 off&cer or e.*o6ee, or a#6 crease a#6 !o#+s, s+ra#ce, .e#s&o# or other e.*o6ee !e#ef&t.*a#, .a6e#t or arra#'ee#t ade to, for or "&th a#6 s+ch off&cer or e.*o6ee, ece.t for +s+a* a#dc+stoar6 .er&od&c creases co#s&ste#t "&th the Se**erBs .ast .ract&ces) Ece.t as othe*"&se d&sc*osed Sched+*e -)(0, sce $a#+ar6 (, 2008, 9a: the Se**er has #ot so*d or other"&se d&s.osed oforco&tted to d&s.ose of


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a#6 assets other"&se tha# the ordar6 co+rse of!+sess, 9!: the Se**erBs e#tor&es ha7e


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!ee# ataed at c+stoar6 *e7e*s, 9c: there has !ee# #o ete#s&o# of the cred&t .er&ods#O*a**6 tae# fro the Se**erBs s+..*&ers a#d #o red+ct&o# the cred&t .er&ods #o##a**6

a**o"ed to the Se**erBs c+stoers a#d 9d: the Se**erBs "or' ca.&ta* has !ee# ataed at*e7e*s co#s&ste#t "&th #ora* !+sess .ract&ce)

-)(() Ece.t as other"&se d&sc*osed Sched+*e -)(( attached hereto, a** ta ret+r#s ofthe Se**er,c*+d' !+t #ot *&&ted to, ret+s ofcoe, sa*es, soc&a* sec+r&t6, .erso#a* .ro.ert6, "&thho*d'a#d +#e.*o6e#t taes, "h&ch are re3+&red to ha7e !ee# f&*ed !6 the Se**er to date, ha7e !ee# d+*6.re.ared, t&e*6 f&*ed a#d are co.*ete a#d co#ect, a#d a** taes, terest a#d .e#a*t&es sho"#thereo# or d+e co##ect&o# there"&th ha7e !ee# .a&d, &f d+e, or acc*Ued, &f#ot 6et d+e) Nodef&c&e#c6 has !ee# .ro.osed a#d #ot .a&d "&th res.ect to a#6 ta ret+ f&*ed !6 the Se**er as ofthedate hereof) A** .a6ro** taes that the Se**er &s re3+&red !6 *a" to "&thho*d ha7e !ee# "&thhe*d a#d.ro.er*6 de.os&ted)

-)(2) Ece.t as other"&se d&sc*osed Sched+*e -)(2 attached hereto, the Se**er does #ot ha7e a#6!o#+s, defe#ed co.e#sat&o#, .rof&t shar', .e#s&o#, ret&ree#t or stoc o.t&o# .*a# or a'reee#t,or a#6 other t6.e ofe.*o6ee !e#ef&t .*a# or a#6 acc*Ued o!*&'at&o# there+#der, or a#6 c+rre#t or.ros.ect&7e o!*&'at&o# for the .a6e#t ofse7era#ce .a6 to a#6 c+rre#t or forer e.*o6ee) %f a#6s+ch .*a#, a'reee#t or o!*&'at&o# &s d&sc*osed Sched+*e -)(2, the Se**er has de*&7ered to theP+rchaser co.&es ofa** doc+e#ts 'o7er#' a#6 s+ch .*a#, a'reee#t or o!*&'at&o# to'ether "&thco.&es of a** re.orts a..*&ca!*e thereto) A** acc*Ued 7acat&o# .a6 a#d s&c .a6 d+e to the Se**erBse.*o6ees &s set forth Sched+*e -)(2) Ece.t as


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d&sc*osed o# Sched+*e -)(2, the Se**er has #ot ade a#6 re.rese#tat&o#s to &ts e.*o6ees "&thres.ect to the&r e.*o6e#t after the C*os' Date)


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-)() Ece.t as d&sc*osed o# Sched+*e -)( attached hereto, the Se**er &s #ot a .art6 to a#6 e.*o6ee*eas', co**ect&7e !ar'a' a'reee#t or other *a!or +#&o# a'reee#t) The Se**er has #ot s+ffereda#6 str&es, "a*o+ts, "or sto..a'es or other ater&a* *a!or d&ff&c+*t6 "&th the *ast f&7e 6ears) TheSe**er &s #ot e#'a'ed a#6 +#fa&r *a!or .ract&ce +#der the Nat&o#a* a!or Re*at&o#s Act, as ae#ded)There &s 9a: #o +#fa&r *a!or .ract&ce co.*at .e#d' a'ast the Se**er or, to the #o"*ed'e oftheSe**er, threate#ed a'ast the Se**er, !efore the Nat&o#a* a!or Re*at&o#s oard? 9!: #o str&e, *a!ord&s.+te, s*o"do"# or sto..a'e .e#d' a'ast the Se**er or, to the #o"*ed'e ofthe Se**ers,threate#ed a'ast the Se**er? a#d 9c: #o .et&t&o# for e*ect&o#, .et&t&o# for dece*&&f&cat&o# or other +#&o#re.rese#tat&o# 3+est&o# &s .e#d' "&th res.ect to the e.*o6ees ofthe Se**er)

-)(-) Ece.t as othe*"&se d&sc*osed Sched+*e -)(- attached hereto, the Se**er &s #ot s+!


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assets) Ece.t as other"&se d&sc*osed Sched+*e -)(5, #o c+rre#t or fo##er shareho*der of


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the Se**er has a#6 e&st' c*a& a'ast the Se**er or a#6 of&ts assets)


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-)() The Se**er atas f+** force a#d effect the s+ra#ce .o*&c&es *&sted Sched+*e -)(attached hereto) There has !ee# #o defa+*t the .a6e#t of.re&+s o# a#6 s+ch .o*&c6, a#d Se**erhas #ot rece&7ed a#6 #ot&ce ofca#ce**at&o# or #o#re#e"a* ofa#6 s+ch .o*&c6 or ofa#6 c*a& forred+ct&o# ofthe co7era'e .ro7&ded there!6) Se**er has #ot red+ced the ao+#t or sco.e of co7era'e orcreased &ts ((S rete#t&o# the .ast f&7e 6ears, a#d the Se**erBs reaso#a!*e


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-)20)


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A** of the Se**erBs o.e# .+rchase orders as ofthe C*os' Date ecess of


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(0,000 are *&sted Sched+*e -)20 attached hereto)

-)2() The Se**er has f+**6 co.*&ed "&th a** *a"s, orda#ces, re'+*at&o#s a#d orders, c*+d' "&tho+t

*&&tat&o# a** >o#', safet6 a#d e#7&ro#e#ta* *a"s, orda#ces, re'+*at&o#s a#d orders, a..*&ca!*e to &ts

!+sess or .ro.ert&es a#d the .rese#t +ses !6 the Se**er of&ts .ro.ert&es, "hether *eased or o"#ed, do #ot

7&o*ate a#6 s+ch *a"s, orda#ces, re'+*at&o#s or orders) Ece.t as other"&se d&sc*osed Sched+*e -)2(

attached heret0 there &s #ot c+rre#t*6 a#d the .ast there has #ot !ee# 9&: a#6 +se, treate#t, stora'e or

d&s.osa* of a#6 ha>ardo+s s+!sta#ce 9as defed -2 U)S)C) I 40(9(-: a#d -0 C)F)R) I 02)-: or

.o**+ta#t o# a#6 ofthe Se**erBs .ro.e*&&es, "hether *eased or o"#ed or 9&&: a#6 s.&**, *eaa'e, d&schar'e or

re*ease of a#6 ha>ardo+s s+!sta#ce or ater&a* or .o**+ta#t thereo# or therefro) To the !est of Se**erBs

#o"*ed'e, a#d ece.t as d&sc*osed Sched+*e -)2( attached hereto, the Se**er has #ot .+rchased or so*d

as!estos or a#6 as!estos co#ta' ater&a*s) The Se**er &s #ot s+!


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oftheP+rchaser or&tsco+#se*,hasco#se#tedto theass&'#e#t ofs+ch*easeorothera'reee#t


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a#d #ot tae# a#6 act&o# or d&cated a#6 te#t&o# to terate s+ch *ease or other a'reee#t)

-)2) Sched+*es 2))(, 2))2 a#d 2)) to'ether set f0((h the correct a#d co.*ete *&st ofc*a&a#ts of"ho the Se**er has #ot&ce, the&r addresses for #ot&ce a#d a** ao+#ts o"' to the !6 the Se**er9the Cred&tor &st:) The Se**er ac#o"*ed'es that the P+rchaser te#ds to a7a&* &tse*f ofthe ee.t&o#a7a&*a!*e +#der Sect&o# 8)A(09:9&: ofthe U#&for Coerc&a* Code +* Sa*es, as e#acted theCoo#"ea*th of ;&r'&a) The Cred&tor &st &s co.*ete a#d co#ect a** res.ects)

-)2-) No re.rese#tat&o# or "a#a#t6 ade !6 the Se**er th&s A'reee#t, or a#6 statee#t,cert&f&cate or other ste#t f+r#&shed to the P+rchaser .+rs+a#t hereto, or co##ect&o# "&th thetra#sact&o#s co#te.*ated here!6, co#tas a#6 +#tr+e statee#t ofa ater&a* fact or o&ts to state aater&a* fact #ecessar6 to ae the statee#ts here or there #ot &s*ead')

5) Re.rese#tat&o#s a#d of the P+rchaser) The P+rchaserre.rese#ts a#d "a#a#ts to the Se**er as fo**o"s=

5)() The P+rchaser &s a cor.orat&o# d+*6 or'a#&>ed, 7a*&d*6 e&st', a#d 'ood sta#d' +#der the*a"s ofthe State ofNorth Caro*a a#d &s 3+a*&f&ed a#d 'ood sta#d' as a fore&'# cor.orat&o# theCoo#"ea*th of ;&r'&a) The P+rchaser has f+** cor.orate .o"er a#d a+th0(&t6 to eec+te, de*&7era#d .erf0(**& th&s A'reee#t, a#d do' so "&** #ot 7&o*ate a#6 .ro7&s&o# of*a" or co#tra7e#e a#6.ro7&s&o# of&ts at&&c*es ofcor.orat&o# or !6*a"s)

5)2) The eec+t&o#, de*&7er6 a#d .erf0(**&a#ce of th&s A'reee#t, a#d each of

the re*ated tra#sact&o# a'reee#ts to "h&ch P+rchaser &s a .art6, a#d the co#s+at&o# of the (


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tra#sact&o#s co#te.*ated th&s A'reee#t a#d each s+ch re*ated a'reee#t !6 the P+rchaser ha7e!ee# d+*6 a#d 7a*&d*6 a+thor&>ed !6 P+rchaserBs oard ofD&rectors) Each ofth&s A'reee#t a#d there*ated tra#sact&o# a'reee#ts, s.ec&f&ca**6 c*+d', !+t #ot *&&ted to, the *eases to !e eec+teda#d de*&7ered !6 the P+rchaser at C*os', +.o# &ts eec+t&o# a#d de*&7er6 as .ro7&ded here a#dthere, "&** co#st&t+te a *e'a*, 7a*&d a#d !d' o!*&'at&o# ofthe P+rchaser)


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5)) The eec+t&o# a#d de*&7er6 ofth&s A'reee#t !6 the P+rchaser a#d the co#s+at&o# a#ddoc+e#tat&o# ofthe tra#sact&o#s .ro7&ded for here do #ot a#d "&** #ot co#st&t+te a !reach of, ordefa+*t +#der, a#6 co&te#t, a'reee#t,


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C*os' Date a#d has !ee# at a** t&es sce &ts date of &ss+e f+** force a#deffect)


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)()) The Se**er sha** eec+te a#d de*&7er to the P+rchaser a !&** ofsa*e a#d

ass&'#e#t a#d a# ass&'#e#t a#d ass+.t&o# a'reee#t the fo##s of Sched+*es

)())( a#d )())2 attached hereto tra#sfe#' a** of the Assets)

)()-) The Se**er sha** de*&7er to the P+rchaser a** of the doc+e#ts refe*Ted to

Sect&o# 8 !e*o" d+*6 eec+ted for)

)()5) The Se**er sha** de*&7er to the P+rchaser cert&f&cates of t&t*e for the Se**erBs

otor 7eh&c*es c*+ded the F&ed Assets, d+*6 e#dorsed for tra#sfer to the

P+rchaser)

)()) The Se**er sha** de*&7er to the P+rchaser esto..e* cert&f&cates for

sat&sfactor6 to the P+rchaser a#d &ts co+#se* fro each *essor of.ro.ert6 "hose

*ease &s !e' ass+ed !6 the P+rchaser)

)()1) Each *essor ofa#6 .ro.ert6 +#der a#6 *ease a#d each other .at&6 to a#6 other

a'reee#t to !e ass+ed !6 the P+rchaser .+rs+a#t to th&s A'reee#t, "he# a#d to

the ete#t #ecessar6 the o.&o# of the P+rchaser or &ts co+#se*, sha** ha7e

co#se#ted "r&t' to the tra#sact&o#s co#te.*ated !6 th&s A'reee#t a#d s+ch

co#se#t sha** !e de*&7ered to the P+rchaser at the C*os')

)()8) As ofthe C*os', #o c&rc+sta#ce sha** e&st "h&ch a6 ater&a**6 affect or,

the reaso#a!*e


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)2))


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The P+rchaser sha** de*&7er to the Se**er a** ofthe doc+e#ts refe#Bed to Sect&o# 8 d+*6 eec+ted for, &fthe P+rchaser &s a .art6 thereto)


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)2)-) The P+rchaser sha** .a6 to the Se**er the C*os' Date Pa6e#t a#d .a6 to the!a# for the Se**erBs acco+#t the Pa6offAo+#t .+rs+a#t to Sect&o# ))

)) *fthe C*os' sha** occ+r, the# a** co#d&t&o#s .recede#t to the o!*&'at&o#s ofthe .at&&es hereto to c*osesha** !e deeed to ha7e !ee# et, ece.t as to a#6 &te co#taed a "r&tte# a'reee#t reser7' ther&'ht to .erfora#ce of s+ch co#d&t&o# .recede#t)

1) Act&o#s to !e Tae# S+!se3+e#t to C*os')

1)() The Se**er a'rees that &t "&** at a#6 t&e a#d fro t&e to t&e after the C*os' Date, +.o# re3+est

ofthe P+rchaser, do, eec+te, ac#o"*ed'e a#d de*&7er or ca+se to !e do#e, eec+ted, ac#o"*ed'ed a#dde*&7ered a** s+ch f+rther acts, deeds, ass&'#e#ts, tra#sfers, co#7e6a#ces, .o"ers ofattoe6 a#dass+ra#ces as a6 !e re3+&red for the co.*ete ass&'#', tra#sferr', 'ra#t', ass+r' a#d co#f&r'to the P+rchaser a#d to &ts s+ccessors a#d ass&'#s, a#d for a&d' a#d ass&st' o!ta' or co**ect'a#d red+c' to .ossess&o#, a#6 or a** of the Assets .+rchased .+rs+a#t to th&s A'reee#t)

1)2) The P+rchaser sha** re&!+rse the Se**er for the ca.&ta* e.e#d&t+res *&sted o# Sched+*e 1)2 attachedhereto)

1)) The Se**er &s a"are of7&s&!*e e7&de#ce ofter&te festat&o# as descr&!ed Sched+*e -)5) Se**er has

ordered te##&te s.ect&o#s for the Pre&ses to dete*e the ete#t offestat&o# a#d sha**, +.o# rece&.t

ofs+ch re.orts, ae a** s+ch re.a&rs as a6 !e #ecessar6 to C0(*Bect a#6 str+ct+ra* daa'e that a6 !e

&de#t&f&ed there)

Per *etter ofte#t, #ot to eceed 25,000) Net Assets +st a*so eceed 8,45,000, ec*+d' s+ch

ca.&ta* &tes)


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8)


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A'reee#ts Not to Co.ete, E.*o6e#t A'reee#t a#d eases)


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8)() O# the C*os' Date, the Se**er sha** de*&7er to the P+rchaser A'reee#ts Not to Co.ete thefor of Sched+*e 8)( attached hereto eec+ted !6 $a#e Doe a#d $oh# Doe a#d the P+rchaser sha**eec+te a#d de*&7er to each res.ect&7e .art6 thereto a# A'reee#t Not to Co.ete)

8)2) O# the C*os' Date, the Se**er sha** de*&7er to the P+rchaser a# E.*o6e#t A'reee#t the for of Sched+*e 8)2 eec+ted !6 $a#e Doe a#d $oh# Doe, a#d the P+rchaser sha** eec+te a#dde*&7er to each s+ch e.*o6ee a# E.*o6e#t A'reee#t)

8)) O# the C*os' Date, the Se**er sha** de*&7er to the P+rchaser, a#d the P+rchaser sha** de*&7er tothe Se**er, the d+*6 eec+ted *eases the for of Sched+*e 8))( a#d the ass&'#e#t of*ease thefor of Sched+*e 8))2 attached hereto for the Pre&ses)

4) The C*os')

The c*os' here+#der 9the C*os': sha** tae .*ace at the off&ces of&sho. & &sho. at (2Rocha7e# Road, R&cho#d, ;&r'&a 22(4, at (0=00 a)) o# the C*os' Date)

(0) Acco+#ts Rece&7a!*e)

(0)() After the C*os' Date, the P+rchaser sha** ae reaso#a!*e efforts the ordar6 co+rse of!+sess to co**ect the Acco+#ts Rece&7a!*e? .ro7&ded that a** o+tof.ocet co**ect&o# e.e#ses sha**!e !oe !6 the Se**er) Pa6e#ts sha** !e a..*&ed to the o*dest acco+#ts f&rst, +#*ess a de!tor d&catesthe s.ec&f&c acco+#t he &s .a6' "h&ch e7e#t .a6e#t sha** !e a..*&ed to that acco+#t) TheP+rchaser sha** #ot atte.t to f*+e#ce the de!tors re'ard' the a..*&cat&o# ofthe&r .a6e#ts)

(0)2) At the e#d of t"e*7e o#ths fo**o"' the C*os' Date, the P+rchaser sha** !e e#t&t*ed torece&7e fro the Se**er a#dJor the Escro" A'e#t, as .ro7&ded !e*o", a#


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ao+#te3+a* to the+#co**ected!a*a#ce oftheAcco+#tsRece&7a!*e9#et ofthereser7efor


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do+!tf+* acco+#ts sho"# o# the C*os' Date a*a#ce Sheet: a#d the P+rchaser sha** reass&'# to

the Se**er a#6 s+ch rea' +#co**ected acco+#ts) A#6 co**ect&o#s o# acco+#ts rece&7a!*e "r&tte#off.r&or to the C*os' Date sha** !e retaed !6 the P+rchaser a#d cred&ted to the +#co**ected!a*a#ce for the .+r.oses of the fore'o' se#te#ce) To the ete#t that f+#ds are a7a&*a!*e .+rs+a#t tothe Escro" A'reee#t after sat&sfact&o# ofor reser7es for c*a&s ade !6 the P+rchaser .r&or to thee#d of the o#e6ear .er&od after the C*os' Date .+rs+a#t to Sect&o# (- !e*o", the P+rchaser a#dSe**er sha**


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ass+e a#6 e.*o6ee !e#ef&t .*a#, a'reee#t or other e.*o6ee !e#ef&t o!*&'at&o# ofthe Se**er


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a#d &s #ot ass+' a#6 other o!*&'at&o# or *&a!&*&t6 there+#der or co##ect&o# there"&th) The Se**er

a'rees to terate a#6 e&st' e.*o6ee !e#ef&t .*a# a#d to !ear a** e.e#ses c+rred co##ect&o#

"&th s+ch terat&o#) Not"&thsta#d' the fore'o', &fthe Se**er co#t+es &ts c+rre#t se*fs+red

hea*th care .*a# 9the AC P*a#: ad&stered !6 +sess Ad&strators AC Co#s+*ta#ts 9AC:

thro+'h Dece!er (, 2001, for the !e#ef&t ofa#6 d&7&d+a*s "ho rea e.*o6ed !6 the Se**er

s+!se3+e#t to the C*os' Date a#d a#6 d&7&d+a*s e.*o6ed !6 the P+rchaser at C*os' 9Ne"

H&res:, the P+rchaser "&** .a6 to the Se**er a# ao+#t e3+a* to the co!ed o#th*6 ad&strat&7e

a#d res+ra#ce char'e .a6a!*e to AC +#der the AC P*a# for the o#th ofDece!er 2001, .*+s a#6

add&t&o#a* ao+#t deteted !6 AC to !e .a6a!*e for a#6 c*a&s f&*ed +#der the AC P*a# !6 Ne"

H&res for ed&ca* e.e#ses c+rred d+r' the o#th ofDece!er 2001) The P+rchaser sha** #ot !e

o!*&'ated to e.*o6 a#6 .erso# e.*o6ed !6 the Se**er #or sha** the P+rchaser ass+e or !e

res.o#s&!*e for a#6 o!*&'at&o#s ofthe Se**er "&th res.ect to the Se**erBs e.*o6ees, ece.t for accr+ed

o!*&'at&o#s c*+ded the Ass+ed Acct+a*s) The Se**er sha** ae e.*o6ee records a7a&*a!*e as

reaso#a!*6 re3+ested !6 the P+rchaser to ass&st &ts ter7&e"s a#d deterat&o#s "&th res.ect to

.ros.ect&7e e.*o6e#t) %# add&t&o#, ser7&ce cred&ted "&th Se**er sha** !e tae# to acco+#t as

ser7&ce cred&ted "&th P+rchaser "&th re'ard to a Ne" H&reBs e*&'&!&*&t6 to .art&c&.ate the P+rchaserBs

f*e&!*e !e#ef&ts.*a#, e*&'&!&*&t6 to .t&c&.ate the P+rchaserBs 'ro+. hea*th .*a# as a co#st&t+e#t .*a# of thef*e&!*e !e#ef&ts .*a#, a#d e*&'&!&*&t6 for a#d e#t&t*ee#t to 7acat&o# !e#ef&ts as a# e.*o6ee ofP+rchaser)


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(2)


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Rete#t&o# ofRecords)


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The P+rchaser sha** reta, +#t&* the *ater of9&: three 6ears fro the&r res.ect&7e dates a#d

9&&: the #+!er of 6ears re3+&red !6 a..*&ca!*e *a", a** records a#d other data de*&7ered !6 theSe**er to the P+rchaser as .art ofthe Assets a#d to ae a7a&*a!*e at reaso#a!*e t&es to the Se**era#d &ts re.rese#tat&7es, +.o# re3+est, a** s+ch records a#d data) The Se**er a6, at &ts e.e#se,ae co.&es ofs+ch records a#d data)

() S+r7&7a* of/a*Ta#t&es) S+!


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(-)())


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A** act&o#s, s+&ts, .roceed's, dea#ds, assesse#ts,


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(-)2) The P+rchaser sha** de#&f6 a#d ho*d ha##*ess the Se**er, &ts shareho*ders a#d &ts

s+ccessors a#d ass&'#ees 9the Se**er %#de#&f&ed Part&es: res.ect ofa#6 daa'e, e.e#se or *oss

s+ffered !6 a#6 ofthe res+*t' fro=

(-)2)() A#6 &sre.rese#tat&o#, !reach of /a*Ta#t6 or #o#f+*f&**e#t of a#6

co7e#a#t, +#derta' or a'reee#t o# the .art of the P+rchaser +#der th&s

A'reee#t or a#6 &sre.rese#tat&o# or o&ss&o# fro a#6 ce*&&f&cate or other

str+e#t f+r#&shed or to !e f+r#&shed !6 the P+rchaser to the Se**er here+#der?

(-)2)2) The Ass+ed Acc*Ua*s a#d other *&a!&*&t&es a#d o!*&'at&o#s

s.ec&f&ca**6 set fO*&h o# the C*os' Date a*a#ce Sheet?

(-)2)) A#6 c*a&s a'ast the Se**er ar&s' f&Bo the co#d+ct ofthe !+sess ofthe

P+rchaser after the C*os' Date, c*+d' a** de!ts, *&a!&*&t&es a#d o!*&'at&o#s f&rst

ar&s' after the C*os' Date, *&a!&*&t6 for .rod+cts so*d !6 the P+rchaser after the

C*os' Date a#d *&a!&*&t6 for a** e#7&ro#e#ta* co#d&t&o#s f&rst OCCU*T' after the

C*os' Date 9!+t, each case, o#*6 to the ete#t that s+ch c*a& or the !as&s therefor,

c*+d' the facts '&7' r&se thereto, d&d #ot e&st .r&or to the C*os' Date:? a#d

(-)2)-) A** act&o#s, s+&ts, .roceed's, dea#ds, assesse#ts,


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&s c*+d&!*e coe or ded+ct&!*e a#d #o other *oss sha** !e de#&f&ed o#*6 to the ete#t of


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a#6 add&t&o#a* taes .a6a!*e !6 the %#de#&tees d+e to cha#'es the ta rates a#d the terest a#d.e#a*t&es res+*t' fro s+ch ad


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#ot ha7e a#6 o!*&'at&o# to de#&f6 the Se**er %#de#&f&ed P&&es for a#6 other"&se


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de#&f&a!*e *oss +#*ess a#d +#t&* the a''re'ate ao+#t ofs+ch *osses eceeds 200,000 9at "h&ch.ot the f+** ao+#t, c*+d' the f&rst 200,000, sha** !e de#&f&a!*e:, .ro7&ded that thefore'o' sha** #ot a..*6 to 9a: the ca*c+*at&o# ofthe Fa* P+rchase Pr&ce .+rs+a#t to Sect&o# ) or.a6e#t o!*&'at&o#s re*ated thereto or 9!: re&!+rsee#t or .a6e#t o!*&'at&o#s .+rs+a#t to Sect&o#1 a!o7e)

(-)1) Not"&thsta#d' a#6 other ter of th&s A'reee#t, 9a: the co!ed a&+ *&a!&*&t6 ofthe

Se**er a#d the %#d&7&d+a* %#de#&tors for the&r de#&f&cat&o# o!*&'at&o#s +#der th&s Sect&o# (- a#d

the %#de#&f&cat&o# A'reee#t sha** !e *&&ted to the Fa* P+rchase Pr&ce dete*ed .+rs+a#t to

Sect&o# ) a!o7e a#d 9!: the co!ed a&+ *&a!&*&t6 of the P+rchaser for &ts de#&f&cat&o#

o!*&'at&o#s +#der th&s Sect&o# (- sha** !e *&&ted to the Fa* P+rchase Pr&ce detered .+rs+a#t to

Sect&o# ) a!o7e) %# add&t&o#, #e&ther .art6 sha** !e *&a!*e to the other res.ect of a#6 re*e7a#t c*a&

for de#&f&cat&o# here+#der to the ete#t the *oss "o+*d #ot ha7e ar&se# !+t for, or to the ete#t s+ch

*oss &s creased !6 reaso# of, a !reach !6 s+ch other .art6, or &ts s+ccessors a#d ass&'#s, of&ts or the&r

o!*&'at&o#s +#der th&s A'reee#t) A#6 a#d a** de#&f&cat&o# .a6e#ts .+rs+a#t to Sect&o#s (- a#d

(5 sha** !e deeed for a** .+r.oses to !e ad


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(-)4)


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The fore'o' de#&f&cat&o# .ro7&s&o#s sha** co#st&t+te the so*e a#d


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ec*+s&7e .ostc*os' reed6 a'ast the Se**er a#d the P+rchaser co##ect&o# "&th c*a&sar&s' +#der th&s A'reee#t or that co+*d other"&se !e asse*&ed +#der the Co.rehe#s&7eE#7&ro#e#ta* Res.o#se, Co.e#sat&o# a#d &a!&*&t6 Act or co.ara!*e state *a")

(-)(0) No %#de#&tor 9as defed !e*o": sha** !e o!*&'ated to .a6or c+r costs ofreed&at&o# ecess ofthose costs re3+&red to ach&e7e co.*&a#ce "&th a..*&ca!*e e#7&ro#e#ta* *a"s or c*ea#+.*e7e*s esta!*&shed !6 or +#der e#7&ro#e#ta* *a"s or !6 a#6 'o7er#e#ta* e#t&t6)

(-)(() There sha** !e #o reco7er6 for a#6 daa'e, e.e#se or *oss c+rred as a res+*t of a#6reed&at&o# co#d+cted that &s 7o*+#tar&*6 &t&ated !6 a#6 %#de#&tee, +#*ess s+ch reed&at&o# &s.erfored as a res+*t ofor .+rs+a#t to a c*a& !6 a th&rd.art6 or &s a#dated !6 e#7&ro#e#ta**a"s)

(5) Sett*ee#t ofTh&rd Part6 C*a&s)

(5)() %f a#6 c*a& "h&ch &s co7ered !6 Sect&o# (- a!o7e or the %#de#&f&cat&o# A'reee#t &s ade

a'ast a# %#de#&tee, s+ch %#de#&tee sha** '&7e "r&tte# #ot&ce of s+ch c*a& to the .art6 re3+&redto de#&f the %#de#&tee +#der th&s A'reee#t or the %#de#&f&cat&o# A'reee#t 9to'etherreferred to here as the %#de#&tors:) The %#de#&tors sha** ha7e te# da6s fro the rece&.t ofs+ch#ot&ce to '&7e "r&tte# #ot&ce to the %#de#&tee of the&r te#t&o# to defe#d or d&s.+te s+ch c*a&,"h&ch #ot&ce "&** ac#o"*ed'e the o!*&'at&o# of the %#de#&tors to de#&f6 the %#de#&teea'ast s+ch c*a&)

(5)2) %f s+ch #ot&ce &s '&7e# !6 the %#de#&tors, or a#6o#e of the, "&th s+ch te# da6 .er&od, the%#de#&tors, or a#6o#e of the, sha** ha7e the *&'ht to co.ro&se or defe#d a#6 s+ch c*a& thro+'hco+#se* of the&r o"# choos' a#d at the&r o"# e.e#se, .ro7&ded that

21


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the %#de#&tors or a#6o#e ofthe, sha** .ost a#6 sec+t&t6 reaso#a!*6 re3+&red !6 the


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%#de#&tee to .rotect the %#de#&tee f+**6 a#6 *oss or *&a!&*&t6)

(5)) Not"&thsta#d' the fore'o' .ro7&s&o#s, the %#de#&tors a6 #ot co#tro* the

sett*ee#t ofa c*a& "h&ch o*7es o!ta'


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the ao+#t ofs+ch c*a& as fa**6 detered or co.ro&sed 9c*+d' the ao+#t ofthe


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%#de#&teeBs costs a#d terest "&th res.ect thereto a#d reaso#a!*e attor#e6sB fees, &f a..*&ca!*e:, a#d the%#de#&tors sha** re&t s+ch ao+#t to the %#de#&tee .ro.t*6) Refere#ces here to costs a#dreaso#a!*e attor#e6sB fees sha** a*so c*+de a** s+ch costs a#d attor#e6sB fees c+#Led a..ea*s)

(5)1) The %#de#&tee sha** !ecoe e#t&t*ed to de#&f&cat&o# "&th res.ect to a c*a& here+#der 9&: the

e7e#t there &s a +t+a* a'reee#t !et"ee# the .art&es co#cer#' the c*a&, or 9&&: a** other cases, as ares+*t of a# order, dec&s&o# or fd' .+rs+a#t to the reso*+t&o# of a c*a& +#der a #o#a..ea*a!*e order ofa cOU*() /&th res.ect to c*a&s ade !6 the P+rchaser a'ast the Se**er .r&or to the f&rst 6ear a##&7ersar6ofthe C*os' Date, the ao+#t of s+ch c*a& sha** co#t+e to !e he*d .+rs+a#t to the Escro" A'reee#t+#t&* e#t&t*ee#t &s dete*ed .+rs+a#t to the .reced' se#te#ce)

(5)8) The Escro" Ao+#t &s te#ded as sec+r&t6 for the o!*&'at&o#s ofthe Se**er a#d the %#d&7&d+a*%#de#&tors to de#&f6 the P+rchaser as the %#de#&tee, a#d c*a&s sha** !e he*d, ad&stered a#dd&s!+rsed !6 the Escro" A'e#t accorda#ce "&th the .ro7&s&o#s oftheEscro"A'reee#ta#d th&s

Sect&o#(5?.ro7&dedthattotheete#tthat a#6ofthe .roced+res set f0((h th&s Sect&o# (5 are co#s&ste#t"&th, or co#trar6 to, those set f0((h the Escro" A'reee#t, the ters a#d co#d&t&o#s ofthe Escro"

A'reee#t sha** !e the co#tro**' .rO;%s%O#s)

() E.e#ses ofthe Part&es) Ece.t as s.ec&f&ca**6 .ro7&ded here, a** e.e#ses cU*Ted!6 or o# !eha*fofthe

.art&es hereto c*+d', "&tho+t *&&tat&o#, a** fees a#d e.e#ses of a'e#ts, re.rese#tat&7es, co+#se*a#d acco+#ta#ts e.*o6ed !6 the .art&es hereto co##ect&o# "&th the .re.arat&o# of


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th&s A'reee#t a#d the co#s+at&o# ofthe tra#sact&o#s co#te.*ated !6 th&s A'reee#t sha**


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!e !or#e so*e*6 !6 the .art6 "ho sha** ha7e c+rred s+ch e.e#ses a#d the other .art6 sha** ha7e #o*&a!&*&t6 res.ect thereof)

(1) Cha#'e ofNae) Pro.t*6 after the C*os' Date, the Se**er sha** cha#'e &ts cor.orate#ae a#d cease to

+se the #ae @Doe@, each ofthe other #aes *&sted o# Sched+*e 2)()5 a#d a#6 other s+!sta#t&a**6 s&&*ar7ar&at&o# thereof a#6 cor.orate or trade #ae or a#6 ad7ert&see#t)

(8) M&sce**a#eo+s)

(8)() A** #ot&ces a#d other co+#&cat&o#s .ro7&ded for here+#der sha** !e "r&t', +#*ess other"&ses.ec&f&ed, a#d sha** !e deeed to ha7e !ee# d+*6 '&7e# 9a: &fde*&7ered .erso#a**6, "&th a rece&.t &ss+ed9c*+d', "&tho+t *&&tat&o#, !6 a #at&o#a**6 reco'#&>ed co+r&er ser7&ce:, +.o# de*&7er6, 9!: &fa&*ed,.osta'e .re.a&d, re'&stered or cert&f&ed a&* 9ret+r# rece&.t re3+ested:, +.o# the ear*&er ofthe act+a*

de*&7er6 or f&7e 95: da6s after !e' a&*ed, or

9c: &f'&7e# !6 facs&&*e, +.o# co#f&*at&o# oftra#s&ss&o# !6 facs&&*e, each case to the fo**o"'

addresses or at s+ch other addresses as the .art&es hereto a6 des&'#ate fro t&e to t&e "r&t'=

%fto the Se**er=

/&th a co.6 to=


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%f to the %#d&7&d+a* %#de#&tors=


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/&th a co.6 to=

%fto the P+rchaser= $ANE DOE

CORPORAT%ON

/&th a co.6 to=

(8)2) Th&s A'reee#t sha** !e 'o7er#ed !6 a#d co#sted a#d e#forced accorda#ce "&th the *a"softhe Coo#"ea*th of;&r'&a, "&tho+t '&7' effect to the co#f*&ct of*a"s .rc&.*es thereof) Thesect&o# head's co#taed here are for refere#ce .+r.oses o#*6 a#d sha** #ot a#6 "a6 affect theea#' or ter.retat&o# ofth&s A'reee#t)

(8)) Th&s A'reee#t a6 !e ae#ded, od&f&ed, s+.erseded or ca#ce*ed o#*6!6a"r&tte#str+e#teec+ted !6a**ofthe.art&eshereto) Not&ce or#o"*ed'eofa#6atter sha** #otco#st&t+te a "a&7er of a#6 re.rese#tat&o# or "arra#t6 "&th res.ect to s+ch atter) The


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"a&7er !6 a#6 .art6 of a#6 !reach ofa#6 .ro7&s&o# sha** #ot !e co#sted as a "a&7er ofa#6


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other .ro7&s&o# !6 s+ch .art6) Each .art6 sha** ha7e the r&'ht to "a&7e f+*f&**e#t ofa co#d&t&o# orco7e#a#t or co.*&a#ce "&th a re.rese#tat&o# or "a#Ba#t6 of"h&ch &t &s the !e#ef&c&ar6, !+t s+ch"a&7er a6 !e ade o#*6 !6 "r&tte# st*Ue#t eec+ted !6 s+ch .art6)

(8)-) A** +#dersta#d's a#d a'reee#ts ofthe .art&es are er'ed to th&s A'reee#t a#d theste#ts a#d a'reee#ts s.ec&f&ca**6 refe#ed to here) Th&s A'reee#t +res to the !e#ef&t ofa#d sha** !e !d' o# each of the .&&es hereto or a#6 ofthe, the&r res.ect&7e re.rese#tat&7es a#ds+ccessors? .ro7&ded, ho"e7er, th&s A'reee#t a#d the r&'hts a#d o!*&'at&o#s here+#der sha** #ot !eass&'#a!*e !6 a#6 .&6, ece.t !6 the P+rchaser to a#6 %#de#&f&ed P&6)

(8)5) Th&s A'reee#t a6 !e eec+ted t"o or ore co+#ter.arts, each of "h&ch sha** !edeeed a# or&'a* a#d a** of "h&ch to'ether sha** co#st&t+te o#e a#d the sae str+e#t)

(8)) The P+rchaser re.rese#ts to the Se**er that &t has #ot c+#ed a#6 *&a!&*&t6 for !roera'e ors&&*ar ser7&ces co##ect&o# "&th the tra#sact&o#s co#te.*ated th&s A'reee#t a#d a'rees toho*d the Se**er ha##*ess f&Bo a#6 e.e#ses the P+rchaser a6 ha7e c+#ed co##ect&o# "&th s+chser7&ces) The Se**er re.rese#ts to the P+rchaser that, ece.t for !roera'e fees d+e !6 the Se**er toThe roera'e Gro+., C, "h&ch fees "&** !e the res.o#s&!&*&t6 of the Se**er, &t has #ot cU*Teda#6 *&a!&*&t6 for !roera'e or s&&*ar ser7&ces co##ect&o# "&th the tra#sact&o#s co#te.*ated th&sA'reee#t a#d a'rees to ho*d the P+rchaser h*ess f&Bo a#6 e.e#ses the Se**er a6 ha7ec+#Bed co##ect&o# "&th s+ch ser7&ces)

(8)1) %# the e7e#t a#6 .ro7&s&o# of th&s A'reee#t &s deeed to !e

+#e#forcea!*e, the reader ofth&s A'reee#t sha** #ot !e affected there!6 a#d each .ro7&s&o#

hereof sha** !e 7a*&d a#d e#forced to the f+**est ete#t .e*&tted !6 *a") S&'#at+res a..ear on the

following.a'e


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/%TNESS the fo**o"' s&'#at+res)


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$ANE DOE CORPORAT%ON

6=$a#e Doe

Pres&de#t

$OHN DOE %NCORPORATED

6=$oh# Doe;&ce Pres&de#t

sample asset buy sell agreement

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