ASSET PURCHASE
AGREEMENT
THIS AGREEMENT dated for
reference the 26 th day of September, 2008.
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AMONG:
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EUROSLOT S.A.S. , a corporation existing under the laws of
France with a
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registered office at ZA Les Priedons Sud, 86140
Scorbe-Clairvaux, France
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(herein called “Vendor”)
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AND:
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USR TECHNOLOGY, INC. , a corporation existing under the laws
of the State
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of
Nevada with its executive office at 20333 State Hwy. 249, Suite
200,
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Houston, Texas
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(herein called “Purchaser”)
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WHEREAS:
The Vendor owns a technology it invented and developed for
manufacturing articulated downhole screen filters for use in oil
and gas drilling operations to eliminate solid particles contained
in hydrocarbons prior to transporting them out to the surface (such
articulated downhole screen filters are herein called the “
Products” ).
A.
The Vendor has agreed to sell and the Purchaser has agreed to
purchase a US $1,000,000 fixed credit supply of Products (the
“Purchased Asset”);
B.
The Purchase Price for the Purchased Asset will be payable by the
issuance of 1,000,000 restricted post-consolidation shares of
common stock of the Purchaser (3,000,000 pre-consolidated
restricted shares of common stock) at a deemed price of US $1.00
per share.
C.
On this day, a License Agreement (attached hereto in Schedule 4) is
signed between the Vendor and the Purchaser regarding the use of
certain IP Rights. These License Agreement and Asset Purchase
Agreement form the complete agreement of the parties and are
indissociable. Both agreements will take effect on the same
day.
NOW THEREFORE in consideration of
the premises and the respective covenants, agreements
representations, warranties and indemnities of the parties herein
contained and for other good and valuable consideration (the
receipt and sufficiency of which is hereby acknowledged) the
parties hereto covenant and agree as follows:
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1.
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DEFINED
TERMS
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1.1
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For the purposes of this
Agreement, unless the context otherwise requires, the following
terms will have the respective meanings set out below and
grammatical variations of such terms will have corresponding
meanings:
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(a)
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“Affiliate” has the
meaning given to that term in Article L.233-3 of the French
Commercial code or in the Securities Act of 1933, as amended, and
the Rules and Regulations of the Securities and Exchange
Commissions promulgated thereunder;
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(b)
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“Purchased Asset”
means the business assets as described in Recital B of this
Agreement;
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(c)
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“Business Day” means
any day which is not a Saturday, Sunday or statutory holiday in the
United States and France;
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(d)
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“Closing” means the
completion of the transactions contemplated in this Asset Purchase
Agreement;
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(e)
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“Closing Date” means
September 26, 2008, or such other date as the Vendor and the
Purchaser may mutually determine;
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(f)
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“Contract” means any
agreement, indenture, contract, lease, deed of trust, license,
option, instrument or other commitment, whether written or
oral;
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(g)
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“Encumbrance” means
any encumbrance, lien, charge, hypothec, pledge, mortgage, title
retention agreement, security interest of any nature, adverse
claim, exception, reservation, easement, right of occupation, any
matter capable of registration against title, option, right of
pre-emption, privilege or any Contract to create any of the
foregoing;
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(h)
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”Licenses” means all
licenses, permits, approvals, consents, certificates, registrations
and authorizations (whether governmental, regulatory, or otherwise)
required for the conduct in the ordinary course of the uses to
which the Assets have been put;
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(i)
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“Losses” means, in
respect of any matter, all claims, demands, proceedings, losses,
damages, liabilities, deficiencies, costs and expenses (including,
without limitation, all legal and other professional fees and
disbursements, interest, penalties and amounts paid in settlement)
arising directly or indirectly as a consequence of such matter and
actually incurred by a party entitled to be indemnified hereunder,
net of (i) any tax adjustments, benefits, savings or reductions to
which such indemnified party is entitled resulting from such
matter, and (ii) any insurance proceeds, in either case to which
such indemnified party is entitled by virtue of such claims,
demands, proceedings, losses, damages, liabilities, deficiencies,
costs and expenses;
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(j)
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“Purchase Price”
means the aggregate sum payable by the Purchaser to the Vendor for
the Purchased Asset.
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1.2
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Currency
. Unless otherwise indicated, all
dollar amounts in this Agreement are expressed in United States
funds.
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1.3
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Sections and
Headings . The division
of this Agreement into Articles, sections and subsections and the
insertion of headings are for convenience of reference only and
will not affect the interpretation of this Agreement. Unless
otherwise indicated, any reference in this Agreement to an Article,
section, subsection or Schedule refers to the specified Article,
section or subsection of or Schedule to this Agreement.
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1.4
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Number, Gender and
Persons . In this
Agreement, words importing the singular number only will include
the plural and vice versa, words importing gender will include all
genders and words importing persons will include individuals,
corporations, partnerships, associations, trusts, unincorporated
organizations, governmental bodies and other legal or business
entities of any kind whatsoever.
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1.5
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Accounting
Principles . Except as
otherwise stated, any reference in this Agreement to generally
accepted accounting principles refers to generally accepted
accounting principles that have been established in the United
States of America, including those approved from time to time by
the American Institute of Certified Public Accountants or any
successor body thereto.
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1.6
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Entire Agreement
. This Agreement constitutes the
entire agreement between the parties with respect to the subject
matter hereof and supersedes all prior agreements, understandings,
negotiations and discussions, whether written or oral. There are no
conditions, covenants, agreements, representations, warranties or
other provisions, express or implied, collateral, statutory or
otherwise, relating to the subject matter hereof except as herein
provided.
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1.7
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Time of Essence
. Time will be of the essence of
this Agreement.
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1.8
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Applicable Law
. This Agreement will be construed,
interpreted and enforced in accordance with, and the respective
rights and obligations of the parties will be governed by, the laws
of England. All claim demands, disputes, controversies,
differences, or misunderstandings between the Parties relating to
this Agreement shall be settled by arbitration before one
arbitrator to be appointed in accordance with the International
Chamber of Commerce, such proceeding to be held in London in the
English language and judgment upon the award rendered by the
arbitrator may be entered in any court having jurisdiction
thereof..
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1.9
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Amendments and
Waivers . No amendment or
waiver of any provision of this Agreement will be binding on either
party unless consented to in writing by such party. No waiver of
any provision of this Agreement will constitute a waiver of any
other provision, nor will any waiver constitute a continuing waiver
unless otherwise provided.
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1.10
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Adjustments for Stock Splits,
Etc. . Wherever in this
Agreement there is a reference to a specific number of shares of
stock of the Company, then, upon the occurrence of any subdivision,
combination or stock dividend of such stock, the specific number of
shares so referenced in this Agreement shall automatically be
proportionally adjusted to reflect the effect on the outstanding
shares of such class or series of stock by such subdivision,
combination or stock dividend.
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1.11
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Schedules
. The following Schedules are
attached to and form part of this Agreement: All terms defined in
the body of this Agreement will have the same meaning in the
Schedule attached hereto
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Schedule
1
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Description of
Purchased Asset
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Schedule
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Intellectual
Property: Vendor Patent and Trademark
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Schedule
3
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Consents
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Schedule
4
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License
Agreement
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Schedule
5
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Subscription
Agreement
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2.
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PURCHASE AND
SALE
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2.1
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Subject to the terms and
conditions of this Agreement, effective as at the Closing Date the
Vendor will sell, transfer, and assign to the Purchaser and the
Purchaser agrees to purchase from the Vendor, free and clear of all
Encumbrances the Purchased Asset.
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3.
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PURCHASE PRICE AND
ALLOCATION
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3.1
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The Purchase Price payable by the
Purchaser to the Vendor for the Purchased Asset shall consist of
1,000,000 shares of post-consolidation restricted common stock of
the Purchaser (3,000,000 pre- consolidated restricted shares of
common stock) at a deemed price of US $1.00 per share (the
“Purchase Shares”). A 3:1 consolidation of USR
Technology, Inc’s share capital took place on September 17,
2008. On or prior to the Closing Date, the Purchaser and the Vendor
shall enter into a subscription agreement in regards to the
Purchase Shares, as detailed in Schedule 5. On the Closing date,
the Purchaser shall instruct its transfer agent to issue the
Purchase Shares to the Vendor. In any case, this Agreement shall
take effect on the day of issuance and attribution of the Purchase
Shares to the Vendor.
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4.
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PAYMENT OF THE PURCHASE
PRICE
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4.1
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The Purchase Price will be paid
in full by the issuance by the Purchaser to the Vendor of the
Purchase Shares in one instalment on the Closing Date.
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5.
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CLOSING, POSSESSION, AND NO
ADJUSTMENTS
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5.1
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The Closing will take place on
September 26, 2008 at 11:00AM (PST), on the Closing Date at the
offices of Macdonald Tuskey, or at such other place, date, and time
as may be mutually agreed upon by the parties hereto.
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5.2
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The Vendor will deliver
possession of the Purchased Asset, free of any other claim to
possession and any tenancies, to the Purchaser on the Closing Date.
In this respect, the Vendor will deliver to the Purchaser a credit
note relating to the purchase of the Products with a total credit
value of US $1,000,000.
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5.3
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Provided that there has been no
material misrepresentation on the part of the parties to this
agreement and all of their respective obligations under this
Agreement have been fulfilled, there will be no adjustment of the
Purchase Price for any reason whatsoever.
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6.
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REPRESENTATIONS AND
WARRANTIES OF THE VENDOR
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6.1
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The Vendor represents and
warrants to the Purchaser, with the intent that the Purchaser will
rely thereon in entering into this Agreement and in concluding the
transactions contemplated hereby, as follows:
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(a)
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the execution and delivery of
this Agreement and the completion of the transaction contemplated
hereby have been duly and validly authorized by all necessary
limited liability company action on the part of the Vendor, and
this Agreement constitutes a valid and binding obligation of the
Vendor enforceable against the Vendor in accordance with its terms;
except as enforcement may be limited by bankruptcy, insolvency and
other laws affecting the rights of creditors generally and except
that equitable remedies may be granted only in the discretion of a
court of competent jurisdiction;
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(b)
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except as will be remedied by the
consents, approvals, releases, and discharges described in Schedule
3 - Consents attached hereto, neither the execution and delivery of
this Agreement nor the performance of the Vendor’s
obligations hereunder will:
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(i)
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violate or constitute default
under any order, decree, judgment, statute, by-law, rule,
regulation, or restriction applicable to the Vendor, the Purchased
Asset, or any contract, agreement, instrument, covenant, mortgage,
or security, to which the Vendor is a party or which are binding
upon the Vendor,
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(ii)
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to the knowledge of the Vendor,
result in any fees, duties, taxes, assessments, penalties or other
amounts becoming due or payable by the Purchaser under any sales
tax legislation. .
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(iii)
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give rise to the creation or
imposition of any Encumbrance on the Purchased Asset,
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(iv)
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violate or constitute default
under any license, permit, approval, consent or authorization held
by the Vendor, or
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(v)
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violate or trigger any liability
on behalf of the Purchaser pursuant to any legislation governing
the sale of the Purchased Asset by the Vendor.
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(c)
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the Vendor owns and possesses and
has good and marketable title to the Purchased Asset free and clear
of all Encumbrances of every kind and nature whatsoever;
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(d)
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the Vendor does not have any
indebtedness in excess of $10,000.00 which might by operation of
law or otherwise now or hereafter constitute an Encumbrance upon
the Purchased Asset;
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(e)
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no person other than the
Purchaser has any written or oral agreement or option or any right
or privilege (whether by law, pre-emptive or contractual) capable
of becoming an agreement or option for the purchase or acquisition
from the Vendor of the Purchased Asset;
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(f)
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except as otherwise provided
herein, this Agreement discloses all contracts, engagements, and
commitments, whether oral or written, relating to the Purchased
Asset including in particular contracts, engagements, and
commitments:
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(i)
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out of the ordinary course of
business,
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(ii)
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which entail the payment of
in excess of $10,000.00 during any one year period,
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(iii)
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respecting ownership of or
title to any interest or claim in or to any real or personal
property making up the Purchased Asset,
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(iv)
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respecting any agreement of
guarantee, support, indemnification, assumption or endorsement of,
or any similar commitment with respect to, the obligations,
liabilities (whether accrued, absolute, contingent or otherwise) or
indebtedness of any other person except for cheques endorsed for
collection in the ordinary course of the business;
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(v)
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any confidentiality,
secrecy or non-disclosure contract, (whether the Vendor is a
beneficiary or obligant thereunder) relating to any proprietary or
confidential information or any non-competition or similar
contract;
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(vi)
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there has not been any default in
any obligation or liability in respect of said contracts,
engagements, or commitments by the Vendor and the Vendor has
performed all of the material obligations required to be performed
by it and is entitled to all benefits under any
contracts;
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(vii)
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there has not been any
amendment, modification, variation, surrender, or release of said
contracts, engagements, and commitments; and
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(viii)
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each of said contracts,
engagements, and commitments is in good standing and in full force
and effect and the Vendor has performed all of the material
obligations required to be performed by it and is entitled to all
benefits thereunder, and is not in default or alleged to be in
default in respect of any material contract or any other contracts,
engagements or commitments provided for in this Agreement, to which
the Vendor is a party or by which it is bound;
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(g)
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all material Licenses required
for the uses to which the Purchased Asset have been put have been
obtained and are in good standing and such conduct and uses are in
compliance in all material respects with such licenses and permits
and with all laws, zoning and other bylaws, building and other
restrictions, rules, regulations, and ordinances applicable to the
Purchased Asset and neither the execution and delivery of this
Agreement nor the completion of the purchase and sale hereby
contemplated will give any person the right to terminate or cancel
the said licenses or permits or affect such compliance;
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(h)
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there are no actions, suits,
proceedings, investigations, complaints, orders, directives, or
notices of defect or noncompliance by or before any court,
governmental or domestic commission, department, board, tribunal,
or authority, or administrative, licensing, or regulatory agency,
body, or officer issued, pending, or to the best of the
Vendor’s knowledge threatened against or affecting the Vendor
or in respect of the Purchased Asset;
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(i)
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there is no requirement
applicable to the Vendor to make any filing with, give any notice
to or to obtain any license, permit, certificate, registration,
authorization, consent or approval of, any governmental or
regulatory authority as a condition to the lawful consummation of
the transactions contemplated by this Agreement, except for the
filings, notifications, licenses, permits, certificates,
registrations, consents and approvals described in Schedule 3 -
Consents, or that relate solely to the identity of the Purchaser or
the nature of any business carried on by the Purchaser except for
the notifications, consents and approvals described in Schedule 3 -
Consents;
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(j)
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Vendor has filed or caused to be
filed all material tax returns of Vendor which have become due
(taking into account valid extensions of time to file) prior to the
date hereof, such returns are accurate and complete in all material
respects and Vendor has paid or caused to be paid all taxes due, in
each case to the extent Purchaser would incur liability for
Vendor’s failure to file such returns or pay such taxes.
There are no outstanding tax liens that have been filed by any
tax
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authority
against the Purchased Asset. No claims are being asserted in
writing with respect to any taxes relating to the Vendor’s
business for which Purchaser reasonably could be held liable and
Vendor knows of no basis for the assertion of any such
claim;
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(k)
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the Vendor has never received any
notice of or been prosecuted for non-compliance with any
Environmental Laws, nor has the Vendor settled any allegation of
non-compliance short of prosecution. There are no orders or
directions relating to environmental matters requiring any work,
repairs or construction or capital expenditures to be made with
respect to the Purchased Asset, nor has the Vendor received notice
of any of the same;
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(l)
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Schedule 2 - Intellectual
Property, sets out all registered or pending Intellectual Property
(including particulars of registration or application for
registration, continuances, or PCT’s) and all licenses,
registered user agreements and other contracts that comprise or
relate to Intellectual Property. The Intellectual P
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