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EXHIBIT 10.22
ASSET PURCHASE AGREEMENT
THIS ASSET PURCHASE AGREEMENT (this "Agreement"), dated and
is effective as of December 31, 2008 is made and entered into
by
and between Cal Alta Auto Glass, Inc., a Nevada corporation
with
principal offices at #8, 3927 Edmonton Trail, N.E., Calgary,
Alberta T2E 6T1 ("Seller"), and Frank Aiello whose principal
address is at #8, 3927 Edmonton Trail, N.E., Calgary,
Alberta
T2E 6T1 (the "Purchaser"). As used herein, the term
"Parties"
shall be used to identify the Seller and the Purchaser
jointly.
WHEREAS:
A. Seller owns certain assets as listed and
described in Exhibit A attached hereto relating and
currently
used in the business that it conducts (the "Purchased
Assets").
B. Seller desires to sell and transfer to Purchaser
the Purchased Assets.
C. Purchaser seeks to purchase the Purchased Assets
in exchange for the return of certain shares of the Common
Stock
of the Seller as previously issued to and currently owned by
the
Purchaser as more particularly set forth below.
NOW THEREFORE THE PARTIES AGREE AS FOLLOWS:
ARTICLE 1
PURCHASE AND SALE OF ASSETS
1.1 Purchase and Sale. Upon the terms and subject to
the conditions of this Agreement, at the Closing (as defined
in
Section 3.1), Purchaser shall purchase from Seller, and
Seller
shall sell and transfer to Purchaser, all of Seller's right,
title, and interest in the Purchased Assets. The Purchased
Assets consist of all the items listed and shown on Exhibit
A
attached hereto, including, but not limited to, the
following
(a) all equipment, inventory, records,
merchandise, customer and vendor contact lists (regardless
of
format), computers, marketing lists, marketing materials,
business plans and strategies of the Seller;
(b) all information, files, books and records,
including customer and supplier lists, relating to or
involving
the Purchased Assets, regardless of format, and relating to
the
business conducted by the Seller (the "Business");
(c) all supplies related to the Business, stock
in trade, merchandise, goods, supplies and other products
owned
by Seller or otherwise under the control of Seller on the
date
of Closing;
(d) all intellectual property rights, whether
owned or leased, including, without limitation, all patents,
patent applications, trademarks, registered trademarks,
trademark applications, service marks, domain names,
web-sites,
registered service marks, service mark applications,
tradenames,
copyrights, registered copyrights, copyright applications,
trade
secrets, confidential information and proprietary know-how
owned
and/or used in connection with the Business; (all of the
intellectual property rights to be acquired shall be
collectively referred to as the "Intellectual Property");
and
(e) all accounts receivable related to the
Business.
Purchaser reserves the right to exclude any of the above
described assets from the Purchased Assets. All of the
Purchased Assets shall be transferred to Purchaser free and
clear of all liens, security interests and encumbrances.
(a) 1.2 Assumed Liabilities; Limitation on
Assumption. In connection with the purchase and sale of the
Purchased Assets pursuant to Section 1.1 and except for
those
liabilities as shown on Exhibit B, Purchaser shall assume no
liabilities and obligations of the Seller.
ARTICLE 2
CONSIDERATION
1.2 Purchase Price. In consideration for the
transfer of the Purchased Assets, at the Closing Purchaser
shall
(a) pay and deliver to Seller (or Seller's assignee) a duly
issued stock certificate registered in the name of the
Seller
and bearing a restricted securities legend and representing
the
sum of 1,666,667 shares of the Seller's Common Stock (par
value
$0.001) (the "Special Shares" or Purchase Price").
2.2 Closing. The closing of the purchase and
sale of the Purchased Assets pursuant to Section 1.1 (the
"Closing") shall be held at the offices of the Purchaser at
#8,
3927 Edmonton Trail, N.E., Calgary, Alberta T2E 6T1 at 11:00
a.m. (local time) on December 31, 2008 (the "Closing Date"),
or
at such other place and time as Purchaser and Seller may
mutually agree in writing.
1.3 Deliveries at Closing. At the Closing, the
Parties shall make the deliveries described below:
(a) Seller shall deliver, or cause to be
delivered, to Purchaser a Bill of Sale and Assignment in the
form of Exhibit C hereto properly executed by Seller;
(b) Purchaser shall deliver to Seller the
following:
(i) the stock certificate representing all
of the Special Shares and registered in the name of the
Seller
(or its assignees);
(ii) a duly executed Action of the Board of
Directors of the Purchaser, adopting and approving the terms
of
this Asset Purchase Agreement and authorizing and
instructing
the officers of the Purchaser to deliver a fully executed
copy
of this Asset Purchase Agreement to the Seller as set forth
in
Exhibit D.
(iii) a duly executed Action of the
Board of Directors approving this Agreement and the
transactions
set forth herein and as set forth in Exhibit D.
(iv) such other instruments and documents
properly executed by the Seller as are reasonably necessary,
in
the opinion of Purchaser, to effect the transactions
described
herein.
(v) a certificate, executed by a corporate
officer of the Seller, certifying that, at the time of
Closing,
the Purchased Assets are in good condition.
ARTICLE 3
REPRESENTATIONS AND WARRANTIES OF SELLER
Seller represents and warrants to Purchaser as follows:
3.1 Authorization of Transaction. Seller has full
power and authority to execute and deliver this Agreement and
to
perform its obligations hereunder. This Agreement
constitutes
the valid and legally binding obligation of Seller,
enforceable
in accordance with its terms and conditions.
3.2 Broker's Fees. Neither Seller nor the Purchaser
has any liability or obligation to pay any fees or
commissions
to any broker, finder, or agent with respect to the
transactions
contemplated by this Agreement.
3.3 Consents and Approvals. The execution, delivery
and performance by Seller of this Agreement and the
consummation
of the transactions contemplated hereby require no action by
or
in respect of, or filing with or notice to, any governmental
or
regulatory body, agency or official. Neither the execution,
delivery and performance by Seller of this Agreement, nor
the
consummation of the transactions contemplated hereby, will
(with
or without notice or lapse of time) (a) violate, conflict
with,
or result in a breach of any judgment, order, writ,
injunction,
decree or award of any court, governmental or regulatory
body,
or (b) result in a default (or give rise to any right of
termination, cancellation or acceleration) under any of the
terms, conditions or provisions of any note, bond, mortgage,
indenture, license, franchise, permit, lease, agreement or
other
instrument or obligation to which Seller is a party, or by
which
the Business or any of the Purchased Assets may be bound.
3.4 Litigation. To the best knowledge of Seller,
there are no actions, suits, or proceedings pending or, to
Seller's best knowledge, threatened against Seller, or that
otherwise relate to the Business or the Purchased Assets,
before
any court, arbitrator or administrative, governmental or
regulatory authority or body and, to Seller's knowledge, no
event has occurred or circumstance exists that may give rise
to
or serve as the basis for the commencement of any such
action,
suit or proceeding. Seller is not subject to any order,
judgment, writ, injunction or decree that relates to the
Business or the Purchased Assets.
3.5 Personal Property. Seller at Closing will have
good and marketable title to the Purchased Assets, free and
clear of all liens and encumbrances, and (b) all items of
equipment, if any, constituting a part of the Purchased
Assets
are in good operating condition and repair, ordinary wear
and
tear excepted, and reasonably conform to all applicable
laws,
ordinances and regulations.
3.6 Taxes. To the best knowledge of Seller, all tax
reports and returns required to be filed relating to the
Business pursuant to any law, rule or regulation have been
filed
in a timely manner (taking into account all extensions of
due
dates), and all Taxes shown as due thereon have been paid or
accrued and reflected on the financial statements of the
Business. No deficiencies for any Taxes have been asserted
in
writing against Seller which remain unpaid.
3.7 Employees. Seller has, with respect to the
Business and all employees now or previously employed in the
Business, complied in all respects with all laws, rules and
regulations relating to employment, equal employment
opportunity, nondiscrimination, immigration, wages, hours,
benefits, occupational health and safety and plant closing.
3.8 Customer List. A complete and accurate list of
customers of the Business is included and listed in Exhibit
A
attached to this Agreement. There are no customer prepayments
or
deposits.
3.9 Accounts Receivable. The list of Accounts
Receivable listed on Exhibit A attached to this Agreement is
a
complete list of the Accounts Receivable relating to or
arising
out of the Business as of the date shown.
3.10 Intellectual Property. Except as shown on
Exhibit A attached to this Agreement, to the best knowledge
of
Seller, Seller has no patents, patent rights, licenses,
trademarks, trademark rights, trade names, trade name
rights,
service marks, service mark rights, copyrights, web sites or
Internet locations or similar rights, nor require any such
rights in connection with the conduct of the Business as
presently conducted. To the knowledge of Seller, neither
Seller
nor the Business is infringing or otherwise acting adversely
to
the right of any other person under or in respect to, any
patent, license, trademark, trade name, service mark,
copyright
or similar intangible right.
ARTICLE 4
REPRESENTATIONS AND WARRANTIES OF PURCHASER
4.0 Purchaser represents and warrants to Seller that, as of
the
date of this Agreement:
4.1 Consents and Approvals. The execution, delivery
and performance by Purchaser of this Agreement and the
consummation of the transactions contemplated hereby require
no
action by or in respect of, or filing with, or notice to any
governmental or regulatory body, agency or official. Neither
the execution, delivery and performance by Purchaser of this
Agreement, nor the consummation by Purchaser of the
transactions
contemplated hereby, will (with or without notice or lapse
of
time) (a) violate, conflict with, or result in a breach of,
any
provision of the charters or bylaws of Purchaser or any
resolution adopted by the board of directors or shareholders
of
Purchaser or any judgment, order, writ, injunction, decree
or
award of any court, governmental or regulatory body
applicable
to Purchaser or (b) result in a default (or give rise to any
right of termination, cancellation or acceleration) under any
of
the terms, conditions or provisions of any note, bond,
mortgage,
indenture, license, franchise, permit, lease, agreement or
other
instrument or obligation to which Purchaser is a party, or
by
which its properties may be bound.
ARTICLE 5
COVENANTS
5.1 Operation of the Business. Except as may
otherwise be consented to in writing by Purchaser, during
the
period from the date of this Agreement to the earlier of the
Closing Date or the termination of this Agreement pursuant
to
Article 8 below, Seller shall operate the Business in the
ordinary course consistent with past practice and maintain
the
Purchased Assets in customary repair, order and condition,
maintain all insurance with respect to such assets in effect
on
the date of this Agreement and, in the event of casualty,
loss
or damage to any of such assets or properties prior to the
Closing Date, either repair or replace such damaged property
or,
at Purchaser's option, transfer the proceeds of such
insurance
to Purchaser after the Closing.
5.
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