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ASSET PURCHASE AND SALE AGREEMENT
THIS ASSET PURCHASE AND SALE AGREEMENT (this "Agreement") is
made and entered into this 11th day of September 2007, by and
between
LENOX CORP, LTD, a Georgia corporation ("Purchaser") and
CAL-BAY
INTERNATIONAL, INC, a Nevada corporation ("Seller").
RECITALS
A. Seller is in the business of developing, marketing, managing,
selling
and distributing Real Estate (the "Business"). Seller desires to
sell to
Purchaser all of Seller's assets used in or relating to the
Business.
B. All of the assets Seller uses in or which relate to the
Business
consist of the following, which shall hereinafter collectively be
designated the
"Assets":
(i) Accounts Receivable. all accounts receivable of Seller as
of
September 11, 2007, identified in and that will be the subject of
the Bill
of Sale.
(ii) Inventory. the items of inventory identified in and that will
be
the subject of the Bill of Sale.
(iii) Tangible Personal Property. the items of tangible
personal
property in and that will be the subject of the Bill of Sale.
(iv) Customer Lists, Etc. all of Seller's customer lists and
addresses of Seller's past, present and potential customers which
will be
the subject of the Bill of Sale.
(v) Contracts. certain rights, services and contractual
obligations
under the contracts which were used by the Business and which
Seller has
entered into identified in and that will be the subject of the
Contracts
Assignment and Assumption Agreement.
(vi) Trademarks. all right, title and interest of Seller in and
to
the trademarks, service marks, trade names, logos, and product
names
and the goodwill of the business associated therewith (the
"Trademarks") as
identified in and that will be subject of the Trademarks
Assignment
Agreement.
(vii) Copyrights. all right, title and interest of Seller in
and
to the copyrights, copyright applications, and copyright
registrations (the
"Copyrights") identified in and what will be subject of the
Copyright
Assignment Agreement.
(viii) Patents. all right, title and interest of Seller in and
to
the patents and patent applications (the "Patents") identified in
and that
will be subject of the Patent Assignment Agreement.
(ix) Intellectual Property. any other intellectual property
used
in or relating to the Business (other than the Trademarks,
Copyrights and
Patents) of Seller including, without limitation, all trade
secrets,
proprietary technology, and confidential information, (the
"Intellectual
Property") identified in and that will be subject of the
Intellectual Property
Assignment Agreement and Numbers, Permits and Licenses.
Seller's
telephone and fax numbers, permits and business licenses.
C. Purchaser desires to purchase the Assets from Seller and
Seller
desires to sell the Assets to Purchaser, all as provided in this
Agreement.
NOW, THEREFORE, in consideration of the mutual covenants,
agreements,
representations and warranties contained herein and other good and
valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged,
the parties agree as follows:
SECTION 1 -- TERMS OF PURCHASE
1.1 Purchase of Assets. In reliance on the representations and
warranties
contained herein and in consideration of the purchase price as set
forth in
section 1.3 hereof and subject to all other terms and conditions
hereof, at the
Closing (as defined in section 2.1), and effective as of the
Effective Date (as
defined in Section 2.1), Purchaser shall purchase and accept, and
Seller shall
sell, assign, transfer, convey and deliver to Purchaser, all of
Seller's rights,
titles and interests in and to all the Assets (defined in Recital
Paragraph B,
above).
1.2 No Assumption of Obligations, Liabilities and Indebtedness.
(a) Except for those obligations assumed pursuant to the
Contracts
Assignment and Assumption Agreement, Purchaser shall not assume or
in any
way become liable for any obligations or liabilities of or relating
to the Assets
or Seller.
(b) Except as expressly set forth in Section 1.2(a) hereof,
Purchaser does not by this Agreement, or otherwise, assume, become
liable
for or agree to pay any obligation, liability or indebtedness of
Seller which
may now exist or which may arise in the future, whether associated
with the
Assets, the Business, Seller or otherwise.
(c) Any obligations, liabilities or indebtedness of Seller
including,
but not limited to, contingent liabilities, such as, but not
limited to,
liabilities relating to patent, trademark, copyright or other
business
infringement, environmental or hazardous waste liability, tort
liability,
employment discrimination, errors and omissions liability, employee
payroll
and employee benefits liability, liability under employment
agreements or
pertaining to covenants not to compete, obligations arising out of
or relating
to pension plans and other retirement plans, and federal, state or
local taxes,
shall remain the sole and separate responsibility of Seller, and
Seller hereby
agrees to indemnify, defend and hold Purchaser harmless from and
against
any and all such obligations, liabilities or indebtedness.
(d) Seller shall not assume or in any way become liable for any
obligations or liabilities of Purchaser relating to the Assets, the
Business or
Purchaser that arise from the business and operations of Purchaser
and that
occur in whole from and after the Closing.
1.3 Purchase Price and Allocation of Purchase Price. Subject to
upward
adjustment as provided in this Section 1.3, the purchase price for
the Assets
(the "Purchase Price") shall be Ten Dollars and no/100 Dollars
($10.00) and
the Purchase Price shall be allocated to the Assets.
1.4 Payment of Purchase Price. The Purchase Price shall be paid
by
Purchaser by:
(a) delivering to the Seller a made by the Purchaser to the order
of
the Seller in the original principal amount of $10.00.
(b) assuming liabilities in the amount of $36,174 as identified
in the Contracts Assignment and Assumption Agreement.
1.5 Taxes. The Purchase Price shall be exclusive of any sales
or
similar taxes that may be imposed. Seller shall be solely
responsible for any
sales or similar taxes that may be imposed on the purchase and sale
of the
Assets contemplated by this Agreement.
1.6 Documentation of Sale of Accounts Receivable, Inventory and
Tangible Personal Property. At the Closing Seller shall execute and
deliver to
Purchaser the Bill of Sale, to evidence and effect the transfer of
the accounts
receivable, inventory and other tangible personal property.
1.7 Documentation of Assignment and Assumption of Contracts. At
the Closing Seller and Purchaser shall execute and deliver to the
other the
Contracts Assignment and Assumption Agreement to evidence and
effect the
assignment and assumption of said contracts.
1.8 Documentation of Assignment of Trademarks. At the Closing
Seller and Purchaser shall execute and deliver to the other the
Trademarks
Assignment Agreement evidence and effect the assignment of the
Trademarks.
1.9 Documentation of Assignment of Copyrights. At the Closing
Seller
and Purchaser shall execute and deliver to the other the
Copyright
Assignment Agreement to evidence and effect the assignment of
the
Copyrights.
1.10 Documentation of Assignment of Patents. At the Closing
Seller
and Purchaser shall execute and deliver to the other the Patent
Assignment
Agreement to evidence and effect the assignment of the Patents.
1.11 Documentation of Assignment of Intellectual Property. At
the
Closing Seller and Purchaser shall execute and deliver to the other
the
Intellectual Property Assignment Agreement evidence and effect
the
assignment of the Intellectual Property. Seller agrees to execute
any and all
such further or other documents that Purchaser prepares which
are
reasonably necessary to further evidence or effect the purpose and
intention
of this Agreement.
1.12 Documentation of Assignment of Numbers, Permits and
Licenses.
At the Closing Seller shall assign and transfer to Purchaser the
telephone and
fax numbers, permits and business licenses.
1.13 Bulk Transfer Compliance. Purchaser hereby waives
compliance
by Seller with the provisions of the Utah or other applicable "bulk
transfer"
statutes. Seller hereby indemnifies and agrees to defend and hold
Purchaser
harmless from and against any liability or obligation to creditors
of Seller or
to others that may result from failure to comply with the Utah or
other
applicable "bulk transfer" laws in connection with the purchase and
sale of the
Assets.
SECTION 2 - THE CLOSING
2.1 Closing. The closing of the transaction contemplated by
this
Agreement (the "Closing") shall be held at the office of Seller in
Orem, Utah,
at 11:00 a.m. local time, on September 11, 2007, or at such other
time or
place as the parties may hereafter agree in writing. That date, or
if the
Closing is advanced or postponed under this Section 2.1, then
notwithstanding the date to which it is advanced or postponed, the
effective
date of the Closing shall be 12:01 a.m. on September 11, 2007, and
is in this
Agreement designated the "Effective Date."
2.2 Events at the Closing. The following events shall occur at
the
Closing, each of which shall be a condition precedent to each of
the others
and all of which shall be deemed to have occurred concurrently:
Seller's Deliverables
(a) Seller shall deliver possession of its business premises to
purchaser and in connection therewith, shall provide Purchaser with
keys to
the Leasehold Premises, all as shall be allowed and agreed by
Seller's
Landlord;
(b) Seller shall execute and deliver to Purchaser the Bill of
Sale.
(c) Seller shall execute and deliver to Purchaser the Contracts
Assignment and Assumption Agreement
(d) Seller shall execute and deliver to Purchaser the
Trademarks
Assignment Agreement.
(e) Seller shall execute and deliver to Purchaser the
Copyrights
Assignment Agreement.
(f) Seller shall execute and deliver to Purchaser the Patent
Assignment Agreement.
(g) Seller shall execute and deliver to Purchaser the
Intellectual
Property Assignment Agreement.
(h) Seller shall execute and deliver to Purchaser an assignment
and transfer of the telephone and fax numbers, permits and
business
licenses.
(i) Seller shall execute and deliver to Purchaser such other
documents as may be reasonably required by Purchaser to evidence
Seller's
compliance with any covenant and condition herein set forth or to
complete
the transactions herein contemplated;
PURCHASER'S DELIVERABLES
(j) Purchaser shall execute and deliver to Seller the
Promissory
Note.
(k) Purchaser shall execute and deliver to Seller the Security
Agreement.
(l) Purchaser shall execute and deliver to Seller a copy of the
Contracts Assignment and Assumption Agreement.
(m) Purchaser shall execute and deliver to Seller a copy of the
Trademarks Assignment Agreement.
(n) Purchaser shall execute and deliver to Seller a copy of the
Copyrights Assignment Agreement.
(o) Purchaser shall execute and deliver to Seller the Patent
Assignment Agreement.
(p) Purchaser shall execute and deliver to Seller the
Intellectual
Property Assignment Agreement.
(q) Purchaser shall execute and deliver to Seller an acceptance
of
the assignment and transfer of the telephone and fax numbers,
permits and
business licenses.
(r) Purchaser shall execute and deliver to Seller such other
documents as may be reasonably required by Seller to evidence
Purchaser's
compliance with any covenant and condition herein set forth or to
complete
the transactions herein contemplated.
SECTION 3 - REPRESENTATIONS AND WARRANTIES
3.1 Representations and Warranties of Seller. Except as set forth
in the
Schedule of Seller's Exceptions, Seller represents and warrants to
Purchaser
as follows:
(a) Sale of All Assets. By this Agreement and the instruments
contemplated hereby, Seller is transferring to Purchaser all of the
assets of
Seller that are used in the Business.
(b) Title to Assets; Liens. Seller has good and marketable title
to
the Assets and none of the Assets are subject to any mortgage,
pledge, lien,
security interest, lease, charge, claim or encumbrance. Neither the
Seller nor
any of Seller's affiliates use any asset, other than the Assets, in
the Business.
(c) Litigation. There is no material suit, action, litigation or
other
proceeding or governmental or administrative investigation or
inquiry pending
or threatened against Seller, the Business, and/or the Assets,
which, if
decided adversely to the interests of Seller, would prevent or
prohibit Seller
from transferring the Assets, free and clear from any security
interests, liens,
charges, claims or other encumbrances of any nature whatsoever or
from
otherwise complying in full with the provisions of this
Agreement.
(d) Authorization. Seller is a corporation duly organized,
validly
existing and in good standing under the laws of the State of Utah.
Seller has
all the requisite corporate and legal
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