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  Exhibit 4.06    
    

FORM OF SUPPLEMENTAL INDENTURE  

 SOUTHWESTERN PUBLIC SERVICE COMPANY  

 and  

 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

as Trustee  

                          SUPPLEMENTAL INDENTURE  

 Dated as of                           

 Supplementing the Indenture  

 Dated as of February 1, 1999  

  
        THIS [                        ] SUPPLEMENTAL INDENTURE, dated as of
[                        ] is between SOUTHWESTERN PUBLIC SERVICE COMPANY, a New Mexico corporation (hereinafter called the
"Issuer" or the
"Company"), having its principal office at Tyler at Sixth Street, Amarillo, Texas 79101, and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. as successor to THE CHASE MANHATTAN BANK, as Trustee
(hereinafter called the "Trustee"), having its office at 700 S. Flower Street, Suite 500, Los Angeles, California 90017. 

 Recitals of the Issuer  

        The Issuer and the Trustee have heretofore entered into an Indenture, dated as of February 1, 1999, a First Supplemental
Indenture, dated as of March 1, 1999, a Second Supplemental Indenture dated as of October 1, 2001, a Third Supplemental Indenture dated as of October 1, 2003, a Fourth
Supplemental Indenture dated as of October 1, 2006 (such Indenture, as supplemented by the First Supplemental Indenture, the Second Supplemental Indenture, the Third Supplemental Indenture, the
Fourth Supplemental Indenture and this Supplemental Indenture, being hereinafter referred to as the "Indenture"), relating to the issuance at any time or from time to time of its Securities on terms
to be specified at the time of issuance. Pursuant to Section 7.08 of the Indenture, JPMorgan Chase Bank, N.A. succeeded The Chase Manhattan Bank as trustee under the Indenture and The Bank of
New York subsequently succeeded JPMorgan Chase Bank, N.A. as trustee under the Indenture. The Bank of New York Mellon (formerly The Bank of New York) subsequently resigned as trustee and The Bank of
New York Mellon Trust Company, N.A. was appointed as successor trustee under the Indenture. Terms used and not otherwise defined herein shall (unless the context otherwise clearly requires) have the
respective meanings given to them in the Indenture. 

        The
Indenture provides in Article Two thereof that, prior to the issuance of Securities of any series, the form of such Securities and the terms applicable to such series shall be
established in, or pursuant to, the authority granted in a resolution of the Board of Directors (delivered to the Trustee in the form of a Bond Resolution) or established in one or more indentures
supplemental thereto. 

        The
Issuer desires by this Supplemental Indenture, among other things, to establish the form of the Securities of a Series, to be titled
Series [            ] Senior Notes,
[            ]% due [                        ] of the
Issuer, and to
establish the terms applicable to such series, pursuant to Sections 2.01 and 10.01 of the Indenture. The Issuer has duly authorized the execution and delivery of this Supplemental Indenture. 

        Article
Ten of the Indenture provides that the Issuer, when authorized by a resolution of its Board of Directors, and the Trustee may from time to time and at any time amend the
Indenture without the consent of Securityholders for certain purposes enumerated in Section 10.01 thereof, including purposes set forth in subsection (4) of said Section 10.01. 

        The
execution and delivery of this Supplemental Indenture by the parties hereto are in all respects authorized by the provisions of the Indenture. All things necessary have been done to
make this Supplemental Indenture a valid, legal and binding agreement of the Issuer, in accordance with its terms. 

        The
Issuer has requested that the Trustee execute and deliver this Supplemental Indenture. 

        NOW,
THEREFORE, THIS [                        ] SUPPLEMENTAL INDENTURE WITNESSETH: 

        For
and in consideration of the premises, it is mutually covenanted and agreed, as follows: 

 ARTICLE I.  

 ESTABLISHMENT OF SERIES [            ] NOTES,
[            ]% DUE [            ]  

        Section 1.01.    The
title of the series of the Securities established by this Supplemental Indenture shall be
Series [            ] Senior Notes, [            ]%
due [            ] of the Issuer (hereinafter called the
"Series [            ] Notes"). The Series
[            ] Notes shall be issued in registered form substantially in 

 

the
form set forth in Exhibit A hereto (which is hereby incorporated herein and made a part hereof), subject to changes in the form thereof made by the Issuer and acceptable to the Trustee. 

        Section 1.02.    The
Series [            ] Notes shall be limited to
$[                  ] aggregate principal amount except as provided in Section 1.06 of this Supplemental Indenture. 

        Section 1.03.    The
Series [            ] Notes may be issued in whole or in part as one
or more Global Securities and The Depository Trust Company, or a nominee thereof, shall be the Depository for such Global Security or Global Securities. The Depository for such Global Security or
Global Securities representing Series [            ] Notes may surrender one or more Global Securities representing
Series [            ] Notes in exchange in whole or in part for individual
Series [            ] Notes on such terms as are acceptable to the Issuer and such Depository and otherwise subject to the
terms of Section 2.12 of the Indenture. 

        Section 1.04.    The
Issuer hereby appoints, or confirms the appointment of, The Bank of New York Mellon Trust Company, N.A., as the Trustee, Transfer Agent and Paying
Agent, subject to the provisions of the Indenture with respect to resignation, removal and succession, and subject, further, to the right of the Issuer to appoint additional agents (including Paying
Agents). 

        Section 1.05.    The
terms of the Series [            ] Notes shall be as set forth in
Exhibit A hereto, and shall include the payment and other terms reflected on the Series [            ] Notes as
actually executed, authenticated and delivered under the Indenture. 

        Section 1.06.    The
Series [            ] Notes may be reopened and additional Securities
of Series [            ] Notes may be issued in excess of the amount initially authenticated and delivered, provided that
such additional Securities of Series [            ] Notes will contain the same terms (including the stated maturity
and interest rate) as the other Series [            ] Notes. Any such additional Securities of
Series [            ] Notes, together with the other
Series [            ] Notes, shall constitute a single series for purposes of the Indenture. 

 ARTICLE II.  

 MISCELLANEOUS  

        Section 2.01.    The recitals contained herein shall be taken as the statements of the Issuer, and the Trustee assumes
no responsibility for the correctness of the same. The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture. All rights, protections, privileges,
indemnities and benefits granted or afforded to the Trustee under the Indenture shall be deemed incorporated herein by this reference and shall be deemed applicable to all actions taken, suffered or
omitted by the Trustee under this Supplemental Indenture 

        Section 2.02.    The
Indenture, as supplemented by this Supplemental Indenture, is in all respects hereby adopted, ratified and confirmed. 

        Section 2.03.    This
Supplemental Indenture may be executed in any number of counterparts, and on separate counterparts, each of which shall be an original; but such
counterparts shall together constitute but one and the same instrument. 

        Section 2.04.    If
any provision of this Supplemental Indenture limits, qualifies or conflicts with the duties imposed by any of Sections 310 to 317, inclusive,
of the Trust Indenture Act of 1939, as amended by the Trust Indenture Reform Act of 1990, through operation of Section 318(c), such imposed duties shall control. 

        Section 2.05.    The
laws of the State of New York shall govern this Supplemental Indenture and the
Series [            ] Notes, unless federal law governs. 

2

 

        Section 2.06.    The
Article headings herein are for convenience only and shall not affect the interpretation hereof. 

        IN
WITNESS WHEREOF, the parties hereto have caused this [                        ] Supplemental Indenture to be duly executed,
and the Company has caused its corporate seal to be hereunto affixed and attested as of the [            ] day of
[            ], [            ]. 

					
	
	 	SOUTHWESTERN PUBLIC SERVICE COMPANY
	
	 	 By:
	 	 
	
	 	 	 	 
	 	 	 	 	 
	
	 	 	 	Name:
	
	 	 	 	Title:
	
	 	 	 	                [Seal]

	
	 	 Attest:
	 	 
	
	 	 	 	 
	 	 	 	 	 
	
	 	 	 	Name:
	
	 	 	 	Title:
	
	 	 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

	
	 	 By:
	 	 
	
	 	 	 	 
	 	 	 	 	 
	
	 	 	 	Authorized Signatory
	
	 	 	 	Name:
	
	 	 	 	Title:

3

 

  EXHIBIT A  

			
	CUSIP: [            ]	 	$                                    

        THIS
SECURITY IS A GLOBAL SECURITY REGISTERED IN THE NAME OF THE DEPOSITARY (REFERRED TO HEREIN) OR A NOMINEE THEREOF AND UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY. 

        UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (55 WATER STREET, NEW YORK, NEW YORK), TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

SOUTHWESTERN
PUBLIC SERVICE COMPANY 

Series
[            ] Senior Notes, [            ]% due
[            ] 

        Southwestern
Public Service Company promises to pay to
                                     or registered assigns the
principal sum of
                                     Dollars on 
[            ]. 

			
	 	 	Interest Payment Dates:        [            ] and 
[            ]
	 	 	Record Dates:        [            ] and 
[            ]

A-1

 
SOUTHWESTERN
PUBLIC SERVICE COMPANY 

Series
[            ] Senior Notes, [            ]% due
[            ] 

        1.     Interest.

        Southwestern
Public Service Company ("Company"), a corporation organized and existing under the laws of the State of New Mexico, promises to pay interest on the principal amount of this
Note at the rate per annum shown above. The Company will pay interest on [            ] to the holder of record on
[            ] and on [            ] to the holder of
record on [            ] of each year commencing
[                        ], [            ]. Interest on
this Note will
accrue from the most recent date to which interest has been paid or, if no interest has been paid, from [            ]. Interest
will be computed on the basis of a 360-day year of twelve 30-day months. In any case where any interest payment date or date on which the principal of this Note is required to
be paid is not a Business Day, then payment of principal, premium or interest need not be made on such date but may be made on the next succeeding Business Day with the same force and effect as if
made on such interest payment date or date on which the principal of this Note is required to be paid and, in the case of timely payment thereof, no interest shall accrue for the period from and after
such interest payment date or the date on which the principal of this Note is required to be paid. As used herein, "Business Day" means any day, other than a Saturday or Sunday, which is not a day on
which banking institutions or trust companies in The City of New York, New York or other city in which is located any office or agency maintained for the payment of principal or interest on this Note,
are authorized or required by law, regulation or executive order to remain closed. 

        2.     Method of Payment.

        The
Company will pay interest on this Note to the person who is the registered Holder of the Note at the close of business on the record date for the next interest payment date, except
as otherwise provided in the Indenture. This Note must be surrendered to a Paying Agent to collect principal payments. The Company will pay principal and interest in money of the United States that at
the time of payment is legal tender for payment of public and private debts. So long as this Note is in book entry only form and registered in the name of The Depository Trust Company, or a nominee
thereof, as Depositary, the Company will wire any payments of principal, interest or premium to such Depositary. Otherwise, the Company may pay principal and interest by check payable in such money.
It may mail an interest check to the Holder's registered address. 

        3.     Bond Agents.

        The
Bank of New York Mellon Trust Company, N.A. will act as Paying Agent and Transfer Agent. The Company may change any Paying Agent or Transfer Agent without notice or provide for more
than one such agent. The Company or any Affiliate may act in any such capacity. Subject to certain conditions, the Company may change the Trustee. Subject to certain conditions, the Company may change
the Trustee. 

        4.     Indenture.

        This
Note is one of a series of securities issued under an Indenture dated as of February 1, 1999 ("Indenture") between the Company and The Bank of New York Mellon Trust Company,
N.A., as successor to The Chase Manhattan Bank and The Bank of New York Mellon ("Trustee"). The terms of this Note include those stated in the Indenture including in the
[                        ] Supplemental Indenture dated as of
[                                    ] creating the Notes of
this series and those made part of the Indenture by the Trust Indenture Act of 1939
(15 U.S. Code Sections 77aaa-77bbbb). Securityholders are referred to the Indenture, the Supplemental Indenture and the Act for a statement of such terms. 

A-2

 

        5.     Redemption.

        [INSERT REDEMPTION PROVISIONS]

        6.     Notice of Redemption.

        Notice
of redemption will be mailed at least 30 days before the date fixed for redemption to the Holder hereof to be redeemed at such Holder's registered address. 

        A
notice of redemption may provide that it is subject to the occurrence of any event before the date fixed for such redemption as described in such notice ("Conditional Redemption") and
such notice of
Conditional Redemption shall be of no effect unless all such conditions to the redemption have occurred before such date or have been waived by the Company. 

        7.     Denominations, Transfer, Exchange.

        The
Notes of this series are in registered form without coupons in denominations of $1,000 and whole multiples of $1,000. The transfer of this Note may be registered and this Note may be
exchanged as provided in the Indenture. The Transfer Agent may require a holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required
by law or the Indenture. The Transfer Agent need not exchange or register the transfer of this Note or portion thereof selected for redemption. Also, it need not exchange or register the transfer of
this Note for a period of 15 days before a selection of Securities to be redeemed. 

        8.     Persons Deemed Owners.

        The
registered holder of this Note may be treated as its owner for all purposes. 

        9.     Amendments and Waivers.

        Subject
to certain exceptions, the Indenture or the Notes of this series may be amended with the consent of the holders of a majority in principal amount of the securities of all series
affected by the amendment. Subject to certain exceptions, a default on a series may be waived with the consent of the holders of a majority in principal amount of the series. 

        Without
the consent of any Securityholder, the Indenture or the Notes of this series may be amended, among other things, to cure any ambiguity, omission, defect or inconsistency; to
provide for assumption of Company obligations to Securityholders; or to make any change that does not materially adversely affect the rights of any Securityholder. 

        10.   Restrictive Covenants.

        The
Notes of this series are unsecured general obligations of the Company and shall initially be authenticated and delivered in the aggregate principal amount of
$[                        ] principal amount. The Notes of this series may be reopened and additional Notes of this series
may be issued in
accordance with the terms of the Indenture. The Indenture does not limit other unsecured debt. 

        11.   Successors.

        When
a successor assumes all the obligations of the Company under the Securities and the Indenture, the Company will be released from those obligations. 

        12.   Defeasance Prior to Redemption or Maturity.

        Subject
to certain conditions as set forth in Article 8 of the Indenture, the Company at any time may terminate some or all of its obligations under this Note and the Indenture if
the Company deposits with the Trustee money or U.S. Government Obligations for the payment of principal and interest on this Note to redemption or maturity. U.S. Government Obligations are securities
backed by the full 

A-3

 

faith
and credit of the United States of America or certificates representing an ownership interest in such Obligations. 

        13.   Defaults and Remedies.

        An
Event of Default includes: default for 60 days in payment of interest on the Notes of this series; default in payment of principal on the Notes of this series; default by the
Company for 90 days after notice to it in the performance of any of its other agreements applicable to the Notes of this series; certain events of bankruptcy or insolvency; and any other Event
of Default provided for in this series. If an Event of Default occurs and is continuing, the Trustee or the holders of at least 25% in principal amount of the Notes of this series may declare the
principal of all the Notes of this Series to be due and payable immediately. 

        The
Securityholders of a majority in principal amount of Notes of this series may, by notice to the Trustee, rescind an acceleration so long as the rescission would not conflict with any
judgment or decree and if all existing events of default on the Notes of this series have been cured or waived except non-payment of principal or interest that has become due solely
because of the acceleration. 

        Securityholders
may not enforce the Indenture or the Notes of this series except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it enforces the
Indenture or the Notes of this series. Subject to certain limitations, holders of a majority in principal amount of the
Notes of this series may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Securityholders notice of any continuing default (except a default in payment of
principal or interest) if it determines that withholding notice is in their interests. The Company must furnish annual compliance certificates to the Trustee. 

        14.   Trustee Dealings with Company.

        The
Bank of New York Mellon Trust Company, N.A., the Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept deposits from, and perform services
for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not Trustee. 

        15.   No Recourse Against Others.

        A
director, officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under this Note or the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. The Holder hereof by accepting this Note waives and releases all such liability. The waiver and release are part of the
consideration for the issue of this Note. 

        16.   Authentication.

        This
Note shall not be valid until authenticated by a manual signature of the Trustee. 

        17.   Governing Law.

        The
Indenture and this Note are governed by the laws of the State of New York, unless federal law governs. 

        18.   Abbreviations.

        Customary
abbreviations may be used in the name of a Securityholder or an assignee, such as: TEN COM (tenants in common), TEN ENT (tenants by the entireties), JT TEN (joint tenants with
right of survivorship and not as tenants in common), CUST (custodian), and U/G/M/A (Uniform Gifts to Minors Act). 

A-4

 

        The
Company will furnish to the Holder hereof upon written request and without charge a copy of the Indenture including the Supplemental Indenture, which contains the text of this Note
in larger type. Requests may be made to: Southwestern Public Service Company, c/o Xcel Energy Inc., 414 Nicollet Mall, Fourth Floor, Minneapolis, Minnesota 55401, Attention: Corporate
Secretary. 

        Dated:
[            ] 

							
	
	 	SOUTHWESTERN PUBLIC SERVICE COMPANY
	
	 	 By:
	 	 
	
	 	 	 	 
	 	 	 	 	 
	
	 	 	 	        Name:
	
	 	 	 	        Title:
	
	 	 Attest:
	 	 
	
	 	 By:
	 	 
	
	 	 	 	 
	 	 	 	 	 
	
	 	 	 	        Name:
	
	 	 	 	        Title:
	
	 	 	 	                        (Seal)

	 Authenticated:
	 	 	 	 
	 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.
	 	 	 	 
	

 	
 	

 	
 	

 
	 By:
	 	 	 	 
	
	 	 	 	 
	 	 	 	 	 
	 	 	 Authorized Signature
	 	 	 	 
	 	 	 Name:
	 	 	 	 
	 	 	 Title:
	 	 	 	 

A-5

 
 ASSIGNMENT FORM  

        To assign this Note, fill in the form below: 

					
	 	 	I or we assign and transfer this Note to:	 	 
	

 	
 	

 	
 	

 
	 	 	 	 	 
	

 	
 	

 	
 	

 
	 	 	 	 	 
	

 	
 	

(Insert assignee's Soc. Sec. or tax I.D. no.)	
 	

 

 

 

			
	 	 	 
	

 	
 	

 
	 	 	 
	

 	
 	

 
	 	 	 

(Print
or type assignee's name, address and zip code) 

and
irrevocably appoint                        agent to transfer this Note on the books of the Company. That agent may substitute
another to act for him. 

			
	Date:
                                    	 	Your Signature:
                                    

(Sign
exactly as your name appears on the other side of This Note) 

A-6

QuickLinks

Exhibit 4.06Filed by sedaredgar.com - USR Technology, Inc. - Exhibit 10.1

ASSET PURCHASE AGREEMENT 

THIS AGREEMENT dated for reference the 22nd day of
  August, 2008. 

AMONG: 

  
    
      SHUAYB K. AL SULEIMANY, an Omani National,
        whose address is P.O Box 2648, Ruwi, Postal Code 112, Sultanate of Oman.
      

      (herein called the “Vendor”) 

    

  

AND: 

  
    
      USR TECHNOLOGY, INC., a corporation existing under
        the laws of the State of Nevada with its executive office at 20333 State
        Hwy. 249, Suite 200, Houston, Texas 

      (herein called the “Purchaser”) 

    

  

WHEREAS: 

A.        The Vendor owns
certain assets consisting of a variety of drilling equipment including drill
bits, stabilizers, survey equipment, and two wireline trucks including tools and
related components. 

B.        The Vendor has
agreed to sell and the Purchaser has agreed to purchase assets consisting of a
variety of drilling equipment including drill bits, stabilizers, survey
equipment, and two wireline trucks including tools and related components (the
“Purchased Assets”). 

C.        The Purchaser
intends to conduct a three (3) for one (1) consolidation of its issued and
outstanding shares of common stock (the “Consolidation”). 

D.        The Purchase Price
for the Purchased Assets will be payable by the issuance of 738,989
post-consolidated restricted shares of common stock of the Purchaser (2,216,967
pre-consolidated restricted shares of common stock) at a deemed price of US
$1.00 per share (the “Purchase Shares”).

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: 

	1. 	
      DEFINED TERMS

	 	 	 
	1.1 	
      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:

	 	 	 
		(a) 	
      “Affiliate” has the meaning given to that term in the
      Securities Act of 1933, as amended, and the Rules and Regulations of the
      Securities and Exchange Commission promulgated thereunder;

	 	 	 
		(b) 	
      “Associate” has the meaning given to that term in the
      Securities Act of 1933, as amended, and the Rules and Regulations of the
      Securities and Exchange Commission promulgated thereunder;

	 	 	 
		(c) 	
      “Purchased Assets” means the business assets as described
      in Recital B of this Agreement;

	 	 	 
		(d) 	
      “Business Day” means any day which is not a Saturday,
      Sunday or statutory holiday in Texas, United States of
  America;

- 2 - 

	 	(e) 	
      “Closing” means the completion of the transactions
      contemplated in this Asset Purchase Agreement;

	 	 	 
	 	(f) 	
      “Closing Date” means August 8, 2008 or such other date as
      the Vendor and the Purchaser may mutually determine;

	 	 	 
	 	(g) 	
      “Contract” means any agreement, indenture, contract,
      lease, deed of trust, license, option, instrument or other commitment,
      whether written or oral;

	 	 	 
	 	(h) 	
      “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;

	 	 	 
	 	(i) 	
      ”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 Purchased Assets have been
      put;

	 	 	 
	 	(j) 	
      “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;

	 	 	 
	 	(k) 	
      “Purchase Price” means the Purchase Shares issuable by
      the Purchaser to the Vendor for the Purchased Assets; and

	 	 	 
	 	(l) 	
      “Transaction” means the sale of the Purchased Assets from
      the Vendor to the Purchaser in exchange for the issuance by the Purchaser
      of 738,989 post-consolidated restricted shares of its common stock
      (2,216,967 pre-consolidated restricted shares of its common stock) issued
      at a deemed price of US $1.00 per share.

	1.2 	
      Currency. Unless otherwise indicated, all dollar
      amounts in this Agreement are expressed in United States funds.

	 	 
	1.3 	
      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.

	 	 
	1.4 	
      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.

	 	 
	1.5 	
      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.

	 	 
	1.6 	
      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,

- 3 - 

		
      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.

	 	 
	1.7 	
      Time of Essence. Time will be of the essence of
      this Agreement.

	 	 
	1.8 	
      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
      applicable therein. Subject to Clause 1.9, each party irrevocably and
      unconditionally submits to the non-exclusive jurisdiction and venue of the
      courts of England, and all courts competent to hear appeals there from and
      waives, so far as is legally possible, its right to have any legal action
      relating to this Agreement tried by a jury.

	 	 
	1.9 	
      Arbitration. All disputes arising out of or in
      connection with this Agreement shall be finally settled under the Rules of
      Arbitration of the International Chamber of Commerce by one arbitrator
      appointed in accordance with such Rules. The arbitration will be held in
      London, England and be conducted in the English language. Each party to
      the arbitration will pay its pro rata share of the expenses and fees of
      the arbitrator, together with other expenses of the arbitration incurred
      or approved by the arbitrator; and arbitration may proceed in the absence
      of any party if written notice (pursuant to the Rules and regulations) of
      the proceedings has been given to such party. Each party shall bear its
      own attorneys fees and expenses. The parties agree to abide by all
      decisions and awards rendered in such proceedings. Such decisions and
      awards rendered by the arbitrator shall be final and conclusive. All such
      controversies, claims or disputes shall be settled in this manner in lieu
      of any action at law or equity; provided however, that nothing in this
      subsection shall be construed as precluding the bringing an action for
      injunctive relief or other equitable relief. The arbitrator shall not have
      the right to award punitive damages or speculative damages to either party
      and shall not have the power to amend this Agreement. The arbitrator shall
      be required to follow applicable law. IF FOR ANY REASON THIS ARBITRATION
      CLAUSE BECOMES NOT APPLICABLE, THEN EACH PARTY, TO THE FULLEST EXTENT
      PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL
      BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING, OR
      COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
      MATTER INVOLVING THE PARTIES HERETO.

	 	 
	1.10 	
      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.

	 	 
	1.11 	
      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 prior to Closing, 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.

	 	 
	1.12 	
      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.

	 	Schedule 1 	Description of
      Purchased Assets 
	 	Schedule 2 	Permits and Licenses 
	 	Schedule 3 	Intellectual
      Property 
	 	Schedule 4 	Legal and Regulatory Proceedings
    
	 	Schedule 5 	Consents
  

- 4 - 

	2. 	
      PURCHASE AND SALE

	 	 	 	 
	2.1 	
      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 Assets.

	 	 	 	 
	3. 	
      PURCHASE PRICE AND ALLOCATION

	 	 	 	 
	3.1 	
      The Purchase Price payable by the Purchaser to the Vendor
      for the Purchased Assets shall consist of 738,989 post-consolidated shares
      of restricted common stock of the Purchaser (2,216,967 pre-consolidated
      restricted shares of common stock) at a deemed price US $1.00 per share
      (the “Purchase Shares”). On or prior to the Closing Date, the Purchaser
      and the Vendor shall enter into a form of subscription agreement in
      regards to the Purchase Shares.

	 	 	 	 
	4. 	
      PAYMENT OF THE PURCHASE PRICE

	 	 	 	 
	4.1 	
      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.

	 	 	 	 
	5. 	
      CLOSING, POSSESSION, AND NO
    ADJUSTMENTS

	 	 	 	 
	5.1 	
      The Closing will take place on the Closing Date at the
      offices of the Vendor, or at such other place, date, and time as may be
      mutually agreed upon by the parties hereto.

	 	 	 	 
	5.2 	
      The Vendor will deliver possession of the Purchased
      Assets, free of any other claim to possession and any tenancies, to the
      Purchaser on the Closing Date.

	 	 	 	 
	5.3 	
      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.

	 	 	 	 
	6. 	
      REPRESENTATIONS AND WARRANTIES OF THE
      VENDOR

	 	 	 	 
	6.1 	
      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:

	 	 	 	 
		(a) 	
      the execution and delivery of this Agreement and the
      completion of the transaction contemplated hereby have been duly and
      validly authorized by all necessary corporate 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;

	 	 	 	 
		(b) 	
      except as will be remedied by the consents, approvals,
      releases, and discharges described in Schedule 5 - Consents attached
      hereto, neither the execution and delivery of this Agreement nor the
      performance of the Vendor’s obligations hereunder will:

	 	 	 	 
			(i) 	
      violate or constitute default under any order, decree,
      judgment, statute, by-law, rule, regulation, or restriction applicable to
      the Vendor, the Purchased Assets, or any contract, agreement, instrument,
      covenant, mortgage, or security, to which the Vendor is a party or which
      are binding upon the Vendor,

	 	 	 	 
			(ii) 	
      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.
  .

- 5 - 

	 	(iii) 	
      give rise to the creation or imposition of any
      Encumbrance on any of the Purchased Assets,

	 	 	 
	 	(iv) 	
      violate or constitute default under any license, permit,
      approval, consent or authorization held by the Vendor, or

	 	 	 
	 	(v) 	
      violate or trigger any liability on behalf of the
      Purchaser pursuant to any legislation or agreement governing the sale of
      the Purchased Assets by the Vendor.

	 	(c) 	
      the Vendor owns and possesses and has good and marketable
      title to the Purchased Assets free and clear of all Encumbrances of every
      kind and nature whatsoever;

	 	 	 	 
	 	(d) 	
      to the knowledge of the Vendor, the Purchased Assets are
      in good working order and in a functional state of repair and to the best
      of the knowledge of the Vendor there are no latent defects
  thereto;

	 	 	 	 
	 	(e) 	
      the Vendor does not have any indebtedness in excess of
      $10,000 which might by operation of law or otherwise now or hereafter
      constitute an Encumbrance upon any of the Purchased Assets;

	 	 	 	 
	 	(f) 	
      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 any of the Purchased
      Assets;

	 	 	 	 
	 	(g) 	
      except as otherwise provided herein, this Agreement
      discloses all contracts, engagements, and commitments, whether oral or
      written, relating to the Purchased Assets including in particular
      contracts, engagements, and commitments:

	 	 	 	 
	 		(i) 	
      out of the ordinary course of business,

	 	 	 	 
	 		(ii) 	
      which entail the payment of in excess of $10,000.00
      during any one year period,

	 	 	 	 
	 		(iii) 	
      respecting ownership of or title to any interest or claim
      in or to any real or personal property making up the Purchased
    Assets,

	 	 	 	 
	 		(iv) 	
      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;

	 	 	 	 
	 		(v) 	
      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;.

	 	 	 	 
	 		(vi) 	
      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;

	 	 	 	 
	 		(vii) 	
      there has not been any amendment, modification,
      variation, surrender, or release of said contracts, engagements, and
      commitments; and

	 	 	 	 
	 		(viii) 	
      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,

- 6 - 

engagements or commitments provided
for in this Agreement, to which the Vendor is a party or by which it is bound;

	 	(h) 	
      all material Licenses required for the uses to which the
      Purchased Assets 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 Assets 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;

	 	 	 
	 	(i) 	
      except as disclosed in Schedule 4 - Legal and Regulatory
      Proceedings, 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 Assets;

	 	 	 
	 	(j) 	
      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 5 - 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 5 - Consents;

	 	 	 
	 	(k) 	
      with respect to the Purchased Assets, the 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 authority against the Purchased Assets. 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;

	 	 	 
	 	(l) 	
      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 Assets, nor has the Vendor received
      notice of any of the same;

	 	 	 
	 	(m) 	
      Schedule 3 - Intellectual Property, sets out all
      registered or pending Intellectual Property (including particulars of
      registration or application for registration, or continuances) and all
      licenses, registered user agreements and other contracts that comprise or
      relate to Intellectual Property. The Intellectual Property comprises all
      trade or brand names, business names, trade marks, service marks,
      copyrights, patents, trade secrets, know-how, inventions, designs and
      other industrial or intellectual property necessary for use with the
      Assets. The Vendor is the beneficial owner of the Intellectual Property,
      free and clear of all Encumbrances, and is not a party to or bound by any
      contract or any other obligation whatsoever that limits or impairs its
      ability to sell, transfer, assign or convey, or that otherwise affects,
      the Intellectual Property. No person has been granted any interest in or
      right to use all or any portion of the Intellectual Property. The use of
      the Assets does not infringe upon the industrial or intellectual property
      rights, domestic or foreign, of any other person. The Vendor is not aware
      of a claim of any infringement or breach of any industrial or intellectual
      property rights of any other person, nor has the Vendor received any
      notice that the use of the Assets, including the use of the Intellectual
      Property, infringes upon or breaches any industrial or intellectual
      property rights of any other person, and the Vendor, after due inquiry,
      has no knowledge of any infringement or

- 7 - 

	 		
      violation of any of its rights in the Intellectual
      Property. The Vendor is not aware of any state of facts that casts doubt
      on the validity or enforceability of any of the Intellectual Property. The
      Vendor has provided to the Purchaser a true and complete copy of all
      contracts and amendments thereto that comprise or relate to the
      Intellectual Property; and

	 	 	 
	 	(n) 	
      there are no liabilities of the Vendor or its Associates
      or Affiliates, whether or not accrued and whether or not determined or
      determinable, in respect of which the Purchaser may become liable on or
      after the Closing Date.

	7. 	
      REPRESENTATIONS OF THE PURCHASER

	 	 	 
	7.1 	
      The Purchaser represents and warrants to the Vendor as
      follows, with the intent that the Vendor will rely thereon in entering
      into this Agreement and in concluding the purchase and sale contemplated
      hereby, that:

	 	 	 
		(a) 	
      the Purchaser is a corporation duly incorporated, validly
      existing, and in good standing under the laws of the State of Nevada and
      has the power, authority, and capacity to enter into this Agreement and to
      carry out its terms;

	 	 	 
		(b) 	
      the execution and delivery of this Agreement and the
      completion of the transactions contemplated hereby has been duly and
      validly authorized by all necessary corporate action on the part of the
      Purchaser, and this Agreement constitutes a valid and binding obligation
      of the Purchaser enforceable against the Purchaser 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;

	 	 	 
		(c) 	
      there is no requirement for the Purchaser to make any
      filing with, give any notice to or obtain any license, permit,
      certificate, registration, authorization, consent or approval of, any
      government or regulatory authority as a condition to the lawful
      consummation of the transactions contemplated by this Agreement;

	 	 	 
		(d) 	
      neither the execution and delivery of this Agreement nor
      the performance of the Purchaser’s obligations hereunder will violate or
      constitute a default under the constating documents, by-laws, or articles
      of the Purchaser, any order, decree, judgment, statute, by-law, rule,
      regulation, or restriction applicable to the Purchaser, or any contract,
      agreement, instrument, covenant, mortgage or security to which the
      Purchaser is a party or which are binding upon the Purchaser;

	 	 	 
		(e) 	
      Purchaser has made available to the Vendor a true and
      complete copy of each annual, quarterly and other reports, registration
      statements (without exhibits) filed by Purchaser with the Securities and
      Exchange Commission (the “SEC”) since January 1, 2008 (the “Purchaser SEC
      Documents”). As of their respective filing dates, the Purchaser SEC
      Documents complied in all material respects with the requirements of the
      Securities Act and the Securities Exchange Act of 1934, as amended (the
      “Exchange Act”), as the case may be, and the rules and regulations of the
      SEC promulgated thereunder applicable to such Purchaser SEC Documents, and
      none of the Purchaser SEC Documents contained on their filing dates any
      untrue statement of a material fact or omitted to state a material fact
      required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not misleading,
      except to the extent corrected by a subsequently filed Purchaser SEC
      Document. The financial statements of Purchaser included in the Purchaser
      SEC Documents (the “Purchaser Financial Statements”) complied as to form
      in all material respects with the published rules and regulations of the
      SEC with respect thereto, were prepared in accordance with generally
      accepted accounting principles applied on a consistent basis throughout
      the periods indicated (except as may be indicated in the notes thereto or,
      in the case of unaudited financial statements, as permitted under Form
      10-QSB under the Exchange Act) and fairly presented the consolidated
      financial position of Purchaser and its consolidated subsidiaries as of
      the respective dates thereof and the consolidated results of Purchaser’s
      operations and cash flows for the periods indicated (subject to, in the
      case of unaudited statements, to normal and
recurring

- 8 - 

	 		
      year-end audit adjustments). There has been no change in
      Purchaser’s accounting policies, except as described in the notes to the
      Purchaser Financial Statements or as required by generally accepted
      accounting principles. Since the date of the most recent balance sheet
      included in a Purchaser SEC Document, there has been no material adverse
      effect on the business, operations, assets, condition (financial or
      otherwise) or prospects of the Purchaser;

	 	 	 
	 	(f) 	
      The authorized stock of the Purchaser consists of
      450,000,000 shares of Common Stock of which 35,760,000 were issued and
      outstanding as of July 15, 2008.

	 	 	 
	 	(g) 	
      The Purchase Price to be issued to the Vendor under this
      Agreement will, when so issued, be duly authorized, validly issued, fully
      paid, non-assessable, free of any Encumbrances and not subject to any
      preemptive rights or rights of first refusal created by statute or the
      charter documents or Bylaws of Purchaser or any agreement to which
      Purchaser is a party or is bound and will be issued in compliance with
      federal and state securities laws; and

	 	 	 
	 	(h) 	
      except as disclosed in the Purchaser SEC Documents, (i)
      there are no actions, suits, proceedings, investigations, complaints,
      orders, directives, or notices of defect or non-compliance 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
      Purchaser’s knowledge threatened against or affecting the Purchaser; and
      (ii) the Purchaser is in compliance in all material respects with all
      applicable laws applicable to Purchaser and its
business.

	8. 	
      COVENANTS OF THE VENDOR

	 	 	 
	8.1 	
      Between the date of this Agreement and the Closing Date,
      the Vendor covenants and agrees that the Vendor:

	 	 	 
		(a) 	
      will not sell or dispose of any of the Purchased Assets,
      except only the sale of services in the ordinary course of business and
      will preserve the Purchased Assets intact without any further
      Encumbrances;

	 	 	 
		(b) 	
      will keep the Purchased Assets in their present
    state;

	 	 	 
		(c) 	
      will maintain insurance coverage of the scope and in the
      amounts now held in full force and effect and will give all notices and
      present all claims under all policies of insurance in a due and timely
      fashion;

	 	 	 
		(d) 	
      will afford the Purchaser and its authorized
      representatives full access during normal business hours to the Purchased
      Assets and without limitation, all title documents, abstracts of title,
      deeds, leases, contracts, financial statements, policies, reports,
      licenses, books, records, and other such material relating to the
      Purchased Assets, and furnish such copies thereof and other information,
      as the Purchaser may reasonably request;

	 	 	 
		(e) 	
      will use its best efforts to procure and obtain at or
      prior to the Closing Date all such consents, approvals, releases, and
      discharges as may be required to effect the transactions contemplated
      hereby from all federal, state, municipal or other governmental or
      regulatory bodies and from all other third parties as necessary;

	 	 	 
		(f) 	
      at the request of the Purchaser, the Vendor will execute
      such consents, authorizations and directions as may be necessary to permit
      any inspection of the Purchased Assets or to enable the Purchaser or its
      authorized representatives to obtain full access to all files and records
      relating to the Purchased Assets maintained by governmental or other
      public authorities;

	 	 	 
		(g) 	
      will use its best efforts to take or cause to be taken
      all necessary corporate action, steps and proceedings to approve and
      authorize validly and effectively the transfer of the Purchased Assets
      to

- 9 - 

	 		
      the Purchaser and the execution and delivery of this
      Agreement and any other Agreements or documents contemplated hereby and to
      cause all necessary meetings of members or managers of the Vendor to be
      held for such purpose; and

	 	 	 
	 	(h) 	
      will not, without the prior written consent of the
      Purchaser, enter into any transaction or refrain from doing any action
      that, if effected before the date of this Agreement, would constitute a
      breach of any representation, warranty, covenant or other obligation of
      the Vendor contained herein, and the Vendor will not enter into any
      material supply agreements relating to the Purchased Assets or make any
      material decisions or enter into any material contracts with respect to
      the Purchased Assets without the consent of the Purchaser, which consent
      will not be unreasonably withheld.

	9. 	
      COVENANTS OF THE PURCHASER

	 	 
	9.1 	
      Between the date of this Agreement and the Closing Date,
      the Purchaser will make all reasonable efforts to obtain and procure in
      co-operation with the Vendor all consents, approvals, releases, and
      discharges required to effect the transactions contemplated
  hereby.

	 	 
	10. 	
      NON-COMPETITION

	 	 
	10.1 	
      As a condition to, and in consideration of, the Purchaser
      entering into this Agreement, the Vendor and other employees similarly
      situated to the Vendor, covenant and agree with the Purchaser that for a
      period of 3 years from the Closing Date, it will not, either directly or
      indirectly, as principal, agent, owner, employee, partner, shareholder,
      advisor or otherwise howsoever own, operate or engage in the operation of
      or have any financial interest in or provide, directly or indirectly,
      financial assistance to any business operation, whether a proprietorship,
      partnership, joint venture, private company or otherwise howsoever,
      carrying on or engaged in any business identical with or similar to the
      business carried on by the Purchaser worldwide;

	 	 
	10.2 	
      The Vendor acknowledges and agrees that the obligations
      of this Agreement are directly related to the asset purchase and are
      necessary to protect the Purchaser’s legitimate business interests; and
      that the Purchaser’s need for the covenants set forth in this Agreement is
      based on the following: (i) the substantial time, money and effort
      expended and to be expended by the Purchaser in developing marketing plans
      and similar confidential information; and (ii) the highly competitive
      nature of the Purchaser’s industry, including the premium that competitors
      of the Purchaser place on acquiring proprietary and competitive
      information.

	 	 
	11. 	
      CONFIDENTIALITY

	 	 
	11.1 	
      Except as and to the extent required by law, for a period
      of two (2) years after the Closing Date, Purchaser and Vendor will not
      disclose or use, and will direct their representatives not to disclose or
      use, to the detriment of the other party any Confidential Information (as
      defined below) with respect to either party furnished, or to be furnished,
      by either party or their respective representatives at any time or in any
      manner other than in connection with its evaluation of the Transaction.
      For the purposes of this paragraph, "Confidential Information" means any
      information about either party stamped "confidential" or identified in
      writing as such to one party by the other party promptly following its
      disclosure, unless (i) such information is already known to the receiving
      party or its representatives or to others not bound by a duty of
      confidentiality or such information becomes publicly available through no
      fault of the receiving party or its representatives, (b) the use of such
      information is necessary or appropriate in making any filing or obtaining
      any consent or approval required for the consummation of the Transaction
      or (c) the furnishing or use of such information is required by or
      necessary or appropriate in connection with legal proceedings. Upon the
      written request of the disclosing party the receiving party will promptly
      return or destroy any Confidential Information in its possession and
      certify in writing to the disclosing party that it has done
  so.

- 10 - 

	12. 	
      INDEMNIFICATION, REMEDIES,
  SURVIVAL

	 	 	 
	12.1 	
      Certain Definitions

	 	 	 
		
      For the purposes of this Clause 12 the terms
      “Loss” and “Losses” mean any and all demands, claims,
      actions or causes of action, assessments, losses, damages, liabilities,
      costs, and expenses, including without limitation, interest, penalties,
      fines and reasonable attorneys, accountants and other professional fees
      and expenses, but excluding any indirect, consequential or punitive
      damages suffered by the Vendor or the Purchaser including damages for lost
      profits or lost business opportunities.

	 	 	 
	12.2 	
      Agreement of Vendor to Indemnify

	 	 	 
		
      Vendor will indemnify, defend, and hold harmless, to the
      full extent of the law, for a period of three years from the Closing Date,
      the Purchaser from, against, and in respect of any and all Losses asserted
      against, relating to, imposed upon, or incurred by the Purchaser by reason
      of, resulting from, based upon or arising out of:

	 	 	 
		(a) 	
      the breach by Vendor of any representation or warranty of
      Vendor contained in or made pursuant to this Agreement, any Vendor
      document or any certificate or other instrument delivered pursuant to this
      Agreement; or

	 	 	 
		(b) 	
      the breach or partial breach by Vendor of any covenant or
      agreement of Vendor made in or pursuant to this Agreement, any Vendor
      document or any certificate or other instrument delivered pursuant to this
      Agreement.

	 	 	 
	12.3 	
      Agreement of Purchaser to Indemnify

	 	 	 
		
      Purchaser will indemnify, defend, and hold harmless, to
      the full extent of the law, for a period of three years from the Closing
      Date, Vendor from, against, for, and in respect of any and all Losses
      asserted against, relating to, imposed upon, or incurred by Vendor by
      reason of, resulting from, based upon or arising out of:

	 	 	 
		(a) 	
      the breach by Purchaser of any representation or warranty
      of Purchaser contained in or made pursuant to this Agreement, any
      Purchaser document or any certificate or other instrument delivered
      pursuant to this Agreement; or

	 	 	 
		(b) 	
      the breach or partial breach by Purchaser of any covenant
      or agreement of Purchaser made in or pursuant to this Agreement, any
      Purchaser document or any certificate or other instrument delivered
      pursuant to this Agreement.

	 	 	 
	13. 	
      SURVIVAL OF REPRESENTATIONS AND
      WARRATNIES

	 	 	 
	13.1 	
      The representations, warranties, covenants, and
      agreements of the Vendor contained herein and those contained in the
      documents and instruments delivered pursuant hereto or in connection
      herewith will survive the Closing Date for a period of eighteen months,
      and notwithstanding the completion of the transactions contemplated
      hereby, the waiver of any condition contained herein (unless such waiver
      expressly releases the Vendor of such representation, warranty, covenant,
      or agreement), or any investigation by the Purchaser, same will remain in
      full force and effect.

	 	 	 
	13.2 	
      The representations, warranties, covenants, and
      agreements of the Purchaser contained herein and those contained in the
      documents and instruments delivered pursuant hereto or in connection
      herewith will survive the Closing Date for a period of eighteen months,
      and notwithstanding the completion of the transactions contemplated
      hereby, the waiver of any condition contained herein (unless such
      waiver

- 11 - 

		
      expressly releases the Purchaser of such representation,
      warranty, covenant, or agreement), or any investigation by the Vendor,
      same will remain in full force and effect.

	 	 	 
	14. 	
      CONDITIONS PRECEDENT

	 	 	 
	14.1 	
      The obligation of the Purchaser to consummate the
      transactions herein contemplated is subject to the fulfillment of each of
      the following conditions precedent at the times stipulated:

	 	 	 
		(a) 	
      that the representations and warranties of the Vendor
      contained herein are true and correct on and as at the Closing Date with
      the same force and effect as if such representations and warranties were
      made as at the Closing Date, except as may be in writing disclosed to and
      approved by the Purchaser;

	 	 	 
		(b) 	
      that all the terms, covenants, conditions, agreements,
      and obligations hereunder on the part of the Vendor to be performed or
      complied with at or prior to the Closing Date, including in particular the
      Vendor’s obligation to deliver the documents and instruments herein
      provided for in Clause 15, have been performed and complied with as at the
      Closing Date;

	 	 	 
		(c) 	
      that between the date hereof and the Closing Date no
      change, event, or circumstance has occurred which materially adversely
      affects the Purchased Assets or which, significantly reduces the value of
      the Purchased Assets to the Purchaser;

	 	 	 
		(d) 	
      that between the date hereof and the Closing Date there
      has not been any substantial loss, damage, or destruction, whether or not
      covered by insurance, to any of the Purchased Assets;

	 	 	 
		(e) 	
      no legal or regulatory action or proceeding will be
      pending or threatened by any person to enjoin, restrict or prohibit the
      purchase and sale of the Purchased Assets contemplated hereby;

	 	 	 
		(f) 	
      that at the Closing Date, there will have been obtained
      from all appropriate federal, state, municipal or other governmental or
      administrative bodies such licenses, permits, consents, approvals,
      certificates, registrations and authorizations as are required to be
      obtained by the Vendor to permit the change of ownership of the Purchased
      Assets contemplated hereby, and all notices, consents and approvals with
      respect to the transfer or assignment of any contracts;

	 	 	 
		(g) 	
      that at the Closing Date, the Vendor will have given or
      obtained the notices, consents and approvals described in Schedule 5 -
      Consents, in each case in form and substance satisfactory to the
      Purchaser, acting reasonably;

	 	 	 
	14.2 	
      The foregoing conditions of Clause 14.1 are for the
      exclusive benefit of the Purchaser and may be waived in whole or in part
      by the Purchaser at any time. If any of the conditions contained in Clause
      14.1 will not be performed or fulfilled at or prior to the Closing Date to
      the satisfaction of the Purchaser, acting reasonably, the Purchaser, may,
      by notice to the Vendor, terminate this Agreement and the obligations of
      the Vendor and the Purchaser under this agreement, provided that the
      Purchaser may also bring an action pursuant to Clause 12.2 against the
      Vendor for damages suffered by the Purchaser where the non- performance or
      non-fulfillment of the relevant condition is as a result of a breach of
      covenant, representation or warranty by the Vendor.

	 	 	 
	14.3 	
      The obligation of the Vendor to consummate the
      transactions herein contemplated is subject to the fulfillment of each of
      the following conditions precedent at the times stipulated:

	 	 	 
		(a) 	
      that the representations and warranties of the Purchaser
      contained herein are true and correct on and as of the Closing Date with
      the same force and effect as if such representations and warranties were
      made as at the Closing Date, except as may be in writing disclosed to and
      approved by the Vendor; and

- 12 - 

	 	(b) 	
      that all terms, covenants, conditions, agreements, and
      obligations hereunder on the part of the Purchaser to be performed or
      complied with at or prior to the Closing, including in particular the
      Purchaser’s obligation to deliver the documents and instruments herein
      provided for in Clause 16, have been performed and complied with as at the
      Closing.

	14.4 	
      The foregoing conditions of Clause 14.3 are for the
      exclusive benefit of the Vendor and may be waived in whole or in part by
      the Vendor at any time. If any of the conditions contained in Clause 14.3
      will not be performed or fulfilled at or prior to the Closing Date to the
      satisfaction of the Vendor acting reasonably, the Vendor may, by notice to
      the Purchaser, terminate this Agreement and the obligations of the Vendor
      and the Purchaser under this Agreement, provided that the Vendor may also
      bring an action pursuant to Clause 12.3 against the Purchaser for damages
      suffered by it where the non-performance or non-fulfillment of the
      relevant condition is as a result of a breach of covenant, representation
      or a warranty by the Purchaser.

	15. 	
      TRANSACTIONS OF THE VENDOR AT THE
      CLOSING

	 	 	 
	15.1 	
      At the Closing Date, the Vendor will execute and deliver
      or cause to be executed and delivered all deeds, conveyances, bills of
      sale, transfers, assignments, agreements, certificates, documents, and
      instruments as may be necessary to effectively vest good and marketable
      title to the Purchased Assets in the Purchaser free and clear of any
      Encumbrances and without limiting the foregoing, will execute and deliver
      or cause to be executed and delivered:

	 	 	 
		(a) 	
      a bill of sale (Absolute) for the Purchased
  Assets;

	 	 	 
		(b) 	
      all consents, approvals, releases, and discharges as may
      be required to effect the transactions contemplated hereby, including in
      particular those described in Schedule 5 - Consents;

	 	 	 
		(c) 	
      a certificate of the Vendor dated the Closing Date,
      acceptable in form and content to the legal advisors for the Purchaser,
      certifying that the conditions set out in Clause 14.1 have been
      satisfied;

	 	 	 
		(d) 	
      executed releases by any third parties which have any
      Encumbrances against the Purchased Assets;

	 	 	 
		(e) 	
      a subscription agreement for the Purchase Shares;
    and

	 	 	 
		(f) 	
      all such other documents and instruments as the
      Purchaser’s legal advisors may reasonably require.

	 	 	 
	16. 	
      TRANSACTIONS OF THE PURCHASER AT THE
      CLOSING

	 	 	 
	16.1 	
      At the Closing the Purchaser will deliver or cause to be
      delivered to the Vendor:

	 	 	 
		(a) 	
      Irrevocable instructions to the transfer agent of the
      Purchaser as to the issuance of the Purchased Shares, in form and
      substance satisfactory to the Vendor;

	 	 	 
		(b) 	
      a certified copy of a resolution of the Directors of the
      Purchaser duly passed authorizing the execution and delivery of this
      Agreement and the completion of the transactions contemplated
    hereby;

	 	 	 
		(c) 	
      a certificate of an officer of the Purchaser dated as of
      the Closing Date, acceptable in form and content to the legal advisors for
      the Vendor, certifying that the conditions precedent set out in Clause
      14.3 have been satisfied; and

	 	 	 
		(d) 	
      all such other documents and instruments as the Vendor or
      its legal advisors may reasonably require.

- 13 - 

	17. 	
      TAXES

	 	 	 
	17.1 	
      All sales, use and other transfer taxes payable in
      respect of the transactions arising out of the purchase of the Assets as
      contemplated hereby will be paid by the Vendor.

	 	 	 
	18. 	
      FURTHER ASSURANCES

	 	 	 
	18.1 	
      From time to time subsequent to the Closing Date, the
      parties covenant and agree, at the expense of the requesting party, to
      promptly execute and deliver all such further documents and instruments
      and do all such further acts and things as may be required to carry out
      the full intent and meaning of this Agreement and to effect the
      transactions contemplated hereby.

	 	 	 
	19. 	
      ASSIGNMENT

	 	 	 
	19.1 	
      This Agreement may not be assigned by any party hereto
      without the prior written consent of the other parties hereto.

	 	 	 
	20. 	
      SUCCESSORS AND ASSIGNS

	 	 	 
	20.1 	
      This Agreement will enure to the benefit of and be
      binding upon the parties hereto and their respective successors and
      permitted assigns.

	 	 	 
	21. 	
      COUNTERPARTS

	 	 	 
	21.1 	
      This Agreement may be executed in several counterparts,
      each of which will be deemed to be an original and all of which will
      together constitute one and the same instrument.

	 	 	 
	22. 	
      NOTICES

	 	 	 
	22.1 	
      Any notice required or permitted to be given under this
      Agreement will be in writing and may be given by personal service or by
      prepaid registered mail, and addressed to the proper party or transmitted
      by electronic facsimile generating proof of receipt of transmission at the
      address or facsimile number stated below:

	 	 	 
		(a) 	
      if to the Vendor:

	 	 	 
			
      Shuayb K. Al Suleimany, 
P.O Box 2648, Ruwi,

			
      Postal Code 112, Sultanate of Oman

	 	 	 
			
      Facsimile No.: +968 24491214

	 	 	 
		(b) 	
      if to the Purchaser:

	 	 	 
			
      USR Technology, Inc. 
20333 State Hwy. 249, 
Suite
      200 
Houston, Texas 77070 
USA

	 	 	 
			
      Facsimile No.: +1 (866)
857-9025

- 14 - 

with a copy to: 

Macdonald Tuskey 
Suite 1210, 777
Hornby Street 
Vancouver, British Columbia V6Z 1S4 
Canada 
Attention:
William L. Macdonald 

Facsimile No.: +1 (604) 681-4760 

or to such other address or facsimile
number as any party may specify by notice. Any notice sent by registered mail as
aforesaid will be deemed conclusively to have been effectively given on the
fifth business day after posting; but if at the time of posting or between the
time of posting and the third business day thereafter there is a strike, lockout
or other labour disturbance affecting postal service, then such notice will not
be effectively given until actually received. Any notice transmitted by
electronic facsimile will be deem conclusively to have been effectively given if
evidence of receipt is obtained before 5:00 p.m. (recipient’s time) on a
Business Day, and otherwise on the Business Day next following the date evidence
of receipt of transmission is obtained by the sender. 

	23. 	
      TENDER AND EXTENSIONS

	 	 
	23.1 	
      Tender may be made upon the Vendor or Purchaser or upon
      the legal advisors for the Vendor or Purchaser and such legal advisors are
      expressly authorized by their respective clients to confirm extensions of
      the Closing Date.

	 	 
	24. 	
      REFERENCE DATE

	 	 
	24.1 	
      This Agreement is dated for reference as of the date
      first above written, but will become binding as of the date of execution
      and delivery by all parties hereto and subject to compliance with the
      terms and conditions hereof, the transfer and possession of the Purchased
      Assets will be deemed to take effect as at the close of business on the
      Closing Date. References herein to the date of the Agreement or to the
      date hereof shall be deemed to mean the date set forth in the preamble to
      this Agreement.

- 15 - 

	25. 	
      REFERENCES TO AGREEMENT

	 	 
	25.1 	
      The terms “this Agreement”, “hereof’, “herein”, “hereby”,
      “hereto”, and similar terms refer to this Agreement and not to any
      particular clause, paragraph or other part of this Agreement. References
      to particular clauses are to clauses of this Agreement unless another
      document is specified.

IN WITNESS WHEREOF the parties have executed and delivered
these presents on the dates indicated below. 

 

	SIGNED, SEALED and DELIVERED by 	) 	 
	SHUAYB K. AL SULEIMANY in the presence of: 	) 	 
	  	) 	 
	 	) 	 
	Signature 	) 	 
	  	) 	/s/ SHUAYB K. AL SULEIMANY 
	Print Name 	) 	SHUAYB K.
      AL SULEIMANY 
	  	) 	 
	Address 	) 	 
	  	) 	 
	  	) 	 
	  	) 	 
	Occupation 	) 	 

 

USR TECHNOLOGY, INC. 

 

Per:       /s/ John Ogden

               
Authorized Signatory 

Dated:  August 22, 2008

LIST OF SCHEDULES 

	Schedule 	Description 
	 	 
	1 	Equipment 
	 	 
	2 	Permits and Licenses 
	 	 
	3 	Intellectual Property 
	 	 
	4 	Legal and Regulatory Proceedings
    
	 	 
	5 	Consents 

- 2 - 

 

SCHEDULE 1 
DESCRIPTION OF PURCHASED ASSETS 

	

DESCRIPTION 	Depreciated 
Replacement
      
Cost 
	Curve Drilling
      Assemblies 	34,591.58 
	Drill Bits &
      Hole Openers 	65,576.97 
	Drill Pipe Test
      Unit 	35,738.21 
	Fishing Tools 	10,869.43 
	Power Tongs 	21,715.00 
	Stabilizers 	9,494.66 
	Subs (Articulated)
    	24,024.05 
	Subs (Bit) 	4,475.89 
	Subs (Crossover)
    	6,352.88 
	Subs (Lift) 	541.44 
	Survey Equipment
    	5,839.04 
	UBHO &
      Orientation 	13,120.58 
	Wireline Tools 	6,650.00 
	Wireline Truck
      & Components 	500,000.00 
	GRAND TOTAL
    	         738,989.72
  

- 3 - 

 

SCHEDULE 2 - PERMITS AND LICENSES 

 

There are no permits and licenses required. 

- 4 - 

 

SCHEDULE 3 - INTELLECTUAL PROPERTY 

 

There is no intellectual property necessary for use with the
Assets. 

- 5 - 

 

SCHEDULE 4 - LEGAL AND REGULATORY PROCEEDINGS 

 

There are no legal and regulatory proceedings. 

- 6 - 

 

SCHEDULE 5 - CONSENTS 

 

Vendor shall endeavour to secure any and all consents that may
be required to effect transfer of equipment including, but not limited to,
customs and regulatory signatures.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]