Document:

Ex. 10.1

    Exhibit
      10.1

     

    EMPLOYMENT
      AGREEMENT

     

    This
      Employment Agreement, is made as of December
      6, 2003
      (the
“Effective Date”), by and between Phillip
      E. Koehnke
      (“Employee”) and U.S.A.
      Connection, Inc.,
      a
      Colorado corporation (the “Company”). In consideration of the premises and for
      other good and valuable consideration, and with the intent to be legally bound,
      the parties hereto agree as follows:

     

    RECITALS

    

    A. WHEREAS,
      the Company desires to employ Employee on the terms and conditions herein stated
      and Employee accepts such terms of employment.

     

    1.  Position.
      During
      the term of this Agreement, the Company will employ the Employee, and the
      Employee will serve the Company in the capacity of Director,
      President, Chief Executive Officer, Chief Financial Officer and Secretary.
      

     

    2.  Duties.
      The
      Employee will perform duties described in Exhibit
      “A,” attached
      to this Agreement and incorporated by this reference, together with such
      additional reasonably related duties assigned by the President or Board of
      Directors.

     

    3.  Service.
      Except
      with respect to the matters specified below, Employee will devote substantial
      working time and efforts to the business and affairs of the Company. The
      foregoing shall not, however, preclude the Employee: (a) from engaging in
      appropriate civic, charitable or religious activities; (b) from serving on
      the boards of directors of other entities, with the consent of the Company,
      which consent shall not be unreasonably withheld; (c) from providing
      incidental assistance to family members on matters of family business, so long
      as the foregoing activities and service do not conflict with the Employee's
      responsibilities to the Company; and (d) from completing, managing and
      supervising Employee’s personal business affairs.

     

    4.   Term
      of Agreement.
      The
      Company agrees to continue the Employee's employment, and the Employee agrees
      to
      remain in the employ of the Company, pursuant to the terms of this Agreement
      for
      a period of forty
      eight (48) months,
      but
      this Agreement shall be subject to extension for and up to an additional twelve
      (12) months after the Effective Date, unless the Employee’s employment is
      earlier terminated pursuant to the provisions of this Agreement. 

     

    5.  Compensation
      and Benefits.

     

    5.1  Compensation.

     

    5.2  Base
      Salary.
      Employee shall receive a salary of $10,000
      per month
      (the
“Base Salary”), payable in monthly installments of $10,000
      in
      accordance with the general payroll practices of the Company. 

     

    5.3  Expenses.
      The
      Company will reimburse (monthly) the Employee for all reasonable and necessary
      expenses incurred by the Employee in connection with the Company's business,
      entertainment, airfare, automobile, hotel and miscellaneous expenses incurred
      by
      Employee.

     

    5.4  Security.This
      Agreement shall be secured by a Convertible Promissory Note (the “Note”) made by
      the Company in favor of Employee. The Note is attached hereto as Exhibit
      “B”
      and
      incorporated herein by reference.

     

    6.  Termination.

     

    6.1  Events
      of Termination.
      The
      Employee's employment with the Company shall terminate upon any one of the
      following:

     

    6.1.1  Thirty
      (30) days after the date of a written notice sent to the Employee stating the
      Company's determination made in good faith that it is terminating the Employee
      for “Cause” as defined under Section 6.2 below (“Termination for Cause”);
      or

     

    6.1.2  Thirty
      (30) days after the date of a written notice sent to the Employee stating the
      Company's determination made in good faith that, due to a mental or physical
      incapacity, the Employee has been unable to perform his duties under this
      Agreement for a period of not less than six (6) consecutive months (“Termination
      for Disability”); or

     

    6.1.3  Upon
      the
      Employee's death (“Termination Upon Death”); or

     

    6.1.4  Upon
      the
      date of a written notice sent to the Company stating the Employee's
      determination made in good faith of “Constructive Termination” by the Company,
      as defined under Section 6.3 below (“Constructive Termination”); or

     

    6.1.5  Thirty
      (30) days after the date of a notice sent to the Employee stating that the
      Company is terminating his employment, without Cause, which notice can only
      be
      given by the Company at any time after the Effective Date at the Company's
      sole
      discretion, for any reason or for no reason (“Termination Without Cause”);
      or

     

    6.1.6  The
      date
      of a notice sent to the Company from the Employee stating that the Employee
      is
      electing to terminate his employment with the Company (“Voluntary
      Termination”).

     

    6.2  “Cause”
      Defined.
      For
      purposes of this Agreement, “Cause” for the Employee's termination will exist at
      any time after the occurrence of one or more of the following
      events:

     

    6.2.1  Any
      willful act or acts of dishonesty undertaken by the Employee intended to result
      in substantial gain or personal enrichment of the Employee at the expense of
      the
      Company;

     

    6.2.2  Any
      willful act of gross misconduct which could reasonably be expected to materially
      and demonstrably result in damage to the Company. No act, or failure to act,
      by
      the Employee shall be considered “willful” if done, or omitted to be done, by
      him in good faith and in the reasonable belief that his act or omission was
      in
      the best interest of the Company and/or required by applicable law,
      or

     

    6.2.3  Employee
      is charged with the commission of a felony involving moral
      turpitude.

     

    6.3  “Constructive
      Termination” Defined.
      “Constructive Termination” shall mean: 

     

    6.3.1  A
      material reduction in the Employee's salary or benefits not agreed to by the
      Employee;

     

    6.3.2  A
      material change in the Employee's responsibilities not agreed to by the
      Employee;

     

    6.3.3  The
      Company's breach or failure to comply in any material respect with any material
      term of this Agreement after thirty (30) days written notice of the Employee’s
      claim of such failure; or

     

    6.3.4  A
      requirement that the Employee relocate to an office that would increase the
      Employee's one-way commute distance by more than thirty (30) miles from his
      home.

     

    6.4  “Termination
      Without Cause”
shall
      mean:

     

    6.4.1  Termination
      of the Employee’s employment with the Company for any reason other than
      Cause.

     

    7.  Effect
      of Termination.

     

    7.1  Termination
      for Cause or Voluntary Termination.
      In the
      event of any termination of the Employee's employment pursuant to
      Section 6.1.1 or Section 6.1.6, the Company shall immediately pay to
      the Employee the compensation and benefits accrued and otherwise payable to
      the
      Employee under Section 5 through the date of termination. The Employee's
      rights under the Company's benefit plans of general application shall be
      determined under the provisions of those plans.

     

    7.2  Termination
      for Disability.
      In the
      event of termination of employment pursuant to Section 6.1.2:

     

    7.2.1  The
      Company shall immediately pay to the Employee the compensation and benefits
      accrued and otherwise payable to the Employee under Section 5 through the date
      of termination; and 

     

    7.2.2  The
      Employee shall receive any other benefit payments as provided in the Company's
      standard benefit plans applicable to disability.

     

    7.3  Termination
      Upon Death.
      In the
      event of termination of employment pursuant to Section 6.1.3, all
      obligations of the Company and the Employee shall cease, except the Company
      shall immediately pay to the Employee (or to the Employee's estate) the
      compensation and benefits accrued and otherwise payable to the Employee under
      Section 5 through the date of termination.

     

    7.4  Constructive
      Termination or Termination Without Cause.
      In the
      event of any termination of this Agreement pursuant to Section 6.1.4 or
      Section 6.1.5:

     

    7.4.1  The
      Company shall immediately pay to the Employee the compensation and benefits
      accrued and otherwise payable to the Employee under entire term of this
      Agreement.

     

    8.  Nondisclosure.
      The
      Employee acknowledges that during the course of his employment by the Company,
      the Company will provide, and the Employee will acquire, knowledge of special
      and unique value with respect to the Company's business operations, including,
      by way of illustration, the Company's existing and contemplated product line,
      trade secrets, compilations, business and financial methods or practices, plans,
      hardware and software technology products, systems, programs, projects and
      know-how, pricing, cost of providing service and equipment, operating and
      maintenance costs, marketing and selling techniques and information, customer
      data, customer names and addresses, customer service requirements, supplier
      lists, and confidential information relating to the Company's policies,
      employees, and/or business strategy (all of such information herein referenced
      to as the “Confidential Information”). The Employee recognizes that the business
      of the Company is dependent upon Confidential Information and that the
      protection of the Confidential Information against unauthorized disclosure
      or
      use is of critical importance to the Company. The Employee agrees that, without
      prior written authorization of the President of the Company, the Employee will
      not, during his employment, divulge to any person, directly or indirectly,
      except to the Company or its officers and agents or as reasonably required
      in
      connection with the Employee’s duties on behalf of the Company, or make any
      independent use of, except on behalf of the Company, any of the Company's
      Confidential Information, whether acquired by the Employee during his employment
      or not. The Employee further agrees that the Employee will not, at any time
      after his employment has ended, use or divulge to any person directly or
      indirectly any Confidential Information, or use any Confidential Information
      in
      subsequent employment of any nature. If the Employee is subpoenaed, or is
      otherwise required by law to testify concerning Confidential Information, the
      Employee agrees to notify the Company upon receipt of a subpoena, or upon belief
      that such testimony shall be required. This nondisclosure provision shall
      survive the termination of this Agreement for any reason. The Employee
      acknowledges that the Company would not employ the Employee but for his
      covenants and promises contained in this Section 8.

     

    9.  Return
      of Documents.
      The
      Employee agrees that if the Employee’s relationship with the Company is
      terminated (for whatever reason), the Employee shall not remove or take with
      the
      Employee, but will leave with the Company or return to Company, all Confidential
      Information, records, files, data, memoranda, reports, customer lists, customer
      information, product information, price lists, documents and other information,
      in whatever form (including on computer disk), and any and all copies thereof,
      or if such items are not on the premises of the Company, the Employee agrees
      to
      return such items immediately upon the Employee's termination or the request
      of
      the Company. The Employee acknowledges that all such items are and remain the
      property of the Company.

     

    10. No
      Interference or Solicitation.
      The
      Employee agrees that during his employment, and for a period of six (6) months
      following the termination of his employment (for whatever reason), that neither
      he nor any individual, partner(s), limited partnership, corporation or other
      entity or business with which he is in any way affiliated, including, without
      limitation, any partner, limited partner, director, officer, shareholder,
      employee, or agent of any such entity or business, will: (i) request, induce
      or
      attempt to influence, directly or indirectly, any employee of the Company to
      terminate their employment with the Company; or (ii) employ any person who
      as of
      the date of this Agreement was, or after such date is or was, an employee of
      the
      Company. The Employee further agrees that during the period beginning with
      the
      commencement of the Employee’s engagement with the Company and ending six (6)
      months after the termination of the Employee’s employment with the Company (for
      whatever reason), he shall not, directly or indirectly, as an employee, agent,
      consultant, stockholder, director, partner or in any other individual or
      representative capacity of the Company or of any other person, entity or
      business, solicit or encourage any present or future customer, supplier,
      contractor, partner or investor of the Company to terminate or otherwise alter
      his, his or its relationship with the Company. This provision shall survive
      the
      termination of this Agreement for any reason.

    

    11. Injunctive
      Relief.
      The
      Employee acknowledges and agrees that the agreements and covenants contained
      in
      this Agreement are essential to protect the Confidential Information, business,
      and goodwill of the Company. The Employee further acknowledges that the breach
      of any of the agreements contained herein, including, without limitation, the
      confidentiality covenants specified in Section 8 and the non-solicitation
      covenants specified in Section 10 will give rise to irreparable injury to
      the Company, inadequately compensable in damages. Accordingly, the Company
      shall
      be entitled to injunctive relief to prevent or cure breaches or threatened
      breaches of the provisions of this Agreement and to enforce specific performance
      of the terms and provisions hereof in any court of competent jurisdiction,
      in
      addition to any other legal or equitable remedies which may be available. The
      Employee further acknowledges and agrees that in the event of the termination
      of
      the Employee's employment with the Company, whether voluntary or involuntary,
      that the enforcement of a remedy hereunder by way of injunction shall not
      prevent the Employee from earning a reasonable livelihood. The Employee further
      acknowledges and agrees that the covenants contained herein are necessary for
      the protection of the Company's legitimate business interests ad are reasonable
      in scope and content.

    

    12. Miscellaneous.

    

    12.1 Indemnification.
      The
      Company agrees to indemnify and defend the Employee to the full extent provided
      by Florida law, and on terms no less favorable than any indemnification
      agreement the Company has at any time during the term of this Agreement with
      an
      executive or officer of the Company. The Company agrees to reimburse Employee
      upon demand for any costs incurred in requesting or obtaining indemnification
      under this paragraph.

    

    12.2 Arbitration.
      The
      Employee and the Company shall submit to mandatory binding arbitration before
      a
      sole arbitrator, in any controversy or claim arising out of, or relating to,
      this Agreement or any breach hereof. The arbitrator is hereby authorized to
      permit discovery, including deposition testimony and award to the prevailing
      party the costs (including reasonable attorneys' fees and expenses) of any
      such
      arbitration.

    

    12.3 Severability.
      If any
      provision of this Agreement shall be found by any arbitrator or court of
      competent jurisdiction to be invalid or unenforceable, then the parties hereby
      waive such provision to the extent that it is found to be invalid or
      unenforceable and to the extent that to do so would not deprive one of the
      parties of the substantial benefit of its bargain. Such provision shall, to
      the
      extent allowable by law and the preceding sentence, be modified by such
      arbitrator or court so that it becomes enforceable and, as modified, shall
      be
      enforced as any other provision hereof, all the other provisions continuing
      in
      full force and effect.

    12.4 No
      Waiver.
      The
      failure by either party at any time to require performance or compliance by
      the
      other of any of its obligations or agreements shall in no way affect the right
      to require such performance or compliance at any time thereafter. The waiver
      by
      either party of a breach of any provision hereof shall not be taken or held
      to
      be a waiver of any preceding or succeeding breach of such provision or as a
      waiver of the provision itself. No waiver of any kind shall be effective or
      binding, unless it is in writing and is signed by the party against whom such
      waiver is sought to be enforced.

    

    12.5 No
      Assignment.
      This
      Agreement and all rights hereunder are personal to the Employee and may not
      be
      transferred or assigned by the Employee at any time. The Company may assign
      its
      rights, together with its obligations hereunder, to any parent, subsidiary,
      affiliate or successor, or in connection with any sale, transfer or other
      disposition of all or substantially all of its business and assets, provided,
      however, that any such assignee assumes the Company's obligations
      hereunder.

    

    12.6 Withholding.
      All
      sums payable to the Employee hereunder shall be reduced by all federal, state,
      local and other withholding and similar taxes and payments required by
      applicable law.

    

    12.7 Entire
      Agreement.
      This
      Agreement constitutes the entire and only agreement between the parties relating
      to employment of the Employee with the Company, and this Agreement supersedes
      and cancels any and all previous contracts, arrangements or understandings
      with
      respect thereto.

    

    12.8 Amendment.
      This
      Agreement may be amended, modified, superseded, cancelled, renewed or extended
      only by an agreement in writing executed by both parties hereto.

    

    12.9 Notices.
      All
      notices and other communications required or permitted under this Agreement
      shall be in writing and hand delivered, sent by telecopier, sent by registered
      first class mail, postage pre-paid, or sent by nationally recognized express
      courier service. Such notices and other communications shall be effective upon
      receipt if hand delivered or sent by telecopier, five (5) days after mailing
      if
      sent by mail.

    

    12.10 Binding
      Nature.
      This
      Agreement shall be binding upon, and inure to the benefit of, the successors
      and
      personal representatives of the respective parties hereto.

    

    12.11 Headings.
      The
      headings contained in this Agreement are for reference purposes only and shall
      in no way affect the meaning or interpretation of this Agreement. In this
      Agreement, the singular includes the plural, the plural included the singular,
      the masculine gender includes both male and female referents, and the word
“or”
is used in the inclusive sense.

    

    12.12 Counterparts
      and Fax Signatures.
      This
      Agreement may be executed by Fax and in two or more counterparts, each of which
      shall be deemed to be an original but all of which, taken together, constitute
      one and the same agreement.

    

    12.13 Governing
      Law.
      This
      Agreement and the rights and obligations of the parties hereto shall be
      construed in accordance with the laws of the State of Florida.

    

    12.14 Attorneys'
      Fees.
      In the
      event of any claim, demand or suit arising out of or with respect to this
      Agreement, the prevailing party shall be entitled to reasonable costs and
      attorneys' fees, including any such costs and fees upon appeal.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Company and the Employee have executed this Agreement
      as of
      the date first above written. 

    

    

    
      	
              “COMPANY”

               

              U.S.A.
                Connection, Inc.

              A
                Colorado corporation

               

               

               

               

               

              By:
                

              Phillip
                E. Koehnke, President

            	
              “Employee”

               

               

               

               

               

               

               

               

              Phillip
                E. Koehnke

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBIT
      “A”

    TO

    EMPLOYMENT
      AGREEMENT

    

    DUTIES
      OF EMPLOYEE

    

    

    

    	1.  	
            Act
              as the Director, President, Chief Executive Officer, Chief Financial
              Officer and Secretary of the Company and to perform such duties as
              described in the Bylaws of the Company.

          

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      “B”

    TO

    EMPLOYMENT
      AGREEMENT

     

    (CONVERTIBLE
      PROMISSORY NOTE)Ex. 10.2

    Exhibit
      10.2

     

    ASSET
      PURCHASE AGREEMENT

     

    THIS
      ASSET PURCHASE AGREEMENT (“Agreement”) is entered into as of June 1, 2005, by
      and between G.K. Gymnastics, Inc. a Colorado corporation (“Seller”), and U.S.A.
      Connection, Inc., a Colorado Corporation (“Buyer”).

     

    R
      E C I T A L S

     

    Seller
      wishes to sell to Buyer, and Buyer wishes to purchase from Seller, the Assets
      (as defined in Section 1), subject to and upon the terms and conditions
      hereinafter set forth.

     

    A
      G R E E M E N T

     

    It
      is
      agreed as follows:

     

    1. Sale
      and Purchase of Assets.
      Subject
      to and upon the terms and conditions set forth herein, Seller agrees to sell,
      assign, convey, transfer and deliver (“Transfer”) to Buyer and Buyer agrees to
      purchase from Seller, on the Closing Date (as defined in Section 10), the
      following assets (“Assets”):

     

    (a) All
      items
      of inventory, including, but not limited to goods for sale, supplies and
      inventory of equipment held for rental to customers, kits, and spare
      parts;

     

    (b) The
      right
      to use the name “Action Fashions” and all intangible rights thereto and all
      trade secrets, know how, customer lists, inventions and other intangible
      property used in the business of Seller; and

     

    (c) All
      computer printouts, software, databases and related items, copies of books
      and
      records and files related to the business of Seller and any of the
      Assets.

     

    Buyer
      acknowledges that the Assets do not include any cash, cash equivalents, accounts
      receivable or tax or other refunds due to Seller.

     

    2. Consideration.

     

    (a) In
      consideration of the Assets to be transferred by Seller, Buyer shall deliver
      to
      Seller a promissory note in the amount of $19,000 on the Closing
      Date.

     

    (b) The
      parties agree that the total consideration paid by Buyer shall be allocated
      among the Assets as follows: $19,000 shall be allocated towards the purchase
      of
      the inventory for sale.

     

    3. No
      Assumption of Indebtedness; Payment of Sales Tax.

     

    (a) Buyer
      is
      not assuming any liabilities or indebtedness of Seller in connection with the
      transactions contemplated hereby and shall have no liability for any such
      liabilities or indebtedness by reason of this Agreement or the transactions
      contemplated hereby.

     

    (b) Buyer
      shall be responsible for all sales and use taxes due with respect to this
      Agreement.

     

    4. Bulk
      Sales Law Compliance;Instruments of Transfer, Etc.

     

    (a) Buyer
      shall have given notice in compliance with the Colorado Commercial Code if
      required. Seller shall furnish to Buyer all information necessary to prepare
      the
      notice, including the names and business addresses used by Seller within the
      last three (3) years and the location of all of the assets to be transferred
      under this Agreement at least fifteen (15) business days before the Closing
      Date.

     

    (b) Seller
      shall deliver to Buyer on the Closing Date and thereafter upon Buyer’s request
      such bills of sale, assignments and other good and sufficient instruments of
      Transfer in form and substance satisfactory to Buyer and its counsel as are
      necessary to effectively Transfer all of Seller’s right, title and interest in
      the Assets to Buyer. At any time after the Closing Date, Seller shall execute,
      acknowledge and deliver to Buyer any further documents, assurances or other
      matters, and will take any other action consistent with the terms of this
      Agreement that may reasonably be requested by Buyer and as are necessary or
      desirable to carry out the purpose of this Agreement.

     

    5. Representations
      and Warranties of Seller.
      Seller
      represents, warrants and covenants to Buyer as of the date hereof and as of
      the
      Closing Date as follows:

     

    5.1 Corporate
      Organization.
      Seller
      is a corporation duly organized, validly existing and in good standing under
      the
      laws of the State of Colorado.

     

    5.2 Power
      and Authority.
      Seller
      has all corporate power and authority to enter into and to carry out all of
      the
      terms of this Agreement and all other documents executed and delivered in
      connection herewith, including, but not limited to, those instruments of
      Transfer described in Section 4 of this Agreement (collectively “Documents”).
      All corporate action on the part of Seller, its officers, directors and
      shareholders necessary for the authorization, execution, delivery and
      performance of the Documents by Seller has been taken and no further corporate
      or other authorization on the part of Seller is required to consummate the
      transactions provided for in the Documents. When executed and delivered by
      Seller, the Documents shall constitute the valid and legally binding obligations
      of Seller enforceable in accordance with their respective terms. Neither the
      execution, delivery nor performance of the Documents by Seller shall (i) violate
      or result in a breach of any provisions of Seller’s articles of incorporation or
      bylaws, (ii) constitute a default or result in a breach of any contract or
      agreement to which it is a party or its assets or properties are bound, or
      (iii)
      violate any order, writ, injunction, decree, judgment or other restriction
      of
      any court, administrative agency or governmental body.

     

    5.3 Title
      to Assets.
      Seller
      has and will Transfer to Buyer good and marketable title to the Assets, free
      and
      clear of all mortgages, pledges, security interests, liens, claims, charges,
      restrictions and encumbrances.

     

    5.4 Inventory.
      The
      inventory, including the inventory of rental equipment on Schedule 5.4 hereto
      is
      of merchantable quality, free of defects and salable (or usable) in the ordinary
      course of business of Seller.

     

    5.5 Furniture
      and Equipment.
      All of
      the items of furniture and equipment set forth on the Schedule 5.5 hereto are
      suitable for the purpose or purposes for which it is being used and is in such
      good and proper condition and repair as to permit the continued use by Buyer
      in
      accordance with its intended purpose.

     

    5.6 Lease.
      None.

     

    5.7 Liabilities.
      Seller
      is paying and will pay all of its liabilities, debts and obligations outstanding
      as of the Closing Date.

     

    5.8 No
      Governmental or Other Proceeding or Litigation.
      No
      order of any court or administrative agency is in effect which restrains or
      prohibits the transactions contemplated hereby, and no suit, action,
      investigation, inquiry or proceeding by any governmental body or other person,
      or legal or administrative proceeding has been instituted or threatened which
      questions the validity or legality of the transactions contemplated hereby.
      There are no actions or proceedings pending or threatened arising out of or
      related to the Assets. There is no voluntary action or proceeding affecting
      the
      Assets pending or the commencement of which is contemplated by Seller, and
      to
      the best knowledge of Seller there is no involuntary action or proceeding
      pending or the commencement of which is threatened or contemplated affecting
      the
      Assets against Seller, under any federal, state or local bankruptcy, insolvency,
      reorganization, receivership, attachment or other similar law.

     

    5.9 Approvals
      and Consents.
      There
      are no permits, consents or approvals of public authorities, federal, state
      or
      local, or of any third party necessary for the consummation of the transactions
      contemplated hereby.

     

    5.10 Financial
      Statements.
      Seller
      has delivered to Buyer the unaudited financial statements of Seller and such
      financial statements are complete and correct, and fairly and accurately
      presents the financial position of Seller as of the date or periods
      indicated.

     

    5.11 Absence
      of Undisclosed Liabilities.
      Except
      as previously disclosed to Buyer in writing, Seller has no material liabilities
      or material obligations of any nature, whether accrued, absolute, contingent
      or
      otherwise, and whether due or to become due, which are not reflected in the
      Seller Balance Sheet. There is no fact known to Seller which materially
      adversely affects or in the future is likely to materially adversely affect
      the
      businesses, properties, the Assets or operations of Seller which has not been
      set forth in the Seller Balance Sheet or previously disclosed to Buyer in
      writing.

     

    5.12 Survival
      of Representations and Warranties.
      The
      representations and warranties of Seller made herein shall not be affected
      by
      any information furnished to or investigations made by Buyer, or any of its
      employees or representatives in connection with the subject matter of this
      Agreement and shall survive the execution and delivery of this Agreement and
      the
      consummation of the transactions contemplated hereby for a period commencing
      with the date hereof and expiring on December 31, 2005.

     

    6. Representations
      and Warranties of Buyer.
      Buyer
      represents, warrants and covenants to Seller as of the date hereof and as of
      the
      Closing Date as follows:

     

    6.1 Organization.
      Buyer
      is a Colorado Corporation validly existing and in good standing under the laws
      of the State of Colorado.

     

    6.2 Power
      and Authority.
      Buyer
      has all requisite partnership power and authority to enter into and to carry
      out
      all of the terms of this Agreement and the other Documents executed and
      delivered in connection herewith. All corporate action on the part of Buyer
      and
      its partners necessary for the authorization, execution, delivery and
      performance of the Documents by Buyer has been taken and no further
      authorization on the part of Buyer is required to consummate the transactions
      provided for in the Documents. When executed and delivered by Buyer, the
      Documents shall constitute the valid and legally binding obligations of Buyer
      enforceable in accordance with their respective terms.

     

    6.3 Survival
      of Representations and Warranties.
      The
      representations and warranties of Buyer made herein shall not be affected by
      any
      information furnished to or investigations made by Seller, or any of its
      employees or representatives in connection with the subject matter of this
      Agreement and shall survive the execution and delivery of this Agreement and
      the
      consummation of the transactions contemplated hereby for a period commencing
      with the date hereof and expiring on December 31, 2005.

     

    7. Certain
      Additional Understandings and Agreements.

     

    7.1 [Intentionally
      Omitted]

     

    7.2 Assignment
      and Amendment to Lease.
      None.

     

    7.3 Prorations.
      None.

     

    7.4 Agreement
      to Perform Necessary Acts.
      Each
      party agrees to perform any further acts and execute and deliver any documents
      which may be reasonably necessary to carry out the provisions and purposes
      of
      this Agreement, including, but not limited to, the relinquishment or changing
      of
      Seller’s dba to “Deep Six Enterprises” or a similar name.

     

    7.5 Notification
      of Creditors.
      On the
      Closing Date, Buyer shall notify the creditors listed on Schedule 7.6 that
      Seller is not responsible for goods ordered by Buyer after the Closing
      Date.

     

    8. Conditions
      to Buyer’s Obligations.
      Buyer’s
      obligations hereunder are subject to the fulfillment, on or before the Closing
      Date, of the following conditions (any of which may be waived in writing by
      Buyer):

     

    8.1 Representations
      and Warranties.
      The
      representations and warranties of Seller contained herein shall have been true
      and correct in all material respects as of the Closing Date.

     

    8.2 Performance
      of Covenants.
      Seller
      shall have performed and complied in all material respects with all covenants,
      agreements, terms and conditions and executed all documents required by this
      Agreement to be performed, complied with or executed by it prior to or on the
      Closing Date.

     

    8.3 Instruments
      of Transfer.
      Seller
      shall have delivered to Buyer a bill of sale for the Assets and such other
      good
      and sufficient instruments of Transfer in form and substance satisfactory to
      Buyer and its counsel as shall be necessary to effectively Transfer all of
      the
      Seller’s right, title and interest in the Assets to Buyer.

     

    8.4 No
      Governmental or Other Proceeding or Litigation.
      No
      order of any court or administrative agency shall be in effect which restrains
      or prohibits the transactions contemplated hereby, and no suit, action,
      investigation, inquiry or proceeding by any governmental body or other person
      or
      legal or administrative proceeding shall have been instituted or threatened
      which questions the validity or legality of the transactions contemplated
      hereby.

     

    8.5 Bulk
      Sale Compliance.
      The
      Notice to Creditors of Bulk Sale shall have been published and all requirements
      of the California Commercial Code relating to “Bulk Sales” shall have been
      complied with by the parties.

     

    8.6 [Intentionally
      Omitted]

     

    8.7 Approval
      and Consents.
      All
      permits, consents or approvals of applications to public authorities, federal,
      state or local, and all approvals of any third persons, the granting of which
      are necessary for the consummation of the transactions contemplated hereby
      shall
      have been obtained.

     

    9. Conditions
      to Seller’s Obligations.
      Seller’s obligations hereunder are subject to the fulfillment, on or before the
      Closing Date, of the following conditions (any of which may be waived in writing
      by Seller):

     

    9.1 Representations
      and Warranties.
      The
      representations and warranties of Buyer contained herein shall have been true
      and correct in all material respects as of the Closing Date.

     

    9.2 Performance
      of Covenants.
      Buyer
      shall have performed and complied in all material respects with all covenants,
      agreements, terms and conditions and executed all documents required by this
      Agreement to be performed, complied with or executed by it prior to or on the
      Closing Date.

     

    10. Closing.
      The
      closing of the sale and purchase of the Assets and the other transactions
      contemplated by this Agreement shall take place at the offices of Seller
      (“Closing Date”).

     

    11. Indemnification
      by Seller.

     

    11.1 General.
      Seller
      agrees to indemnify, defend and hold harmless Buyer against and in respect
      of
      any and all claims, demands, losses, costs, expenses, liabilities and damages,
      including interest, penalties, and reasonable attorneys’ fees, that Buyer shall
      incur or suffer which: (i) arise, result from or relate to any material
      inaccuracy in or material breach or nonfulfillment of any of the
      representations, warranties, covenants or agreements made by Seller in this
      Agreement, the schedules and exhibits hereto or in any other Document furnished
      to such party under this Agreement; and (ii) any liability of Seller or Seller’s
      business arising out of events occurring, products or services sold or any
      activities of Seller prior to the Closing Date whenever such liabilities may
      arise.

     

    11.2 Procedures;
      Rights to Separate Counsel.
      In the
      event Buyer receives a complaint, claim or other notice of any loss, claim
      or
      damage, liability or action, giving rise to a claim for indemnification under
      this Section 11, Buyer shall promptly notify the Seller of such complaint,
      notice, claim or action, and Seller shall have the right to investigate and
      defend any such loss, claim, damage, liability or action. Buyer shall have
      the
      right to employ separate counsel in any such action and to participate in the
      defense thereof but the fees and expenses of such counsel shall not be at the
      expense of Seller, unless Seller fails to promptly defend, in which case the
      fees and expenses of such separate counsel shall be borne by Seller. In no
      event
      shall Seller be obligated to indemnify Buyer for any settlement of any claim
      or
      action effected without Seller’s prior written consent.

     

    12. General.

     

    12.1 Notices.
      All
      notices and other communications hereunder shall be in writing and shall be
      deemed to have been given when delivered personally or, if mailed, three (3)
      business days after having been mailed by registered or certified mail with
      return receipt requested, postage prepaid, addressed:

     

    (a) If
      to
      Buyer: U.S.A.
      Connections, Inc.

    PO
      Box
      235472

    Encinitas,
      CA 92024  

    

    (b) If
      to
      Seller: G.K.
      Gymnastics, Inc.

    2026
      Lowe

    Fort
      Collins, CO 80525 

    

    or
      at
      such other address as shall have been furnished to the other in writing.

    

    12.2 Successors
      and Assigns.
      Neither
      this Agreement nor the rights or obligations of Seller under this Agreement
      shall be assignable without the written consent of Buyer and any such purported
      assignment without the written consent of Buyer shall be void and with effect.
      Except as otherwise provided herein, this Agreement and all covenants and
      agreements contained herein shall be binding upon and inure to the benefit
      of
      the parties hereto, their respective successors, representatives and
      assigns.

    

    12.3 Arbitration.
      Any
      controversy or claim arising out of or relating to this Agreement or the breach
      hereof, except as stated below, shall be settled by arbitration in accordance
      with the rules of the American Arbitration Association then in effect. The
      decision of the arbitrator shall, except for mistakes of law, be final and
      binding upon the parties hereto, and judgment upon the award rendered by the
      arbitrator, which shall, in the case of damages, be limited to actual damages
      proven in the arbitration, may be entered in any court having jurisdiction
      thereof.

    

    There
      shall be a single arbitrator who shall be an existing or former judge of a
      court
      of record within the United States or an attorney in good standing admitted
      to
      practice for a period of at least ten (10) years within the United States.
      No
      arbitration shall involve parties other than the parties hereto and their
      respective successors and assigns or be in any respect binding with respect
      to
      any such other parties. The situs of the arbitration will be in the State of
      Colorado.

    

    The
      parties to any arbitration arising hereunder shall have the right to take
      depositions and to obtain discovery regarding the subject matter of the
      arbitration and to use and exercise all of the same rights, remedies and
      procedures, and be subject to all of the same duties, liabilities, and
      obligations in the arbitration with respect to the subject matter thereof,
      as if
      the subject matter of the arbitration were pending in a civil action before
      a
      court of highest jurisdiction in the state where the arbitration is held. The
      arbitrator shall have the power to enforce said discovery by imposition of
      same
      terms, conditions, consequences, liabilities, sanctions and penalties as can
      be
      or maybe imposed in like circumstances in a civil action by a court of highest
      jurisdiction of the state in which the arbitration is held, except the power
      to
      order the arrest or imprisonment of a person.

    

    If
      any
      party commences an action, either arbitration or court proceedings, against
      any
      other party arising out of or in connection with this Agreement, the prevailing
      party or parties shall be entitled from the losing party or parties, both
      attorney’s fees and costs of the arbitration and/or suit as part of the judgment
      rendered.

     

    12.4 Attorneys’
      Fees.
      If any
      legal action or any mutually agreed upon arbitration or other proceeding is
      brought for the enforcement of this Agreement or because of an alleged dispute,
      breach, default or misrepresentation in connection with any of the provisions
      of
      this Agreement, the successful or prevailing party shall be entitled to recover
      reasonable attorneys’ fees and other costs incurred in that action or
      proceeding, in addition to any other relief to which it may be
      entitled.

     

    12.5 Entire
      Agreement.
      This
      Agreement embodies the entire agreement and understanding among the parties
      hereto with respect to the subject matter hereof.

     

    12.6 Modification.
      This
      Agreement may be changed, waived, discharged or terminated only by an instrument
      in writing signed by the party against which enforcement of such change, waiver,
      discharge or termination is sought.

     

    12.7 Governing
      Law.
      This
      Agreement shall be construed in accordance with and governed by the laws of
      the
      State of Colorado.

     

    12.8 Counterparts.
      This
      Agreement may be executed in several counterparts, each of which is an original
      but all of which shall constitute one and the same instrument.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    IN
      WITNESS WHEREOF, the undersigned have caused this Agreement to be executed
      on
      the day and year first hereinabove written.

     

    “BUYER”

     

    U.S.A.
      Connections, Inc.

    a
      Colorado corporation

    

    

    __________________________________________

    By:
      

    Its:
      

    

    

    

    “SELLER”

    

    G.K.
      Gymnastics, Inc.

    a
      Colorado corporation

    

    

    __________________________________________

    By:
      

    Its:

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