Document:

exv10w2

 

Exhibit 10.2

FIRST AMENDMENT

TO

EMPLOYMENT AGREEMENT

     This First Amendment to Employment Agreement (the “First Amendment”) is effective as of June
30, 2005 by and between Meritage Homes Corporation, a Maryland corporation (the “Company”) and
Steven J. Hilton, an individual (“Executive”).

RECITALS

     WHEREAS, the Company and Executive previously entered into that certain Employment Agreement
(Amended and Restated as of July 1, 2003) (the “Employment Agreement”); and

     WHEREAS, the Company and Executive desire to amend Exhibit B to the Agreement with respect to
personal use by the Executive of private aircraft paid for by the Company.

     NOW THEREFORE, in consideration of the covenants and mutual agreements set forth herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and in reliance upon the mutual agreements contained herein, the Company and
Executive agree as follows:

     Executive Benefits. Exhibit B to the Agreement, which sets forth certain benefits
that the Company will provide to Executive, is amended and restated in its entirety as set forth on
Exhibit B to this First Amendment.

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

	 	 	 	 	 	 	 
	 	 	MERITAGE HOMES CORPORATION, a
	 	 	Maryland corporation
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Raymond Oppel
	 	 	 	 	 
	 	 	Name:	 	Raymond Oppel
	 	 	Title:	 	Chairman of the Compensation Committee
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE:	 	/s/ Steven J. Hilton
	 

	 	 	 	 	 	 

 

 

EXHIBIT B

SPECIFIED BENEFITS

	1.	 	Payments (including a tax gross up) annually for Executive to purchase life insurance in the
amount of $5,000,000.
	 
	2.	 	Payments (including a tax gross up) annually for Executive to purchase disability insurance
providing for monthly payments of an estimated $20,000 per month.
	 
	3.	 	Executive Supplemental Savings Plan enabling deferred compensation in excess of 401(k)
limitations.
	 
	4.	 	Supplemental Retirement Benefits Program to provide the Executive retirement payments equal
to 60% of his final five years average base salary beginning at age 65 and continuing through
death.
	 
	5.	 	Use of private aircraft paid for by the Company for the personal use of Executive and his
family in an amount not to exceed 28.75 hours. Such benefit will be included as taxable
income by the Executive pursuant to Treasury Regulation 1.61-21 using the special
noncommercial valuation rule.
	 
	6.	 	Use of Company car (same as current policy.)Ex. 10.1 - Asset Purchase Agreement

    
      Exhibit
        10.1

      ASSET
        PURCHASE AGREEMENT

      THIS
        ASSET PURCHASE AGREEMENT (this
“Agreement”) is made and entered into as of the __ day of June, 2005, by and between
MAVERICK TUBE,
        L.P., a
        Delaware limited partnership (“Seller”), MAVERICK TUBE
        CORORATION, a Delaware corporation and parent company of Seller
        (“Maverick”), Atlas Tube (USA)
Inc.,
a
        Delawarecorporation (“Buyer”) and ATLAS TUBE INC., an
        Ontario corporation and parent company of Buyer (“Atlas”).

      W
•
        I • T • N • E • S • S • E • T • H:

      WHEREAS,
        Buyer and Atlas have agreed to purchase certain assets of
        the structural steel tubing business of Seller consisting of its hollow
        structural section (“HSS”) business located in Hickman, Arkansas and
        Calgary, Alberta, Canada (the “Business”);

      WHEREAS,
        in connection with the acquisition of the Business, Seller
        has agreed to convert steel supplied by Atlas, into structural steel tubing
        on
        and subject to the terms and conditions set forth in the Conversion Agreement
        (as defined herein);

      WHEREAS,
        Buyer, Atlas, Maverick and Seller have reached an
        agreement pursuant to which Buyer and Atlas shall purchase from Seller the
        Purchased Assets (as defined herein) and Buyer shall assume the Assumed
        Liabilities (as defined herein) in accordance with the terms and conditions
        set
        forth in this Agreement; and

      WHEREAS,
        Maverick desires to guarantee the obligations of Seller subject to the terms
        and
        conditions set forth in the Guaranty (as defined herein).

      NOW,
        THEREFORE, in consideration of the foregoing recitals and the
        mutual agreements and covenants set out in this Agreement, and for other
        good
        and valuable consideration, the receipt and sufficiency of which is hereby
        acknowledged, THE PARTIES HEREBY AGREE
        AS FOLLOWS:

      I.

      PURCHASE
        AND SALE

      1.01    
Purchased
        Assets.  Subject to the terms and conditions set forth
        below, Buyer and Atlas hereby purchase
        from Seller, and Seller hereby sells, transfers, assigns and conveys unto Buyer and Atlas, the Business and
        all of Seller’s right,
        title and interest in and to the following assets, wherever located
        (collectively, the “Purchased Assets”):

      (a)               
        sales contracts and purchase orders of the Business as of the Closing Date (as defined herein)
        whose revenue has not been
        recognized by Seller in accordance with the United States generally accepted
        accounting principles (“GAAP”) applied on a consistent basis with
        historical practices of Seller, excluding the Pennsylvania Cold Drawn
        (“PCD”) contract  (the “Customer Contracts”) as are set forth
        on Schedule
        1.01;

      (b)               
        all HSS work in process, inventory
        and
        finished products of the Business;

      (c)               
        all slit coil and master coil in North America dedicated andassigned
        to the Business; and 

      (d)               
        copies of all books and records related to the
        Business
        including, books and records pertaining to customers and recipients of products
        and services of the Business, customer and supplier lists,
        mailing lists, sales records, all historical customer and financial information,
        all applicable personnel records (for any employees of the Business employed
        by
        the Buyer), the order book,
        andsales and purchase records).

      Seller
        shall transfer the Purchased Assets free and clear of any
        and all liabilities, liens,
        pledges,  security interest or other restrictions,
        encumbrances and obligations of every kind and nature, except those specifically
        assumed by Buyer pursuant to Section 2.03 below.

      1.02    
Excluded
        Assets.   Except for the Purchased Assets specifically
        identified in Section 1.01 above, neither Buyer nor Atlas will purchase from
        Seller any other assets of Seller, whether or not used in the conduct of
        the
        Business, including but not limited to (a) cash and cash equivalents
        and
        securities; (b) accounts receivable arising prior to
        the date hereof, (c) trademarks, service marks,
        trade
        names, logos and patents relating to or used in the Business and all
        applications and registrations pertaining thereto; (d) corporate minute
        books, limited partnership record books, stockholder
        records and unitholder records;
        (e) any contracts and agreements to which Seller is a party other
        than the
        Customer Contracts; (f) deposits and prepaid expenses, including without
        limitation utility deposits, insurance and workers’ compensation deposits, and
        prepaid insurance premiums; (g) any real property owned or leased by Seller;
        (h)
        plant and equipment; (i) intangibles and (j) personal property, other than
        personal property forming part of the Purchased Assets.  

      II.

      PURCHASE
        PRICE AND ASSUMED
        LIABILITIES

      2.01    
Purchase
        Price.  

      (a)       
        The consideration to
        be provided by Buyer and Atlas to Seller for the Purchased Assets (the
“Purchase Price”) is as follows:

                 
        (i)        
        the
        assumption by Buyer of the Assumed Liabilities (as defined herein);

                 
        (ii)        the payment
        by Buyer and Atlas of
        the amount that is equal to Nineteen Million Seven Hundred Thousand dollars
        (US$19,700,000); plus

                 
        (iiii)      
the
“Estimated
        Book Value” (as defined below) of the
        Purchased Assets listed in Section 1.01(b) through (c).  Such inventory
        purchased shall not be greater in amount than the March 31, 2005 level, to
        the
        extent such inventory is greater than the March 31, 2005 level, in terms
        of
        tons, then Buyer,
        at its sole
        discretion,
        may purchase such
        additional amounts of inventory. Estimated Book Value shall be determined
        from
        the books and records of the Seller as of June 30, 2005 in accordance with
        GAAP
        applied on a consistent basis with historical practices of Seller.

      (b)       
        At Closing, Buyer and
        Atlas shall pay to Seller, by wire transfer of immediately available funds
        to an
        account or accounts designated by Seller,
        an amount (the “Closing Payment”) equal to the Purchase
        Price.

      2.02    
Post-Closing
        Adjustment.

      (a)       
        Within thirty (30) days after the Closing Date, in order to determine the
        Final
        Purchase Price (as defined below), Seller, at its sole cost and expense shall
        prepare and deliver to Buyer and Atlas, Seller’s calculation of the final
“Book Value” (as defined below) of the Purchased Assets as of the Closing
        Date prepared in accordance with GAAP applied on a consistent basis with
        historical practices of Seller (“Closing Statement”).  Buyer shall
        have a period of twenty (20) days upon receipt of the Seller’s calculation of
        the final “Book Value” to send notice to Seller disputing such determination of
        the final “Book Value” by Seller and, in the event the parties shall not resolve
        such dispute within ten (10) days of such notice being sent by Buyer, such
        dispute shall be resolved by the parties in accordance with the arbitration
        provisions set out in Section 16.01 of this Agreement.

      (b)       
        If the Purchase Price, as finally determined by application of the appropriate
        adjustments pursuant Section 2.02 (the “Final Purchase Price”), is less
        than the Closing Payment, an amount equal to such shortfall shall be paid
        by
        Seller to Buyer in immediately available funds within five (5) business days
        of
        the determination of the Final Purchase Price.  If the Final Purchase
        Price
        exceeds the Closing Payment, then Buyer shall pay an amount equal to such
        excess
        to Seller in immediately available funds within five (5) business days of
        the
        determination of the Final Purchase Price.  

      2.03    
        Assumption of Obligations.  Buyer
        assumes, and Buyer shall
        hereafter pay, perform and discharge when due all of the Seller’s obligations arising under the Customer
        Contracts on or
        after the Closing Date (“Assumed Liabilities”).
Except
        for Buyer’s express assumption of the
Assumed Liabilities,
        Buyer will not assume any obligation or liability of Seller of any kind or
        nature (collectively, the “Excluded Liabilities”) in its purchase of the
        Business and the Purchased Assets, including but not limited
        to (a) all of Seller’s obligations with respect to express
        warranties or warranties implied under the Uniform
        Commercial Code, similar statutesor in tort
        relating to the Purchased Assets; and (b)
all
        liabilities of the Seller
        arising prior to
        the Closing Date relating to or
        arising out of the Purchased Assets and the Business.

      2.04    
        Purchase Price Allocation.  The Purchase Price for the
        Purchased Assets shall be allocated as set forth on Schedule
        2.04.

      III.

      CLOSING

      3.01    
        Closing.  The closing (“Closing”) of the sale
        of the Purchased Assets and the other transactions contemplated by this
        Agreement shall be deemed to take place on June 30, 2005 or such earlier
        date on
        which the parties may agree (“Closing Date”). The Closing may be effectuated by the exchange
        of documents using facsimile,
        overnight courier, or other mutually satisfactory document delivery
        service.  All rights of ownership and risk of loss of the Purchased
        Assets
        shall be deemed to have been transferred by Seller to Buyer effective at
        the close of business on the Closing Date.

      3.02    
Deliveries
        by
        Seller.  At the Closing, Seller will deliver:

      (a)               
        appropriate and properly executed instruments of transfer and assignment
        of the
        Purchased Assets (including, without limitation, a bill of sale and an
        assignment and assumption agreement for the Customer Contracts);

      (b)               
        a certified copy of all constating documents, including the
        limited partnership agreement, of the Seller, the general
        partner resolution(s) of Seller authorizing the execution, delivery and
        performance of this Agreement and all other related
        agreements by Seller, or a statement of authority
        signed by
        the secretary of Seller certifying that such actions are within the authority
        of
        the signing officers, and an incumbency certificate with respect to officers
        of
        Seller executing documents or instruments on behalf of Seller in connection
        with
        the subject transaction; and

      (c)               
        the processing agreement between Buyer, Seller and Comerica Bank, as agent,
        dated the date hereof (the “Processing Agreement”) duly executed by
        Seller.

      (d)               
        a conversion agreement between Seller and Buyer dated the date
        hereof, in substantially the same form as Exhibit
        A attached hereto (the “Conversion Agreement”), duly
        executed by Seller.

      3.03    
Deliveries
        by
        Buyer.  (1) At the Closing, Buyer will
        deliver:

      (a)               
        any and all documents identified in Section 3.02, if and to the extent
        appropriate that Buyer execute the same in order to effect the transaction
        contemplated thereby; and

      (b)              
        a certified copy of the constating documents of the Buyer,
corporate
        resolution(s) of Buyer authorizing the execution,
        delivery and performance of this Agreement and all other
        related agreements by Buyer and an incumbency certificate
        with respect to officers of Buyer executing documents or instruments on behalf
        of Buyer in connection with the subject transaction.

      (2)   
        As soon as practicable, and
        in any event within thirty (30) days of the Closing, Buyer will deliver to
        Seller the appropriate sales tax exemption certificate in respect of the
        transactions contemplated hereunder.

      3.04         
        Deliveries by
        Maverick.  At the Closing, Maverick will
        deliver:

      (a)               
        a noncompetition agreement between Maverick and Atlas dated the date hereof,
        in
        substantially the same form as Exhibit B attached hereto
        (the “Noncompetition Agreement”), duly executed by Maverick; 

      (b)               
        a certified copy of the constating documents of Maverick, corporate
        resolution(s) of Maverick authorizing the execution, delivery and performance
        of
        this Agreement and all other related agreements by Maverick and an incumbency
        certificate with respect to officers of Maverick executing documents or
        instruments on behalf of Maverick in connection with the subject transaction;
        and 

      (c)               
        a guaranty agreement between Maverick and Atlas dated the date hereof, in
        substantially the same form as Exhibit C attached hereto
        (the “Guaranty”), duly executed by Maverick.

      3.05         
        Deliveries by
        Atlas.  At the Closing, Atlas will
        deliver:

      (a)               
        the Noncompetition Agreement, the Conversion Agreement and Guaranty, duly
        executed by Atlas; and

      (b)               
        a certified copy of the constating documents of Atlas, corporate resolution(s)
        of Atlas authorizing the execution, delivery and performance of this Agreement
        and all other related agreements by Atlas and an incumbency certificate with
        respect to officers of Atlas executing documents or instruments on behalf
        of
        Atlas in connection with the subject transaction.

      3.06    
        Delivery by Atlas and Buyer.  At Closing, Atlas and
        Buyer will deliver to Seller the Closing Payment.

       

      IV.

      REPRESENTATIONS
        AND WARRANTIES OF
        SELLER

      In
        order to induce Buyer
        and Atlas to enter into this Agreement and to consummate the
        transactions contemplated hereby, Seller hereby represents and warrants to
        Buyer
        and Atlas as follows (and acknowledges that Buyer and Atlas
        are relying upon such representations and warranties in entering into this
        Agreement):

      4.01    
Limited
        Partnership
        Matters.  Seller (a) is a limited partnership duly
        organized, validly existing and in good standing under the laws of the State
        of
        Delaware and (b) has all necessary limited partnership powers to own the
        Purchased Assets, to carry on the Business as now conducted and to perform
        its
        obligations under this Agreement.

      4.02    
Authorization
        of
        Transaction.  All required limited partnership action has
        been taken by Seller to authorize its execution of this Agreement and the
        consummation of the transaction contemplated herein.  

      4.03    
Enforceability,
        Authority
        and Effect of Agreement.

      (a)       
        This Agreement
        constitutes the legal, valid and binding obligation of Seller, enforceable
        against Seller in accordance with its terms, subject only to any
        limitation under applicable laws relating to (i) bankruptcy, winding-up,
        insolvency, arrangement, fraudulent preference and conveyance, assignment
        and
        preference and other similar laws of general application affecting the
        enforcement of creditors’ rights, and (ii) the discretion that a court may
        exercise in the granting of equitable remedies such as specific performance
        and
        injunction.  Upon the execution and delivery by Seller of each other
        agreement to be executed or delivered by Seller at the Closing, including but not limited to, the Conversion
        Agreement, the
        Processing Agreement and the Noncompetition Agreement
        (collectively, the “Seller’s Closing Documents”), each Seller’s Closing
        Document will constitute the legal, valid and binding obligation of Seller,
        enforceable against Seller in accordance with its respective terms. Seller
        has
        the absolute and unrestricted right, power and authority to execute and deliver
        this Agreement and each of Seller’s Closing Documents and to perform its
        obligations under this Agreement and each of Seller’s Closing Documents, and
        such actions have
        been duly authorized
        by all necessary action by Seller.

      (b)       
        Except as set forth
        in Schedule 4.03, neither the execution and delivery of this
        Agreement and the Seller’s Closing Documents by
        Seller nor the consummation or performance by Seller of any of
        the transactions contemplated thereby
        will, directly or indirectly give any person or entity the right to prevent,
        delay or otherwise interfere with any of the transactions contemplated by
        this
        Agreement and the Seller’s Closing Documents,
pursuant
        to:

      (i)        
        any provision of
        any of Seller’s Certificate of Limited Partnershipor Seller’s limited partnership agreement;

      (ii)       
        any legal requirement
        or any order, judgment or decree of any governmental body (an “Order”) to
        which Seller, the Business or any of the Purchased Assets, may be subject;
        or

      (iii)      
        any
        contract or agreement to which Seller is a party or by which Seller, the
        Business or the Purchased Assets may be bound or subject.

      (c)       
        Except as set forth
        in Schedule 4.03, and subject to approval of this Agreement and
        the Seller’s Closing Documents and thetransactions
        contemplated therein
        by Seller’s general partner, neither the execution and delivery
        of this Agreement and the Seller’s Closing Documents nor
        the consummation or performance of any of the transactions
        contemplated by this Agreement and the Seller’s Closing
        Documents will, directly or indirectly, with
        or without
        notice or lapse of time:

      (i)        
        contravene,
        conflict with or result in a material violation or material breach of any
        of the
        terms or requirements of, or give any governmental body the right to revoke,
        withdraw, suspend, cancel, terminate or modify, any consent, approval, license,
        registration or permit issued, granted, given or otherwise made available
        by or
        under the authority of any governmental body or pursuant to any Legal
        Requirement (as defined in Section 4.05) (a “Governmental Authorization”)
        that is held by Seller in connection with or that otherwise relates to the
        Purchased Assets or to the Business, which revocation, withdrawal, suspension,
        cancellation, termination or modification would have a material adverse effect
        on the Purchased Assets or to the Business;

      (ii)       
        result in the
        imposition or creation of any liens, security interests or encumbrances upon
        or
        with respect to any of the Purchased Assets; or

      (ii)       
        materially breach any
        provision of, or give any person or entity the right to declare a default
        or
        exercise any remedy under, or to accelerate the maturity or performance of,
        or
        payment under, or to cancel, terminate or modify, any Customer Contract.

      (d)       
        Except as set forth
        in Schedule 4.03, and subject to approval of this Agreement and
        the Seller’s Closing Documents and thetransactions
        contemplated therein
        by Seller’s general partner, Seller is not required to give any
        notice to or obtain any consent, approval or other authorization from any
        person
        or entity in connection with the execution and delivery of this Agreement
and the Seller’s Closing Documents or
        the
        consummation or performance of any of the transactions contemplated by this
        Agreement and the Seller’s Closing Documents
        (“Transaction Consents”).

      4.04    
No
        Litigation.  Except as set forth on Schedule
        4.04, there are no suits, proceedings, governmental actions, judgments
        or executions of any kind or nature (each, a “Proceeding”) pending or, to
        Seller’s knowledge, threatened against Seller relating the Business or the
        Purchased Assets.  

      4.05    
Compliance
        with Law;
        Governmental Authorizations.  As of the date of this
        Agreement:

      (a)       
        the Business has
        been conducted and the Purchased Assets have been owned and used in all material
        respects, (i) in accordance with all applicable laws, regulations and ordinances
        of the United States and Canada and the states, provinces, cities and counties
        in which the Business has been conducted and the Purchased Assets have been
        used
        (“Legal Requirements”); and (ii) in compliance with all Governmental
        Authorizations or consents that have been granted by any governmental and
        regulatory offices and bodies with respect thereto;

      (b)       
        to Seller’s
        knowledge no investigation or review by any governmental or regulatory offices
        and bodies with respect to the Business or the Purchased Assets is pending
        or,
        to Seller’s knowledge, threatened, nor has any governmental and regulatory
        office or body to Seller’s knowledge, indicated an intention to conduct the
        same; and

      (c)       
        Seller has all
        Governmental Authorizations from all governmental and regulatory offices
        and
        bodies necessary for material compliance with all Legal Requirements to carry
        on
        the Business as it is currently being conducted, to own the Purchased Assets
        and
        to perform all of its obligations under the Customer Contracts and no proceeding
        is pending nor, to Seller’s knowledge, threatened to modify, suspend, revoke or
        otherwise limit any of such Governmental Authorizations and no administrative
        or
        governmental actions have been taken or, to Seller’s knowledge, threatened in
        connection with the termination, expiration or renewal of such Governmental
        Authorizations.

      4.06    
Good
        Title to Purchased
        Assets.  Seller is the sole owner of the Purchased Assets
        and, except for the other encumbrances described in
Schedule4.06,
        has good and
        marketable title to the Purchased Assets, free and clear of all liens, pledges,
        security interests, claims, charges, liabilities,
        restrictionsor encumbrances of every kind and nature,
        and
upon
        Closing, conveys
        to Buyer good and marketable
        title to the applicable Purchased Assets free and clear of all liens, pledges,
        security interests, claims, charges, or encumbrances.

      4.07    
Customer
        Contracts.  Schedule 1.01 is an accurate
        list of all Customer Contracts as of the date hereof, including sizes, gauge,
        length, steel strength and price for each Customer Contract.  All
        Customer
        Contracts have been entered into in the ordinary course of business, are
        in full
        force and effect, are enforceable in accordance with their terms. 
        Except
        as specifically set forth on Schedule 4.07 (“Customer
        Contract Consents”), the Customer Contracts are assignable to Buyer without
        the consent or approval of the customer or any third party.  Seller
        is not
        in material default with respect to any Customer Contract and has not received
        from any customer under a Customer Contract any written or
        verbal notice of default or termination thereunder.  

      4.08    
Employee
        Matters.  Schedule 4.08 contains a
        complete and accurate list of all inside sales representatives of Seller
        who are
        employed exclusively in connection with the Business (the “Business
        Employees”) and, for each, term of service, compensation and benefits as of
        the date hereof.    Schedule 4.08also sets forth
        all written agreements or understandings between Seller and any labor
        organization representing all or a portion of Business Employees and other labor agreements and all
        multi-employer plans covering
        or relating to the Business Employees.

      4.09    
No
        Broker’s
        Fee.  Seller has not incurred any obligation or entered
        into any agreement for any investment banking, brokerage fee or finder’s fee or
        commission with respect to the transactions contemplated herein.

      4.10    
        Knowledge.  As used in this Article IV, the term
“knowledge” or “to Seller’s knowledge” shall mean the actual
        knowledge of the Seller’s, partners, officers and
        management personnel, after due and diligent inquiry.

      4.11    
Books
        and
        Records.  The books of account and other financial
        records of Seller with respect to the Business, which have been made available
        to Buyer, to Seller’s knowledge are complete and correct in all material
        respects, represent actual, bona fide transactions and have been maintained
        in
        accordance with sound business practices.

      4.12    
        Quality of Purchase Assets.  The HSS work in progress,
        inventory and finished products of the Business as well as all slit and master
        coil forming part of the Purchased Assets shall be in good, marketable and
        saleable condition, in all material respects, free of all material defects
        and
        is in compliance with (or is capable of being converted into steel tubing
        by the
        Seller in accordance with) the specifications set out in the Conversion
        Agreement.

      V.

      REPRESENTATIONS
        AND WARRANTIES OF
        MAVERICK

      In
        order to induce Buyer and Atlas to enter into this Agreement and to consummate
        the transactions contemplated hereby, Maverick represents and warrants as
        follows (and acknowledges that the Buyer and Atlas are relying upon such
        representations and warranties in entering into this Agreement):

      5.01    
        Corporate Matters.  Maverick (a) is a corporation duly
        organized, validly existing and in good standing under the laws of Delaware
        and
        (b) has all necessary corporate powers to perform its obligations under this
        Agreement.

      5.02    
        Authorization of Transaction.  All required corporate
        action has been taken by Maverick to authorize the execution of this Agreement
        and the consummation of the transaction contemplated herein.  

      5.03    
        Effect of Agreement.  This Agreement constitutes a
        legal, valid and binding obligation of Maverick enforceable in accordance
        with
        its terms, subject only to any limitation under applicable laws relating
        to (i) bankruptcy, winding-up, insolvency, arrangement, fraudulent preference
        and conveyance, assignment and preference and other similar laws of general
        application affecting the enforcement of creditors’ rights, and (ii) the
        discretion that a court may exercise in the granting of equitable remedies
        such
        as specific performance and injunction.  Upon the execution and delivery
        by
        Maverick of this Agreement and each other agreement to be executed or delivered
        by Maverick at the Closing, including the Guaranty and the Noncompetition
        Agreement (collectively, the “Maverick’s Closing Documents”), each
        Maverick’s Closing Document will constitute the legal, valid and binding
        obligation of Maverick, enforceable against Maverick in accordance with its
        respective terms.  The execution of this Agreement and the consummation
        of
        the transactions contemplated herein and therein do not constitute or result
        in
        a breach or default (or an event which with notice or lapse of time or both
        could become a default) under or result in any violation of (a) Maverick’s
        certificate of incorporation or by-laws, (b) any order, judgment, decree,
        license, permit, statute, law, rule or regulation to which Maverick is subject,
        or (c) any contract or agreement to which Maverick is a party or by which
        Maverick may be bound or subject.  

      5.04    
        No Litigation.  There are no suits,
        proceedings, governmental actions, judgments or executions of any kind or
        nature
        pending or, to Maverick’s knowledge, threatened against Maverick which could
        adversely affect the Closing or Maverick’s ability to perform its obligations
        under this Agreement or any Maverick Closing Document.

      5.05    
        No Broker’s Fee.  Maverick has not incurred any
        obligation or entered into any agreement for any investment banking, brokerage
        or finder’s fees or commission with respect to the transactions contemplated
        herein.

      5.06    
        Knowledge.  As used in this Article V, the
        term “knowledge” or “to Maverick’s knowledge” shall mean the
        actual knowledge of the Maverick’s, officers and management personnel, after due
        and diligent inquiry.

      VI.

      REPRESENTATIONS
        AND WARRANTIES OF BUYER

      In
        order to induce Seller and Maverick to enter into this
        Agreement and to consummate the transactions contemplated hereby, Buyer
        represents and warrants as follows (and acknowledges
        that the Seller and Maverick are relying upon such representations and
        warranties in entering into this Agreement):

      6.01    
Corporate
        Matters.  Buyer (a) is a corporation duly organized,
        validly existing and in good standing under the laws of Delaware and (b) has all necessary corporate
        powers to perform
        its obligations under this Agreement.

      6.02    
Authorization
        of
        Transaction.  All required corporate action has been
        taken by Buyer to authorize the execution of this Agreement and the consummation
        of the transaction contemplated herein.  

      6.03    
Effect
        of
        Agreement.  This Agreement constitutes a legal, valid and
        binding obligation of Buyer enforceable in accordance with its terms, subject only to any limitation under
        applicable laws relating to
        (i) bankruptcy, winding-up, insolvency, arrangement, fraudulent preference
        and
        conveyance, assignment and preference and other similar laws of general
        application affecting the enforcement of creditors’ rights, and (ii) the
        discretion that a court may exercise in the granting of equitable remedies
        such
        as specific performance and injunction.  Upon the
        execution and delivery by Buyer of this Agreement and each other agreement
        to be
        executed or delivered by Buyer at the Closing (collectively, the “Buyer’s
        Closing Documents”), each Buyer’s Closing Document will constitute the
        legal, valid and binding obligation of Buyer, enforceable against Buyer in
        accordance with its respective terms.  The execution of this Agreement
        and
        the consummation of the transactions contemplated herein and therein do not
        constitute or result in a breach or default (or an event which with notice
        or
        lapse of time or both could become a default) under or result in any violation
        of (a) Buyer’s certificate of incorporation or by-laws, (b) any order, judgment,
        decree, license, permit, statute, law, rule or regulation to which Buyer
        is
        subject or (c) any contract or agreement to
        which Buyer is
        a party or by which Buyer may be bound or subject.  

      6.04    
        No Litigation.  There are no suits,
        proceedings, governmental actions, judgments or executions of any kind or
        nature
        pending or, to the best of Buyer’s knowledge, threatened against Buyer which
        could adversely affect the Closing or Buyer’s ability to perform its obligations
        under this Agreement or any Buyer Closing Document.

      6.05    
        No Broker’s Fee.  Buyer has not incurred any
        obligation or entered into any agreement for any investment banking, brokerage
        or finder’s fees or commission with respect to the transactions contemplated
        herein.

      6.06    
        Knowledge.  As used in this Article VI, the
        term “knowledge” or “to Buyer’s knowledge” shall mean the actual
        knowledge of the Buyer’s, officers and management personnel, after due diligent
        inquiry.

      VII.

      REPRESENTATIONS
        AND WARRANTIES OF ATLAS

      In
        order to induce Seller and Maverick to enter into this Agreement and to
        consummate the transactions contemplated hereby, Atlas represents and warrants
        as follows (and acknowledges that the Seller and Maverick are relying upon
        such
        representations and warranties in entering into this Agreement):

      7.01    
        Corporate Matters.  Atlas (a) is a corporation duly
        organized, validly existing and in good standing under the laws of Ontario
        and
        (b) has all necessary corporate powers to perform its obligations under this
        Agreement.

      7.02    
        Authorization of Transaction.  All required corporate
        action has been taken by Atlas to authorize the execution of this Agreement
        and
        the consummation of the transaction contemplated herein.  

      7.03    
        Effect of Agreement.  This Agreement constitutes a
        legal, valid and binding obligation of Atlas enforceable in accordance with
        its
        terms, subject only to any limitation under applicable laws relating to (i)
        bankruptcy, winding-up, insolvency, arrangement, fraudulent preference and
        conveyance, assignment and preference and other similar laws of general
        application affecting the enforcement of creditors’ rights, and (ii) the
        discretion that a court may exercise in the granting of equitable remedies
        such
        as specific performance and injunction.  Upon the execution and delivery
        by
        Atlas of this Agreement and each other agreement to be executed or delivered
        by
        Atlas at the Closing (collectively, the “Atlas’ Closing Documents”), each
        Atlas’ Closing Document will constitute the legal, valid and binding obligation
        of Atlas, enforceable against Atlas in accordance with its respective
        terms.  The execution of this Agreement and the consummation of the
        transactions contemplated herein and therein do not constitute or result
        in a
        breach or default (or an event which with notice or lapse of time or both
        could
        become a default) under or result in any violation of (a) Atlas’ articles of
        incorporation or by-laws, (b) any order, judgment, decree, license, permit,
        statute, law, rule or regulation to which Atlas is subject or (c) any contract
        or agreement to which Atlas is a party or by which Atlas may be bound or
        subject.  

      7.04    
        No Litigation.  There are no suits,
        proceedings, governmental actions, judgments or executions of any kind or
        nature
        pending or, to the best of Atlas’ knowledge, threatened against Atlas which
        could adversely affect the Closing or Atlas’ ability to perform its obligations
        under this Agreement or any Atlas’ Closing Document.

      7.05    
        No Broker’s Fee.  Atlas has not incurred any
        obligation or entered into any agreement for any investment banking, brokerage
        or finder’s fees or commission with respect to the transactions contemplated
        herein.

      7.06    
        Knowledge.  As used in this Article VII, the
        term “knowledge” or “to Atlas’ knowledge” shall mean the actual
        knowledge of the Atlas’, officers and management personnel, after due and
        diligent inquiry.

      VIII.

      COVENANTS
        OF THE
        SELLER

      8.01    
Actions
        Before Closing
        Date.  Seller shall use all commercially reasonable
        efforts to perform and satisfy all conditions to Seller’s obligations to
        consummate the transactions contemplated by this Agreement that are to be
        performed or satisfied by Seller under this Agreement by
        the Closing Date.

      8.02    
Access
        to Property and
        Information.  Seller shall give to Buyer, its
        representatives, auditors, advisors and attorneys, reasonable access, during
        normal business hours upon reasonable advance notice to Seller, to the tangible
        Purchased Assets, including the books, records, contracts and documents
        pertaining to the Business and Purchased Assets, including, but not limited
        to,
        the Customer Contracts and shall furnish to Buyer such information with respect
        to the Business and Purchased Assets as Buyer may reasonably request from
        time
        to time.  Buyer shall conduct such activities so as not to unreasonably
        interfere with Seller’s normal business operations, and Seller shall have the
        right to have an employee or representative present during all such activities
        conducted at the Business or with any Business Employee.  Buyer shall
        be
        fully and solely responsible and indemnify Seller, for all costs, expenses
        and
        any other liabilities associated with Buyer’s investigation of the Purchased
        Assets.  

      8.03    
Ordinary
        Course of
        Business; Performance of Obligations.  The Business and
        Purchased Assets will be operated, used, maintained and employed by Seller
        in
        the ordinary course of business on a basis consistent with its policies and
        practices and in material compliance with all applicable laws and Seller
        shall
        continue to maintain its books, accounts and records with respect to the
        Business and Purchased Assets in a reasonable manner and consistent with
        its
        past practices with such obligation ending as of the Closing Date. 
        

      8.04    
Specific
        Transactions.  Seller shall, unless otherwise consented
        to by Buyer, which consent shall not be unreasonably withheld:

      (a)       
        refrain from making
        any material change in any of its existing contracts or commitments pertaining
        to the Business, except as such changes occur in the ordinary course of
        business;

      (b)       
except
        as otherwise directed by Buyer in writing and without
        making any commitment on Buyer’s behalf, keep available the services of its
        officers, employees and agents and maintain its relations and goodwill with
        suppliers, customers, employees, agents and others having business relationships
        with the Business with such obligation ending as of the Closing Date;

      (c)       
        refrain from
        subjecting any of the Purchased Assets, to any lien, encumbrance, security
        interest or other claim of any kind other than encumbrances described in
        Schedule 4.06;

      (d)       
        refrain from selling,
        assigning, transferring or otherwise disposing of any of the Purchased Assets,
        except for sales of inventory in the ordinary course of business;

      (e)       
        refrain from
        modifying, amending, altering or terminating (whether by written or oral
        agreement, or any manner of action or inaction) any of the Customer Contracts,
        or entering into any arrangement related to the Customer Contracts or parties
        thereunder which is outside of the ordinary course of business with such
        obligation ending as of the Closing Date; and

      (f)       
        materially comply with all Legal Requirements and contractual obligations
        applicable to the operations of the Business with such obligation ending
        as of
        the Closing Date.

      8.05    
        Insurance.  Seller shall maintain or cause to be, in
        full force and effect all insurance polices now in force with respect to
        the
        Business and the Purchased Assets (including comprehensive general liability,
        comprehensive general casualty and extended coverage, business interruption,
        machinery, fire and lightning, marine, endowment, life and worker’s compensation
        (“Insurance Policies”) until the Closing Date (other than renewals of the
        Insurance Policies in the ordinary course, with such changes in carriers,
        deductibles and coverage limits that would not be material).

      8.06    
        Consents.  Seller will use reasonable commercial
        efforts to obtain all Transaction Consents and all Customer
        Contract Consents.  Seller may, without further notice to or consent
        of
        Buyer, notify such third parties as Seller reasonably deems necessary or
        appropriate of the existence of this Agreement and the possibility of the
        closing of the transactions contemplated hereby in connection with Seller’s
        efforts to obtain any Transaction Consents and Customer Contract Consents
        required of Seller under this Agreement. 

       

      8.07    
Restrictive
        Covenants.  Both Buyer’s and Seller’s representations,
        covenants, warranties, limitations and all other terms of the
        Noncompetition Agreement and the Conversion
        Agreement that are consistent with this Agreement are herein
        incorporated into this Agreement.

      8.08    
Employment
        of Business
        Employees. 

      (a)       
        Notwithstanding
        anything contained in this Agreement to the contrary, Seller acknowledges
        that
        Buyer will not be obligated to employ any particular Business Employee, and
        if
        Buyer does employ any Business Employees it will not be obligated to employ
        any
such Business
        Employee for any
        particular period or on any particular terms or conditions of employment.
        Buyer
        shall give Hired
        Employees (as defined below)
        credit for purposes
        of vesting and eligibility only
        under the benefit plans
        provided to
        the Hired
        Employees by Buyer (the “Buyer Plans”) for all continuous
employment
        with Seller (provided specifically however, that
        this will not extend to
        credit for benefit accrual under any “employee pension benefit plan” within the
        meaning of Section 3(2) of ERISA).  Further, Buyer shall give such
Hired
        Employee credit under the Buyer Plans
        in the calendar year of the Closing for any amounts expended by such Hired
        Employee (or his or her dependents)
        towards deductibles under Seller’s Benefit Plans.  

      (b)       
Seller
        will be solely responsible for any and all claims and
        obligations, if any, for wages, commissions, salary, insurance, wage
        continuation, compliance with the extension of coverage under COBRA, severance
        pay, termination pay and other benefits (including accrued and unearned
        vacation, holiday, sick pay and unemployment and other benefits, if any)
        arising
        or accruing or claimed to arise or accrued under the Employee Plans or
        otherwise, during Seller’s employment of such individual Business Employee, with
        respect to such individual Business Employee or such individual’s spouse,
        dependants and beneficiaries.  Without limiting the foregoing, Buyer
        will
        have no responsibility for any compensation, commission, pension, employee
        benefits or termination or severance
        obligation for
        a Business Employee who
        fails to accept an offer of Buyer’s offer of employment,
        who fails to commence employment
        with Buyer or who is not offered employment by
        the Buyer
        (“Non-Hired Employee”).  Buyer will only be
        responsible for employment-related liabilities related to Business Employees
        who
        accept an offer
        of
        employment and
        commence employment
with Buyer (“Hired Employees”) which accrue on and
        after the date of the Hired Employee’s commencement of employment with Buyer
        (“Employment Date”) and any liabilities arising as a result of any of
        Buyer’s activities in connection with the evaluation and hiring process whether
        before or after the Closing Date, that violate or are alleged to violate
        any
        applicable laws.  Seller will pay all withholding tax and similar
        obligations in each case with respect to each Hired Employee for all periods
        ending prior to such Hired Employee’s Employment Date or the termination of
        Seller’s employment of such Hired Employee, whichever is earlier and all Non-Hired Employees. 
        All
        liabilities of Seller under this Section 8.09(b)
        will constitute Excluded Liabilities.  As used in this
        Agreement, “Employee Plans” means any employee benefit plans, including
        any pension, profit sharing, termination/severance
        policy, retirement or thrift plan, or any
        other
        compensation, welfare, fringe benefit or retirement plan, program, stock
        purchase or stock option plan, for current or former employees or agents
        of
        Seller primarily employed in the Business or their beneficiaries or
        dependents.  Buyer shall not be liable for any withdrawal liability
        under
        any existing multi-employer plan (as defined by ERISA), arising from the
        purchase and sale of the Purchased Assets and the Business.

      (c)       
        Following the
        Employment Date of a Hired Employee, Seller will transfer to Buyer, as soon
        as
        reasonably practical upon Buyer’s request, copies of
        employment records relating to such Hired Employee, subject to any
        confidentiality obligations of Seller (as determined by Seller in a reasonable
        manner) with respect to such records imposed by applicable law or this
        Agreement.  Buyer will be fully responsible for providing or paying
        for any
        unemployment compensation or any other unemployment benefits payable to a
        Hired
        Employee whose employment is terminated by Buyer after the Hired Employee’s
        Employment Date.  At or prior to the Closing Date, Buyer will deliver
        to
        Seller a list of employees that Buyer does not intend to offer to hire as
        of the
        Closing Date.

      8.10    Payments
        Held in Trust.

                 
        Any payments received in error by the Seller following the Closing
        Date
        from a third party as payment under a Customer Contracts shall be received
        in
        trust by the Seller for and on behalf of the Buyer.  The Seller shall
        remit
        such payments to the Buyer bi-weekly during each calendar month following
        Closing and shall deliver to the Buyer a reconciliation statement regarding
        such
        payments on the last day of each month until all amounts owing under the
        Customer Contracts are fully reconciled as mutually agreed to by the Seller
        and
        the Buyer.

       

      IX.

      COVENANTS
        OF THE
        BUYER

      9.01    
Actions
        Before Closing
        Date.  Buyer shall use all commercially reasonable
        efforts to perform and satisfy all conditions to Buyer’s obligations to
        consummate the transactions contemplated by this Agreement that are to be
        performed or satisfied by Buyer under this Agreement by the
        Closing Date.

      9.02    
        Consents.  Buyer will use
        reasonable commercial efforts to obtain all consents required of Buyer under
        this Agreement.  Buyer may, without further notice to or consent of
        Seller
        or Maverick, notify such third parties as Buyer reasonably deems necessary
        or
        appropriate of the existence of this Agreement and the possibility of the
        closing of the transactions contemplated hereby in connection with Buyer’s
        efforts to obtain any consents required of Buyer under this Agreement. 

       

      X.

      CONDITIONS
        PRECEDENT TO BUYER’S
        OBLIGATIONS

      The
        obligation of Buyer to consummate the purchase of the
        Purchased Assets, the assumption of the Assumed Liabilities and the other
        transaction contemplated by this Agreement shall be subject to the fulfillment
        to Buyer’s reasonable satisfaction of each of the following conditions:

      10.01  
Representations
        and Warranties of
        Seller and Maverick.  The representations and warranties
        made by Seller and Maverick in or pursuant to this Agreement shall be true
        and
        correct in all material respects on and as of the Closing Date.

      10.02  
Obligations
        of Seller and
        Maverick.  Seller and Maverick shall have performed and
        complied in all material respects with all of its obligations under this
        Agreement which are to be performed or complied with by it prior to or on
        the
        Closing Date.

      10.03  
No
        Violations of
        Orders.  No preliminary or permanent injunction or
        other order that declares this Agreement
        or any of the
        other documents contemplated by this transaction invalid or unenforceable
        in any
        respect or that prevents the consummation of the transactions contemplated
        hereby or thereby shall be in effect.

      10.04  
Seller’s
        Deliverables and Maverick’s
        Deliverables.  Each of Seller and Maverick shall have
        caused the documents and instruments required by this
        Agreement to be delivered to Buyer, in each case in form
        and substance reasonably satisfactory to Buyer.

      10.05  
Permits
        and
        Consents.  Each of Seller and Maverick shall have secured
        all material appropriate orders, consents, approvals and clearances to be
        obtained by each of Seller and Maverick, in form and substance reasonably
        satisfactory to Buyer, by and from all third parties and all governmental
        or
        regulatory authorities, whose order, consent and approval or clearance is
        required by contract or applicable law for the consummation of the sale of
        the
        Purchased Assets and the other transactions contemplated herein. 

      XI.

      CONDITIONS
        PRECEDENT TO ATLAS’
        OBLIGATIONS

      The
        obligation of Atlas to consummate the transactions contemplated by this
        Agreement shall be subject to the fulfillment to Atlas’ reasonable satisfaction
        of each of the following conditions:

      11.01  
        Representations and Warranties of Seller and
        Maverick.  The representations and warranties made by
        Seller and Maverick in or pursuant to this Agreement shall be true and correct
        in all material respects on and as of the Closing Date.

      11.02  
        Obligations of Seller and Maverick.  Seller and
        Maverick shall have performed and complied in all material respects with
        all of
        its obligations under this Agreement which are to be performed or complied
        with
        by it prior to or on the Closing Date.

      11.03  
        No Violations of Orders.  No preliminary or permanent
        injunction or other order that declares this Agreement or any of the other
        documents contemplated by this transaction invalid or unenforceable in any
        respect or that prevents the consummation of the transactions contemplated
        hereby or thereby shall be in effect.

      11.04  
        Seller’s Deliverables and Maverick’s
        Deliverables.  Each of Seller and Maverick shall have
        caused the documents and instruments required by this Agreement to be delivered
        to Atlas, in each case in form and substance reasonably satisfactory to
        Atlas.

      11.05  
        Permits and Consents.  Each of Seller and Maverick
        shall have secured all material appropriate orders, consents, approvals and
        clearances to be obtained by each of Seller and Maverick, in form and substance
        reasonably satisfactory to Atlas, by and from all third parties and all
        governmental or regulatory authorities, whose order, consent and approval
        or
        clearance is required by contract or applicable law for the consummation
        of the
        sale of the Purchased Assets and the other transactions contemplated
        herein.  

      XII.

      CONDITIONS
        PRECEDENT TO SELLER’S
        OBLIGATIONS

      The
        obligation of the Seller to consummate the sale of the
        Purchased Assets and the other transactions contemplated by this Agreement
        shall
        be subject to Seller’s reasonable satisfaction of the following
        conditions:

      12.01  
Representations
        and Warranties of
        Buyer and Atlas.  The representations and warranties made
        by Buyer and Atlas in or pursuant to this Agreement shall have been true
        and
        correct in all material respects on and as of the Closing Date.

      12.02  
Obligations
        of Buyer and
        Atlas.  Each of Buyer and Atlas shall have performed
        and
        complied in all material respects with all of its obligations under this
        Agreement which are to be performed or complied with by it prior to or on
        the
        Closing Date.

      12.03  
No
        Violations of
        Orders.  No preliminary or permanent injunction or other
        order that declares this Agreement or any of the other documents contemplated
        by
        this transaction invalid or unenforceable in any respect or that prevents
        the
        consummation of the transactions contemplated hereby or thereby shall be
        in
        effect.

      12.04  
Buyer’s
        Deliverables and Atlas’
        Deliverables.  Each of Buyer and Atlas shall have caused
        the payments, documents and instruments required by this Agreement to be
        delivered to Seller in each case in form and substance reasonably satisfactory
        to Seller.

      12.05  
Permits
        and
        Consents.  Each of Buyer and Atlas shall have secured all
        appropriate orders, consents, approvals and clearances to be obtained by
        each of
        Buyer and Atlas, in form and substance reasonably satisfactory to Seller,
        by and
        from all third parties and all governmental or regulatory authorities, whose
        order, consent and approval or clearance is required by contract or applicable
        law for the consummation of the sale of the Purchased Assets and the other
        transactions contemplated herein.  

      XIII.

      CONDITIONS
        PRECEDENT TO MAVERICK’S
        OBLIGATIONS

      The
        obligation of the Maverick to consummate the transactions contemplated by
        this
        Agreement shall be subject to Maverick’s reasonable satisfaction of the
        following conditions:

      13.01  
        Representations and Warranties of Buyer and
        Atlas.  The representations and warranties made by Buyer
        and Atlas in or pursuant to this Agreement shall have been true and correct
        in
        all material respects on and as of the Closing Date.

      13.02  
        Obligations of Buyer and Atlas.  Each of Buyer and
        Atlas shall have performed and complied in all material respects with all
        of its
        obligations under this Agreement which are to be performed or complied with
        by
        it prior to or on the Closing Date.

      13.03  
        No Violations of Orders.  No preliminary or permanent
        injunction or other order that declares this Agreement or any of the other
        documents contemplated by this transaction invalid or unenforceable in any
        respect or that prevents the consummation of the transactions contemplated
        hereby or thereby shall be in effect.

      13.04  
        Buyer’s Deliverables and Atlas’ Deliverables.  Each of
        Buyer and Atlas shall have caused the payments, documents and instruments
        required by this Agreement to be delivered to Maverick in each case in form
        and
        substance reasonably satisfactory to Maverick.

      13.05  
        Permits and Consents.  Each of Buyer and Atlas shall
        have secured all appropriate orders, consents, approvals and clearances to
        be
        obtained by each of Buyer and Atlas, in form and substance reasonably
        satisfactory to Seller, by and from all third parties and all governmental
        or
        regulatory authorities, whose order, consent and approval or clearance is
        required by contract or applicable law for the consummation of the sale of
        the
        Purchased Assets and the other transactions contemplated herein.

      XIV.

      INDEMNIFICATION
        BY
        SELLER

      14.01  
Indemnifications
        and Hold
        Harmless.  Seller hereby covenants and agrees to
        indemnify and hold Buyer harmless against and in respect of:

      (a)       
        any claims, demands, or causes of action
        of any kind or nature by any
        third party or governmental authority arising from Seller’s conduct of the
        Business or ownership or use of the Purchased Assets on or prior to the Closing
        Date;

      (b)       
        the Excluded
        Liabilities; 

      (c)       
        anywithdrawal liability claim relating
        to the Business Employees or
        former employees of the Business, excluding Hired Employees;

      (d)       
any
        losses, damages or deficiencies resulting from any
        misrepresentation, breach of representation, warranty
        or covenant, or
        nonfulfillment of any agreement on the part of Seller under this Agreement
        or
        from any misrepresentation in or material omission from any certificate or
        other
        instrument provided by Seller or Maverick to Buyer or Atlas pursuant to or
        in
        connection with this Agreement;

      (e)       
        all actions, suits,
        proceedings, demands, assessments, judgments and reasonable and necessary
        costs
        and expenses, including all attorneys’ fees, incidental to any of the foregoing;
        and

      (f)       
        any tax liabilities under the Arkansas Code §26-52-207 arising out of the sale
        of the Purchased Assets or the Business to Atlas or Buyer.

      The
        foregoing matters giving rise to Buyer’s right to
        indemnification hereunder are hereinafter referred to as “Buyer
        Claims.”

      14.02  
        Reimbursement.  Seller agrees to reimburse Buyer, on
        demand, for any payment made by or loss or damage incurred by Buyer at any
        time
        after the Closing Date in respect of any Buyer Claim to which the foregoing
        indemnity relates; provided, however, that within a reasonable time after
        Buyer
        receives notice of such Buyer Claim and before Buyer makes any such payment,
        it
        must notify Seller of such Buyer Claim, but the omission to so notify Seller
        shall not release Seller from any liability which Seller has or may have
        to
        Buyer except to the extent Seller actually has been prejudiced by such failure
        to give notice.  In the event of such notice, Seller shall be entitled
        to
        participate in and to assume the defense of any action, with counsel reasonably
        satisfactory to Buyer, if Seller promptly notifies Buyer of its intention
        to do
        so, and keeps Buyer fully informed as to all matters relating to the defense
        and
        settlement of such action.  Seller shall in no case settle or compromise
        a
        Buyer Claim or consent to the entry of judgment, in either case other than
        solely for money damages, without the prior written consent of Buyer (which
        consent shall not be unreasonably withheld or delayed) if such settlement,
        compromise or judgment would adversely affect the rights of Buyer in any
        continuing manner.

      14.03  
Limitations
        of
        Liability.

      (a)       
        Notwithstanding
        Sections 14.01 and 14.02, but subject to Section 14.03(d), Seller shall have
        no
        liability under this Article XIV to indemnify Buyer with respect to Section
        14.01 or reimburse Buyer under Section 14.02 with respect to any Buyer Claims
        listed in Section 14.01 after the aggregate amount of all such Buyer’s Claims
        against Seller exceeds $6,000,000 (“Seller’s Threshold”). 

      (b)       
        Seller shall not be
        required to indemnify Buyer under Section 14.01 or reimburse Buyer under
        Section
        14.02 with respect to Buyer Claims unless reasonable written notice of such
        Buyer Claims is given by Buyer to Seller and specifies in reasonable detail
        the
        nature and amount of the Buyer Claim and, if applicable, identifies the third
        party claimant.  Buyer shall promptly provide Seller with such additional
        information as Seller may reasonably request regarding any Buyer Claim.

      (c)       
        Except as provided
        in Section 14.03(d), the remedies provided for in this Article X are exclusive
        and shall be in lieu of all other remedies for any breach of any representation,
        warranty, covenant, obligation or other provision of this Agreement.

      (d)
               The limitations set forth
        in this Section 14.03 shall not apply to any Buyer Claims arising or resulting
        from Seller’s fraud or intentional misrepresentation
        or any Excluded Liabilities
        or
        Seller’s failure to deliver title to the Purchased Assets as contemplated
        hereunder or any post-Closing adjustment set
        out in Section
        2.02 or any tax liabilities under Section 14.01(f).

      XV.

      INDEMNIFICATION
        BY
        BUYER

      15.01  
Indemnification
        and Hold
        Harmless.  Buyer hereby covenants and agrees to indemnify
        and hold Seller harmless against and in respect of:

      (a)       
        any claims, demands,
        or causes of action of any kind or nature by any third party or governmental
        authority arising from Buyer’s conduct of the Business or ownership or use of
        the Purchased Assets subsequent to the Closing;

      (b)       
the
        Assumed Liabilities;

      (c)       
any
        losses, damages, or deficiencies resulting from any
        misrepresentation, breach of representation, warranty
        or covenant, or
        nonfulfillment of any agreement on the part of Buyer under this Agreement
        or
        from any misrepresentation in or material omission from any certificate or
        other
        instrument provided by Buyer or Atlas to Seller or Maverick pursuant to or
        in
        connection with this Agreement; and

      (d)       
        all
        actions, suits, proceedings, demands, assessments, judgments and reasonable
        and
        necessary costs and expenses, including all attorneys’ fees, incident to any of
        the foregoing.

      The
        foregoing matters giving rise to Seller’s right to indemnification hereunder are
        hereinafter referred to as “Seller Claims.”

      15.02  
        Reimbursement.  Buyer shall reimburse Seller, on
        demand, for any payment made by or loss or damage incurred by Seller at any
        time
        after the Closing Date in respect of any Seller Claim to which the foregoing
        indemnity relates; provided, however, that within a reasonable time after
        Seller
        receives notice of such Seller Claim and before Seller makes any such payment,
        it must notify Buyer of the underlying claim or action, but the omission
        to so
        notify Buyer shall not release Buyer from any liability which it has or may
        have
        to Seller except to the extent Buyer actually has been prejudiced by such
        failure to give notice.  In the event of such notice, Buyer shall
        be
        entitled to participate in and to assume the defense of any action with counsel
        reasonably satisfactory to Seller if Buyer promptly notifies Seller of its
        intention to do so and keeps Seller fully informed as to all matters relating
        to
        the defense and settlement of such action.  Buyer shall in no case
        settle
        or compromise a Seller Claim or consent to the entry of judgment, in either
        case
        other than solely for money damages, without the prior written consent of
        Seller
        (which consent shall not be unreasonably withheld or delayed) if such
        settlement, compromise or judgment would adversely affect the rights of Seller
        in any continuing manner.

      15.03  
Limitations
        of
        Liability.

      (a)       
        Notwithstanding
        Sections 15.01 and 15.02, but subject to Section 15.03(d), Buyer shall have
        no
        liability under this Article XV to indemnify Seller with respect to Section
        15.01 or reimburse Seller under Section 15.02 with respect to any Seller
        Claims
        listed in Section 15.01 after the aggregate amount of all
        such Seller Claims against Buyer exceeds $6,000,000
        (“Buyer’s Threshold”).

      (b)       
        Buyer shall not be
        required to indemnify Seller under Section 15.01 or reimburse Seller under
        Section 15.02 with respect to Seller Claims unless reasonable written notice
        of
        such Seller Claims is given by Seller to Buyer and specifies in reasonable
        detail the nature and amount of the Seller Claim and, if applicable, identifies
        the third party claimant.  Seller shall promptly provide Buyer with
        such
        additional information as Buyer may reasonably request regarding any Seller
        Claim.

      (c)       
        Except as provided
        in Section 15.03(d), the remedies provided for in this Article XI are exclusive
        and shall be in lieu of all other remedies for any breach of any representation,
        warranty, covenant, obligation or other provision of this Agreement.

      (d)       
        The limitations set
        forth in this Section 15.03 shall not apply to any Seller Claims arising
        or
        resulting from Buyer’s fraud or intentional misrepresentation, any Assumed
        Liability or
        Buyer’s failure to pay
        the Final Purchase Price as provided in Article II, or any post-Closing
        adjustment set out in Section 2.02.

      XVI.

      MISCELLANEOUS

      16.01  
        Governing Law.   This Agreement will be governed by
        and construed in accordance with the laws of the State of Delaware, excluding
        any conflicts of laws provisions that would render the law of another
        jurisdiction applicable.  All disputes between the parties arising
        out of
        or related to this Agreement or related to its conclusion, violation,
        termination or nullity, shall be, except as set out below, to the exclusion
        of
        proceedings before courts of law, and shall be finally settled under the
        applicable arbitration rules of the American Arbitration Association, by
        three
        arbitrators appointed pursuant to the applicable arbitration rules. 
        Arbitration shall be the sole and exclusive remedy with respect to any such
        dispute or alleged breach between the parties (but excluding any proceeding
        in
        respect of a third party claim against any party related to the transactions
        contemplated under this Agreement).  These proceedings shall be private
        an
        confidential; provided, however, that Maverick, as a public company, may
        make
        such disclosures, filings and/or notifications (whether publicly or otherwise)
        as may be required by, or deemed appropriate in accordance with applicable
        laws,
        regulation or New York Stock Exchange listing standards.  The finding
        of
        the arbitration panel shall be final and binding on both parties. 
        The
        arbitration shall take place in St. Louis County, State of Missouri, United
        States of America.  All costs and expenses incidental to and arising
        out of
        the arbitration (e.g., arbitrators’ fees) shall be borne by the losing party,
        but each side shall pay its own attorney’s fees.  Any judgment upon any
        arbitration award may be entered in any court having jurisdiction
        thereof.

      16.02  
        Cooperation.  The parties hereto will fully cooperate
        with each other and their respective counsel and accountants in connection
        with
        all steps to be taken as part of their obligations under this Agreement. 
        Seller and Buyer will use their reasonable best efforts to cause the conditions
        to Seller’s and Buyer’s obligation to close to be fulfilled on or prior to the
        Closing Date.

      16.03  
        Taxes and Other Expenses.  Transfer, sales, use, bulk
        conveyance, customs, duties or other similar taxes arising out of the sale
        of
        the Purchased Assets from Seller to Buyer resulting from the Closing or the
        sale
        of the Purchased Assets by Buyer to any party after Closing shall be paid
        by
        Buyer.

      16.04  
        Assignment.  Neither this Agreement nor any right
        hereunder may be assigned by the parties hereto.  This Agreement shall
        be
        binding upon and inure to the benefit of the parties hereto and their respective
        successors and their assigns.

      16.05  
        Entire Agreement.  The Exhibits and Schedules referred
        to herein and attached hereto are incorporated herein by reference. 
        This
        Agreement, including such Exhibits and Schedules, together with the
        Noncompetition Agreement and the Conversion Agreement, constitutes the entire
        understanding and agreement of the parties hereto and supersedes all other
        prior
        agreements and understandings, written or oral, between the parties with
        respect
        to the subject matter hereof.

      16.06  
        Survival.  The representation, warranties and
        covenants set forth in this Agreement as well as any obligation provided
        by this
        Agreement to be performedshall survive Closing.

      16.07  
        Notices.  Any notice or communication required or
        permitted hereunder must be in writing and sent by (a) personal delivery,
        (b)
        expedited delivery service with proof of delivery, (c) registered or certified
        mail, postage prepaid, or (d) facsimile (provided that the facsimile is
        confirmed by mail in the manner previously described), addressed as
        follows:

      IF
        TO BUYER:

      Mr.
        Barry Zekelman

      Atlas
        Tube Inc.

      200
        Clark Street

      P.O.
        Box 970

      Harrow,
        Ontario, Canada N0R 1G0

      Telephone:
        519/738-5011

      Facsimile:
        519/738-5003

       

      IF
        TO SELLER:

      Mr.
        James Cowan

      Ms.
        Joyce Schuldt

      Maverick
        Tube Corporation

      16401
        Swingley Ridge Road

      Chesterfield,
        Missouri, USA 63017

      Telephone:
        636/733-1600

      Facsimile:
        636/733-1670

       

                 
        Any such notice or communication will be
        deemed to have been
        given either at the time of personal delivery or, in the case of delivery
        by
        service or mail, as of the date of delivery at the address and in the manner
        provided herein, or, in the case of telecopy on receipt.

      16.08  
        Headings.  The headings of the articles and sections
        of this Agreement are inserted for convenience only and shall not constitute
        a
        part hereof.

      16.09  
        Jury Trial Waived.  Each party hereby waives trial by
        jury in any judicial proceeding involving, directly or indirectly any matter
        in
        any way arising out of, related to, or connected with this Agreement whether
        based in contract, tort or otherwise.

      16.10  
        Waivers.  No
        delay on the part of
        any party in exercising any right, power or privilege hereunder shall operate
        as
        a waiver thereof, nor shall any waiver on the part of any such party of any
        right, power or privilege hereunder, or any single or partial exercise of
        any
        right, power or privilege hereunder, preclude any other or further exercise
        thereof or the exercise of any other right, power or privilege
        hereunder.

      16.11  
        Time.  Time is and shall be of the essence of this
        Agreement.

      16.13  
        Execution of Counterparts.  This Agreement may be
        executed in multiple counterparts each of which shall be deemed an original
        and
        all of which together shall constitute one and the same document. 
        Signatures delivered by telecopy or other facsimile transmission will be
        effective as delivery of the originals.

      16.14  
        Amendments.  Any and all amendments and modifications
        of this Agreement must be in a writing signed by all parties hereto.

      16.15  
        Severability.  Any provision hereof which is
        prohibited or unenforceable in any jurisdiction will, as to such jurisdiction,
        be ineffective to the extent of such prohibition or unenforceability without
        invalidating the remaining provisions hereof, and any such prohibition or
        unenforceability in any jurisdiction will not invalidate or render unenforceable
        such provision in any other jurisdiction.  To the extent permitted
        by law,
        the parties hereto waive any provision of law which renders any such provision
        prohibited or unenforceable in any respect.

      16.16  
        Public Announcements.  No party shall make
        any press release or public announcement concerning the transactions
        contemplated by this Agreement without the prior written approval of the
        other
        party, unless a press release or public announcement is required by law as
        determined in the disclosing party’s sole discretion.  If such announcement
        is required by law as determined in the disclosing party’s sole discretion, the
        disclosing party may in its sole discretion give the nondisclosing party
        an
        opportunity to comment on the proposed disclosure.

      IN
        WITNESS WHEREOF, the parties hereto have
        caused this Asset Purchase Agreement to be duly executed as of the date and
        year
        first above written.

       

      
        	
                 

              	
                ATLAS TUBE INC.

              
	
                 

              	
                 

              
	
                 

              	
                 

              
	
                 

              	
                By:

              	
                /s/ Barry Zeckelman

              
	
                 

              	
                Name:

              	
                Barry Zeckelman

              
	
                 

              	
                Title:

              	
                Chairman of the Board

              
	 	 	 	 	 

      

       

       

      
        	
                 

              	
                ATLAS TUBE (USA)
                  INC.

              
	
                 

              	
                 

              
	
                 

              	
                 

              
	
                 

              	
                By:

              	
                /s/ Barry Zeckelman

              
	
                 

              	
                Name:

              	
                Barry Zeckelman

              
	
                 

              	
                Title:

              	
                Chief Executive Officer

              
	 	 	 	 	 

      

       

       

      
        	
                 

              	
                MAVERICK TUBE,
                  L.P.

              
	
                 

              	
                 

              
	
                 

              	
                By:

              	
                Maverick GP, LLC

              
	
                 

              	
                 

              	
                its general partner

              
	
                 

              	
                 

              
	
                 

              	
                 

              	
                By:

              	
                /s/ Joyce M. Schuldt

              
	
                 

              	
                 

              	
                Name:

              	
                Joyce M. Schuldt

              
	
                 

              	
                 

              	
                Title:

              	
                Senior Vice President - Finance,
                  Chief
                  Financial Officer and Secretary

              
	 	 	 	 	 	 

      

       

       

      
        	
                 

              	
                MAVERICK TUBE
                  CORPORATION

              
	
                 

              	
                 

              
	
                 

              	
                 

              
	
                 

              	
                By:

              	
                /s/ Joyce M. Schuldt

              
	
                 

              	
                Name:

              	
                Joyce M. Schuldt

              
	
                 

              	
                Title:

              	
                Senior Vice President - Finance,
                  Chief
                  Financial Officer and Secretary

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