Document:

Unassociated Document

    

      Exhibit
        10.28

       

      

       

      ASSET
        PURCHASE AGREEMENT

       

      This
        Asset Purchase Agreement is entered into between Delta Star Electric, Inc.,
        an
        Indiana corporation with its principal offices at 1125 S. Walnut Street
        (“Seller”); TransTech Electric, Inc., an Indiana corporation (“TransTech”); and
        Magnetech Industrial Services, Inc., an Indiana corporation (“MIS”). TransTech
        and MIS are purchasing the assets of the Construction/Service division and
        the
        Motor/Magnet division, respectively, of Seller, and shall collectively be
        referred to as “Buyer.” Unless specified otherwise, references to “Buyer” in
        this Agreement shall be construed to include TransTech and MIS, as opposed
        to
        TransTech or MIS. The assets being purchased by Buyer constitute all or
        substantially all of the assets owned by Seller.

       

      SELLER
        AND BUYER NOW AGREE AS FOLLOWS:

       

      1. Sale
        of
        Assets of the Construction/Service Division. On the Closing Date (as later
        defined), Seller agrees to sell and TransTech agrees to purchase the following
        property and rights of the Construction/Service division:

       

      (a) Operational
        Assets.
        All of
        Seller's interest in equipment, machinery, fixtures, vehicles, and tools
        presently being used in the operation of that division.

       

      (b) Inventory.
        Any
        inventory of the division, which is described as all existing finished products,
        work in process and raw materials

       

      (c) Name
        and Goodwill.
        An
        undivided one-half interest in all of Seller's rights, title and interest
        in its
        business goodwill, service names, service marks, technology, know-how,
        processes, trade secrets, inventions, proprietary data, research and development
        data, computer software programs and other intangible property, including
        all
        interest in the name “Delta Star” and all goodwill associated with that name;
        Seller's rights, title and interest in its telephone and telecopier numbers;
        and
        all of Seller's present and former customer and agent lists, supply lists,
        advertising materials, price lists, sales and promotional literature,
        correspondence files, sales and purchase records, displays, manuals, data,
        lists
        of present and former suppliers and all other files or records related to
        the
        operation of Seller's business.

       

      (d) Contracts.
        To the
        extent assumed by TransTech, all of Seller's rights, title and interest in
        and
        to its contracts and agreements with customers and service providers related
        to
        this division.

       

      (e) Liabilities
        and Obligations of Seller related to the division.
        TransTech is accepting none of the Seller's liabilities or obligations, except
        for those identified on Schedule 1(e). Except for the Assumed Obligations,
        TransTech shall not assume, nor shall TransTech be responsible for, any debts,
        liabilities, obligations, or commitments of Seller whatsoever, whether actual,
        absolute, 

       

      
        
          
          

        

        
          
            

          

        

        
          
          

        

      

      accrued,
        fixed, contingent, asserted or unasserted, including without limitation:
        (i) any
        of Seller's accounts payable or other obligations or claims payable; (ii)
        any of
        Seller's liabilities relating to any federal, state, local or other governmental
        taxes, fees, penalties or related charges; (iii) any liabilities or obligations
        arising under any contract or agreement to which Seller is a party or relating
        to any violation or breach of any thereof; (iv) any liabilities of Seller
        arising in connection with any employees of Seller as a result of Seller's
        employment or discharge of any such persons; (v) any liabilities arising
        from
        the failure of Seller to comply with the rules and requirements of employee
        pension or benefit plan provisions; or (vi) any fines, civil penalties or
        other
        liabilities based upon or arising out of or based upon any claim, action,
        suit,
        litigation or proceeding to which Seller is or may be named a party, or relating
        to the business of Seller.

       

      2. Sale
        of Assets of the Motor/Magnet Division.
        On the
        Closing Date, Seller agrees to sell and MIS agrees to purchase the following
        property and rights of the Motor/Magnet division:

       

      (a) Operational
        Assets.
        All of
        Seller's interest in equipment, machinery, furniture, communications equipment,
        fixtures, vehicles, tools, computer hardware, computer software and office
        supplies presently being used in the operation of Seller's business, except
        for
        those assets described in paragraph 1(a) (together with the assets listed
        in
        paragraph 1(a), the “Operational Assets”).

       

      (b) Inventory.
        All
        inventory of the division, which is described as all existing finished products,
        work in process and raw materials (together with the assets listed in paragraph
        1(b), the “Inventory”) existing on the Closing Date except that work in process
        listed on attached Schedule 2(b) (the “Excepted Work in Process.”) With regard
        to the Excepted Work in Process, Buyers and Seller agree that the receivable
        created upon shipment and payment of the respective Excepted Work in Process
        will be split between Seller and Buyers as follows: the respective parties
        will
        be reimbursed for the cost of the labor and material invested in the project
        with the remaining balance or profit of the project split 50/50 between the
        Seller and the Buyers.

       

      (c) Name
        and Goodwill.
        An
        undivided one-half interest in all of Seller's rights, title and interest
        in its
        business goodwill, service names, service marks, technology, know-how,
        processes, trade secrets, inventions, proprietary data, research and development
        data, computer software programs and other intangible property, including
        all
        interest in the name “Delta Star” and all goodwill associated with that name;
        Seller's rights, title and interest in its telephone and telecopier numbers;
        and
        all of Seller's present and former customer and agent lists, supply lists,
        advertising materials, price lists, sales and promotional literature,
        correspondence files, sales and purchase records, displays, manuals, data,
        lists
        of present and former suppliers and all other files or records related to
        the
        operation of Seller's business.

       

      
        
          
          

        

        
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      (d) Contracts.
        To the
        extent assumed by MIS, all of Seller's rights, title and interest in and
        to its
        contracts and agreements with customers and service providers related to
        this
        division.

       

      (e) Other
        Assets.
        All
        other of Seller's assets which are useful or necessary to conduct the business
        of both the Construction/Service division and this division (either
        independently or jointly) other than those listed on Schedule 2(e) (“Excluded
        Assets”).

       

      (f) Liabilities
        and Obligations of Seller related to the division.
        MIS is
        accepting none of the Seller's liabilities or obligations, except for those
        identified on Schedule 2(t) (together with the liabilities identified on
        Schedule 1(e), the “Assumed Obligations”). Except for the Assumed Obligations,
        MIS shall not assume, nor shall MIS be responsible for, any debts, liabilities,
        obligations, or commitments of Seller whatsoever, whether actual, absolute,
        accrued, fixed, contingent, asserted or unasserted, including without
        limitation: (i) any of Seller's accounts payable or other obligations or
        claims
        payable; (ii) any of Seller's liabilities relating to any federal, state,
        local
        or other governmental taxes, fees, penalties or related charges; (iii) any
        liabilities or obligations arising under any contract or agreement to which
        Seller is a party or relating to any violation or breach of any thereof;
        (iv)
        any liabilities of Seller arising in connection with any employees of Seller
        as
        a result of Seller's employment or discharge of any such persons; (v) any
        liabilities arising from the failure of Seller to comply with the rules and
        requirements of employee pension or benefit plan provisions; or (vi) any
        fines,
        civil penalties or other liabilities based upon or arising out of or based
        upon
        any claim, action, suit, litigation or proceeding to which Seller is or may
        be
        named a party, or relating to the business of Seller.

       

      The
        assets being purchased by TransTech and by MIS shall collectively be referred
        to
        as the “Assets.”

       

      3. Purchase
        Price.

       

      (a) Construction/Service
        Division.

       

       (i) Base
        Price.
        On the
        Closing Date, TransTech will deliver to Seller the total purchase price of
        One
        Hundred Twenty Thousand Dollars ($120;000) in cash, certified or bank check
        or
        by transfer of immediately available federal funds, plus a “rental” payment of
        Two Thousand Six Hundred Seventeen Dollars ($2,617) per month from March
        1, 2000
        through the Closing Date (“TransTech Purchase Price”). The TransTech Purchase
        Price shall be reduced by: 1) the dollar amount which TransTech pays to the
        secured creditors of Seller in order for TransTech to receive clear title
        to the
        Assets it is purchasing; and 2) the amount of Assumed Obligations by
        TransTech.

       

      (ii) Incentive
        Payment.
        In
        addition to the TransTech Purchase Price, Seller shall be entitled, for the
        calendar years 2000 and 2001, to an incentive payment of one-half of the
        annual
        gross sales for Service Work (as later defined) in excess of Three Hundred
        Thirty Thousand Dollars 

       

      
        
          
          

        

        
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      ($330,000)
        to the following customers (each an “Incentive Customer”): Memorial Hospital,
        St. Joseph County Airport, Steel Warehouse, Total Enterprises, Graphix Unlimited
        and Mossberg (“Incentive Payment”). The Incentive Payment shall be based on
        Service Work actually invoiced to an Incentive Customer during the applicable
        calendar year and subsequently paid. The term “Service Work” shall include any
        work performed by TransTech or MIS for the Incentive Customers which work
        (or
        natural grouping of work) is less than Forty Thousand Dollars ($40,000).
        The
        maximum annual amount of the Incentive Payment shall be Seventy-five Thousand
        Dollars ($75,000). As an example, if the total invoices for Service Work
        to the
        Incentive Customers during calendar year 2000 equal $400,000 and payment
        is
        received for such amount, then the Incentive Payment shall be $35,000. The
        Incentive Payment shall be paid no later than April 1 following the applicable
        calendar year-end for Service Work invoiced to an Incentive Customer during
        the
        applicable calendar year and subsequently paid. Partial payments of the
        Incentive Payment earned after such date shall be paid within thirty (30)
        days
        after receipt of payment from Incentive Customer.

       

      (b) Motor/Magnet
        Division.
        On the
        Closing Date, MIS will deliver to Seller a purchase price of Four Hundred
        Thousand Dollars ($400,000), reduced by: 1) the amount the Buyers have expended
        for the benefit of Seller's business prior to the Closing; 2) the dollar
        amount
        which MIS pays to the secured creditors of Seller in order for MIS to receive
        clear title to the Assets it is purchasing (or, if MIS assumes the position
        of
        Seller's secured creditors, the amount necessary to satisfy the secured debt
        in
        full); and 3) the amount of Assumed Obligations by MIS (“MIS Purchase Price”).
        Any balance remaining on the MIS Purchase Price will be paid by delivery
        of a
        promissory note from MIS to Seller, payable in two equal annual principal
        installments (“Note”) beginning on the first anniversary date of the Closing
        Date. Provided payments are timely made on the Note, no interest shall accrue
        on
        that obligation. The principal balance of the promissory note shall be subject
        to reduction pursuant to the provisions of paragraph 14.

       

      4. Closing
        Date.
        The
        closing of this transaction (“Closing”) shall take place on or before August 10,
        2000 or at such other date as may be agreed to by TransTech, MIS and Seller
        (“Closing Date”).

       

      5. Conduct
        of Business Pending Closing.
        Pending
        Closing, Seller covenants as follows:

       

      (a) Seller
        will conduct its affairs (including purchase of inventory and supplies) only
        in
        the ordinary course of business. Any substantial deviation from the normal
        course of business may be undertaken only with the prior written consent
        of
        Buyer;

       

      (b) Seller
        will use its best efforts to preserve its business organization and to maintain
        for Buyer the goodwill of suppliers, customers and others having business
        relationships with Seller;

       

      
        
          
          

        

        
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      (c) Seller
        will allow Buyer and its authorized representatives reasonable access during
        normal business hours, upon reasonable notice to Seller, at a time and place
        mutually agreed, to all books and records of Seller for the purposes of
        completing Buyer's due diligence requirements;

       

      (d) As
        of the
        Closing Date, the value of the Assets shall not have been materially affected
        in
        any adverse manner by reason of any loss, destruction or physical damage,
        whether or not insured. If the Assets have been materially adversely affected
        in
        value, Buyer may, in its sole discretion, cancel this Agreement;
        and

       

      (e) Seller
        shall take whatever steps necessary to cause all right, title and interest
        in
        the Patents to be transferred to MIS as of the Closing Date,

       

      6. Seller's
        Representations and Warranties. Seller represents and warrants as
        follows:

       

      (a) Seller
        has, or within two days of signing this Agreement will have, delivered to
        Buyer
        financial statements of Seller for the fiscal years ending October 31, 1997,
        October 31, 1998 and October 31,1999, including statements of revenues and
        expenses of Seller for those periods, and supplementary information set forth
        in
        such financial statements (“Financial Statement(s]”). Seller has no unrecorded
        liabilities or obligations of any type, nature or description, known or unknown,
        asserted or unasserted, direct or indirect, absolute or contingent, except
        as
        set forth in the Financial Statements. The Financial Statements are true
        and
        correct representations of the financial condition and operating results
        of
        Seller as of the dates and for the periods of those Financial Statements,
        and
        were prepared in accordance with generally accepted accounting principles
        applied on a consistent basis;

       

      (b) Seller's
        business consists principally of providing services to Seller's customers
        and
        while some goods are sold in the course of providing those services, the
        sale of
        goods from inventory is not the Seller's principal business;

       

      (c) All
        of
        the inventories and information delivered to TransTech or MIS shall be accurate
        and complete. The Inventory shown on the balance sheet contained in the most
        recent Financial Statement of Seller, or thereafter acquired and shown on
        Seller's books on the Closing Date, consist or will consist in all material
        respects of items of a quality and quantity usable or salable in the normal
        course of business; and the values at which such Inventory is will be carried
        reflect the Seller's normal inventory valuation policy. The Inventory shown
        as
        assets on such Financial Statement or such books are and will be consistent
        with
        past practice, and will be stated at proper values, and reflect and will
        reflect
        assets of true future economic value after the Closing;

       

      (d) All
        of
        the tangible property included in the Assets is located at Seller's place
        of
        business in South Bend, Indiana. To the best of Seller's knowledge after
        due
        inquiry, the Operational Assets are in a good state of repair (normal wear
        and
        tear excepted) and in good working order free from 

       

      
        
          
          

        

        
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      any
        material defects and are suitable for the ordinary and regular conduct and
        operation of Seller's business. Seller has maintained each of the Operational
        Assets according to good business practice for assets of that type. On or
        before
        the Closing, Seller shall have purchased all vehicles or other rolling stock
        currently leased by Seller. Upon Buyers' request, Seller shall assign to
        Buyers
        any and all other leases of equipment currently in force or, for such leases
        that the Buyers do not make such request, Seller shall terminate said leases
        and
        assume all liability arising from such termination. Except with regard to
        the
        Leased Equipment and of the security interests of National City Bank which
        have
        been previously disclosed to Buyers, Seller has good and marketable title
        to all
        the Assets, free and clear of any and all security interests, pledges, liens,
        conditional sales agreements, claims or encumbrances. No person, firm or
        corporation other than Seller has any right to the use or possession of any
        of
        the Assets. Except as set forth on Schedule 6(d), no currently effective
        financing statement under the Uniform Commercial Code with respect to any
        of the
        Assets has been filed in any jurisdiction and no agent of Seller has signed
        any
        financing statement or security agreement authorizing anyone to file any
        financing statement;

       

      (e) Except
        as
        listed on Schedule 6(e), Seller has not received any notice nor has knowledge
        that any of its largest 20 customers (based on net revenues for the Financial
        Statements) intends to terminate or materially reduce its business with Seller
        and no such customer has terminated or materially reduced its business with
        Seller in the last twelve (12) months;

       

      (f) No
        key
        employee or no group of more than five (5) employees or independent contractors
        of Seller has given oral or written notice to Seller of any plans to terminate
        the employment or independent contractor relationship with Seller. Seller
        has
        complied with all applicable laws relating to the employment of labor, including
        provisions relating to wages, hours, equal opportunity, collective bargaining,
        and the payment of Social Security and other taxes. During the twelve (12)
        months preceding the Closing Date, there have been no material or adverse
        changes in the relationship between Seller and its employees or independent
        contractors, nor has there been any strike, labor disturbance or union
        organizational activities involving its employees;

       

      (g) Seller
        is
        a corporation duly organized, validly existing and in good standing under
        the
        laws of the State of Indiana and is duly qualified to do business and is
        in good
        standing under the laws of all other jurisdictions in which its ownership
        or use
        of property for the conduct of its businesses requires it to qualify. Seller
        has
        all necessary corporate power and authority to own ail of its property and
        assets, to conduct its business as now being conducted, and to make, execute,
        deliver, and perform this Agreement and the other documents and instruments
        contemplated hereby;

       

      (h) The
        action taken by Seller in the signing of this Agreement and all action
        contemplated with this Agreement shall be properly authorized by the
        shareholders and directors of Seller.

       

      
        
          
          

        

        
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      The
        execution and delivery of this Agreement and the consummation of the
        transactions contemplated hereby do not and will not violate any of the
        provisions of the Articles of Incorporation or By-laws of Seller or constitute
        a
        breach of any contract which is material to Seller's business;

       

      (i) No
        litigation or claims, governmental or other proceedings or investigations
        are
        pending or threatened by or against Seller, or against or affecting the Assets
        except as listed on attached Schedule 6(i) (the “Pending
        Litigation”);

       

      (j) Seller
        has duly and timely filed all tax returns and information returns required
        by
        local, state, federal or other governmental entities; has paid all taxes
        due on
        such returns, all deficiencies and assessment notices, and all other taxes,
        duties, penalties, interest and fines; no income, business or occupation,
        or
        franchise tax returns are currently being audited by any taxing authority;
        there
        are no suits, actions, claims, investigations, inquiries or other proceedings
        pending or threatened against Seller regarding taxes or assessments or other
        charges;

       

      (k) None
        of
        the statements or information contained in any of the representations,
        warranties, covenants or agreements of Seller or any of its shareholders
        or
        other representatives set forth in this Agreement or any information or
        documents delivered or to be delivered to TransTech or MIS prior to the
        execution of this Agreement, contains any untrue statement of a material
        fact or
        omits a material fact necessary to make the statements contained in this
        Agreement or in any exhibit or schedule to this Agreement or in any of the
        other
        information provided or the documents delivered to TransTech or MIS in
        connection with the transactions contemplated by this Agreement, in light
        of the
        circumstances in which those statements were made, not misleading. Seller
        has
        fully disclosed all relevant material facts affecting the business, Seller's
        liabilities and the Assets;

       

      (l) Seller
        has not, within five (5) years prior to the Closing Date, conducted business
        under any name other than “Delta Star”;

       

      (m) Seller
        will not, directly or indirectly, engage in discussions or negotiations with
        any
        person other than Buyer concerning any merger, sale of stock, sale of assets
        or
        similar transaction involving or affecting ownership or operation of Seller's
        business; and

       

      (n) Seller
        shall cause, either before, at or after the Closing, but in any event no
        later
        than October 1, 2000, the accounts payable by Seller as of the Closing Date
        to
        certain key suppliers (“Key Suppliers”) to be satisfied in full. The Key
        Suppliers are Armotec Materials Corp., Baldor Electric Co., Essex Group,
        Lyman
        Steel, Precision Coil, Inc., and Artisan Technology.

       

      7. TransTech's
        Representations and Warranties. TransTech represents and warrants to Seller
        as follows:

       

      
        
          
          

        

        
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      (a) TransTech
        is a corporation duly organized and validly existing under the laws of the
        State
        of Indiana. TransTech has all necessary corporate power and authority to
        own all
        of its property and assets, to conduct its business, and to make, execute
        and
        deliver this Agreement and other documents and instruments contemplated in
        the
        Agreement; and

       

      (b) None
        of
        the statements or information contained in any of the representations,
        warranties, covenants or agreements of TransTech set forth in this Agreement
        or
        any information or documents delivered or to be delivered to Seller prior
        to the
        execution of this Agreement, contains any untrue statement of a material
        fact or
        omits a material fact necessary to make the statements contained in this
        Agreement or in any exhibit or schedule to this Agreement or in any of the
        other
        information provided or the documents delivered to Seller in connection with
        the
        transactions contemplated by this Agreement, in light of the circumstances
        in
        which those statements were made, not misleading.

       

       8. MIS'
        Representations and Warranties. MIS represents and warrants to Seller as
        follows:

       

      (a) MIS
        is a
        corporation duly organized and validly existing under the laws of the State
        of
        Indiana. MIS has all necessary corporate power and authority to own all of
        its
        property and assets, to conduct its business, and to make, execute and deliver
        this Agreement and other documents and instruments contemplated in the
        Agreement; and

       

      (b) None
        of
        the statements or information contained in any of the representations,
        warranties, covenants or agreements of MIS set forth in this Agreement or
        any
        information or documents delivered or to be delivered to Seller prior to
        the
        execution of this Agreement, contains any untrue statement of a material
        fact or
        omits a material fact necessary to make the statements contained in this
        Agreement or in any exhibit or schedule to this Agreement or in any of the
        other
        information provided or the documents delivered to Seller in connection with
        the
        transactions contemplated by this Agreement, in light of the circumstances
        in
        which those statements were made, not misleading.

       

      9. Conduct
        of Business Following Closing. Following the Closing, Seller covenants as
        follows:

       

      (a) Seller
        shall cause the accounts payable by Seller to the Key Suppliers to be paid
        in
        full as described in paragraph 6(n);

       

      (b) Seller
        shall cooperate with Buyers and use its best efforts to assure that each
        of
        Lance Long, Jim Warner and Matt Wrobleski (collectively, the “Key Employees”)
        shall remain employed by TransTech and/or MIS until the first anniversary
        of the
        Closing Date. As an incentive, Seller shall fund a bonus payment to Jim Warner
        and Matt Wrobleski of $5,000 each, and to Lance Long of $10,000. These bonus
        payments shall be payable to MIS on the Closing Date. MIS shall then hold
        the
        bonus payments in escrow and distribute them to the applicable Key Employee,
        on
        the first anniversary of the Closing Date, 

       

      
        
          
          

        

        
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      provided
        the Key Employee has been continuously employed by MIS or TransTech, or a
        successor of either company, from the Closing Date to the first anniversary
        of
        the Closing Date. If for any reason a Key Employee is not employed continuously
        from the Closing Date to the first anniversary of the Closing Date, that
        Key
        Employee's respective bonus payment shall be retained by MIS; and

       

      (c) Seller
        shall cause Buyer to receive all rights, title and interest in the Electromagnet
        Patent identified in paragraph 10(h).

       

      10. Conditions
        to Obligation of Buyer. The obligation of Buyer to purchase the Assets from
        Seller under this Agreement is subject to the satisfaction of the following
        conditions on or before the Closing Date (unless any condition is waived
        in
        writing by Buyer):

       

      (a) All
        representations and warranties of Seller contained in or made pursuant to
        this
        Agreement shall be true and correct as of the Closing Date;

       

      (b) Seller
        shall have performed, observed and complied with all the obligations and
        conditions required by this Agreement, including, but not limited to, the
        execution and delivery of all documents listed in paragraph 17;

       

      (c) No
        order
        of any Court or administrative agency shall be in effect which restrains
        or
        prohibits the transactions contemplated in this Agreement, or which would
        affect
        or limit Buyer's ownership or control of the assets, and there shall not
        have
        been threatened or pending any proceeding before any Court, governmental
        agency,
        or other regulatory entity challenging any of the transactions contemplated
        by
        this Agreement;

       

      (d) On
        or
        prior to the Closing Date, there shall have been no loss, damage or destruction
        to the Assets which materially impairs the value of the Assets in any way,
        and
        Seller shall not have suffered any material adverse change in its financial
        condition, results of operations, assets, liabilities, business or
        prospects;

       

      (e) Buyer
        shall have completed its due diligence review of Seller's business with the
        results being satisfactory to Buyer in its sole discretion;

       

      (f) Seller
        shall have delivered title and other appropriate documents, including bills
        of
        sale and instruments of assignment sufficient to evidence and transfer to
        Buyer
        complete legal and equitable title in the Assets, free and clear of any and
        all
        security interests, pledges, liens, conditional sales agreements, claims,
        encumbrances or charges or restraints on transfer;

       

      (g) Buyer
        shall be satisfied that each of the Key Employees will remain employed with
        TransTech and/or MIS following the Closing, which satisfaction shall be to
        Buyer's sole discretion and may include Buyer requiring that each Key Employee
        execute an employment agreement with TransTech and/or MIS; and

       

      
        
          
          

        

        
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      (h) Seller
        shall have received all right, title and interest in an electromagnet patent,
        identified as Patent Number 5,410,289 (the “Electromagnet Patent”).

       

      11. Conditions
        to Obligation of Seller. The obligation of Seller to sell and transfer the
        Assets to Buyer under this Agreement is subject to the satisfaction of the
        following conditions on or before the Closing Date (unless any condition
        is
        waived in writing by Seller):

       

      (a) All
        representations and warranties of Buyer contained in this Agreement shall
        be
        true and correct as of the Closing Date;

       

      (b) Buyer
        shall have performed all the obligations and conditions required by this
        Agreement, including, but not limited to, delivery of the cash or cash
        equivalents and the Note required under this Agreement, on the Closing Date;
        and

       

      (c) No
        order
        of any Court or administrative agency shall be in effect which restrains
        or
        prohibits the transactions contemplated in this Agreement, or which would
        affect
        or limit Seller's ability to sell or transfer ownership or control of the
        Assets, and there shall not have been threatened or pending any proceeding
        before any Court, governmental agency, or other regulatory entity challenging
        any of the transactions contemplated by this Agreement.

       

      12. Change
        of
        Name of Seller. As soon as reasonably possible after the Closing Date, Seller
        agrees that it will take all necessary action to either amend its corporate
        name
        to one that will not be confused with its present name, or to dissolve its
        corporation by filing Articles of Dissolution with the Indiana Secretary
        of
        State.

       

      13. Notices.
        Notice from one party to another relating to this Agreement shall be deemed
        effective if made in writing (including telecommunications) and delivered
        to the
        recipient's address, telex number or facsimile number set forth under its
        name
        by any of the following means: (a) hand delivery, (b) registered or certified
        mail, postage prepaid, with return receipt requested (c) first class or express
        mail, postage prepaid, (d) Federal Express or like overnight courier service
        or
        (e) facsimile, telex or other wire transmission with request for assurance
        of
        receipt in a manner typical with respect to communications of that type.
        Notice
        made in accordance with this section shall be deemed delivered on receipt
        if
        delivered by hand or wire transmission, on the third business day after mailing
        if mailed by first class, registered or certified mail, or on the next business
        day after mailing or deposit with an overnight courier service if delivered
        by
        express mail or overnight courier. The current addresses of the parties are
        as
        follows:

      
        

         

        
          	
                  BUYER

                	
                  SELLER

                   

                
	
                  Trans
                    Tech Electric, Inc

                  4601
                    Cleveland Road

                  Post
                    Office Box 3915

                	
                  Delta
                    Star, Inc.

                  1125
                    South Walnut Street

                  South
                    Bend, Indiana 46619

                

        

        

         

      

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

      
        

         

        
          	
                  South
                    Bend, Indiana 46619

                   

                	 
	
                  Magnetech
                    Industrial Services

                  17887
                    Fox Den Drive

                  Granger,
                    Indiana 46530

                   

                	 
	
                  with
                    copy to:

                   

                	
                  with
                    copy to

                
	
                  Richard
                    L. Mintz

                  Roemer
                    & Mintz, LLP

                  KeyBank
                    Building, Suite 200

                  202
                    South Michigan Street

                  Post
                    Office Box 4757

                  South
                    Bend, Indiana 46634-4757

                	
                  Michael
                    D. Hardy

                  Barnes
                    & Thornburg LLP

                  100
                    North Michigan

                  600
                    1st
                    Source Bank Center

                  South
                    Bend, Indiana 46601

                

        

        

         

      

       

       

      14. Indemnification
        by Seller. From and after the Closing Date, Seller shall indemnify and hold
        harmless Buyer and Buyer's successors, owners, officers and directors from
        any
        and all damages, liabilities, loss, cost or expense (including reasonable
        attorney fees, paralegal fees and fees or costs of investigation) incurred
        because of or related to:

       

      (a) Any
        misrepresentation of Seller in this Agreement or any information or documents
        delivered or to be delivered to Buyer under the terms of this Agreement,
        or in
        any written materials delivered to Buyer;

       

      (b) Any
        breach by Seller or failure by Seller to perform any representation, warranty,
        covenant, condition or agreement contained in or made pursuant to this
        Agreement; and

       

      (c) Any
        liabilities and obligations of Seller not expressly assumed by Buyer under
        this
        Agreement, including, without limitation, any liabilities or obligations
        relating to the operation of Seller's business prior to or on the Closing
        Date.

       

      15. Indemnification
        by Buyer. From and after the Closing Date, Buyer shall indemnify and hold
        harmless Seller and its successors, owners, officers and directors from any
        and
        all damages, liabilities, loss, cost or expense (including reasonable attorney
        fees, paralegal fees and fees or costs of investigation) incurred because
        of or
        related to:

       

      (a) Any
        misrepresentation of Buyer in this Agreement or any information or documents
        delivered or to be delivered to Seller under the terms of this Agreement,
        or in
        any written materials delivered to Seller;

       

      (b) Any
        breach by Buyer or failure by Buyer to perform any representation, warranty,
        covenant, condition or agreement contained in or made pursuant to this
        Agreement; and

       

      (c) Any
        obligations or liabilities relating to Seller's business incurred after the
        Closing Date.

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

      16. Right
        to Set-off. Either Buyer may set off any amounts to which it (or the other
        Buyer) may be entitled under this Agreement against amounts otherwise payable
        to
        Seller. Either Buyer shall have the right to set off any amounts to which
        it may
        be entitled under this Agreement against any amounts owed by either Buyer
        to
        Jack Long, George Weigand, Lance E. Long or Ralph Hohl (the “Seller
        Affiliates”). The exercise of such right of set-off by Buyer in good faith,
        whether or not ultimately determined to be justified, will not constitute
        an
        event of default under the document which gives rise to the obligation of
        payment by either Buyer. Neither the exercise of or the failure to exercise
        such
        right of set-off will constitute an election of remedies or limit either
        Buyer
        in any manner in the enforcement of any other remedies that may be available
        to
        it. Because of the negative effect a set-off may have on either Buyer's cash
        flow, in the event either Buyer has the right to set-off an amount to which
        it
        is entitled against an amount which is not currently due to Seller or a Seller
        Affiliate, then the amount which Buyer may set off against the amount owed
        Seller shall accrue interest at a rate of twelve percent until Buyer's
        obligation to pay Seller (or the applicable Seller Affiliate) becomes a current
        liability, at which time Buyer will actually set-off Seller's obligation
        against
        the payment Buyer is obligated to make Seller (or Seller's Affiliate). As
        an
        example, presume that a Buyer has the right to payment from Seller, under
        the
        terms of this Agreement, in the amount of $10,000, which payment obligation
        by
        Seller arises on December 1, 2000. Further presume that Seller fails to pay
        that
        amount to the Buyer, and that the next payment from either Buyer to Seller
        arises on May 1, 2001. The $10,000 obligation will accrue interest at a rate
        of
        12% until May 1, 2001, at which time the Buyer may set off the amount owed
        by
        Seller, including accrued interest (in this example, $10,000 plus $600 of
        interest) against the amount owed to Seller by either Buyer as of May 1,
        2001.

       

      17. Documents
        to be Delivered by Seller at Time of Closing. The Seller agrees to deliver,
        or cause to be delivered, the following on the Closing Date:

       

      (a) Bill
        of Sale. A Bill of Sale and any other instruments or documents as may be
        reasonably requested by the attorney for Buyer to accomplish the purposes
        of
        this Agreement so as to convey and transfer to Buyer good and merchantable
        title
        to the Assets, including but not limited documents transferring to MIS the
        exclusive rights to the Electromagnet Patent, free and clear of any liens,
        encumbrances or other rights to the Patent.

       

      (b) Corporate
        Resolutions. Copies of properly authorized corporate resolutions certified
        by the secretary of the Seller confirming the proper authorization of this
        Agreement and all action provided hereunder,

       

      (c) Lease.
        Lease for the real estate where Seller's business activities are currently
        being
        conducted and for which Seller is purchasing pursuant to a land contract,
        which
        lease will include 

       

      
        
          
          

        

        
          -12-

          
            

          

        

        
          
          

        

      

      an
        option
        to cause the Seller to purchase the real estate outright and transfer such
        property to MIS or its designee at Seller's actual purchase cost.

       

      (d) Guaranty.
        Guaranty by the shareholders of Seller of all of Seller's obligations under
        this
        Agreement.

       

      (e) Non-competition
        Agreement. A non-competition agreement executed by Seller and its
        shareholders in a form reasonably acceptable to Buyer.

       

      18.  
         Documents
        to be Delivered by TransTech at Time of Closing. TransTech agrees to deliver
        the
        following on the Closing Date:

       

      (a) Cash.
        The cash portion of the TransTech Purchase Price, as described in paragraph
        3(a).

       

      (b) Corporate
        Resolutions. Copies of properly authorized corporate resolutions certified
        by the secretary of TransTech confirming the proper authorization of this
        Agreement and all action provided hereunder.

       

      19. Documents
        to be Delivered by MIS at Time of Closing. TransTech agrees to deliver the
        following on the Closing Date:

       

      (a) Cash.
        The cash portion of the MIS Purchase Price, as described in paragraph
        3(b).

       

      (b) Promissory
        Note.
        Note as
        provided in paragraph 3(b).

       

      (c) Corporate
        Resolutions.
        Copies
        of properly authorized corporate resolutions certified by the secretary of
        Buyer
        confirming the proper authorization of this Agreement and all action provided
        hereunder.

       

      (d) Lease.
        Lease
        as provided in paragraph 17(c).

       

      20. General
        Provisions.

       

      (a) Assignment.
        This
        Agreement may not be assigned by any party hereto.

       

      (b) Counterparts.
        This
        Agreement may be executed simultaneously in two or more counterparts, each
        of
        which shall be deemed an original, but all of which together shall constitute
        one and the same instrument.

       

      (c) Entire
        Agreement.
        This
        Agreement (including the schedules and exhibits hereto and the lists, schedules
        and documents delivered pursuant hereto, which are a part hereof) is intended
        by
        the parties to and does constitute the entire agreement of the parties with
        respect to the transactions contemplated by this Agreement. This Agreement
        supersedes any and all prior understandings, written or oral, between the
        parties hereto.

       

      
        
          
          

        

        
          -13-

          
            

          

        

        
          
          

        

      

      (d) Governing
        Law.
        This
        Agreement shall be construed in accordance with and governed by the laws
        of the
        State of Indiana.

       

      (e) Headings.
        The
        paragraph headings contained in this Agreement are for reference purposes
        only
        and shall not affect in any way the meaning or interpretation of this
        Agreement.

       

      (f) Successors.
        This
        Agreement shall inure to the benefit of and be binding upon the parties hereto
        and their respective successors and permitted assigns, but nothing herein,
        express or implied, is intended to or shall confer any rights, remedies or
        benefits upon any person other than the parties hereto and their successors
        and
        permitted assigns.

       

      (g) Survival.
        All
        representations and warranties contained in or make pursuant to the Agreement
        shall survive the Closing.

       

      (h) No
        Waiver.
        The
        failure of any party to enforce at any time or for any period of time any
        of the
        provisions of this Agreement shall not be construed as a waiver of any such
        provision or the right of the party to enforce such provision. The waiver
        of any
        default or the failure to exercise any right shall not be deemed a waiver
        of any
        subsequent default or waiver of the right to exercise any other
        right.

       

      Seller
        and Buyer now execute this Agreement this 9th
        day of
        August, 2000.

       

      

       

      
        	
                TRANSTECH,
                  INC.

              	 	
                DELTA
                  STAR ELECTRIC, INC.

              
	 	 	 	 	 
	
                /s/
                  John A. Martell

              	 	
                /s/
                  Jack Long

              
	
                By:

              	
                John
                  A. Martell

              	 	
                By:

              	
                Jack
                  Long

              
	
                Its:

              	
                Vice
                  President

              	 	
                Its:

              	
                President

              
	 	 	 	 	 
	
                MAGNETECH
                  INDUSTRIAL SERVICES, INC.

              
	 	 	 	 	 
	 	
                /s/
                  John A. Martell

              	 
	 	
                By:

              	
                John
                  A. Martell

              	 
	 	
                Its:

              	
                President

              	 

      

      

       

       

      -14-Asset Purchase Agreement dated February 2002 between Magnetech Industrial Services,
      Inc. and Glenn C. Pollack chapter 11 trustee for Grand Eagle, Inc. and its
      affiliates.

    

      Exhibit
        10.29

       

      

       

      ASSET
        PURCHASE AGREEMENT

       

      THIS
        ASSET PURCHASE AGREEMENT (the
        “Agreement”)
        is
        made and entered into as of this 2nd day of February, 2002, by and between
        Magnetech Industrial Services, Inc. a [corporation] (“Buyer”),
        and
        Glenn C. Pollack (“Trustee”)
        solely
        in his capacity as Chapter 11 Trustee for and on behalf of Grand Eagle, Inc.,
        a
        Delaware corporation, Grand Eagle Services, Inc., a Delaware corporation,
        Grand
        Eagle Distribution, Inc., a Delaware corporation, Grand Eagle Services North
        America, Inc., a Georgia corporation, North American Coil Corporation, a
        Delaware corporation, and Ohio Transformer, Inc., an Ohio corporation, debtors
        (collectively, the “Sellers”).

       

      RECITALS

       

      A. Sellers
        are debtors in proceedings for reorganization under chapter 11 of Title l
        1 (the
“Bankruptcy
        Code”)
        of the
        United States Code currently pending in the United States Bankruptcy Court
        for
        the Northern District of Ohio, Eastern Division (the “Bankruptcy
        Court”),
        in
        jointly administered cases designated on the docket of the Bankruptcy Court
        as
        Case Nos. 01-54821 to 01-54826 (collectively the “Cases”).

       

      B. On
        December 13, 2001, the United States Trustee for Region IX appointed the
        Trustee
        as trustee for the Sellers, to perform the duties of a trustee under Sections
        1106 and 1108 of the Bankruptcy Code in the Cases.

       

      C. Sellers’
        businesses consist of three business units known and identified as the Motors
        Division, the Transformer Division and the Breakers Division.

       

      D. The
        Trustee and Sellers desire to sell, and Buyer desires to purchase, on the
        terms
        and conditions herein set forth, substantially all of the assets owned and
        used
        by Sellers in the conduct of the business operations of the Motor Division
        locations, Huntington, WV, Indianapolis, IN, Mobile, AL (the “Business”).

       

      NOW,
        THEREFORE, for
        good
        and valuable consideration, the receipt and sufficiency of which is hereby
        acknowledged, the parties agree as follows:

       

      1. Transfer
        of Assets.

       

      1.1. Purchase
        and Sale of Assets.
        On the
        Closing Date (as hereinafter defined), in consideration of the respective
        covenants, representations and obligations of Sellers and Buyer hereunder,
        and
        subject to the conditions hereinafter set forth, Sellers shall sell, assign,
        transfer, convey and deliver to Buyer, and Buyer shall purchase from Sellers,
        all right, title and interest of Sellers in and to all properties, assets
        and
        rights of any kind and nature, whether tangible or intangible, and wherever
        located and by whomsoever possessed (other than the Excluded Assets as defined
        below) that are used exclusively in the Business (collectively, the “Acquired
        Assets”), including, without limitation, all of Sellers’ right, title and
        interest in and to the following assets of the Business:

       

      1.1.1. Leases
        and Contracts.
        Sellers’ right, title and interest: (i) in and to all rights as lessee under
        certain real property leases (collectively, the “Real
        Property 

       

      
        
          
          

        

        
          
            

          

        

        
          
          

        

      

      Leases”);
        (ii)
        in and to all rights as lessee under certain equipment, personal property
        and
        intangible property leases, rental agreements, licenses, contracts, agreements
        and similar arrangements (collectively, the “Other
        Leases”);
        and
        (iii) as a party to certain other contracts, leases, orders, purchase orders,
        licenses, contracts, agreements and similar arrangements, including, without
        limitation, all confidentiality agreements executed by any potential bidder
        in
        connection with the proposed sale of the Business by the Trustee (collectively,
        the “Other Contracts” and together with the Other Leases, the “Other
        Leases and Contracts”),
        all
        solely to the extent Buyer determines to assume, in Buyer’s sole discretion, the
        Real Property Leases and Other Leases and Contracts (as such, collectively,
        the
“Assumed
        Executory Contracts”).
        Buyer
        shall identify the Assumed Executory Contracts on Exhibit A to be attached
        to
        this Agreement and incorporated herein on or before th; Sale Approval Date
        (as
        defined in Section 8.3.1.1 below).

       

      1.1.2. Real
        Property and Improvement.
        All
        real
        property used exclusively in the Business and all improvements, and all
        appurtenances to such improvements, located on such real property, including
        on
        real property occupied by Sellers under the Real Property Leases, including,
        without limitation, buildings, outside storage areas, driveways, walkways
        and
        parking areas (collectively, the “Improvements”).

       

      1.1.3. Personal
        Property.
        All
        equipment and tangible personal property used exclusively in connection with
        the
        Business, including, without limitation, all such’ furniture, vehicles,
        machinery, equipment, tools, dies, spare parts, computers, fixtures, trade
        fixtures and furnishings (collectively, the “Personal
        Property”).
        As
        used in this Agreement, the .Personal Property shall not include the Inventory,
        (as defined in Section 1.1.6 below). The Personal Property shall also expressly
        exclude any equipment or other tangible property held by Sellers pursuant
        to a
        lease, rental agreement, contract, license or similar arrangement (a
“Contract”)
        respecting which Buyer does not assume and assign to Buyer the underlying
        Contract relating to such personal property on the Closing Date.

       

      1.1.4. Property.
        All
        intangible personal property used exclusively in connection with the Business,
        but in all cases only to the extent transferable, together with all books,
        records and like items pertaining to the Business, including, without
        limitation, the goodwill of the Business, patents, patent applications,
        trademarks, trade names, service marks, logos, internet domain names, designs,
        drawings, formulae and copyrights, all plans and specifications for the
        Improvements, catalogues, customer lists and other data bases, correspondence
        with and information related to past, present or prospective customers and
        suppliers, advertising materials, cost information, pricing information,
        software programs, and telephone exchange numbers identified exclusively
        with
        the Business (collectively, the “Intangible
        Property”).
        As
        used in this Agreement, Intangible Property shall in all events exclude,
        (i) any
        materials containing privileged communications or information about employees,
        disclosure of which would violate an employee’s reasonable expectation of
        privacy and any other materials which are subject to attorney-client or other
        privilege and (ii) any software or other item of intangible property held
        by
        Sellers pursuant to a license or other Contract which is not an Assumed
        Executory Contract.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      1.1.5. Receivables.
        All
        trade
        and other accounts receivable (collectively, the “Receivables”).
        As
        used in this Agreement, Receivables shall in all events exclude instruments,
        receivables, accounts receivable and unbilled costs and fees owing from one
        or
        more of the Sellers to another one or more of the Sellers.

       

      1.1.6. Inventory.
        All
        supplies, goods, raw materials, work in process, inventory, finished goods
        inventory and stock in trade (collectively, the “Inventory”).

       

      1.1.7. Permits.
        Subject
        to the receipt by Buyer of any necessary governmental consents to their
        transfer, all licenses, approvals, permits, franchises, certificates, orders,
        exemptions, registrations, or other authorizations obtained in connection
        with
        the Business from governments and governmental, regulatory or administrative
        agencies or authorities which are by their nature transferable to Buyer
        (collectively, the “Permits”).

       

      1.1.8. Prepayments.
        Solely
        to
        the extent that they are exclusively attributable to the Business, all deposits,
        prepayments and prepaid expenses (collectively, the “Prepayments”).

       

      1.1.9. Other
        Rights.
        All
        claims, causes of action, choses in action, rights of recovery and rights
        of
        set-off of any kind in favor of Sellers, and pertaining to, or arising out
        of,
        the Acquired Assets or the Business or offsetting any Assumed Liabilities
        (as
        defined below) including, without limitation, all rights under any contracts
        or
        agreements, oral or written, including, without limitation, any rights to
        indemnification and any rights to enforce covenants restricting the disclosure
        of confidential information relating to the Business, restricting competition
        with Sellers as to the Business or restricting the hiring or solicitation
        of any
        persons who arc current or former employees of Sellers who worked in connection
        with the conduct of the Business.

       

      1.2. Excluded
        Assets.
        Notwithstanding anything to the contrary in this Agreement, the Acquired
        Assets
        shall be limited -to the items identified or described in Section 1.1 above
        and
        shall exclude all of the following (collectively, the “Excluded
        Assets”):
        (i) those items excluded pursuant to the provisions of Section 1.1
        above;
        (ii) all cash or cash equivalents, including non-marketable securities and
        short-term investments; (iii) all preference or avoidance claims and
        actions of Sellers, including, without limitation, any such claims and actions
        arising under Sections 544, 547, 548, 549 and 550 of the Bankruptcy Code;
        (iv)
        Sellers’ rights under this Agreement and all cash and non-cash consideration
        payable or deliverable to Sellers pursuant to the terms and provisions hereof;
        (v) insurance proceeds, claims and causes of action with respect to
        or
        arising in connection with (A) any Contract which is not an Assumed Executory
        Contract, or (B) any item of tangible or intangible property which is not
        an
        Acquired Asset, including, but not limited to (y) inventory, machinery,
        equipment and other property owned by Sellers and stored or located in
        facilities used by the Business, but attributable to business divisions of
        Sellers other than the Business, and (z) those items listed on Exhibit C
        attached hereto and incorporated herein; (vi) all claims and causes of action
        of
        Sellers not otherwise sold and assigned to Buyer as part of the Acquired
        Assets
        under the terms of this Agreement, including all of respective Sellers’ rights
        in and to that certain litigation currently pending in the Common Pleas Court
        of
        Cuyahoga County, Ohio against ABB, Inc., et al., and pending as Case No.
        436500
        on the docket of such Court; (vii) any Real Property Lease, Other 

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      Lease,
        or
        Other Contract to which Sellers are a party which is not an Assumed Executory
        Contract; (viii) any rights to the name “Grand Eagle”, or any derivatives
        thereof, the domain name www.grandeagle.com or any goodwill associated with
        either; (ix) all tax refunds and tax attributes: (x) the corporate charter,
        seals, minute books, stock transfer records and other documents relating
        solely
        to the organization maintenance and existence of any of Sellers as a
        corporation; (xi) all instruments, reccivables, accounts receivable and unbilled
        costs and fees or causes of action relating to or pertaining to the foregoing,
        including, without limitation those that may be owing from one or more of
        the
        Sellers to another one or more of the Sellers or (xii) any rights which Sellers
        may have under policies of insurance (A) which relate or accrue to the Sellers
        and are not exclusive to the Business (e.g. under insurance policies maintained
        by the Sellers for the benefit of all Sellers’ business divisions) or (B) with
        regards to occurrences prior to the Closing Date.

       

      

       

      1.3. Instruments
        of Transfer. The sale, assignment, transfer, conveyance and delivery of the
        Acquired Assets to Buyer shall be made by assignments, bills of sale, and
        other
        instruments, transfers and conveyances provided for in Section3 below and
        such
        other instruments as may be reasonably requested by Buyer to transfer, convey,
        assign and deliver Acquired Assets to Buyer.

       

      2. Consideration.

       

      2.1. Purchase
        Price.

       

      (a) The
        cash
        consideration to be paid by Buyer to Sellers (for the benefit of Sellers’
        prepetition secured lenders (the “Secured Lenders”)) for the Acquired Assets
        (the “Purchase Price”) shall be $2,170,000.00, subject to adjustment as provided
        herein.

       

      (b) The
        Purchase Price shall be paid as follows:

       

      (i) Buyer
        shall deposit or has previously dep sited into escrow (the “Escrow”)
        with
        Benesch, Friedlander, Coplan & Aronoff, LLC (as holder of the Escrow, the
“Escrow
        Holder”),
        United States funds in the amount of $217,000.00, (the “Deposit”).
        The
        Deposit is nonrefundable except in the event of (x) the entry of the Approval
        Order (as defined in Section 8.3.1.1 below) approving any party other than
        Buyer
        as the approved buyer of the Acquired Assets at the hearing on the Sale Motion
        (as defined in Section 8.3.1.1 below); (y) the failure of a condition
        to
        Buyers’ obligations hereunder or (z) the termination of the transaction
        contemplated by this Agreement by Sellers in accordance with Section 4.3(ii)
        or
        4.3 (iii) below (a “Buyer
        Default Termination”).
        At
        the Closing, the Deposit shall be credited and applied toward payment of
        the
        Purchase Price in the manner specified in Section 2.1(b)(ii) below. In the
        event
        the Deposit becomes non-refundable by reason of a Buyer Default Termination,
        Escrow Holder shall immediately disburse the Deposit to the Agent to be applied
        against and on account of the senior secured claim against Sellers held by
        Sellers’ Secured Lenders. If the transactions contemplated herein terminate by
        reason of: (A) Sellers’ default, (B) the failure of a condition to Buyer’s
        obligations, or (C) the consummation of a sale to a third party bidder as
        described in Section 8.3.1 below, the Escrow Holder shall return to Buyer
        the
        Deposit.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      (ii) On
        the
        Closing Date, Buyer shall pay and deliver, in immediately available United
        States funds, to each third party that is owed a Cure Payment under Section
        2.3
        below the amount of such Cure Payment.

       

      (iii) On
        the
        Closing Date, Buyer shall pay and deliver, in immediately available United
        States funds, to Seller (A) the amount of Seventy-Five Percent (75%) of the
        Purchase Price less all amounts paid to third parties as Cure Payments in
        accordance with Section 2.1(b)(ii) above and (B) all amounts not otherwise
        specifically mentioned in this Section 2.1(b) that Buyer may be required
        to pay
        pursuant to the terms of this Agreement including, without limitation, Buyer’s
        pro rata share of the items described in Section 3.5 below.

       

      2.2. LIQUIDATED
        DAMAGES TO BUYER. BUYER AND SELLERS HEREBY ACKNOWLEDGE THAT, IN THE EVENT
        THAT THE TRANSACTIONS CONTEMPLATED HEREIN FAIL TO CLOSE BY REASON OF SELLERS’
        DEFAULT HEREUNDER, IT WOULD BE IMPRACTICABLE AND EXTREMELY DIFFICULT TO ESTIMATE
        THE DAMAGES BUYER MAY SUFFER OR INCUR IN SUCH EVENT.

       

      
        
          
          

        

        
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      ACCORDINGLY,
        BUYER AND SELLERS HEREBY AGREE THAT CONSIDERING ALL OF THE CIRCUMSTANCES
        EXISTING AT THE EXECUTION OF THIS AGREEMENT, A REASONABLE ESTIMATE OF THE
        TOTAL
        DETRIMENT THAT BUYER WOULD SUFFER IN THE EVENT THAT THIS TRANSACTION FAILS
        TO
        CLOSE BY REASON OF SELLERS’ DEFAULT IS AND SHALL BE AN AMOUNT EQUAL TO BUYER’S
        ACTUAL OUT-OF-POCKET COSTS AND EXPENSES INCURRED DIRECTLY RELATED TO THIS
        TRANSACTION UP TO HE CLOSING AS DETERMINED AND APPROVED BY THE BANKRUPTCY
        COURT.
        EXCEPT AS OTHERWISE PROVIDED IN CLAUSES (ii) AND (iii) BELOW, SAID AMOUNT
        SHALL
        REPRESENT THE FULL, AGREED, AND LIQUIDATED DAMAGES TO WHICH BUYER IS ENTITLED
        BY
        REASON OF SELLERS’ DEFAULT AND BUYER HEREBY EXPRESSLY WAIVES ANY AND ALL OTHER
        CLAIMS TO DAMAGES OR OTHER REMEDIES (WHETHER AT LAW OR IN EQUITY). THE PAYMENT
        OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY,
        BUT RATHER 1S INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO BUYER UPON SELLERS’
        DEFAULT. AND BUYER’S ELECTION TO TERMINATE THIS AGREEMENT BY REASON THEREOF,
        THIS AGREEMENT SHALL TERMINATE AND EXCEPT FOR (i) BUYER’S RIGHT TO COLLECT THE
        AMOUNT OF SUCH LIQUIDATED DAMAGES, (ii) ANY PROVISIONS AND OBLIGATIONS
        (INCLUDING, WITHOUT LIMITATION, ANY INDEMNITY .OBLIGATIONS) OF THIS AGREEMENT
        WHICH BY THEIR TERMS SURVIVE ANY TERMINATION OF THIS AGREEMENT, AND (iii)
        THE
        PARTIES’ RESPECTIVE OBLIGATIONS UNDER SECTION 9.2 OF THIS AGREEMENT, THE PARTIES
        HERETO SHALL BE RELIEVED OF ANY FURTHER LIABILITY OR OBLIGATION UNDER THIS
        AGREEMENT. EACH PARTY SPECIFICALLY ACKNOWLEDGES AND CONFIRMS THE ACCURACY
        OF THE
        STATEMENTS SET FORTH ABOVE AND THAT THEY WERE REPRESENTED BY COUNSEL OF THEIR
        CHOICE WHO FULLY EXPLAINED THE CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION
        AT THE TIME OF EXECUTION OF THIS AGREEMENT.

       

      2.3. Assumed
        Liabilities.
        Buyer
        shall, effective as of the Closing Date, be assigned Sellers’ right, title and
        interest under the Assumed Executory Contracts and shall assume all liabilities
        and obligations accruing under the Assumed Executory Contracts on and after
        the
        Closing Date (the “Assumed Liabilities”), provided that Buyer shall pay all cure
        amounts owing under any of the Assumed Executory Contracts as of the Closing
        which the Bankruptcy Court may order to be paid as a condition to the Sellers’
        assumption and assignment to Buyer of any Assumed Executory Contract
        (collectively “Cure
        Payments”)
        and
        arising in connection with the use and operation of the Acquired Assets from
        and
        after the Closing Date. Other than the liabilities and obligations of Sellers
        expressly assumed by Buyer hereunder, Buyer is not assuming and shall not
        be
        liable for any liabilities or obligations of Sellers or for any other claims,
        liabilities or obligations in any way related to the conduct of the Business
        or
        the ownership, operation or possession of the Acquired Assets prior to the
        Closing Date.

       

      
        
          
          

        

        
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      2.4.3. Resolution
        of Closing Date Balance Sheet Disputes.
        If
        Buyer disputes the amount of the Actual Working Capital Balance as reflected
        on
        the Closing Date Balance Sheet prepared by Sellers, then, not later than
        five
        (5) calendar after Buyer’s receipt of the Closing Date Balance Sheet, Buyer
        chall deliver to Sellers a notice setting forth the basis for Buyer’s objections
        to the Actual Working Capital Balance calculations (the “Notice of Dispute”).
        Upon receipt of the Notice of Dispute, Sellers shall promptly consult with
        Buyer
        with respect to the specified points of disagreement in an effort to resolve
        the
        dispute. If any such dispute cannot be resolved by Buyer and Sellers within
        ten
        (10) days after Buyer delivers the Notice of Dispute, Buyer and Sellers shall
        refer the dispute to the Bankruptcy Court to finally and conclusively determine,
        as soon as practicable, all points of disagreement with respect to the disputed
        Actual Working Capital Balance calculations. If Buyer does not deliver to
        Sellers a Notice of Dispute within five (5) calendar days after its receipt
        of
        the Closing Date Balance Sheet, then the Actual Working Capital Balance as
        reflected on the Closing Date Balance Sheet prepared by Sellers shall become
        final and conclusive.

       

      3. Closing
        Transactions.

       

      3.1. Closing.
        The
        Closing of the transactions provided for herein (the “Closing”) shall take place
        at the offices of Beneseh, Friedlander, Coplan & Aronoff LLP, 2300 BP Tower,
        200 Public Square, Cleveland, Ohio 44114.

       

      3.2. Closing
        Date.
        The
        Closing shall be held one (1) business day after entry of the Sale Orders
        (as
        defined in Section 8.3.1.1, below) or such other date as may be mutually
        agreed
        upon by Buyer and Sellers in writing (the “Closing
        Date”).
        Until
        this Agreement is either terminated in accordance with Section 4.3 below
        or the
        Closing has occurred, the parties shall diligently continue to work to satisfy
        all conditions to Closing and the transaction contemplated herein shall close
        as
        soon as such conditions are satisfied or waived.

       

      
        
          
          

        

        
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      3.3. Sellers’
        Deliveries to Buyer at Closing.
        On the
        Closing Date, Sellers shall make the following deliveries to Buyer:

       

      3.3.1. A
        counterpart assignment and assumption of leases and contracts substantially
        in
        the form and content attached as Exhibit
        “D”
        hereto,
        duly executed by the Trustee on behalf of Sellers, pursuant to which Sellers
        assign all their right, title and interest in the Assumed Executory Contracts
        (the “Assignment
        of Leases and Contracts”).

       

      3.3.2. A
        bill of
        sale, duly executed by the Trustee on behalf of Sellers, in. the form and
        on the
        terms of the bill of sale attached hereto as Exhibit
        “E”,
        pursuant to which Sellers transfer all their right, title and interest in
        the
        Personal Property, and the Inventory and the Receivables to Buyer (the
“Bill
        of Sale”).

       

      3.3.3. A
        counterpart assignment of intangible property, duly executed by the Trustee
        on
        behalf of Sellers, in the form and content of the assignment of intangible
        property attached as Exhibit
        “F”,
        hereto,
        pursuant to which Sellers assign to Buyer all their right, title and interest,
        if any, in and to the Intangible Property to Buyer (the “Assignment
        of Intangible Property”).

       

      3.3.4. A
        counterpart noncompetition agreement, duly executed by the Trustee on behalf
        of
        Sellers in the form and content attached hereto as Exhibit
        “G”
        (the
“Noncompetition
        Agreement”).

       

      3.3.5. Any
        such
        other documents, funds or other things reasonably contemplated by this Agreement
        to be delivered by Sellers to Buyer at the Closing.

       

      3.4. Buyer’s
        Deliveries to Sellers at Closing.
        On the
        Closing Date, Buyer shall make or cause to be made the following deliveries
        to
        Sellers:

       

      3.4.1. Evidence
        of payment to third parties of any Cure Payments required under Section 2.3
        to
        be paid at the Closing.

       

      3.4.2. Evidence
        of payment of that portion of the Purchase Price to be delivered by Buyer
        directly to the Escrow Holder at the Closing under Section 2.1
        (b)(iv).

       

      3.4.3. That
        portion of the Purchase Price to be delivered by Buyer directly to Sellers
        at
        the Closing under Section 2. 1 (b)(iii).

       

      3.4.4. A
        counterpart of the Assignment of Leases and Contracts, duly executed by
        Buyer.

       

      3.4.5. A
        counterpart of the Assignment of Intangible Property, duly executed by
        Buyer.

       

      3.4.6. A
        counterpart of the Noncompetition Agreement duly executed by Buyer.

       

      
        
          
          

        

        
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      3.4.7. Any
        such
        other documents, funds or other things reasonably contemplated by this Agreement
        to be delivered by Buyer to Sellers and/or the Escrow Holder at the
        Closing.

       

      3.5. Prorations.
        Any
        prepaid rent and other prepaid amounts due from and paid by Sellers under
        any of
        the Assumed Executory Contracts shall be prorated between Sellers and Buyer
        as
        of the Closing Date on the basis of a thirty day month with Sellers responsible
        for any amounts allocable prior to the Closing Date. Any deposits related
        to the
        Assumed Executory Contracts shall be paid to Sellers by Buyer on the Closing
        Date. All liabilities and obligations other than the Assumed Liabilities
        shall
        remain with the Sellers, and all Assumed Liabilities shall be paid in full
        or
        otherwise satisfied by Buyer,

       

      3.6. Sales,
        Use and Other Taxes.
        Any
        sales, purchases, transfer, stamp, documentary stamp, use or similar taxes
        under
        the laws of the states in which any portion of the Acquired Assets is located,
        or any subdivision of any such state, which may be payable by reason of the
        sale
        of the Acquired Assets under this Agreement or the transactions contemplated
        herein shall be borne and timely paid by Buyer.

       

      3.7. Possession.
        Right
        to possession of the Acquired Assets shall transfer to Buyer as of 5:00 p.m.
        E.S.T. on the Closing Date. At the Closing, Sellers shall transfer and deliver
        to Buyer on the Closing Date such keys, locks and safe combinations and other
        similar items as Buyer may reasonably require to obtain occupation and control
        of the Acquired Assets, and shall also make available to Buyer at their then
        existing locations the originals of all documents in Sellers’ possession that
        are required to be transferred to Buyer by this Agreement.

       

      4. Conditions
        Precedent to Closing.

       

      4.1. Conditions
        to Sellers’ Obligations.
        The
        Trustee’s and/or Sellers’ obligation to make the deliveries required of Sellers
        at the Closing Date and to consummate the transaction contemplated hereby
        shall
        be subject to the satisfaction or waiver by the Trustee of each of the following
        conditions on and as of the Closing:

       

      4.1.1. All
        of
        the representations and warranties of Buyer contained herein shall continue
        to
        be true and correct in all material respects as if made as of the Closing
        Date.

       

      4.1.2. Buyer
        shall have made all required deliveries pursuant to Section 3.4 of this
        Agreement.

       

      4.1.3. Buyer
        shall have delivered to Sellers appropriate evidence of all necessary action
        by
        Buyer in connection with the transactions contemplated hereby, including,
        without limitation: (i) certified copies of resolutions duly adopted by Buyer
        approving the transactions contemplated by this Agreement and authorizing
        the
        execution, delivery, and performance by Buyer of this Agreement; and. (ii)
        a
        certificate as to the incumbency of officers of Buyer executing this Agreement
        and any instrument or other document delivered in connection with the
        transaction contemplated by this Agreement.

       

      4.1.4. No
        action, suit or other proceedings shall be pending before any court, tribunal
        or
        governmental authority seeking or threatening to restrain or prohibit the
        

       

      
        
          
          

        

        
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      consummation
        of the transactions contemplated by this Agreement, or seeking to obtain
        substantial damages in respect thereof, or involving a claim that consummation
        thereof would result in the violation of any law, decree or regulation of
        any
        governmental authority having appropriate jurisdiction.

       

      4.1.5. The
        Bankruptcy Court shall have entered the Sale Orders in accordance with Section
        8.3.1 below and the Sale Orders shall not have been stayed as of the Closing
        Date.

       

      4.2. Conditions
        to Buyer’s Obligations.
        Buyer’s
        obligation to make the deliveries required of Buyer at the Closing shall
        be
        subject to the satisfaction or waiver by Buyer of each of the following
        conditions on and as of the Closing:

       

      4.2.1. Sellers,
        and or the Trustee, on behalf of Sellers, shall have performed each and every
        covenant on Sellers’ part to be performed on or before the Closing.

       

      4.2.2. All
        representations and warranties of Sellers contained herein shall continue
        to be
        true and correct at the Closing in all material respects as if made as of
        the
        Closing Date.

       

      4.2.3. The
        Trustee on behalf of Sellers shall have made all required deliveries pursuant
        to
        Section 3.3 of this Agreement.

       

      4.2.4. No
        action, suit or other proceedings shall be pending before any court; tribunal
        or
        governmental authority seeking or* threatening to restrain or prohibit the
        consummation of the transactions contemplated by. this Agreement, or seeking
        to
        obtain substantial damages in respect thereof, or involving a claim that
        consummation thereof would result in the violation of any law, decree or
        regulation of any governmental authority having appropriate
        jurisdiction.

       

      4.2.5. The
        Bankruptcy Court shall have entered the Sale Orders in accordance with Section
        8.3.1 below and the Sale Orders shall not have been stayed as of the Closing
        Date.

       

      4.3. Termination.
        Notwithstanding anything to the contrary in this Agreement, this Agreement
        may
        be terminated and the transactions contemplated hereby abandoned at any time
        prior to the Closing (i) by mutual written consent of Sellers and Buyer,
        (ii) by
        either Sellers or Buyer if a material breach of any provision of this Agreement
        has been committed by the other party and such breach has not been waived,
        (iii) by Sellers if any of the conditions set forth in Section 4.1
        shall
        not have been satisfied or waived by Sellers, (iv) by Buyer if any of the
        conditions set forth in Sections 4.2 shall not have been satisfied or waived
        by
        Buyer, or (v) by Sellers or Buyer if the Closing does not occur on or prior
        to
        March 15, 2002; provided, however, that the party seeking termination pursuant
        to clause (ii), (iii), (iv) or (v) above is not in breach in any material
        respects of any of its representations, warranties, covenants or agreements
        contained in this Agreement.

       

      
        
          
          

        

        
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      5. Sellers’
        Representations and Warranties. Sellers, jointly and severally,
        hereby make the following representations and warranties to Buyer:

       

      5.1. Validity
        of Agreement.
        Upon
        entry of the Sale Orders by the Bankruptcy Court, this Agreement shall
        constitute the valid and binding obligation of Sellers, enforceable against
        Sellers in accordance with its terms.

       

      5.2. Power
        and Authority.
        Upon
        entry of the Sale Orders by the Bankruptcy Court, the Trustee, on behalf
        of
        Sellers, and Sellers (as the case may be), shall have all requisite power
        and
        authority to execute, deliver and perform this Agreement and each of the
        transaction documents contemplated hereby (the “Transaction Documents”) to which
        the Sellers are a party.

       

      5.3. Conduct
        of Business.
        Since
        commencement of the Cases, the Business has been operated in the ordinary
        course
        of business, consistent with past practices, taking into account the fact
        of and
        limitations resulting from Sellers’ bankruptcy filings and the
        Cases.

       

      5.4. Title
        to the Acquired Assets; Adequacy and Sufficiency of Acquired
        Assets.
        Subject
        to the entry and upon the terms of the Sale Orders by the Bankruptcy Court,
        Sellers on the Closing Date will have the power and the right to sell, assign,
        transfer, convey and deliver to Buyer, and will transfer and convey to Buyer
        at
        the Closing, and Buyer will acquire at . the Closing, all of Sellers’ rights,
        title and interests in and to the Acquired Assets free and clear of any lease,
        lien, security interest, claim, char e,yr mbrance whatsoever. To the Sellers’
        knowledge the Acquired Assets are essentially all of the assets and properties
        used in connection with the conduct of the Business.

       

      5.5. Receivables.
        Schedule 5.5
        is a receivables aging for the Receivables of the Business prepared by Sellers
        as of Closing Date, 2002 (excluding receivables owing by one or more Sellers
        to
        other one or more Sellers).

       

      6. Buyer’s
        Warranties and Representations.
        In
        addition to the representations and warranties contained elsewhere in this
        Agreement, Buyer hereby makes the following representations and warranties
        to
        Sellers:

       

      6.1. Power
        and Authority; Validity of Agreement.

       

      6.1.1. Buyer
        has
        all requisite power and authority to enter -into this Agreement and each
        of the
        Transaction Documents to which Buyer is a party;

       

      6.1.2. All
        necessary action on the part of Buyer has been taken to authorize the execution
        and delivery of this Agreement and the Transaction Documents to which Buyer
        is a
        party, the performance of Buyer’s obligations hereunder and thereunder and the
        consummation of the transactions contemplated hereby and thereby;
        or

       

      6.1.3. This
        Agreement and each of the Transaction Documents to which Buyer is a party
        constitute constitute valid and binding agreements of Buyer, enforceable
        in
        accordance with their respective terms, except as the enforceability thereof
        may
        be limited by the Cases or otherwise by bankruptcy, insolvency, fraudulent
        transfer, reorganization, moratorium and similar laws of general application
        relating to or affecttag creditors’ rights generally and to 

       

      
        
          
          

        

        
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      general
        principles of equity (regardless of whether such enforceability is considered
        in
        a proceeding in equity or at law.)

       

      6.2. No
        violation.
        Neither
        the execution and delivery of this Agreement nor any of the Transaction
        Documents to which Buyer is a party nor the consummation of the transactions
        contemplated hereby or thereby nor compliance by Buyer with any of the
        provisions hereof or thcrcof will:

       

      6.2.1. Violate
        or conflict with any provision of the governing documents of Buyer, or any
        statute, code, ordinance, rule, regulation, judgment, order, writ, decree
        or
        injunction applicable to Buyer; or

       

      6.2.2. Violate,
        or conflict with, or result in a breach of any provision of, or constitute
        a
        default (or any event which, with or without due notice or lapse of time,
        or
        both, would constitute a default) under, or result in the termination of,
        accelerate the performance required by, or result in the creation of any
        lien,
        security interest, charge or other encumbrance upon any of the properties
        or
        assets of Buyer under any of the terms, conditions or provisions of any note,
        bond, mortgage, indenture, deed or trust, license, lease, agreement or other
        instrument or obligation of which Buyer is a party or by which Buyer or any
        of
        its assets are bound.

       

      6.3. Organization,
        Standing and Power.
        Buyer
        is a Corporation, duly organized and in good standing under the laws of the
        State of Indiana. Buyer has all requisite power and authority to own, lease
        and
        operate its properties, to carry on its business -as.now being conducted
        and to
        execute, deliver and perform this Agreement and all transaction documents
        to
        which Buyer is a party.

       

      7. Acknowledgement;
        Indemnity and Release.

       

      7.1. “AS
        IS” Transaction. Buyer hereby acknowledges and agrees that, except as
        specifically stated in Section 5 of this Agreement, the Trustee and Sellers
        make
        no representations or warranties whatsoever, express or implied, with respect
        to
        any matter relating to the Acquired Assets (including, without limitation,
        income to be derived or expenses to be incurred in connection with the Acquired
        Assets, the physical condition of any personal property comprising a part
        of the
        Acquired Assets or which is the subject of any Assumed Executory Contract,
        the
        real property which is the subject of any Real Property Leases or Improvements,
        the zoning of any such Improvements, the value of the Acquired Assets (or
        any
        portion thereof), the transferability of Acquired Assets, the terms, amount,
        validity, collectibility or enforceability of any Assumed Liabilities or
        Assumed
        Executory Contract, the title of the Acquired Assets (or any portion thereof),
        the merchantability or fitness of the Personal Property or any other portion
        of
        the Acquired Assets for any particular purpose, or any other matter or thing
        relating to the Acquired Assets (or any portion thereof). WITHOUT IN ANY
        WAY
        LIMITING THE FOREGOING, SELLERS HEREBY DISCLAIM ANY WARRANTY (EXPRESS OR
        IMPLIED) OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE AS TO ANY
        PORTION OF THE ACQUIRED ASSETS. Buyer further acknowledges that Buyer has
        conducted an independent inspection and investigation of the physical condition
        of all portions of the Acquired Assets and all such other matters relating
        

       

      
        
          
          

        

        
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      to
        or affecting the Acquired Assets as Buyer deemed necessary or appropriate,
        and
        that, in proceeding with its acquisition of the Acquired Assets, Buyer is
        doing
        so based solely upon such independent inspections and investigations.
        Accordingly, Buyer will accept the Acquired Assets at the Closing “AS IS,”“WHERE
        IS,” and “WITH ALL FAULTS.”

       

      7.2. Sellers’
        Indemnification.
        Effective as of the Closing Date, Sellers agree to jointly and severally
        indemnify, defend (with counsel reasonably satisfactory to Buyer), protect,
        save
        and hold harmless Buyer and its affiliates, shareholders, agents and other
        representatives from and against any and all claims, damages, expenses and
        liabilities not otherwise assumed hereunder (including reasonable attorneys’
        fees) (“Losses”) arising from breach of Sellers’ representations, warranties and
        covenants under this Agreement. The indemnification obligation of Sellers
        hereunder shall survive the Closing and apply to claims for indemnification
        asserted by Buyer in writing within the twelve (12) month period ending on
        the
        first anniversary of the Closing Date.

       

      7.3. Buyer’s
        Indemnification.
        Effective as of the Closing Date, Buyer agrees to indemnify, defend (with
        counsel reasonably satisfactory to Sellers and the Trustee), protect, save
        and
        hold harmless Sellers and the Trustee and their respective affiliates, officers,
        directors, shareholders, employees, agents and other representatives from
        and
        against any and all claims, damages, expenses and liabilities not otherwise
        assumed hereunder (including reasonable attorneys’ fees) (“Losses”) arising from
        breach of Buyer’s representations, warranties and covenants under this Agreement
        or otherwise relating to the conduct of the Business by Buyer on or after
        the
        Closing Date. The indemnification obligation of Buyer hereunder shall survive
        the Closing and apply to claims for indemnification asserted by the Sellers
        or
        the Trustee in writing within the twelve (12) month period ending on the
        first
        anniversary of the Closing Date.

       

      8. Conduct
        and Transaction Prior to Closing.

       

      8.1. Access
        to Records and Properties of Sellers.
        Subject
        to any confidentiality agreements heretofore entered into between Buyer and
        Sellers, from and after the date of this Agreement until the Closing Date,
        Sellers shall afford to Buyer’s officers, independent public accountants,
        counsel, lenders, consultants and other representatives, reasonable access
        for
        examination at all reasonable times to the Sellers’ assets, property, employees,
        customers, landlords, vendors and all records or other information pertaining
        to
        the Acquired Assets or the Business. Buyer, however, shall not be entitled
        to
        access to any materials containing privileged communications or information
        about employees, disclosure of which might violate an employee’s reasonable
        expectation of privacy. Buyer expressly acknowledges that nothing in this
        Section 8.1 is intended to give rise to any contingency to Buyer’s obligations
        to proceed with the transactions contemplated herein.

       

      8.2. Operation
        of Sellers’ Business Pending Closing.
        Unless
        Buyer otherwise consents in advance in writing, which consent shall not be
        unreasonably withheld, delayed or conditioned, during the period prior to
        the
        Closing Date, Sellers shall operate the Business as currently operated and,
        consistent with such operation, shall use commercially reasonable efforts
        to
        preserve intact its current business organization and its current relationships
        with employees and persons having dealings with it. Without limiting the
        generality of the immediately preceding sentence, during the period from
        the
        date of this Agreement to the 

       

      
        
          
          

        

        
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      Closing
        Date, without Buyer’s prior written consent, which consent may not be
        unreasonably withheld, delayed or conditioned, Sellers shall:

       

      8.2.1. Not
        offer
        or enter into any contract or arrangement whether for purchase, lease, sale
        or
        otherwise which provides for aggregate payments or receipts in excess of
        $50,000.00;

       

      8.2.2. Not
        agree
        to sell, lease or dispose of or sell, base or dispose of or agree to purchase
        any real property or machinery or equipment, other than in the ordinary course
        of business;

       

      8.2.3. Not
        enter
        into or amend or agree to amend any lease involving real estate or
        equipment;

       

      8.2.4. Use
        its
        reasonable best efforts, taking into account its bankruptcy filing and
        limitations resulting therefrom, to maintain and keep all machinery, tools,
        equipment, fixtures and other properties in good condition, repair and working
        order; or

       

      8.2.5. Promptly
        upon the occurrence of, or promptly upon Sellers becoming aware of the
        threatened occurrence of, any event which constitutes or would cause or
        constitute a material breach, or would have caused or constituted a material
        breach had such event occurred prior to the date hereof, of any of the
        representations and warranties of the Sellers contained herein or which prevents
        or would prevent the satisfaction of any of the conditions contained in Article
        V hereof, give written notice thereof to the Buyer.

       

      8.3. Bankruptcy
        Court Approvals.

       

      8.3.1. Bankruptcy
        Court Approval of Sale Procedures.

       

      8.3.1.1. Sale
        Orders.
        Sellers
        have filed a motion (the “Sale Motion”) for entry by the Bankruptcy Court of the
        following orders, which arc hereinafter collectively referred to as the “Sale
        Orders”:

       

      (A) an
        order
        (the “Approval
        Order”)
        which
        (i) approves the sale to that party that submits, in accordance with the
        Bidding
        Procedures (defined below) a bid (as determined by the Trustee) in accordance
        with the Bidding Procedures or after competitive bidding at the Auction Sale
        (as
        that term is defined in the Bidding Procedures) strictly’ on the terms and
        conditions set forth in this Agreement, and that authorizes Sellers to proceed
        with this transaction, (ii) includes a specific finding that Buyer (or the
        successful competitive bidder) is a good faith buyer of the Acquired Assets,
        and
        (iii) states that the sale of the Acquired Assets to Buyer (or the successful
        competitive bidder) shall be free and clear of all liens, claims, interest
        and
        encumbrances whatsoever.

       

      (B) an
        order
        (the “Contracts
        Assumption Order”)
        which
        approves Sellers’ right to assume and thereby assign to Buyer (or the successful
        competitive bidder) the Assumed Executory Contracts (collectively, the
“Section
        365 Contracts”)
        pursuant to Section 365 of the Bankruptcy Code and orders the payment of
        any
        Cure Payments payable to the other parties to the Section 365 Contracts as
        a
        condition to such assumption and assignment.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      The
        Trustee, on behalf of Sellers, and Sellers shall use reasonable efforts to
        obtain the Sale Orders. Both Buyer’s and Sellers’ obligations to consummate the
        transactions contemplated in this Agreement shall be conditioned upon the
        Bankruptcy Court’s entry of the Sale Orders. If (i) the Bankruptcy Court
        refuses to issue the Sale Orders, (ii) a third party competitive bidder to
        purchase the Acquired Assets is approved by the Bankruptcy Court at the hearing
        on the Sale Motion and closes its purchase of the Acquired Assets, or (iii)
        the
        Sale Orders are for any other reason not entered on or before March 15, 2002,
        then in any such event, this transaction shall automatically terminate and
        Sellers and Buyer shall be relieved of any further liability or obligation
        hereunder, Upon timely entry of the Sale Orders (such entry date being referred
        to herein as the “Sale
        Approval Date”),
        the
        condition set forth in this Section 8.3.1.1 shall conclusively be deemed
        satisfied.

       

      8.3.1.2. Bidding
        Procedures Order.
        As part
        of the Sale Motion, Sellers have obtained an order (the “Bidding Procedures
        Order”) attached hereto and incorporated herein as Exhibit H which approves the
        bidding procedures (the “Bidding Procedures”) set forth therein.

       

      8.4. Employees.
        Sellers acknowledge and agree that Buyer shall have no obligation to employ
        any
        of its employees employed in the conduct of the Business, but any such employees
        remaining employed by Sellers on the Closing Date shall be available for
        hire by
        Buyer, as determined by it in its sole discretion.

       

      9. Miscellaneous.

       

      9.1. Damage
        and Destruction; Condemnation.
        Sellers
        shall notify Buyer immediately of the occurrence of any damage to or destruction
        of any of the Acquired Assets which occurs prior to the Closing Date, or
        the
        institution or maintenance of any condemnation or similar proceedings with
        respect to any leased property used by Sellers in connection with the operation
        of the Business. In the event of any damage to or destruction of a material
        portion of the Acquired Assets which is not fully covered by insurance, or
        in
        the event any such condemnation or other proceedings are instituted or
        maintained, Buyer, at its option, may either (i) terminate this Agreement,
        or
        (ii) consummate the purchase provided for by this Agreement. In all other
        events
        or in the event that Buyer alects to consummate the purchase pursuant to
        (ii)
        above, all insurance or condemnation proceeds, including business interruption
        and rental loss proceeds, collected by Sellers prior to the Closing Date,
        together with an amount equal to all deductible amounts under the insurance
        policies covering such damage or destruction and amounts not covered by
        insurance (which amounts shall be agreed upon in good faith by Sellers and
        Buyer
        and approved by the Bankruptcy Court), shall be credited against the Purchase
        Price on Buyer’s account.

       

      9.2. Reasonable
        Access to Records and Certain Personnel.
        So long
        as the Cases are pending, (i) Buyer shall permit the Trustee’s counsel and other
        professionals employed in the Cases reasonable access to the financial and
        other
        books and records relating to the Acquired Assets or the Business (whether
        in
        documentary or data form) for the purpose of the continuing administration
        of
        the Cases (including, without limitation, the pursuit of any avoidance,
        preference or similar action), which access shall include (a) the
        right of
        such professionals to copy, at Sellers’ expense, such documents and records as
        they may request in 

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      furtherance
        of the purposes described above, and (b) Buyer’s copying and delivering to the
        Trustee or his professionals such documents or records as they may request,
        but
        only to the extent the Trustee or his professionals furnish Buyer with
        reasonably detailed written descriptions of the materials to be so copied
        and
        Sellers reimburse the Buyer for the reasonable costs and expenses thereof),
        and
        (ii) Buyer shall provide Trustee or his professionals (at no cost to Sellers)
        with reasonable access to the officers and managers of Buyer during regular
        business hours to assist the Trustee in the continuing administration of
        the
        Cases, provided that such access does not unreasonably interfere with Buyer’s
        business operations.

       

      9.3. Notices.
        Unless
        otherwise provided herein, any notice, tender, or delivery to be given hereunder
        by either party to the other party may be effected by personal delivery in
        writing, or by FedEx or similar overnight priority courier delivery service,
        with instruction for signature receipt thereof, and shall be deemed communicated
        when received to the following:

       

      

       

      
        	 	
                To
                  Sellers:

              	
                Glenn
                  C. Pollack, Trustee

              
	 	 	
                c/o
                  Candlewood Partners, Inc.

              
	 	 	
                36
                  South Franklin Street

              
	 	 	
                Chagrin
                  Falls, Ohio 44022

              
	 	 	
                Fax:
                  (440) 247-3060

              
	 	 	 
	 	
                With
                  a copy to:

              	
                Bencsch,
                  Friedlander, Coplan & Aronoff LLP

              
	 	 	
                2300
                  BP Tower

              
	 	 	
                200
                  Public Square

              
	 	 	
                Cleveland,
                  Ohio 44114

              
	 	 	
                Attention:
                  William E. Schonberg, Esq.

              
	 	 	
                Fax:
                  (216) 363-4588

              
	 	 	 
	 	
                To
                  Buyer:

              	
                John
                  A. Martell

              
	 	 	
                Magnetech
                  Industrial Services, Inc.

              
	 	 	
                1125
                  S. Walnut Street

              
	 	 	
                South
                  Bend, IN 46619

              
	 	 	 
	 	
                With
                  a copy to:

              	
                Richard
                  Mintz, Esq.

              
	 	 	
                Barnes
                  & Thornburg

              
	 	 	
                100
                  N. Michigan Street

              
	 	 	
                South
                  Bend, IN 46601

              
	 	 	 

      

      

       

      9.4. Entire
        Agreement.
        This
        instrument and the documents to be executed pursuant hereto contain the entire
        agreement between the parties relating to the sale of the Acquired Assets.
        Any
        oral representations or modifications concerning this Agreement or any such
        other document shall be of no force and effect excepting a subsequent
        modification in writing, signed by the party to be charged.

       

      9.5. Modification.
        This Agreement may be modified, amended or supplemented only by a written
        instrument duly executed by all the parties hereto.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      9.6. Closing
        Date.
        All
        actions to be taken on the Closing Date pursuant to this Agreement shall
        be
        deemed to have occurred simultaneously, and no act, document or transaction
        shall be deemed to have been taken, delivered or effected until all such
        actions, documents and transactions have been taken, delivered or
        effected.

       

      9.7. Severability.
        Should
        any term, provision or paragraph of this Agreement be determined to be illegal
        or void or of no force and effect, the balance of the Agreement shall survive
        except that, if Buyer cannot acquire and Sellers cannot sell substantially
        all
        of the Acquired Assets, either party may terminate this Agreement, and it
        shall
        be of no further force and effect, unless both parties agree in writing to
        the
        contrary.

       

      9.8. Captions.
        All.
        captions aril headings contained in this Agreement are for convenience of
        reference only and shall not be construed to limit or extend the terms or
        conditions of this Agreement.

       

      9.9. Further
        Assurances.
        Each
        party hereto will execute, acknowledge and deliver any further assurance,
        documents. and instruments reasonably requested by any other party hereto
        for
        the purpose of giving effect to the transactions contemplated herein or the
        intention of the parties with respect thereto.

       

      9.10. Waiver.
        No
        waiver of any of the provisions of this Agreement shall be deemed, or shall
        constitute, a waiver of other provisions, whether or not similar, nor shall
        any
        waiver constitute a continuing waiver. No waiver shall be binding unless
        executed in writing by the party making the waiver.

       

      9.11. Brokerage
        Obligations.
        Except
        for Sellers’ obligations to Brown, Gibbons, Lang & Company Securities, Inc.,
        Sellers and Buyer each represent and warrant to the other that, such party
        has
        incurred no liability to any broker or agent with respect to the payment
        of any
        commission regarding the consummation of the transaction contemplated hereby.
        It
        is agreed that if any claims for commissions, fees or other compensation,
        including, without limitation, brokerage fees, finder’s fees, or commissions are
        ever asserted against Buyer or Sellers in connection with this transaction,
        all
        such claims shall be handled and paid by the party whose actions form the
        basis
        of such claim and such party shall indemnify, defend (with counsel reasonably
        satisfactory to the party entitled to indemnification), protect and save
        and
        hold the other harmless from and against any and all such claims or demands
        asserted by any person, firm or corporation in connection with the transaction
        contemplated hereby.

       

      9.12. Payment
        of Fees and Expenses.
        Each
        party to this Agreement shall be responsible for, and shall pay, all of its
        own
        fees and expenses, including those of its counsel, incurred in the negotiation,
        preparation and consummation of the Agreement and the transaction described
        herein.

       

      9.13. Survival.
        The
        respective representations, warranties, covenants and agreements of Sellers
        and
        Buyer herein, or in any certificates or other documents delivered prior to
        or at
        the Closing, shall not be deemed waived or otherwise affected by the
        Closing.

       

      9.14. Assignments.
        This
        Agreement shall not be assigned by either party hereto without the prior
        written
        consent of the other party hereto.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      9.15. Binding
        Effect.
        Subject
        to the provisions of Section 9.14 above, this Agreement shall bind and inure
        to
        the benefit of the respective heirs, personal representatives, successors,
        and
        assigns of the parties hereto.

       

      9.16. Applicable
        Law.
        This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of Ohio, without giving effect to any choice of law or conflict of
        law
        provision which would cause the laws of any jurisdiction other than those
        of the
        State of Ohio.

       

      9.17. Good
        Faith.
        All
        parties hereto agree to do all acts and execute all documents required to
        carry
        out the terms of this Agreement and to act in good faith with respect to
        the
        terms and conditions contained herein before and after Closing.

       

      9.18. Construction.
        In the
        interpretation and construction of this Agreement, the parties acknowledge
        that
        the terms hereof reflect extensive negotiations between the parties and that.
        this Agreement shall not be, deemed, for the purpose of construction and
        interpretation, drafted by either party hereto.

       

      9.19. Counterparts.
        This
        Agreement may be signed in counterparts. The parties further agree that this
        Agreement may be executed by the exchange of facsimile signature pages provided
        that by doing so the parties agree to undertake to provide original signatures
        as soon thereafter as reasonable in the circumstances.

       

      9.20. Time
        is of the Essence.
        Time is
        of the essence in this Agreement, and all of the terms. covenants and conditions
        hereof.

       

      9.21. Bankruptcy
        Court Jurisdiction.
        BUYER,
        THE TRUSTEE AND SELLERS AGREE THAT THE BANKRUPTCY COURT SHALL HAVE EXCLUSIVE
        JURISDICTION OVER ALL DISPUTES AND OTHER MATTERS RELATING TO (i) THE
        INTERPRETATION AND ENFORCEMENT OF THIS AGREEMENT OR ANY ANCILLARY DOCUMENT
        EXECUTED PURSUANT THERETO; ANA/OR (ii) THE ACQUIRED ASSETS AND/OR ASSUMED
        LIABILITIES, AND BUYER EXPRESSLY CONSENTS TO AND AGREES NOT TO CONTEST SUCH
        EXCLUSIVE JURISDICTION.

       

      9.22. Sellers’
        Removal of Excluded Assets.
        To the
        extent that any Excluded Assets are located as of the Closing at or about
        any
        site acquired by Buyer from Sellers, Sellers shall, at the written request
        of
        Buyer, at Sellers’ sole cost and expense, cause any such Excluded Assets to be
        removed therefrom as soon as commercially practicable. Unless earlier requested
        by Buyer, Sellers shall (i) at Sellers’ sole cost and expense, have the right to
        cause the same to be removed therefrom on or before the date which is six
        (6)
        months following the Closing Date, and (ii) shall have the right of access
        to
        such sitc(s) at all reasonable times during such six (6) month period for
        the
        purpose of effecting such removal. At the expiration of such six (6) month
        period, Buyer shall have the right after seven (7) days prior written notice
        to
        Sellers, at its sole option, to claim ownership of such Excluded Assets or
        to
        dispose of them at Sellers’ cost and expense.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      [Remainder
        of This Page Left Intentionally Blank]

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF Buyer
        and
        Sellers have executed this Asset Purchase Agreement as of the day and year
        first
        above written.

       

      

      
        	 	
                Magnetech
                  Industrial Services, Inc.

              
	 	 	
                (Buyer)

              
	 	 	 
	 	 	 
	 	
                By:

              	
                /s/
                  John A. Martell

              
	 	 	
                Name:  John
                  A. Martell

              
	 	 	
                Its:  CEO

              
	 	 	 
	 	 	 
	 	
                GRAND
                  EAGLE, INC., ET AL., DEBTORS

              
	 	 	 
	 	 	 
	 	
                By: 

              	
                /s/
                  Glenn C. Pollack

              
	 	 	
                Name:  Glenn
                  C. Pollack

              
	 	 	
                Title:  Chapter
                  11 Trustee

              

      

      

      
 

      20

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