Document:

AGREEMENT
OF PURCHASE AND SALE OF BUSINESS ASSETS

 

This Agreement of Purchase
and Sale (the “Agreement”) is made in two original copies, effective June 21st, 2010.

BETWEEN:    DAMAR Corporation LLC (the “Seller”), a company organized and existing under      the
laws of the State of Colorado, with its head office located at:

 5435 Soapweed Circle, P.O. Box 1083, Parker, Colorado 80134

AND: Ameri Metro, Inc. (the “Purchaser”), a company organized and existing under the laws of the State of Delaware,
with its head office located at:

70 Vista Drive, P.O. Box 124, Red Lion, Pennsylvania 17356

 

	1.	SUBJECT-MATTER

 

1.1  The Purchaser agrees to buy and
the Seller agrees to sell to the Purchaser as a going concern all the undertaking and assets owned by the Seller in connection
with the automotive aftermarket business carried on as DAMAR Corporation LLC at 5435 Soapweed Circle, P.O. Box 1083, Parker, Colorado
80134 (the “business”) including, without limiting the generality of the foregoing:

 a) All saleable stock in trade (the “stock in trade”);

 b) All useable parts and supplies (the “parts and supplies”);

 c) U.S. Patent Application No. 12/690,723 (the “patent”);

 d) The goodwill of the business together with the exclusive right to the Purchaser to represent itself as carrying on business
in succession to the Seller and to use the business style of the business and variations in the business to be carried on by the
Purchaser (the “goodwill”).

e) The following sale vendor suppler contracts are expressly included in the purchase and sale:

 

Agreements with :

 

Lowe’s Incorporated.

 

Home Depot

 

Advance Auto

 

    	 

    	 

    

 

Auto Zone

 

Wal-Mart

 

Cost co

 

Tractor supply

2. PURCHASE PRICE

2.1   The purchase price payable for the undertaking and assets to be bought and sold is the sum of seven Hundred Thousand
Dollars ($750,000US) in the following manor$500,000 cash at closing balance in seven thousand five hundred (7,500.) shares of common
stock of Ameri Metro, Inc., which sum shall be delivered to Seller by Buyer within 90 days following the effective date of Ameri
Metro, Inc. public trading.

 

2.2 In addition thereto, Buyer shall pay to
Seller commissions equal to Two Dollars and Fifty Cents ($2.5US) for each unit sold from sales made of the invention (the “TruckDeck”)
described in the Patent by Buyer. Payment of said commissions shall be made for all sales made over a period of five (5) years
(Commission Period) from date hereof. Following the Commission Period, Buyer and Seller agree to renegotiate the commission amount.
If no agreement can be made by and between Buyer and Seller, then Buyer and Seller agree to extend the Commission Period for one
(1) additional year beyond the original Commission Period. At the conclusion of this extension, any and all commissions will terminate.
Payment of the aforesaid commissions shall be paid within thirty (30) days after each quarter-annual period, based upon net monies
received from sales during said quarter-annual period. Seller shall provide Buyer with quarterly reports stating how the volume
of units was arrived at and listing all such sales, and Seller shall have the right, at its expense, to audit such reports, at
times and places convenient to Buyer.

 

3.   TERMS OF
PAYMENT

3.1 The purchase price for the undertaking and assets agreed to be bought and sold shall be paid by certified check on closing.
and shares of Ameri Metro

4. CONDITIONS, REPRESENTATIONS AND WARRANTIES

    	 

    	 

    

 

4.1 In addition to
anything else in this agreement, the following are conditions of completing this agreement in favor of the Purchaser:

 a) That the Purchaser obtain financing on terms satisfactory to it to complete the purchase;

 b) That the Purchaser obtain all the permits and licenses required for it to carry on the business;

 c) That Seller’s board of directors has duly authorized the execution of this agreement.

4.2 The following representations and warranties are made and given by the Seller to the Purchaser and expressly survive the closing
of this agreement. The representations are true as of the date of this agreement and will be true as of the date of closing when
they shall continue as warranties according to their terms. At the option of the Purchaser, the representations and warranties
may be treated as conditions of the closing of this agreement in favor of the Purchaser. However, the closing of this agreement
shall not operate as a waiver or otherwise result in a merger to deprive the Purchaser of the right to sue the Seller for breach
of warranty in respect of any matter warranted, whether or not ascertained by the Purchaser prior to closing:

 a) The Seller is a resident of the United State of America (USA) within the meaning of

the Income Tax Act of the USA

 b) The Seller owns and has the right to sell the assets listed above;

 c) The assets agreed to be bought and sold are sold free and clear of all liens, encumbrances and charges;

 e) Until the closing date of this agreement, Seller shall not, without the written consent of Purchaser, dispose of or encumber
any of the ordinary course of Seller’s business. The undertaking and

assets agreed to be bought and sold will not be adversely affected in any material respect in any way, and Seller will not do anything
before or after closing to prejudice the goodwill;

 f) The financial statements for the business produced by the Seller are fair and accurate, and prepared in accordance with
generally accepted accounting principles.

 h) The Seller has made full and fair disclosure in all material respects of any matter that could reasonably be expected
to affect the Purchaser’s decision to purchase the undertaking and assets agreed to be brought and sold on the terms set
out this agreement;

    	 

    	 

    

 

 i) The Seller
will execute such assignments, consents, clearances or assurances after closing, prepared at the Purchaser’s expense, as
the Purchaser considers necessary or desirable to assure the Purchaser of the proper and effective completion of this agreement.

 j) Seller agrees to disclose to Purchaser not later than 30 days after the closing date, all trade secrets, customer lists,
and technical information held or controlled by Seller and relating to the

business sold here under.

5. RISK

5.1 The risk of loss
or damage to the undertaking and assets agreed to be bought and sold remains with the Seller until closing.

6. SALES TAXES

6.1 The Purchaser shall pay any and all sales taxes payable in respect of the purchase and sale of assets pursuant to this agreement.

6.2 The Seller shall pay all sales taxes payable or collectible in connection with carrying on the business up to closing and obtain
and supply the Purchaser with satisfactory proof of payment within a reasonable time of closing.

7.  NON-COMPETITION

7.1 The Seller covenants with the Purchaser that, in consideration of the closing of this agreement, the Seller will not operate
a automotive aftermarket business or in any way aid and assist any other person to operate such a business in the USA for a period
of fifteen (15 ) year from the date of closing.

8. BULK SALES

8.1 This agreement shall be completed and the Seller agrees to comply with any applicable laws governing the sale in bulk of the
stock in trade or of any of the other assets pursuant to this agreement.

    	 

    	 

    

 

9. CLOSING DOCUMENTS

9.1 The Seller shall deliver to the Purchaser, in registrable from where applicable, the following closing documents (the “closing
documents”), prepared or obtained at the Seller’s expense, on or

before closing:

 a) Duplicate, properly executed Bills of Sale of the equipment, stock in trade and parts and supplies together with evidence
satisfactory to the Purchaser that the sale complies with any laws governing the sale in bulk of the stock in trade or of the sale
of any of the other assets pursuant to this agreement;

 b) A statutory declaration that the Seller is a resident of the USA within the meaning of the income Tax Act of the USA as
of the date of closing;

 c) All records and financial data, including but not limited to any lists of customers and suppliers, relevant to the continuation
of the business by the Purchaser;

 d) A duly executed notice in proper form revoking any registration of the style of the Business under any business name registration
law;

 e) Such other assignments, consents, clearances or assurances as the Purchaser reasonably completion of this agreement.

10. CLOSING DATE

10.1 The purchase and sale in this agreement shall close within 90 days following the effective date of Ameri Metro, Inc. public
trading.

 

11. MISCELLANEOUS

11.1 In this agreement, the singular includes the plural and the masculine includes the feminine and neuter and vice versa unless
the context otherwise requires.

 

11.2 The capitalized
headings in this agreement are only for convenience of reference and do not form part of or affected the interpretation of this
agreement.

    	 

    	 

    

 

11.3 If any provision
or part of any provision in this agreement is void for any reason, it shall be severed without affecting the validity of the balance
of the agreement.

11.4 Time is of the
essence of this agreement.

11.5 There are no representations, warranties, conditions, terms or collateral contracts affecting the transaction contemplated
in this agreement except as set out in this agreement.

11.6 This agreement binds and benefits the parties and their respective heirs, executors, administrators, personal representatives,
successors and assigns.

11.7This agreement is governed by the laws of the State of Colorado.

12. ACCEPTANCE

12.1 This agreement executed on behalf of the Purchaser constitutes an offer to Purchase which can only be accepted by the Seller
by return of at least one originally accepted copy of agreement to the Purchaser on or before June 25st 2010 failing
to do so will constitute that this offer to becomes null and void. If this offer becomes null and void  or is validly  revoked
before acceptance of this agreement is not completed by the Purchaser for any valid reason, any deposit tendered with it on behalf
of the Purchaser shall be returned without penalty or interest.

Executed under seal on this _________day of June 2010

Signed, Sealed and Delivered in the Presence of:

	SELLER	 	PURCHASER
	 	 	 
	 	 	 
	 	 	 
	Authorized Signature	 	Authorized Signature
	 	 	 
	Print Name and Title	 	Print Name and Title
	 	 	 
	David B. Martin	 	Shah Mathias
	 	 	 
	President/CEO	 	CEOThe indebtedness
evidenced by this instrument is subordinated to the prior payment-in-full of the Senior Debt, as defined in, and pursuant to the
terms of, the Subordination Agreement dated as of December 29, 2010 made by U.S. Bank National Association and the Lender.

 

Subordinated Promissory Note

 

	$___________	December 30, 2010
	 	Cincinnati, Ohio

 

FOR VALUE RECEIVED,
Environmental Quality Management, Inc., an Ohio corporation (“Maker”) promises to pay to the order of __________ (“Lender”),
the principal sum of _______________________________________Dollars ($__________) with interest at 0.35 percent (0.35%) per annum
accruing from the date of this Note until paid. Principal and interest shall be payable at 1800 Carillon Boulevard, Cincinnati,
Ohio 45240, or at such other place as Lender may designate to Maker. Principal and interest shall be due and payable as follows:

 

Principal shall be
due and payable in three (3) equal annual installments of ________________________ Dollars ($__________), plus accrued interest,
with the first installment due on the first anniversary of this Promissory Note, and subsequent installments due each anniversary
thereafter until December 30, 2013 (the “Maturity Date”), when all remaining outstanding principal and accrued interest
shall be paid-in-full.

 

All or any part of
the principal sum and accrued interest may be prepaid at any time without penalty. Any partial pre-payment shall be applied first
against interest, then the principal amount outstanding, and shall not postpone the due date of any subsequent annual installments.

 

If any annual installment
under this Promissory Note is not paid when due and remains unpaid after a date specified by notice to Maker, the entire principal
amount outstanding, and accrued interest thereon, shall at once become due and payable at the option of the Lender. The date specified
shall not be less than ten (10) days from the date such notice is sent in accordance with the following paragraph. Lender may exercise
this option to accelerate during any default by Maker, regardless of any prior forbearance. If suit is brought to collect this
Promissory Note, Lender shall be entitled to collect all reasonable costs and expenses of suit, including reasonable attorney fees.

 

All notices, waivers
and other communications required or permitted by this Promissory Note shall be in writing and shall be deemed given to a party
when (a) delivered to the appropriate address by hand or by nationally recognized overnight courier service (costs prepaid); (b)
sent by facsimile or e-mail with confirmation of transmission by the transmitting equipment; or (c) received or rejected by the
addressee, if sent by certified mail, return-receipt requested, in each case to the addresses, facsimile numbers or e-mail addresses
designated in this Promissory Note and marked to the attention of the person (by name or title) designated herein or signing on
behalf of such person or entity (or to such other address, facsimile number, e-mail address or person as a party may designate
by notice to the other parties).

 

Maker expressly waives
presentment for payment, notice of dishonor, protest and notice of protest (except with respect to the notice and cure period provided
above), and agrees that the time for the payment or payments of any part of this Promissory Note may be extended, without releasing
or otherwise affecting Maker’s liability on this Promissory Note. The extension of this Promissory Note shall not affect
or constitute a waiver of Lender’s rights to exercise any option, enforce any right, or seek any remedy with respect to any
default under any document entered into in connection with the loan evidenced by this Promissory Note.

 

    	 

    	 

    

 

Notwithstanding anything
herein to the contrary, (i) the indebtedness evidenced by this instrument is subordinated to the prior payment-in-full of the Senior
Debt, as defined in, and pursuant to the terms of the Subordination Agreement dated as of December 29, 2010 made by U.S. Bank National
Association and Lender (the “Subordination Agreement”), (ii) no liens or security interests may be granted to the Lender
to secure the obligations under this instrument and (iii) the exercise of any right or remedy by the Lender hereunder is subject
to the limitations and provisions of the Subordination Agreement. In the event of any conflict between the terms of the Subordination
Agreement and the terms of this Promissory Note, the terms of the Subordination Agreement shall govern.

 

If any provision (or
any part of any provision) contained in this Promissory Note shall for any reason be held or deemed to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect any other provision (or remaining part of the
affected provision) of this Promissory Note and this Promissory Note shall be construed as if such invalid, illegal or unenforceable
provision (or part thereof) had never been contained herein and the remaining provisions of this Promissory Note shall remain in
full force and effect.

 

The loan evidenced
hereby is for commercial or business purposes, and is not intended and will not be used for personal, family, household, educational,
consumer or agricultural purposes.

 

This Promissory Note
is delivered in the State of Ohio and is to be governed by and construed in accordance with the laws of the State of Ohio. Maker
and Lender hereby consent to, and by execution of this Promissory Note, submit to personal jurisdiction of the Court of Common
Pleas of Hamilton County, Ohio, and/or the United States District Court for the Southern District of Ohio, Western Division, for
the purposes of any judicial proceedings which are instituted for enforcement of this Promissory Note.

 

AS A SPECIFICALLY BARGAINED
FOR INDUCEMENT FOR LENDER TO EXTEND CREDIT TO THE MAKER, AND AFTER HAVING THE OPPORTUNITY TO CONSULT COUNSEL, THE UNDERSIGNED AND
ALL ENDORSERS HEREBY EXPRESSLY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATED TO THIS PROMISSORY NOTE OR
ARISING IN ANY WAY FROM ANY INDEBTEDNESS OR OTHER TRANSACTIONS INVOLVING LENDER AND MAKER.

 

[The remainder of this page intentionally
left blank. Signatures will follow.]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the undersigned has executed this Promissory Note as of the date and year first above written.

 

	 	 	MAKER:
	 	 	 
	 	 	Environmental Quality Management, Inc.,
	 	 	an Ohio corporation
	 	 	 
	 	 	By:	 
	 	 	 
	 	Address:	1800 Carillon Boulevard
	 	 	Cincinnati, OH 45240
	 	E-Mail:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00205-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00205-of-00352.parquet"}]]