Document:

ex10_28.htm

  
    Exhibit
10.28

     

    [1st
Constitution Bancorp Letterhead]

     

     

    November
5, 2009

     

     

    Mr.
Joseph M. Reardon

    
      1st Constitution
Bancorp

    

    
      2650
Route 130 North

    

    
      Cranbury,
New Jersey  08512

    

     

    Dear Mr.
Reardon:

     

    As you
know, 1st Constitution
Bancorp (the “Company,” as further defined below) has entered into a Letter
Agreement, dated December 23, 2008, including the Securities Purchase Agreement
- Standard Terms incorporated therein (the “Participation Agreement”), with the
United States Department of the Treasury (“Treasury”) that provides for the
Company’s participation in the Treasury’s TARP Capital Purchase Program
(“CPP”).

     

    Pursuant
to EESA as implemented by an interim final rule of the Treasury applicable to
the Company and its subsidiaries as a result of its participation in the CPP,
the Company is required to make changes to its compensation agreements for
highly compensated employees of the Company and its subsidiaries.  To
comply with these requirements, and in consideration of the benefits that you
will receive as a result of the Company’s participation in the CPP, you agree as
follows:

     

    
      
        	
                 
      

              	
                (1)

              	
                No Golden Parachute
      Payments.  The Company is prohibited from making any
      golden parachute payments to you during any “CPP Covered
      Period.”  A “CPP Covered Period” is any period during which (a)
      you are a senior executive officer or a highly compensated employee of the
      Company or its subsidiaries, and (b) the Treasury holds the Series B
      Preferred Stock acquired from the Company in the
  CPP.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                Recovery of Bonus and
      Incentive Compensation.  Any bonus and/or incentive
      compensation paid to you during a CPP Covered Period is subject to
      recovery or “clawback” by the Company if the payments were based on
      statements of earnings, revenues, gains or other criteria that are later
      found to be materially inaccurate.

              

      

       

      
        	
                 
      

              	
                (3)

              	
                Tax Gross-up
      Payments.  During the CPP Covered Period, the Company is
      prohibited from providing tax gross-ups or reimbursement for the payment
      of your taxes to you.  For this purpose, providing for such a
      gross-up at a future date after the CPP Covered Period is also
      prohibited.

              

      

       

      
        	
                 
      

              	
                (4)

              	
                Compensation Program
      Amendments.  Each of the Company’s compensation, bonus,
      incentive and other benefit plans, arrangements and agreements (including
      but not limited to, golden parachute, severance and employment agreements)
      (collectively, “Benefit Plans”) with respect to you is hereby amended
      (notwithstanding any contrary language within such Benefit Plans) to the
      extent necessary to give effect to provisions (1), (2) and
      (3).

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      In
addition, the Company is required to review its Benefit Plans to ensure that
they do not encourage senior executive officers to take unnecessary and
excessive risks that threaten the value of the Company.  To the extent
any such review requires revisions to any Benefit Plan with respect to you, you
and the Company hereby agree to execute such additional documents as the Company
deems necessary to effect such revisions.

       

      
        	
                 
      

              	
                (5)

              	
                Definitions and
      Interpretation. This letter shall be interpreted as
      follows:

              

      

       

      “Senior
executive officer” means the Company’s “senior executive officers” as defined in
EESA as implemented by regulations and rules of the Treasury (i.e., the
principal executive officer, the principal financial officer and the next three
most highly compensated employees whose compensation exceeds
$100,000).

       

      “Golden
parachute payment” has the same meaning set forth in EESA as implemented by
regulations and rules of the Treasury from time to time.

       

      “EESA”
means the Emergency Economic Stabilization Act of 2008 as amended by the
American Recovery and Reinvestment Act of 2009 and as the same may be amended
hereafter.

       

      The
“Company” includes 1st
Constitution Bancorp, 1st  Constitution
Bank and any other entity required to be treated as a “TARP recipient” pursuant
to rules or regulations of the Treasury from time to time.

       

    

    Provisions
(1), (2), (3) and (4) of this letter are intended to, and will be interpreted,
administered and construed to comply with EESA as implemented by regulations or
rules of the Treasury and, to the maximum extent consistent with the proceeding,
to permit operation of the Benefit Plans in accordance with their terms before
giving effect to this letter.

     

    This
letter will be governed by the laws of the State of New Jersey, except to the
extent that federal law controls.

     

    The
Company’s Board of Directors appreciates the concessions you are making and
looks forward to your continued leadership.

     

    
      	
               
      

            	
              Very
      truly yours,

            

    

     

    
      	
               
      

            	
              1st
      Constitution Bancorp

            

    

     

    By:              ­/s/ ROBERT F. MANGANO   

    Name: Robert F.
Mangano

    Title:   President

     

    
      	
               
      

            	
              Intending
      to be legally bound, I hereby

            

    

    
      	
               
      

            	
              agree
      with, acknowledge the sufficiency

            

    

    
      	
               
      

            	
              of
      consideration for, and accept the

            

    

    
      	
               
      

            	
              foregoing
      terms.

            

    

     

     

    
      	
               
      

            	
              ­    /s/ JOSEPH M. REARDON   

            

    

    
      	
               
      

            	
              Joseph
      M. Reardon

              
                Date:      November
      7, 2009

              

            

    

     

    -2-ex10_1.htm

ASSET PURCHASE AGREEMENT

 

This ASSET PURCHASE AGREEMENT dated March 25, 2010 (this “Agreement”) between CASCADE WIND CORP., INC., a Nevada corporation (the “Purchaser”), and CORE FUND, L.P., a limited partnership (“Core”), DAVID BAKER and BILL CORBETT (collectively, the “Seller”).  Purchaser and Seller are
sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

RECITALS

WHEREAS, the Purchaser desires to purchase from the Seller and the Seller desires to sell to the Purchaser all of Seller’s rights, title and interest in and to the Assets (as hereinafter defined), all upon the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the representations, warranties and covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

ARTICLE I

CERTAIN DEFINITIONS

1.1 CERTAIN DEFINITIONS.

(a) The following terms, when used in this Agreement, shall have the respective meanings ascribed to them below:

“ACTION” means any claim, action, suit, inquiry, hearing, investigation or other proceeding.

“AFFILIATE” means, with respect to a Person, any other Person that, directly or indirectly, through one or more intermediaries, Controls, is controlled by or is under common Control with, such Person. For purposes of this definition, “CONTROL” (including, with correlative meanings, the terms “Controlled by”
and “under common Control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ownership of stock, as trustee or executor, by Contract or credit arrangement or otherwise.

 

“AGREEMENT” has the meaning set forth in the preamble hereto.

“ANCILLARY AGREEMENTS” means the Bill of Sale and the IP Assignment.

“ASSETS” has the meaning set forth in Section 2.1.

“BILL OF SALE” has the meaning set forth in Section 3.2(b).

 

 

 

 

“BUSINESS DAY” means any day other than Saturday, Sunday or any day on which banks in Las Vegas, Nevada are required or authorized to be closed.

“CLAIM NOTICE” means written notification pursuant to Section 7.2(a) of a Third-Party Claim as to which indemnity under Section 7.1 is sought by an Indemnified Party, enclosing a copy of all papers served, if any, and specifying the nature of and basis for such Third-Party Claim and for the Indemnified Party’s claim against
the Indemnifying Party under Section 7.1, together with the amount or, if not then reasonably ascertainable, the estimated amount, determined in good faith, of the Indemnified Party’s Losses in respect of such Third-Party Claim.

“CLOSING” has the meaning set forth in Section 3.1.

“CLOSING DATE” has the meaning set forth in Section 3.1.

“COMPETITIVE PRODUCT” means any product that competes directly with the use, potential use, or expected use of the Assets, or any part thereof, or with any product currently sold by Purchaser.

“CONTRACT” means any agreement, lease, debenture, note, bond, evidence of Indebtedness, mortgage, indenture, security agreement, option or other contract or commitment (whether written or oral).

“DISPUTE NOTICE” means a written notice provided by any party against which indemnification is sought under this Agreement to the effect that such party disputes its indemnification obligation under this Agreement.

“DISPUTE PERIOD” means the period ending thirty calendar days following receipt by an Indemnifying Party of either a Claim Notice or an Indemnity Notice.

“GAAP” means United States generally accepted accounting principles as in effect from time to time, consistently applied throughout the specified period and all prior comparable periods.

“GOVERNMENTAL ENTITY” means any government or political subdivision thereof, whether foreign or domestic, federal, state, provincial, county, local, municipal or regional, or any other governmental entity, any agency, authority, department, division or instrumentality of any such government, political subdivision or other governmental
entity, any court, arbitral tribunal or arbitrator, and any nongovernmental regulating body, to the extent that the rules, regulations or orders of such body have the force of Law.

“INDEBTEDNESS” means, as to any Person: (i) all obligations, whether or not contingent, of such Person for borrowed money (including, without limitation, reimbursement and all other obligations with respect to surety bonds, letters of credit and bankers’ acceptances, whether or not matured), (ii) all obligations of such
Person evidenced by notes, bonds, debentures, capitalized leases or similar instruments, (iii) all obligations of such Person representing the balance of deferred purchase price of property or services, (iv) all interest rate and currency swaps, caps, collars and similar agreements or hedging devices under which payments are obligated to be made by such Person, whether periodically or upon the happening of a contingency, (v) all indebtedness created or arising under any conditional sale or other title retention
Contract with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such Contract in the event of default are limited to repossession or sale of such property), (vi) all indebtedness secured by any Lien on any property or asset owned or held by such Person regardless of whether the indebtedness secured thereby shall have been assumed by such Person or is non-recourse to the credit of such Person, and (vii) all indebtedness referred to in clauses (i) through
(vi) above of any other Person that is guaranteed, directly or indirectly, by such Person.

 

 

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            “INTELLECTUAL PROPERTY” means: all (i) discoveries and inventions (whether patentable or unpatentable and whether or not reduced to practice), all improvements thereto, and all United States, international, and foreign patents, patent applications (either
filed or in preparation for filing), patent disclosures and statutory invention registrations, including all reissuances, divisions, continuations, continuations in part, extensions and reexaminations thereof, all rights therein provided by international treaties or conventions, (ii) trademarks, service marks, trade dress, logos, trade names, corporate names, and other source identifiers (whether or not registered) including all common law rights, all registrations and applications for registration (either filed
or in preparation for filing) thereof, all rights therein provided by international treaties or conventions, and all renewals of any of the foregoing, (iii) all copyrightable works and copyrights (whether or not registered), all registrations and applications for registration thereof, all rights therein provided by international treaties or conventions, and all data and documentation relating thereto, (iv) confidential and proprietary information, trade secrets, know-how (whether patentable or nonpatentable and
whether or not reduced to practice), processes and techniques, research and development information including patent and/or copyright searches conducted by Seller and/or any third party, ideas, technical data, designs, drawings and specifications, (v) Software, (vi) coded values, formats, data and historical or current databases, whether or not copyrightable, (vii) domain names, Internet websites or identities used or held for use by the Seller, (viii) other proprietary rights relating to any of the foregoing
(including without limitation any and all associated goodwill and remedies against infringements thereof and rights of protection of an interest therein under the laws of all jurisdictions), and (ix) copies and tangible embodiments of any of the foregoing.

“IP ASSIGNMENT” has the meaning set forth in Section 3.2(c).

“KNOWLEDGE” means the actual or constructive knowledge after due inquiry of any current officer or manager of the Seller.

“LAWS” means all laws, statutes, rules, regulations, ordinances and other pronouncements having the effect of law of the United States, any foreign country or any domestic or foreign state, county, city or other political subdivision or of any Governmental Entity.

 

 

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“LIABILITY” means all Indebtedness, obligations and other Liabilities of a Person, whether absolute, accrued, contingent, fixed or otherwise, and whether due or to become due (including for Taxes).

“LIEN” means any mortgage, pledge, assessment, security interest, lease, lien, adverse claim, levy, charge or other encumbrance of any kind, whether voluntary or involuntary (including any conditional sale Contract, title retention Contract or Contract committing to grant any of the foregoing).

“LOSS” means any and all damages, fines, fees, penalties, deficiencies, losses and expenses (including, without limitation, all interest, court costs, fees and expenses of attorneys, accountants and other experts or other expenses of litigation or other proceedings or of any claim, default or assessment).

“MATERIAL ADVERSE EFFECT” means any material adverse effect on the condition, operations, business, prospects or results of sales of the Seller; PROVIDED, HOWEVER, that any adverse effect arising out of or resulting from the entering into of this Agreement or the consummation of the transactions contemplated hereby, shall be
excluded in determining whether a Material Adverse Effect has occurred.

“ORDER” means any writ, judgment, decree, injunction or similar order of any Governmental Entity (in each case whether preliminary or final).

“PERSON” means any individual, partnership, limited liability company, corporation, association, joint stock company, trust, estate, joint venture, unincorporated organization, Governmental Entity or any other entity of any kind.

“PURCHASE PRICE” has the meaning set forth in Section 2.1.

“PURCHASER” has the meaning set forth in the preamble hereto.

“REPRESENTATIVES” means, with respect to any Person, the directors, officers, managers, employees, counsel, accountants and other authorized representatives of such Person.

“RESOLUTION PERIOD” means the period ending thirty days following receipt by an Indemnified Party of a Dispute Notice.

“SELLER” has the meaning set forth in the preamble hereto.

“SOFTWARE” means all computer software, including source code, object code, machine-readable code, HTML or other markup language, program listings, comments, user interfaces, menus, buttons and icons, web applications and all files, data, manuals, design notes, research and development documents, and other items and documentation
related thereto or associated therewith.

 

 

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“SOLVENT” means, with respect to the Seller, that (a) the Seller is able to pay its Liabilities, as they mature in the normal course of business, and (b) the fair value of the assets of the Seller is greater than the total amount of Liabilities of the Seller.

“TAX RETURNS” means all returns and reports (including elections, claims, declarations, disclosures, schedules, estimates, computations and information returns) required to be supplied to a tax authority in any jurisdiction relating to Taxes.

“TAXES” means all federal, state, local and foreign income, profits, franchise, license, social security, transfer, registration, estimated, gross receipts, environmental, customs duty, capital stock, severance, stamp, payroll, sales, employment, unemployment, disability, use, property, withholding, excise, production, value
added, occupancy and other taxes, duties or assessments of any nature whatsoever together with all interest, penalties, fines and additions to tax imposed with respect to such amounts and any interest in respect of such penalties and additions to tax.

“THIRD-PARTY CLAIM” has the meaning set forth in Section 7.2(a).

 

“TRANSFER TAXES” means all sales, use, value added, excise, registration, documentary, stamps, transfer, real property transfer, recording, gains, stock transfer and other similar Taxes and fees.

(b) For purposes of this Agreement, except as otherwise expressly provided herein or unless the context otherwise requires: (i) words using the singular or plural number also include the plural or singular number, respectively, and the use of any gender herein shall be deemed to include the other genders; (ii) references herein to “Articles”,
“Sections”, “subsections” and other subdivisions without reference to a document are to the specified Articles, Sections, subsections and other subdivisions of this Agreement; (iii) a reference to a subsection without further reference to a Section is a reference to such subsection as contained in the same Section in which the reference appears, and this rule shall also apply to other subdivisions within a Section or subsection; (iv) the words “herein”, “hereof”,
“hereunder”, “hereby” and other words of similar import refer to this Agreement as a whole and not to any particular provision; and (v) the words “include”, “includes” and “including” are deemed to be followed by the phrase “without limitation”. All accounting terms used herein and not expressly defined herein shall have the meanings given to them under GAAP.

ARTICLE II

PURCHASE AND SALE OF ASSETS

2.1 PURCHASE AND SALE OF ASSETS.

(a) At the Closing, as hereinafter defined, Purchaser shall pay Seller for the Assets (the “PURCHASE PRICE”) as follows:

	
(i)  
	
Share certificates totaling THREE MILLION NINETY-TWO THOUSAND ONE HUNDRED AND FIFTY-TWO (3,192,152) shares of common stock of Purchaser, par value $0.001 per share, bearing a restrictive legend (the “Shares”), titled and in denominations as shall be directed by Seller at Closing.

 

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(b) In consideration of the payment by the Purchaser of the PURCHASE PRICE, the Seller hereby agrees to sell, convey, transfer, assign, grant and deliver to the Purchaser, and the Purchaser hereby agrees to purchase, acquire and accept from the Seller, at the Closing, all of the Seller’s right, title and interest in and to all of
the Assets, free and clear of all Liens. The term “ASSETS” means all assets of Seller of any nature and kind whatsoever, including but not limited to the following: (a) the Equipment and other Tangible Assets set forth on Schedule 2.1(a) attached hereto; (b) all Domain Names, websites and Intellectual Property of Seller as set forth on Schedule 4.6 attached hereto; (c) all rights to causes of action, lawsuits, judgments, claims and demands of any nature available to or being pursued by the Seller
with respect to (a) above, whether arising by way of counterclaim or otherwise; (d) contracts to which Seller is bound as set forth on Schedule 4.5; and (e) all current and future customer accounts, including accounts receivable as set forth on Schedule 2.1(e) hereto.

2.2 ASSUMPTION OF LIABILITIES. For greater certainty, the Purchaser assumes no Liabilities relating to the Assets or the Seller or the Seller’s business (including Tax Liabilities) except as are expressly set forth on Schedule 2.2.

ARTICLE III

THE CLOSING

3.1 CLOSING. The closing of the transactions contemplated hereby (the “CLOSING”) shall take place one day from the effective date of this Agreement at the offices of Purchaser commencing at 10:00 a.m. P.T., or such other date as the parties hereto may mutually determine in writing (the “CLOSING DATE”).

3.2 DELIVERY OF ITEMS BY THE SELLER. The Seller shall deliver to the Purchaser at the Closing the items listed below:

(a) a Bill of Sale and General Assignment for the Assets, duly executed by the Seller, in the form attached hereto as Exhibit A (the “BILL OF SALE”);

(b) an intellectual property assignment, duly executed by the Seller, in the form attached hereto as Exhibit B (the “IP ASSIGNMENT”);

(d) written letter of instructions to Purchaser, specifying the names and denominations in which the Shares are to be delivered, executed by all Sellers, together with tax identification numbers and mailing addresses for each recipient; and

 

(e) such other documents and instruments as the Purchaser may reasonably request.

3.3 DELIVERY OF ITEMS BY THE PURCHASER. The Purchaser shall deliver to the Seller at the Closing the items listed below:

	
(a)  
	
the Shares; and

(b) such other documents and instruments as the Seller may reasonably request.

 

 

6

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF CERTAIN SELLERS

As an inducement to the Purchaser to enter into this Agreement, certain Sellers represent and warrant to the Purchaser as follows:

4.1 AUTHORIZATION. The Seller has full power and authority to execute and deliver this Agreement and the Ancillary Agreements, as applicable, and to perform its obligations hereunder and thereunder. This Agreement and the Ancillary Agreements have been duly executed and delivered by the Seller and, assuming the due authorization, execution
and delivery hereto and thereof by the Purchaser, constitute the valid and legally binding obligations of the Seller enforceable in accordance with their respective terms.  Those Sellers which are entities are duly organized under the laws of the state or states of their respective formation, in good standing, and have obtained all consents and other approvals necessary under the law of their formation, and under any governing documents or agreements necessary for the execution, delivery and performance
of this Agreement and the Ancillary Agreements.

4.2 OMITTED

4.3 OMITTED

4.4 OMITTED

4.5 CONTRACTS. Core represents and warrants that except as disclosed on Schedule 4.5, there are no executory Contracts (whether license agreements, development agreements or otherwise), to which any of the Assets are bound or subject (other than this Agreement).

4.6 INTELLECTUAL PROPERTY.

Seller represents and warrants that:

(a) Schedule 4.6 contains a list of all patents, trade names, trademarks and/or copyrights and all applications therefor owned by Seller with respect to the Assets and all licenses, if any, relating to the foregoing patents, trade names, trademarks and/or copyrights and all applications therefor. Schedule 4.6 identifies the owner of each
item listed thereon and, in the case of registrations and applications, the application or registration number and date. The Seller has not taken any action that could result in any of the registrations and applications for registration for the Assets not being valid and in full force and effect.

(b) Except as disclosed on Schedule 4.6, the Seller is the sole and exclusive owner of, and has good and marketable title to, all of the Intellectual Property in and to the Assets, including the Intellectual Property set forth on Schedule 4.6, free and clear of all Liens. Except as disclosed on SCHEDULE 4.6, the Seller has sole and exclusive
right to develop, perform, use, create derivative works of, operate, reproduce, market, sell, license, display, distribute, publish and transmit the Intellectual Property in and to the Assets. Upon the Closing, except as disclosed on Schedule 4.6, the Purchaser will have sole and exclusive right, title and interest in and to the Intellectual Property in and to the Assets, such that the Purchaser shall thereafter have sole and exclusive rights to perform, reproduce, create derivative works of, develop, use, operate,
market, sell, license, display, publish, transmit and distribute the Assets, free of all encumbrances. The Seller has taken reasonable measures to protect the proprietary nature of the Intellectual Property in and to the Assets and to maintain in confidence the trade secrets and confidential information that it owns or uses. Except as disclosed on Schedule 4.6, no other Person has any rights to any of Intellectual Property in and to the Assets and, to the knowledge of the Seller, no other Person is infringing,
violating or misappropriating any of the Intellectual Property in and to the Assets.

 

 

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(c) With respect to the Seller’s Intellectual Property contributed to the Assets, such Intellectual Property does not infringe upon, violate or constitute a misappropriation of any Intellectual Property or other right of any other Person. In addition, to Seller’s knowledge, none of the activities or business presently conducted
by the Seller with respect to the Assets infringes or violates, or constitutes a misappropriation of, any Intellectual Property or other right of any other Person. Neither the Seller nor any Affiliate of the Seller has received any written complaint, claim or notice alleging any such infringement, violation or misappropriation. Further, neither the Seller nor any Affiliate of the Seller has disclosed to any Person, any product formula or design, or any portion or aspect of any product formula or design, which
is part of the Assets, including the Intellectual Property.

4.7 OMITTED

4.8 TITLE TO ASSETS. Except as to Intellectual Property (which warranty is contained in Section 4.6): (i) the Seller has good and marketable title to all of the Assets free and clear of all Liens; (ii) this Agreement and the instruments of transfer to be executed and delivered pursuant hereto will effectively vest in the Purchaser good
and marketable title to all of the Assets free and clear of all Liens; (iii) and no Person other than the Seller has any ownership interest in any of the Assets.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

As an inducement to the Seller to enter into this Agreement, the Purchaser represents and warrants to the Seller as follows:

5.1 AUTHORIZATION. The Purchaser has full power and authority to execute and deliver this Agreement and the Ancillary Agreements, as applicable, and to perform its obligations hereunder and thereunder. This Agreement and the Ancillary Agreements have been duly executed and delivered by the Purchaser and, assuming the due authorization,
execution and delivery hereof and thereof by the Seller, constitute the valid and legally binding obligations of the Purchaser enforceable in accordance with their respective terms.  Purchaser is a corporation organized under the laws of the State of Nevada, in good standing, and has obtained all consents and other approvals necessary under Nevada law, its Articles of Incorporation, and its Bylaws necessary for the execution, delivery and performance of this Agreement and the Ancillary Agreements.

 

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ARTICLE VI

CONDITIONS TO OBLIGATION TO CLOSE

6.1 CONDITIONS TO CLOSING BY THE PURCHASER. The obligation of the Purchaser to effect the transactions contemplated hereby is subject to the satisfaction or waiver by the Purchaser of the following conditions:

 

(a) The representations and warranties of certain of the Sellers set forth in this Agreement shall be true and correct in all material respects, with respect to representations and warranties not qualified by materiality, or in all respects, with respect to representations and warranties qualified by materiality, as of the date of this
Agreement and as of the Closing Date as though made on and as of the Closing Date.

 

(b) The Seller shall have performed in all material respects the covenants required to be performed by it under this Agreement at or prior to the Closing Date.

(c) The Seller shall have executed and delivered each of the Ancillary Agreements, as applicable.

(d) There shall be no effective or pending Law or Order that would prohibit the Closing, and the Seller shall have obtained all necessary approvals of any Governmental Entities in connection with the transactions contemplated hereby and by the Ancillary Agreements.

(e) The Seller shall have delivered each of the items described in Section 3.2.

(f) Unless waived in writing by the Purchaser, the Purchaser shall have until the end of the seventh (7th)) day following the date of this Agreement to conduct such investigations and studies of the Assets as Purchaser shall determine to be necessary or appropriate.
Seller agrees that Purchaser and Purchaser’s agents shall have access to the Assets (including the Intellectual Property) at all reasonable times during this due diligence period for the purpose of conducting its feasibility and other studies and investigations of the Assets. Within three (3) days after the date of this Agreement, Seller shall provide to Buyer any and all documents requested by Purchaser and relating to the Assets including the Intellectual Property. If requested by Purchaser, Seller shall
cooperate with Purchaser to facilitate meetings between Buyer and its Representatives and Seller and its Representatives regarding such investigations and studies of the Assets including the Intellectual Property. If Purchaser is not satisfied with the Assets or the feasibility of purchasing the Assets, for any reason whatsoever, then Purchaser shall have the absolute and unconditional right to terminate this Agreement. If Purchaser elects to terminate this Agreement, the Purchaser shall deliver written notice
to Seller of its intention within three (3) days after the expiration of the due diligence period of seven (7) days from the date of this Agreement. Should Purchaser issue such notice, then this Agreement shall automatically terminate whereupon the parties shall be relieved of any and all further obligations hereunder. If Purchaser does not issue such notice, then Purchaser will have deemed to have elected to go forward with the acquisition of the Assets pursuant to this Agreement.

 

 

9

 

 

6.2 CONDITIONS TO CLOSING BY THE SELLER. The obligation of the Seller to effect the transactions contemplated hereby is subject to the satisfaction or waiver by the Seller of the following conditions:

(a) The representations and warranties of the Purchaser set forth in this Agreement shall be true and correct in all material respects, with respect to representations and warranties not qualified by materiality, and in all respects, with respect to representations and warranties qualified by materiality, in each case as of the date of
this Agreement and as of the Closing Date as though made on and as of the Closing Date.

(b) The Purchaser shall have performed in all material respects the covenants required to be performed by it under this Agreement at or prior to the Closing Date.

(c) The Purchaser shall have executed and delivered each of the Ancillary Agreements, as applicable.

 

(d) There shall be no effective or pending Law or Order that would prohibit the Closing, and the Purchaser shall have obtained all necessary approvals of any Governmental Entities in connection with the transactions contemplated hereby and by the Ancillary Agreements.

(e) The Purchaser shall have delivered each of the items described in Section 3.3.

 

ARTICLE VII

OMITTED.

 

ARTICLE VIII

POST-CLOSING COVENANTS

8.1 TRANSFER TAXES. Notwithstanding anything herein to the contrary, Purchaser shall be liable for and shall pay any Transfer Taxes or other similar tax imposed in connection with the transfer of the Assets pursuant to this Agreement. The party responsible under applicable Law for remitting any such tax shall pay and remit such tax on a
timely basis and, if such party is the Seller, the Seller shall notify the Purchaser of the amount of such tax, and the Purchaser shall promptly pay to the Seller the amount of such tax.

8.2 FURTHER ACTION. From and after the Closing each of the parties hereto shall execute and deliver such documents and take such further actions as may reasonably be required to carry out the provisions of this Agreement and the Ancillary Agreements and to give effect to the transactions contemplated hereby and thereby, including to give
the Purchaser effective ownership and control of the Assets.

 

 

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ARTICLE IX

MISCELLANEOUS

9.1 SURVIVAL. Notwithstanding any right of the Purchaser (whether or not exercised) to investigate the affairs of the Seller or any right of any party (whether or not exercised) to investigate the accuracy of the representations and warranties of the other party contained in this Agreement or the waiver of any condition to Closing, each
of the parties hereto has the right to rely fully upon the representations, warranties, covenants and agreements of the other contained in this Agreement. The representations, warranties, covenants and agreements of the parties hereto contained in this Agreement and any certificate or other document provided hereunder or thereunder will survive the Closing.

9.2 NO THIRD-PARTY BENEFICIARIES. The terms and provisions of this Agreement are intended solely for the benefit of the parties hereto and their respective successors and permitted assigns, and it is not the intention of the parties to confer third-party beneficiary rights, and this Agreement does not confer any such rights, upon any other
Person, except for any Person entitled to indemnity under Article VII.

9.3 ENTIRE AGREEMENT. This Agreement (including the Exhibits and the Schedules hereto) constitute the entire agreement between the parties hereto with respect to the subject matter hereof and thereof and supersede any prior understandings, agreements or representations by or between the parties hereto, written or oral, with respect to such
subject matter.

9.4 SUCCESSION AND ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of the parties named herein and their respective successors and permitted assigns. No party hereto may assign either this Agreement or any of its rights, interests or obligations hereunder without the prior written approval of the other parties
hereto.

9.5 DRAFTING. The parties have participated jointly in the negotiation and drafting of this Agreement and, in the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any of the provisions of this Agreement.

9.6 NOTICES. All notices, requests and other communications hereunder must be in writing and will be deemed to have been duly given only if delivered personally against written receipt or by facsimile transmission or mailed (by registered or certified mail, postage prepaid, return receipt requested) or delivered by reputable overnight courier,
fee prepaid, to the parties hereto at the following addresses or facsimile numbers:

 

 

11

 

	
IF TO PURCHASER, TO:
	
Cascade Wind Corp., Inc.,

Attn: Steven Shum, President

1500 SW 1st Street, Suite 910

Portland, OR 97201

__________________  (fax)

 

	
 With a copy to:
	
Cane Clark LLP

3273 E. Warm Springs Road

Las Vegas, NV 89120

702-944-7100 (fax)

 

	
IF TO SELLER, TO: 
	
___________________

___________________

___________________

 

 Any party hereto may change the address to which notices, requests, demands, claims and other communications hereunder are to be delivered by giving the other parties hereto notice in the manner set forth herein.

9.7 GOVERNING LAW. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada, without giving effect to any choice of law or conflict of law provision or rule that would cause the application of the Laws of any jurisdiction other than the State of Nevada.

9.8 OMITTED.

9.9 AMENDMENTS AND WAIVERS. No amendment of any provision of this Agreement shall be valid unless such amendment is in writing and signed by each of the parties hereto. No waiver by any party hereto of any default, misrepresentation or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any
prior or subsequent default, misrepresentation or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence. No waiver shall be valid unless such waiver is in writing and signed by the party against whom such waiver is sought to be enforced.

9.10 SEVERABILITY. If any provision of this Agreement is held to be illegal, invalid or unenforceable under any present or future Law, and if the rights or obligations of any party hereto under this Agreement will not be materially and adversely affected thereby, (a) such provision will be fully severable, (b) this Agreement will be construed
and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof, (c) the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom and (d) in lieu of such illegal, invalid or unenforceable provision, there will be added automatically as a part of this Agreement a legal, valid and enforceable provision as similar in terms of such illegal, invalid or unenforceable
provision as may be possible.

9.11 EXPENSES. Except as otherwise expressly set forth herein or therein, each of the parties hereto will bear its own costs and expenses (including legal fees and expenses) incurred in connection with this Agreement, the Ancillary Agreements and the transactions contemplated hereby or thereby, whether or not the transactions contemplated
hereby or thereby are consummated.

 

 

12

 

9.12 INCORPORATION OF EXHIBITS AND SCHEDULES. The Exhibits, Annexes and Schedules identified in this Agreement are incorporated herein by reference and made a part hereof. Unless otherwise specified, no information contained in any particular numbered Schedule shall be deemed to be contained in any other numbered Schedule unless explicitly
included therein (by cross reference or otherwise).

9.13 SPECIFIC PERFORMANCE. The parties hereto agree that irreparable damage would occur in the event that any provision of this Agreement was not performed in accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms hereof in addition to any other remedy available to them at law or equity.

9.14 HEADINGS. The descriptive headings contained in this Agreement are included for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement.

9.15 COUNTERPARTS. This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.

[signature pages follow]

 

 

13

 

 

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

 

	
Cascade Wind Corp., Inc.

(“Purchaser”)

 

By:  /s/ Steven Shum                                          

Steven Shum

 

Its: President
	
Core Fund, L.P., a limited partnership (“Seller”)

 

 

By:      /s/ Steven Shum                                       

Steven Shum

 

Its:                                                

	  	  
	
David Baker  (“Seller”)

 

 

/s/ David Baker

 
	  
	
Bill Corbett (“Seller”)

 

 

/s/ Bill Corbett

 
	  
	  	  

 

 

14

 

EXHIBIT A

BILL OF SALE

KNOW ALL PERSONS BY THESE PRESENTS:

CORE FUND, L.P., DAVID BAKER and BILL CORBETT (collectively, the “Seller”), in consideration of ten dollars and no cents  ($10.00) and other good and valuable consideration, receipt and sufficiency of which are hereby acknowledged, does hereby sell, assign, transfer and set over to CASCADE WIND CORP., INC., a Nevada
corporation, ("BUYER"), all of Seller's right, title and interest in and to the equipment and other tangible personal property described on Schedule 2.1(a) attached hereto and made a part hereof (all of such personal property is hereinafter collectively referred to as the "EQUIPMENT") except to the extent that such equipment is specifically excluded therein.

         Seller hereby represents and warrants to Buyer that Seller is the absolute owner of the Equipment; that the Equipment is free and clear of all liens, charges and encumbrances, and that Seller has full right, power and authority to sell the Equipment and to make this Bill of Sale.

         THE PARTIES AGREE THAT THE EQUIPMENT SOLD, CONVEYED, TRANSFERRED AND ASSIGNED HEREBY IS SOLD AND CONVEYED ON AN "AS IS, WHERE IS" BASIS AND THAT THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, ARE EXCLUDED FROM
THIS TRANSACTION AND SHALL NOT APPLY TO THE GOODS SOLD. BUYER ACKNOWLEDGES THAT SELLER SHALL NOT BE LIABLE FOR ANY INCIDENTAL, SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF USE OR LOSS OF PROFITS INCURRED BY BUYER IN CONNECTION WITH OR RELATING TO THE PURCHASE OF THE EQUIPMENT PURSUANT TO THIS AGREEMENT OR THE USE OF THE EQUIPMENT. THE PARTIES AGREE THAT, TO THE EXTENT REQUIRED BY LAW, THE DISCLAIMERS CONTAINED HEREIN ARE "CONSPICUOUS" DISCLAIMERS FOR THE PURPOSE OF ANY LAW,
RULE OR ORDER.

[signature pages follow]

 

 

15

 

         IN WITNESS WHEREOF, Seller has caused this Bill of Sale to be duly executed by its officer thereunto duly authorized this 25th day of March, 2010.

	
David Baker  (“Seller”)

 

 

/s/ David Baker

 
	
Core Fund, L.P., a limited partnership (“Seller”)

 

 

By:      /s/ Steven Shum                                        

Steven Shum

 

Its:                                                

	  	  
	
Bill Corbett (“Seller”)

 

 

/s/ Bill Corbett
	  

 

 

16

 

 

EXHIBIT B

INTELLECTUAL PROPERTY ASSIGNMENT AGREEMENT

        This Intellectual Property Assignment Agreement (the “Assignment”), dated as of March __, 2010, is by and between CORE FUND, L.P., DAVID BAKER and BILL CORBETT (collectively, the “Assignor”) and CASCADE WIND CORP., INC. (the “Assignee”). Assignor and Assignee
are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

         WHEREAS, Assignor and Assignee are parties to a certain Asset Purchase Agreement of even date herewith (the “Asset Purchase Agreement”), pursuant to which, among other things, Assignor agreed to sell and Assignee agreed to purchase certain assets of Assignor;

         WHEREAS, it is a condition to the Closing of the Asset Purchase Agreement that Assignor enters into this Assignment;

         WHEREAS, Assignee desires to acquire all Assignor's right, title and interest in and to the Intellectual Property; and

         NOW, THEREFORE, in consideration of, among other things, the Purchase Price provided for in the Asset Purchase Agreement and in further consideration of the mutual covenants and agreements contained in the Asset Purchase Agreement, the receipt and sufficiency of which are hereby acknowledged,
Assignor and Assignee agree as follows:

1.           Assignment of Domain Names. Effective as of the date of Closing provided for in the Asset Purchase Agreement, Assignor sells, transfers, conveys, assigns and delivers to Assignee and Assignee accepts all right, title and interest of Assignor in and to the websites, domain
names and registrations held by Assignor (the “Assigned Domain Names”), including without limitation the following: abundantre.com, are-wind.com, arewind.net, abundantre.net, arenergy.us, arenergy-world.net, arenergy-world.com, ar-power.com, ar-energy.us.com, and ar-energy.net

2.           Transfer of Intellectual Property. Effective as of the date of Closing provided for in the Asset Purchase Agreement, Assignor sells, transfers, conveys, assigns and delivers to Assignee and Assignee accepts all (i) designs, discoveries and inventions (whether patentable
or unpatentable and whether or not reduced to practice), all improvements thereto, and all United States, international, and foreign patents, patent applications (either filed or in preparation for filing), patent disclosures and statutory invention registrations, including all reissuances, divisions, continuations, continuations in part, extensions and reexaminations thereof, all rights therein provided by international treaties or conventions, (ii) trademarks, service marks, trade dress, logos, trade names,
corporate names, and other source identifiers (whether or not registered) including all common law rights, all registrations and applications for registration (either filed or in preparation for filing) thereof, all rights therein provided by international treaties or conventions, and all renewals of any of the foregoing, (iii) all copyrightable works and copyrights (whether or not registered), all registrations and applications for registration thereof, all rights therein provided by international treaties or
conventions, and all data and documentation relating thereto, (iv) confidential and proprietary information, trade secrets, know-how (whether patentable or nonpatentable and whether or not reduced to practice), processes and techniques, research and development information including patent and/or copyright searches conducted by Assignor and/or any third party, ideas, technical data, designs, drawings and specifications, (v) Software, (vi) coded values, formats, data and historical or current databases, whether
or not copyrightable, (vii) domain names, Internet websites or identities used or held for use by the Assignor, (viii) other proprietary rights relating to any of the foregoing (including without limitation any and all associated goodwill and remedies against infringements thereof and rights of protection of an interest therein under the laws of all jurisdictions), and (ix) copies and tangible embodiments of any of the foregoing (the “Intellectual Property”).

 

 

17

 

3.           Relationship with the Asset Purchase Agreement. This Assignment is intended to evidence the consummation of the transactions contemplated by the Asset Purchase Agreement. This Assignment is in all respects subject to the provisions of the Asset Purchase Agreement and is
not intended in any way to supersede, limit or qualify any provision of the Asset Purchase Agreement.

4.           Further Assurances. If a certain number of Assigned Domain Names and Intellectual Property were not duly endorsed in favor of Assignor following the relevant purchase or acquisition by, or transfer or assignment to, the same, Assignor hereby undertakes to give to Assignee
all assistance reasonably necessary to the end of finalizing endorsements contemplated by this Assignment in favor of Assignee even, where necessary, by appointing an attorney-in-fact duly empowered to carry out all the actions necessary for such purpose.

5.           Successors. This Assignment shall inure to the benefit of and is binding upon the respective successors and assigns of Assignor and Assignee.

6.           Governing Law. This Assignment shall be governed by, and construed in accordance with (i) the laws of the United States, in respect to intellectual property issues, where applicable, and (ii) in all other respects, including as to validity, interpretation and effect, by
the laws of the State of Nevada without giving effect to the conflict of laws rules thereof.

[signature pages follow]

 

 

18

 

IN WITNESS WHEREOF, Assignor and Assignee caused this Assignment to be duly executed as of the date first written above.

	
Cascade Wind Corp., Inc.

(“Assignee”)

 

By:  /s/ Steven Shum                                            

Steven Shum

Its: President
	
Core Fund, L.P., a limited partnership (“Assignor”)

 

By:      /s/ Steven Shum                                        

Steven Shum

 

Its:       Authorized Representative                                      

	  	  
	
David Baker  (“Assignor”)

 

 

/s/ David Baker

 
	  
	
Bill Corbett (“Assignor”)

 

 

/s/ Bill Corbett
	  

 

 

19

 

SCHEDULE 2.1(a)

EQUIPMENT AND TANGIBLE ASSETS

	
Hand, Measurement, and Power Tools

	
Bridgeport Mill

	
Lathe

	
Phase Rotary Converter

	
Casting Patterns (442 rotor, 110 rotor and yaw axle)

	
Empire Sandblasting Cabinet

	
Shop and shipping supplies

	
Office supplies

	
Bandsaw

	
Mill - Radiant

	
Mill - Rotary

	
Taper Attachment - Lathe

	
Computer (Former Network Server)

	
Dell Server

	
4 Dell computers

	
1 Gateway computer

	
1 HP computer

	
Computer Engineer II

	
110 Alternator Laminate Tooling

	
Megger Earth/Ground

	
14" Face Plate (Lathe Part)

	
DRO Neall Digital Readout (Lathe)

	
Steel Tooling for Spinning (Lathe)

	
40 & 72 Hole Bins

	
Tooling for 442 alternator Laminate

	
Tooling for W72-01-23-01

	
Meterlogical Tower

	
ARE110HV system with 106 foot tower (on loan to Beech Mountain)

	
Alternator test stand

	
Pipe drilling station

	
Grieve Henry electric oven

	
Drum Cradle and Cable Support for Oven

	
Motor for Stator Oven - Motor 3/4 hp, general

	
Heater, strip 240V for oven

	
Welder - Millermatic 350P MIG/Pulsed wirefeeder Welder

	
Printer - HP color LaserJet CP4005dn

	
2 glass office desks

	
1 engineering desk

	
2 file cabinets

	
2004  Dodge Truck

	
2000 Trailer

	
Forklift

	
California certification of ARE turbines eligibility for participation in Emerging Renewables Program Rebates.

	
New York certification of ARE turbine eligibility for participation in the Onsite or Small Wind Incentive in New York, New York State Energy Research and Development Authority (“NYSERDA”)

 

20

 

 

SCHEDULE 2.1(e)

CUSTOMER ACCOUNTS AND ACCOUNTS RECEIVABLE

	  	  
	
NONE
	  
	  	  

 

21

 

SCHEDULE 2.2

ASSUMED LIABILITIES

	  	  
	
NONE
	  
	  	  

 

22

 

 

SCHEDULE 4.5

CONTRACTS

	
Assigned to Purchaser
	
Not assigned to Purchaser

	  	  
	
NONE
	  
	  	  

 

23

 

 

SCHEDULE 4.6

INTELLECTUAL PROPERTY

	
A. Sound Level Study – ARE110 Wind Turbine; November 6, 2007; Beech Mountain Small Wine Research and Demonstration Facility.

 

	
B. All intellectual property related to the design, manufacture, testing, marketing, sales and service of all wind turbines, towers, electronic controls, related equipment and/or software, including, but not limited to, all cad drawings,
bills of material and manual related to the following:

 

	
1. ARE110-48V (2.5 kW) 48V Battery-Charging Wind Generator

	
2. ARE110-HV (2.5 kW) Grid-Connect Wind Generator

	
3. ARE442-HV (10 kW) Grid-Connect Wind Generator

	
4. Lightning Protection Systems for the ARE110 and ARE442 wind Generators

	
5. Voltage Clamp – connects generator to an inverter for connection to the grid

	
6. Towers

	
7. Ø4" Tilt-up, Guyed Pipe Tower Kit (with or without Pipe) for  ARE110 - 43',64’, 85’, 106’ or 127’

	
8. Ø5" Tilt-up, Guyed Pipe Tower Kit (with Pipe or without Pipe) for  various turbines 43',64’, 85’, 106’ or 127’

 

	
C. Low Wind Speed Technology for Small Turbine Development Report prepared for the U.S. Department of Energy with Department of Energy award number DEFG36-03G013137.

	  

 

24

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