Document:

Execution
Copy

    

    ASSET
PURCHASE AGREEMENT

     

    dated
as of

     

    July
13, 2007

     

    by
and between

     

    NuGen
Mobility, a Delaware corporation;

     

    and

     

    New
Generation Motors Corporation, a Delaware corporation

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    ASSET
PURCHASE AGREEMENT

    

    THIS
ASSET PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of the
13th
day of July, 2007, by and among NuGen Mobility, a Delaware corporation
(“Purchaser”), and New Generation Motors Corporation, a Delaware corporation
with its principal executive offices located at 44645 Guilford Drive, Suite 201,
Ashburn Virginia 20147 (“Seller”).

    

    WITNESSETH

    

    WHEREAS,
Seller is engaged in the design, manufacture, marketing, sale and licensing of
axial flux and other electric motors, including all software, controls, source
code and intellectual property relating to axial flux and other related motors
and drive-systems for all applications of the technology in all fields worldwide
(collectively, the “Business”);

    

    WHEREAS,
Seller desires to sell, and Purchaser desires to purchase, substantially all of
the assets of Seller used in the Business, on the terms set forth in this
Agreement.

    

    NOW,
THEREFORE, in consideration of the representations, warranties, covenants,
agreements and indemnities contained in this Agreement, and intending to be
legally bound, the parties agree as follows:

    

    ARTICLE
1.

    DEFINITIONS

    

    1.1         Certain Definitions. As used
in this Agreement, the following terms shall have the respective meanings
ascribed to them in this Section 1.1:

    
 

    (a)           “Action”
means all actions, claims, demands, suits, litigations, proceedings,
investigations, arbitrations or mediations.

    

    (b)           “Adverse
Consequences” means all actions, suits, proceedings, hearings, investigations,
charges, complaints, claims, demands, injunctions, judgments, orders, decrees,
rulings, damages (but specifically excluding consequential, special, enhanced,
punitive or incidental damages for claims brought by Purchaser or Seller or
damages for diminution in value and specifically including such of the foregoing
that may arise in connection with third party claims), penalties, fines, amounts
paid in settlement, Liabilities, obligations, Taxes, Liens, losses, expenses and
fees, including costs and reasonable attorneys’ fees and expenses.

    

    (c)           “Affiliate”
of any Person means any Person directly or indirectly controlling, controlled by
or under common control with such Person, or related by blood, marriage, or
adoption to such Person; provided, however, that with respect to Seller,
Affiliate shall not include Seller’s stockholders acting
individually.

    

    (d)           “Agreement”
means this Asset Purchase Agreement, as specified in the initial paragraph.

    

    (e)           “Assignment
and Assumption Agreement” means the assignment and assumption agreement between
Seller and the Purchaser whereby Seller will assign, and the Purchaser will
assume, the Assumed Liabilities in the form attached hereto as Exhibit 1.1(e).

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    (f) 
          “Assignment of
Patents” means the intellectual property assignment in the form attached hereto
as Exhibit
1.1(f).

    

    (g)           “Assumed
Liabilities” has the meaning specified in Section 2.3.

    

    (h)           “Authority”
means any court or governmental or regulatory agency or authority or
administrative authority, tribunal or commission or any judicial or arbitral
body or other governmental entity (whether foreign or domestic) or any political
subdivision thereof.

    

    (i)   
        “Bill of Sale” means the bill of
sale assigning and conveying all right and title to the Purchased Assets from
Seller to the Purchaser in the form attached hereto as Exhibit 1.1(i).

    

    (j)    
       “Business” has the meaning specified
in the recitals of this Agreement.

    

    (k)           “Claim”
has the meaning specified in Section 6.2(a).

    

    (1)           “Closing
Balance Sheet” shall mean the unaudited balance sheet of Seller for the 9 month
period ended September 30, 2006 delivered to the Purchaser as part of the
Financial Statements.

     

    (m)          “Closing
Date” has the meaning specified in Section 2.9.

    

    (n)           “Closing”
has the meaning specified in Section 2.9.

    

    (o)           “Code”
means the Internal Revenue Code of 1986, as amended.

    

    (p)           “Confidential
Information” has the meaning specified in Section 7.1.

    

    (q)           “Contracts”
has the meaning specified in Section 2.1(f).

    

    (r)     
      “Current Assets” shall mean the current
assets of the Business as of the Closing Date (excluding Excluded Assets)
determined in accordance with GAAP consistent with Seller’s past practice (but
to the extent such past practice is not consistent with GAAP, GAAP shall
apply).

    

    (s)           “Employee”
or “Employees” means any active, full-time individual employed by Seller and set
forth on Schedule
1.1(s).

    

    (t)        
   “Employment Agreements” means the intellectual property and
confidentiality agreements between Seller and, respectively, Jeffrey Yambor,
Anthony D’Andrea, Cory Davis and Anubhav Sethi.

    

    (u)           “Equipment
Leases” has the meaning specified in Section 2.1(d).

    

    (v)           “Equipment”
has the meaning specified in Section 2.1(a).

    

    (w)           “Excluded
Assets” has the meaning specified in Section 2.2.

    

    (x)           “Financial
Statements” means copies of the unaudited balance sheets and statements of
income and cash flow of Seller as of and for the 12 month and 9 month periods
ended December 31, 2005 and September 30, 2006, together with all supporting
schedules thereto.

    

    (y)           “GAAP”
means generally accepted accounting principles for financial reporting in the
United States as in effect from time to time.

    
      
         

      

      
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    (z)           “Gross
Revenues” means the aggregate amount of (i) all fees and other revenue that
Purchaser actually receives from any source following the Closing Date, (ii) the
then-current fair market value of (x) the Purchased Assets, or (y) the Business
(as a going concern) or portion thereof sold or otherwise transferred to an
Affiliate of Purchaser and/or Eric Takamura, and (iii) the proceeds from the
sale or other disposition by Purchaser to any other third party of all or any
portion of (x) the Purchased Assets and/or (y) the Business as a going concern
following the Closing Date.

    

    (aa)         “Indemnified
Party” has the meaning specified in Section 6.2(a).

    

    (bb)        “Indemnifying
Party” has the meaning specified in Section 6.2(a).

    

    (cc)         “Indemnity
Notice Period” has the meaning specified in Section 6.2(b).

    

    (dd)        “Indemnity
Notice” has the meaning specified in Section 6.2(a).

    

    (ee)         “Indemnity
Response” has the meaning specified in Section 6.2(c).

    

    (ff)           “Intellectual
Property” means: (i) all patents, patent applications and patent disclosures,
together with all reissuances, continuations, continuations-in-part, revisions,
extensions and reexaminations thereof; (ii) all trademarks, service marks, trade
dress, logos, slogans, trade names, corporate names and internet domain names
and URLs, together with all abbreviations, translations, adaptations,
derivations and combinations thereof, and all applications, registrations and
renewals in connection therewith; (iii) all copyrights and all applications,
registrations and renewals in connection therewith; (iv) all trade secrets and
confidential business information; (v) all computer software; (vi) know-how,
show-how, processes, formula, specifications and designs, databases,
documentation, and methodologies, (vii) other proprietary information owned,
controlled, created, under development or used by the Business or assigned to
Seller, whether or not registered, including rights or obligations under any
license agreement or other agreement with any other Person, (viii) web sites and
web pages and related items (and all intellectual property and proprietary
rights incorporated therein), IP addresses and email addresses, (ix) all other
intellectual property or proprietary rights, (x) all copies and tangible
embodiments of any or all of the above (in whatever form or medium), and (xi)
all contractual rights to any of the foregoing in (i) through (x).

    

    (gg)         “Inventory”
has the meaning specified in Section 2.1(b).

    

    (hh)         “Law”
means any federal, state, local or foreign statute, constitution, code,
ordinance or other law, whether foreign or domestic (including any rule,
regulation, plan, injunction, judgment, order, writ, decree, ruling, reported
decisions or charge).

    

    (ii)           “Leased
Real Property” has the meaning specified in Section 2.1(e).

    

    (jj)           “Liability”
means any liability, obligation or commitment (whether known or unknown, whether
asserted or unasserted, whether absolute or contingent, whether accrued or
unaccrued, whether liquidated or unliquidated or whether due or to become due,
disputed or undisputed, secured or unsecured, joint or several, executory,
determined, determinable or otherwise).

    

    (kk)         “Lien”
means any lien, charge, claim, security interest, conditional sale agreement,
mortgage, indenture, deed of trust, security agreement, pledge, hypothecation,
option or other encumbrance or defect of title of any kind or
nature.

    

    (ll)           “Note”
has the meaning specified in Section 2.5.

    
      
         

      

      
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    (mm)       “Permits”
means all franchises, approvals, permits, licenses, orders, registrations,
certificates, variances or similar rights necessary to lawfully conduct the
Business as presently conducted and own and operate the Purchased
Assets.

    

    (nn)        “Person”
means an individual, a corporation, a partnership, a limited liability company,
an association, an Authority, a trust or any other entity or
organization.

    

    (oo)        “Premium”
has the meaning specified in Section 2.6.

     

    (pp)       
“Purchase
Price” has the meaning specified in Section 2.5.

    

    (qq)        “Purchased
Assets” has the meaning specified in Section 2.1.

    

    (rr)          “Purchaser”
has the meaning specified in the initial paragraph of this
Agreement.

    

    (ss)         “Purchaser
Indemnified Party” or “Purchaser Indemnified Parties” has the meaning specified
in Section 6.1(a).

    

    (tt)          “Retained
Liabilities” has the meaning specified in Section 2.4.

    

    (uu)        “Seller”
has the meaning specified in the initial paragraph of this
Agreement.

    

    (vv)        “Seller
Indemnified Party” or “Seller Indemnified Parties” has the meaning specified in
Section 6.1(b).

    

    (ww)       “Tax”
or “Taxes” means all income, gross receipts, license, employment, payroll,
withholding, severance, premium, disability, excise, value-added, accumulated
earnings, net worth, alternate or add on minimum, estimated, sales, use,
transfer, registration, real property, stamp, environmental (including taxes
under Code §59A), personal property, use and occupancy, business and occupation,
maritime, mercantile, tariff, duty, capital stock, franchise, gift or estate and
all other taxes or fees of any kind, character, nature or description, whether
federal, state, local or foreign, and includes interest, penalty or addition
thereto and any similar charges in the nature of a tax including unemployment
and employment insurance payments and workers compensation premiums, together
with any installments with respect thereto and any estimated payments or
estimated taxes and whether disputed or not.

    

    (xx)         “Tax
Returns” shall mean any return, report, information return or other document
(including any related or supporting information) filed or required to be filed
with any federal, state, provincial, municipal, local or foreign governmental
entity or other Authority in connection with the determination, assessment or
collection of any Tax or the administration of any Laws, regulations or
administrative requirements relating to any Tax.

    

    (yy)        “Third
Party Claim” has the meaning specified in Section 6.2(b).

    

    (zz)         “Transaction
Documents” means this Agreement, the Note, the Bill of Sale, the Assignment and
Assumption Agreement, the Employment Agreements, the Intellectual Property
Assignment and all other documents, certificates and instruments executed and
delivered at any Closing.

    

    (aaa)       “Transfer
Taxes” has the meaning specified in Section 5.3(c).

    

    1.2         References to Dollars.
References to dollars or “$” in this Agreement shall mean United States
dollars.

    
      
         

      

      
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    ARTICLE 2.

    THE
TRANSACTION

    

    2.1   
     Sale and Purchase of Assets.
At the Closing, Seller shall sell, transfer and deliver to Purchaser and
Purchaser shall purchase from Seller, all of the assets relating to or used in
the Business (other than the Excluded Assets), including, without limitation,
the following (collectively, the “Purchased Assets”):

    

    (a)           All
machinery, equipment, fixtures, furniture, supplies, tools, dies, jigs, molds,
vehicles and other tangible personal property of Seller, wherever located,
including, without limitation, the property set forth on Schedule 2.1 (a) (collectively, the
“Equipment”);

    

    (b)           All
inventory of Seller of any kind, character, nature or description, whatever its
description and wherever located (including items in transit), including all
finished goods, work-in-process, supplies, raw materials, manufactured and
purchased parts, scrap, containers, packaging materials and spares, including
the inventory set forth on Schedule
2.1(b) (collectively, the “Inventory”);

    

    (c)           All
Intellectual Property owned by Seller and/or used in the Business, including
those set forth on Schedule
2.1(c), and all licenses, sublicenses, agreements, or permissions
relating to such Intellectual Property;

    

    (d)           All
rights to and under leases of Seller relating to Equipment, including all such
leases, set forth on Schedule
2.1(d) (collectively, the “Equipment Leases”);

    

    (e)           All
rights to and under leases and subleases of Seller relating to real property, as
set forth on Schedule 2.1(e)
(collectively, the “Leased Real Property”);

    

    (f)           All
rights to and under contracts, agreements, indentures, mortgages, instruments,
security interests, guaranties or other similar arrangements, whether written or
oral, to which Seller is a party or which are used in the Business, including,
but limited to, (i) that certain Master License Agreement for the EMS401-043
Drive System between Company and Bajaj Auto Ltd of India, (ii) all
confidentiality, employment and noncompete agreements between the Company and
any third party, including without limitation the Employment Agreements, and
(iii) the other contracts set forth on Schedule 2.1(f) (collectively, the
“Contracts”);

    

    (g)          All
trade accounts receivable, notes receivable and other receivables of
Seller;

    

    (h)          All
claims, deposits pursuant to agreements or other arrangements, prepayments,
refunds, causes of action, choses in action, rights of recovery, rights of
set-off, counterclaims and rights of recoupment, including for past, present or
future damages for the breach, infringement or misappropriation of any Purchased
Assets;

    

    (i)           All
franchises, approvals, Permits, licenses, orders, registrations, certificates,
variances and similar rights of or relating to the Business, and any
applications for the same;

    

    (j)           All
Confidential Information and all copies thereof and all research and development
then in process, books, records and other documents of Seller or which relate to
the Business, including all books of account, general, financial, accounting
records, business records, files, invoices, customers’ and suppliers’ lists,
other distribution lists, billing records, sales and promotional literature,
blueprints, specifications, material safety data sheets, designs, drawings,
operating data and all other data used exclusively in the conduct of the
Business, manuals and customer and supplier correspondence and copies of all of
the foregoing;

    
      
         

      

      
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    (k)           All
telephone and facsimile numbers and post office boxes, used in the
Business;

    

    (l)          
 All credits, prepaid expenses and security deposits relating to the
Business;

    

    (m)          All
other assets and properties included in Current Assets or used in the Business;
and

    

    (n)          All
other intangible personal property of Seller related to the Business and
all

    goodwill
of the Business.

    

    2.2         Excluded Assets. The following assets of Seller shall not constitute
Purchased Assets and shall be retained by Seller (collectively, the “Excluded
Assets”):

    

    (a)           Items
or accounts of cash, cash deposits with banks or financial institutions, the
bank accounts, certificates of deposit, savings and other similar cash or cash
equivalents of every kind, character, nature and description;

    

    (b)          Accruals,
items or accounts relating to income tax payable and deferred tax, included in
non-current liabilities;

    

    (c)           Books
and records unrelated to the Business that Seller is required to retain pursuant
to any applicable Law, provided that Seller shall provide Purchaser with access
to or copies of such books and records as provided in Section 5.2;

    

    (d)          All
defenses, rights of set-off and counterclaims arising out of or relating to any
of the Retained Liabilities;

    

    (e)           The
assets set forth on Schedule 2.2(e).

    

    2.3         Assumption of Liabilities. At
the Closing, Purchaser shall specifically assume, pay, perform or otherwise
discharge as the same shall become due in accordance with their respective
terms, only the Liabilities of Seller (collectively, the “Assumed Liabilities”)
as set forth on Schedule 2.3.

    

    2.4         Retained Liabilities. Except
for the Assumed Liabilities, Purchaser shall not assume any Liabilities of
Seller, whether arising before, on or after the Closing Date, and all such
Liabilities (collectively, the “Retained Liabilities”) shall remain the
exclusive Liabilities of Seller. Seller shall pay, perform or otherwise
discharge, as the same shall become due in accordance with their respective
terms, all of the Retained Liabilities.

    

    2.5         Purchase Price. The total
purchase price (“Purchase Price”) to be paid by the Purchaser to Seller in full
consideration for the sale, assignment, transfer, conveyance and delivery of the
Purchased Assets to the Purchaser shall be an amount equal to (a) One Million
Dollars ($1,000,000) plus (b) the Assumed Liabilities; subject to adjustment
pursuant to Section 2.5(b) below. The Purchaser’s obligation to pay the Purchase
Price shall be evidenced by the Purchaser’s promissory note in the aggregate
principal amount of One Million Dollars ($1,000,000) less credits (the
“Credits”) against the Purchase Price in an amount equal to the sum of (i) the
aggregate amount of funds advanced by Purchaser to Seller between August 17,
2006 and the date hereof and as set forth on Schedule 2.5, and (ii) the
aggregate amounts of funds received by Seller as deposits for services to be
performed under the Assigned Contracts and set forth on Schedule 2.5; and in the
form of Exhibit 2.5 hereto (the “Note”), which Note shall bear simple interest
at the rate of six percent (6%) per annum and which will be paid solely from the
Purchaser’s Gross Revenues actually received pursuant to the terms of the Note.
The Credits shall be applied against the payment of principal and interest on
the Note in accordance with the terms of the Note.

    
      
         

      

      
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    2.6         Premium.

    

    (a)           In
addition to the Purchase Price, if prior to the seventh (7th) anniversary of the
Closing Date the Purchaser shall have received sufficient Gross Revenues to
require that Purchaser pay the Note in full, the Purchaser shall make additional
payments (the “Premium”) each year from the date Purchaser has actually
collected such Gross Revenues until the seventh anniversary of the Closing Date
as follows: the Purchaser shall make quarterly payments, each in an amount equal
to the product of (A) two and one-half percent (2.5%) multiplied by (B) the
amount equal to the Gross Revenues accrued in such calendar quarter until the
seventh anniversary of the Closing Date.

    

    (b)           The
Purchaser shall make the payments of the Premium pursuant to this Section 2.6 to
Seller by wire transfer in immediately available funds within forty-five (45)
days following the end of each calendar quarter in which the applicable Gross
Revenues are actually collected in accordance with instructions provided by
Seller to the Purchaser.

    

    2.7         Payment in Full. Purchaser, at
any time after the Closing, shall be entitled to terminate its obligation to
make further payments under Sections 2.5, 2.6 and the Note by written notice,
which notice is accompanied by payment of three million dollars ($3,000,000.00)
plus all Note payments and premiums accruing prior to the date of such notice
pursuant to the formulae set forth in the Note and/or Section 2.6 and remaining
unpaid as of the date of such notice.

    

    2.8         Assignment of Contracts. Set
forth on Schedule
2.8(a) are those Contracts that are not assignable without the consent of
another Person. To the extent that the assignment of any Contract to be assigned
hereunder requires the consent of a third party, this Agreement shall not
constitute an assignment of the same if an attempted assignment would constitute
a breach thereof.  Seller agrees that it will cooperate with Purchaser to
obtain a written consent of any such other party or parties to the assignment of
all such Contracts and, if such consent is not obtained, shall be deemed to have
delegated the performance of such Contract to Purchaser and assigned to
Purchaser the right to receive all revenues and other benefits derived
therefrom, in each case as if such Contract had been assigned to Purchaser
hereunder. Set forth on Schedule 2.8(b) are
those Contracts for which Seller has not obtained the required consent and for
which Purchaser shall assume Seller’s obligations thereunder. Purchaser shall be
solely responsible for the performance and fulfillment of Seller’s obligations
with respect to any Contract set forth on Schedule 2.8(b) as
though such Contract has been assigned to Purchaser.

    

    2.9         Closing and Closing Date.  The closing of the
sale and purchase of the Purchased Assets (the “Closing”) shall take place as
soon as reasonably practicable but in no event later than the third business day
following the date on which the shareholders of Seller have approved the
Agreement and the transactions contemplated hereby (the “Closing Date”). All
transactions which are to take place at the Closing shall be considered to have
taken place simultaneously, and no delivery or payment shall be considered to
have been made until all the transactions have been completed. Title to,
ownership of, control over and risk of loss of the Purchased Assets and the
Assumed Liabilities shall pass to Purchaser effective as of 12:01 a.m. on the
Closing Date unless expressly provided otherwise herein.

    

    2.10       Deliveries to Purchaser at Closing.
At the Closing, Seller shall execute and deliver, or cause to be executed
and delivered, the following:

    

    (a)           one
or more Secretary’s Certificates in form and substance as set forth on Exhibit 2.10(a), each dated as of the Closing Date.

    

    (b)           the
Bill of Sale.

    

    (c)           the
Assignment and Assumption Agreement.

    
      
         

      

      
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    (d)           the
Assignment of Patents.

    

    (e)           evidence,
reasonably satisfactory to the Purchaser, of all consents required under
the
Contracts.

    

    (f)           evidence,
reasonably satisfactory to the Purchaser, of all material licenses, permits,
authorizations, consents and approvals of and filings with any Authority, if
any, required to be obtained or made in connection with the consummation of the
transactions contemplated by this Agreement.

    

    (g)          such
consents as may be required for the assignment to Purchaser of the contracts and
agreements described in Schedule 2.8(a) hereto.

    

    (h)          any
documents, instruments, agreements and certificates as may reasonably be needed
to carry out the transactions contemplated by this Agreement and the other
Transaction Documents, including such documents, instruments and agreement as
the Purchaser may reasonably request in connection therewith.

    

    2.11       Deliveries to Seller at Closing.
At the Closing, Purchaser shall execute and deliver, or cause to be
executed or delivered, as applicable, the following:

    

    (a)           The
Note.

    

    (b)           The
Assignment and Assumption Agreement.

    

    (c)           A
Secretary’s Certificate in form and substance as set forth on Exhibit 2.11(c), dated as of the Closing Date.

    

    (d)           Evidence,
reasonably satisfactory to Seller, of all material licenses, permits,
authorizations, consents and approvals of and filings with any Authority, if
any, required to be obtained or made in connection with the consummation of the
transactions contemplated by this Agreement.

    

    (e)           A
certificate from Eric Takamura in form and substance as set forth on Exhibit 2.11(e), dated as of the Closing Date.

    

    2.12      Conditions
to Closing.

    

    The
Closing and the obligations of the parties to consummate the transactions
contemplated by this Agreement shall be subject to: (a) the approval of this
Agreement and the transactions contemplated hereby by the shareholders of
Seller; and (b) full satisfaction or waiver of any and all obligations of the
parties required under this Agreement prior to Closing, including, without
limitation full satisfaction of the deliveries required by the parties pursuant
to Sections 2.10 and 2.11 and any consents required pursuant to Section 4.2 of
this Agreement.

    

    ARTICLE
3.

    REPRESENTATIONS
AND WARRANTIES

    OF
SELLER

    

    Seller
represents and warrants as follows:

    

    3.1         Organization and Good Standing.
Seller is duly organized, validly existing and in good standing under the
laws of the State of Delaware.

    
      
         

      

      
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    3.2         Authority and Enforceability.
Seller has full power and authority to execute, deliver and perform this
Agreement and the other Transaction Documents to which it is a party and the
execution, delivery and performance of this Agreement and the other Transaction
Documents to which it is a party by Seller has been duly authorized by all
necessary corporate action on the part of Seller. This Agreement and the other
Transaction Documents to which it is a party have been duly executed and
delivered by Seller and constitutes the valid and legally binding obligations of
Seller, enforceable in accordance with their respective terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors’ rights generally and to general principles of equity,
regardless of whether enforcement is sought in a proceeding at law or in
equity.

    

    3.3         Brokers. Neither Seller nor
its Affiliates have any Liability to pay any fees, expenses, commissions,
compensation or costs to any broker, finder or agent with respect to the
transactions contemplated by this Agreement for which Purchaser or its
Affiliates could be liable or obligated.

    

    ARTICLE
4.

    REPRESENTATIONS
AND WARRANTIES

    OF
PURCHASER

    

    Purchaser
represents and warrants as follows:

    

    4.1         Organization and Good Standing.
Purchaser is duly organized, validly existing and in good standing under
the laws of the State of Delaware.

    

    4.2         Authority and Enforceability.
Purchaser has full power and authority to execute, deliver and perform
this Agreement and the other Transaction Documents to which it is a party and
the execution, delivery and performance of this Agreement and the other
Transaction Documents by Purchaser have been duly authorized by all necessary
action on the part of Purchaser. This Agreement and the other Transaction
Documents to which it is a party have been duly executed and delivered by
Purchaser and constitutes the valid and legally binding obligations of
Purchaser, enforceable in accordance with their respective terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors’ rights generally and to general principles of equity,
regardless of whether enforcement is sought in a proceeding at law or in equity.
Except as set forth on Schedule 4.2, Purchaser is not required to give any notice
to, make any filing with or obtain any authorization, consent or approval of any
Authority or Person in order for the parties to consummate the transactions
contemplated by this Agreement.

    

    4.3         Noncontravention. To the
knowledge of Purchaser, the execution or delivery of this Agreement, the other
Transaction Documents, or the consummation of the transactions contemplated by
hereby and thereby will not (a) violate any Law to which Purchaser is subject;
(b) violate any provision of the organizational or governance documents, as
amended, of Purchaser or any resolution adopted by Purchaser’s governing body or
applicable ownership group; or (c) conflict with, result in a breach of,
constitute a default under, result in the acceleration of, give any Person the
right to accelerate, terminate, modify or cancel, or require any notice under,
any agreement, contract, license, permit, authorization, instrument or other
arrangement to which Purchaser is a party or by which it is bound or to which
any of its assets or properties are subject or result in the imposition of a
Lien upon any of its assets.

    

    4.4         Financing. Purchaser’s
obligations under this Agreement are not in any way contingent upon or otherwise
subject to (a) Purchaser’s consummation of any financial arrangements or
Purchaser’s obtaining of any financing, or (b) the availability, grant,
provision or extension of any credit, loan or financing to
Purchaser.

    
      
         

      

      
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    4.5         Brokers. Purchaser or its
Affiliates have no Liability to pay any fees, expenses, commissions,
compensation or costs to any broker, finder or agent with respect to the
transactions contemplated by this Agreement for which Seller or its Affiliates
could be obligated.

    

    4.6         No
Additional Representations or Warranties; Disclaimer Regarding Estimates and
Projections; Opportunity to Inspect.

    

    (a)           Purchaser
acknowledges that none of Seller or any of its Affiliates or any other Person
(i) has made any representation or warranty, express or implied, including any
implied representation or warranty as to the condition, merchantability,
suitability or fitness for a particular purpose of any of the Purchased Assets,
or (ii) has made any representation or warranty, express or implied, as to the
accuracy or completeness of any information regarding Seller or any of its
Affiliates, in each case except as expressly set forth in this Agreement or as
and to the extent required by this Agreement to be disclosed on any of the
Schedules. Purchaser further agrees that none of Seller or any of its Affiliates
or any other Person and their respective stockholders, shareholders, members,
directors, officers, employees, agents or advisors, will have or be subject to
any Liability, except as specifically set forth in this Agreement, to Purchaser
or any other Person resulting from the distribution to Purchaser, for
Purchaser’s use, of any information, including any offering materials or
documentation distributed or any information, document or material made
available to Purchaser in expectation of the transactions contemplated by this
Agreement other than as set forth in this Agreement.

    

    (b)           Purchaser
has received estimates, projections and other forecasts and plans, and Purchaser
is familiar with such uncertainties associated with the same. Purchaser takes
full responsibility for making its own evaluation of the adequacy and accuracy
of all estimates, projections and other forecasts and plans so furnished to it
(including the reasonableness of the assumptions underlying such estimates,
projections and forecasts). Accordingly, Purchaser acknowledges and agrees that
no representation or warranty with respect to such estimates, projections and
other forecasts and plans is being made (including the reasonableness of the
assumptions underlying such estimates, projections and forecasts) other than as
set forth in this Agreement.

    

    ARTICLE
5.

    COVENANTS

    

    The
parties agree as follows with respect to the period as of and following the
Closing:

    

    5.1         General. In case at any time
after the Closing any further action is necessary or desirable to carry out the
purposes of this Agreement, each of the parties shall use commercially
reasonable efforts to take such further action (including the execution and
delivery of such further instruments and documents) as any other party
reasonably may request, all at the sole cost and expense of the requesting party
(unless the requesting party is entitled to indemnification therefor under
Article 6), including, as necessary for Purchaser or Seller, as the case may be,
to satisfy its obligations under this Agreement, obtain the benefits
contemplated by this Agreement, or for the purpose of assigning, transferring,
granting, conveying and confirming to Purchaser, or reducing to possession, any
or all property and assets to be conveyed and transferred by this Agreement. If
any party to this Agreement shall, following the Closing, have in its possession
any property, asset or right which under this Agreement should have been
delivered to another party, such party shall promptly deliver such property,
asset or right to the other party. Seller agrees, that in the event it receives
any proceeds derived from or assets or properties of the Business or otherwise
earned by the Business after the Closing Date, it shall promptly transfer such
proceeds to Purchaser.

    
      
         

      

      
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    5.2         Post-Closing Cooperation, Access to
Information and Retention of Records. From and after the Closing through
the later of (i) the anniversary of the date the Note is paid in full or (ii)
the ninth (9th)
anniversary of the Closing Date, the Purchaser shall:

    

    (a)           deliver
to Seller as soon as available after the end of each fiscal year during such
time period copies of the audited balance sheet of the Purchaser together with
any related statement of income for such fiscal year;

    

    (b)           preserve
all books and records of the Purchaser and the Purchaser shall preserve all
books and records relating to the Purchased Assets, Seller and the Business
received by the Purchaser, and shall not destroy or dispose of any such books
and records for a period of the longest of (A) 9 years after the Closing Date,
(B) one year after such time the Note is paid in full, or (C) such longer time
as may be required by applicable Law, and at any time thereafter prior to
destroying or disposing of any such records, the Purchaser shall notify Seller
and afford it the opportunity to take or to make copies of any such books and
records;

    

    (c)           afford
to Seller, and its counsel, accountants and other authorized agents and
representatives, at Seller’s expense, during normal business hours, reasonable
access to the Employees, books, records and other data relating to the Purchased
Assets, Seller, and the Business in its possession with respect to periods prior
to the Closing as well as relating to the Purchaser with respect to periods
after the Closing, and the right to make copies and extracts therefrom and to
discuss the affairs, finances and accounts of Purchaser with its officers,
Employees and accountants, to the extent that such access may be reasonably
required (A) to facilitate the investigation, litigation or final disposition of
any claims which may have been or may be made against Seller or any of its
Affiliates, (B) for the preparation of Tax Returns and audits, (C) to confirm
compliance with the payment terms of this Agreement and the Note or (D) for any
other reasonable business purpose; and

    

    (d)           keep
adequate records and books of accounts with respect to periods after the
Closing, in which entries will be made in accordance with US GAAP, consistently
applied, reflecting all financial transactions of the Purchaser.

    

    5.3         Tax
Matters.

    

    (a)           Subject
to Section 5.3(c) below, Seller shall be responsible for the preparation and
filing of all Tax Returns attributable to ownership or use of the Purchased
Assets or the operation of the Business on and through the Closing Date. Seller
will be responsible for and make all payments of Taxes attributable to ownership
or use of the Purchased Assets or the ownership or operation of the Business on
and through the Closing Date.

    

    (b)           Purchaser
shall be responsible for the preparation and filing of all Tax Returns
attributable to the ownership or use of the Purchased Assets or its operation of
the Business after the Closing Date. Purchaser will make all payments of Taxes
shown to be due on such Tax Returns.

    

    (c)           All
transfer Taxes (“Transfer Taxes”) which may be imposed or assessed as a result
of sales, transfers, leases, rentals, licenses, assignments and assumption of
the Purchased Assets in connection with the consummation of this Agreement shall
be paid one-half by each of Purchaser and Seller.

    

    (d)           In
the case of any real or personal property taxes (or other similar Taxes) on the
Purchased Assets which require the filing of Tax Returns covering a taxable
period beginning before and ending on or before the Closing Date, Purchaser
shall prepare such Tax Returns and make all payments required with respect to
any such Tax Returns; provided, however, that, to the extent not reflected on
the Closing Balance Sheet, Seller shall promptly reimburse Purchaser upon
receipt of a copy of the filed Tax Return to the extent of any payment made by
Purchaser related to that portion of the taxable period ending on or before the
Closing Date, which amount shall be determined and prorated on a per diem
basis.

    
      
         

      

      
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    (e)   To the extent
relevant to the Business or the Purchased Assets, each party shall (i) provide
the other with such assistance as may reasonably be required in connection with
the preparation of any Tax Return and the conduct of any audit or other
examination by any taxing Authority or in connection with judicial or
administrative proceedings relating to any Liability for Taxes; and (ii) retain
and provide the other party with all records or other information that may be
relevant to the preparation of any Tax Returns, or the conduct of any audit or
examination, or other proceeding relating to Taxes.

    

    (f)    Seller, upon
request, shall use its reasonable efforts to provide or obtain from any taxing
Authority any certificate or other document necessary to mitigate, reduce or
eliminate any Taxes (including additions thereto or interest and penalties
thereon) that otherwise would be imposed with respect to the transactions
contemplated in this Agreement. Purchaser, upon request, shall use its
reasonable efforts to provide or obtain from any taxing Authority any
certificate or other document necessary to mitigate, reduce or eliminate any
Taxes (including additions thereto or interest and penalties thereon) that
otherwise would be imposed with respect to the transactions contemplated in this
Agreement.

    

    5.4         Insurance. On or after the
Closing Date, the Seller and its Affiliates may terminate all insurance policies
currently covering the Purchased Assets and the Business, and Purchaser shall
have the sole responsibility and obligation to obtain insurance coverage for the
Purchased Assets and the Business. Seller, or its Affiliates shall be entitled
to receive and retain (a) any insurance refunds or claim payments with respect
to Seller relating to periods prior to and including the Closing Date, and (b)
any refunds or returns received on and after the Closing Date of prepayments
which were made prior to the Closing Date under insurance policies currently
covering Seller, in each case, except to the extent set forth on the Closing
Balance Sheet. Seller, its Affiliates shall be responsible for any Adverse
Consequences that arise out of the termination of such insurance policies, or in
connection with the claims or Actions under such insurance policies for events
occurring prior to the Closing Date.

    

    5.5         Use of Proceeds. Seller shall
use all proceeds received from the Purchase Price and the Premium pursuant to
Sections 2.5 and 2.6, respectively, first to pay any and all Retained
Liabilities before any other use; provided, however, that at the time of
Seller's receipt of any such proceeds, Seller shall have the right to evaluate
the Retained Liabilities as to the validity thereof and Seller may take into
consideration all defenses Seller may have to the payment of such liabilities,
including without limitation, any applicable statutes of
limitations.

    

    5.6         Allocation. Following the
Closing, Seller and Purchaser shall agree upon an allocation of the total
consideration paid by Purchaser under this Agreement among the Purchased Assets
in accordance with this Section 5.6 and with the requirements of Section 1060 of
the Code. To the extent that disclosures of this allocation are required to be
made by Purchaser and Seller under Section 1060 of the Code, or any regulations
thereunder, Purchaser and Seller will disclose such reports to the other at
least ten (10) days prior to making any such filing. The appropriate parties
shall timely file Form 8594 with their U.S. federal income Tax Returns in
accordance with such agreement. Purchaser and Seller shall cooperate in
providing all necessary information to accurately complete such form or making
any other filing. Within 90 days following the Closing Date, Purchaser will
prepare an initial allocation and present such allocation to Seller for Seller’
approval, which approval shall not be unreasonably withheld. If Seller approves
such allocation or does not object to such allocation within 30 days after
receipt thereof, Purchaser’s initial allocation will be final and binding. If
Seller objects to Purchaser’s initial allocation by delivering written notice to
Purchaser within 30 days after receipt thereof, Purchaser and Seller shall work
in good faith to agree on the allocation.

    
      
         

      

      
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    ARTICLE
6.

    INDEMNIFICATION

    

    6.1     General
Indemnification Obligations.

    

    (a)         
Subject to the terms and conditions set forth in this Agreement, Seller shall
indemnify and defend Purchaser and its employees, officers, directors,
shareholders, agents, representatives and Affiliates (individually a “Purchaser
Indemnified Party” and collectively, the “Purchaser Indemnified Parties”) and
hold Purchaser Indemnified Parties harmless from and against any and all Adverse
Consequences arising out of, resulting from, relating to, in the nature of or
caused by:

    

    (i)           
 Any misrepresentation or breach of any representation or warranty made by
Seller in this Agreement;

    

    (ii)         
  Breach of any covenant or agreement made by Seller in this
Agreement;

    

    (iii)           The
Excluded Assets; or

    

    (iv)        
  The Retained Liabilities.

    

    (b)         
Purchaser shall indemnify and defend Seller and its employees, officers,
directors, shareholders, agents, representatives and Affiliates (individually a
“Seller Indemnified Party” and collectively, the “Seller Indemnified Parties”)
and hold the Seller Indemnified Parties harmless from and against any and all
Adverse Consequences arising out of, resulting from, relating to, in the nature
of or caused by:

    

    (i)            
Any misrepresentation or breach of any representation, warranty, covenant or
agreement made by Purchaser in this Agreement;

    

    (ii)            The
Assumed Liabilities; or

    

    (iii)           Liabilities
arising on or after the Closing Date relating to Purchaser’s ownership or
operation of the Business or the Purchased Assets.

    

    6.2     General
Indemnification Procedures.

    

    (a)   In the event that
any party to this Agreement or any other Purchaser Indemnified Party or Seller
Indemnified Party reasonably believes that such party has a claim with respect
to Adverse Consequences for which indemnity may be sought by such party pursuant
to this Article 6 (each, a “Claim”), the party indemnified hereunder (the
“Indemnified Party”) shall notify Seller or Purchaser, as applicable (the
“Indemnifying Party”) by sending written notice of such Claim, to the
Indemnifying Party (each such notice, an “Indemnity Notice”). In the case of a
Claim involving a third party claim (defined below), an Indemnity Notice shall
be given of such Claim within 15 days after the discovery by an Indemnified
Party of such Claim against the Indemnifying Party; provided, however, that any
delay or failure to notify any Indemnifying Party of any Claim shall not relieve
it from any Liability except to the extent that the defense of such action is
prejudiced by such delay or failure to notify or promptly notify. Any Indemnity
Notice shall, to the extent ascertainable, (i) state (with reasonable
specificity) the basis on which indemnification is being asserted, (ii) set
forth the amount of Adverse Consequences for which indemnification is being
asserted, and (iii) if available, be accompanied by copies of all relevant
pleadings, demands and other documentation served on the Indemnified
Party.

    
      
         

      

      
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    (b)          In
the case of a third party Claim (including Claims relating to Taxes) (each, a
“Third Party Claim”), the Indemnified Party shall give the Indemnifying Party
the right (i) to control and conduct any proceedings or negotiations in
connection therewith and necessary or appropriate to defend the Indemnified
Party (provided such are pursued in a professional manner), (ii) to take all
other reasonable steps or proceedings to settle or defend any such Third Party
Claim, provided that the Indemnifying Party shall not settle any Third Party
Claim without the prior written consent of the Indemnified Party, which consent
shall not be unreasonably withheld or delayed, and (iii) to employ counsel
reasonably acceptable to the Indemnified Party, to contest any such Third Party
Claim in the name of the Indemnified Party or otherwise. The Indemnifying Party
shall, within 10 days of receipt of an Indemnity Notice of such Third Party
Claim (the “Indemnity Notice Period”), give written notice to the Indemnified
Party of its intention to assume the defense of such Third Party Claim. If the
Indemnifying Party does not deliver to the Indemnified Party within the
Indemnity Notice Period written notice that the Indemnifying Party shall assume
the defense of any such Third Party Claim, the Indemnified Party may defend
against any such Third Party Claim in such manner as it may deem appropriate, at
the expense of the Indemnifying Party, and shall have the sole power to direct
and control such defense, and the Indemnified Party shall have the authority to
resolve or settle such Claim. In the event that the Indemnifying Party does
assume the defense of such Third Party Claim as provided above, the Indemnified
Party shall have the right to fully participate in such defense (including with
counsel of its choice), at its sole expense, and the Indemnifying Party shall
reasonably cooperate with the Indemnified Party in connection with such
participation, unless there is, under applicable standards of conduct, a
conflict on any significant issues between the Indemnifying Party and the
Indemnified Party, in which case the reasonable fees and expenses of such
counsel shall be at the expense of the Indemnified Party.

    

    (c)           In
the event that the Claim does not involve a Third Party Claim, the Indemnifying
Party shall within 30 days after the date of receipt of an Indemnity Notice
respond in writing to the Indemnified Party (the “Indemnity Response”) and set
forth with reasonable specificity those items in the Indemnity Notice to which
the Indemnifying Party does not agree as well as the basis upon which such
disagreement is founded. Within 30 days following the receipt of the Indemnity
Response by the Indemnified Party, representatives of the Indemnifying Party and
Indemnified Party shall attempt to resolve through good faith negotiations the
applicable indemnification Claims.

    

    6.3     Provision
on Indemnification; Credits and Escrow; Exclusive Remedy.

    

    (a)           Any
qualification by materiality set forth in any representation or warranty shall
be eliminated and not considered for the purposes of determining whether there
has been a breach of such representation and warranty and the amount of any
Adverse Consequences arising thereunder.

    

    (b)           Except
in cases of actual fraud or willful misconduct committed by Seller, any and all
amounts owing to Purchaser under this Article 6, shall be recovered from amounts
Purchaser previously paid to Seller under this Agreement or any other
Transaction Document or as a credit against amounts subsequently payable by
Purchaser under this Agreement or any other Transaction Document. In the event
of a dispute between the parties concerning the amount of any credits to be
applied against amounts subsequently payable by Purchaser, Purchaser shall be
entitled to make such subsequent payments into escrow pending final
determination of the dispute by the parties, a court of competent jurisdiction
over such amounts in dispute, or pursuant to Section 7.7, as
applicable

    

    (c)           Each
party to this Agreement acknowledges and agrees that such party’s (and all
Indemnified Parties’) sole and exclusive remedy with respect to Adverse
Consequences and any and all other claims relating to the subject matter of this
Agreement and the transactions contemplated by this Agreement (except with
respect to the agreements entered into pursuant to this Agreement, which shall
be subject to the remedies provided for herein, or except to the extent caused
by actual fraud or willful misconduct committed by Seller or Purchaser, as
applicable) shall be in accordance with, and limited by, the indemnification
provisions set forth in Article 6.

    
      
         

      

      
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    ARTICLE
7.

    MISCELLANEOUS

    

    7.1         Confidentiality. The parties
and their respective representatives shall keep and maintain the terms of the
transactions contemplated by this Agreement and the other Transaction Documents
confidential. The parties and their respective representatives shall treat and
hold as confidential any and all information, know-how, business or research
strategies, materials, data and documents in all forms (whether written or
otherwise) relating to the Purchased Assets, Seller or the Business or any party
to this Agreement (collectively, the “Confidential Information”); provided,
however, the following items shall not constitute Confidential Information: (a)
an item that was already available to the general public at the time such item
was received; (b) an item that subsequently becomes known to the general public
through no fault or omission by any party to this Agreement; (c) an item that is
subsequently disclosed by a third party which has the bona fide right to make
such disclosure; or (d) an item that is required to be disclosed by applicable
Law, or by any Authority or for which disclosure to an Authority is appropriate
in the conduct of business. The parties and their respective representatives
shall refrain from using any such Confidential Information in any manner or for
any purpose not in connection with this Agreement or in any manner or for any
purpose detrimental to any party’s interest, and shall upon the failure to
consummate the transactions contemplated by this Agreement or the other
Transaction Documents, deliver promptly to the applicable party or destroy, at
the request and option of such party, all tangible embodiments (including
computer records) of such Confidential Information which are in its possession.
For purposes of this Section 7.1, only representatives of the parties who have a
reasonable need to know may receive or have access to Confidential Information,
and then only if all necessary and appropriate measures are taken to protect
such Confidential Information. Each party shall also take all necessary and
appropriate measures to assure that its representatives who receive or have
access to Confidential Information of the other party observe and comply with
the provisions of, and the applicable party’s obligations under, this Section
7.1. In any event, each party shall be responsible for any breach of this
provision by any of its representatives. In the event that any party to this
Agreement is requested or required (by written request for information for
documents in any legal proceeding, interrogatories, subpoena, civil
investigative demand or similar process) to disclose any Confidential
Information, said party shall notify the other parties promptly of the request
or requirement so that the nondisclosing party may seek an appropriate
protective order or waive compliance with the provisions of this Section 7.1.
If, in the absence of a protective order or the receipt of a waiver under this
Section 7.1, any party to this Agreement is, on the advice of counsel, compelled
to disclose any Confidential Information to any Authority or else stand liable
for contempt, said party may disclose the Confidential Information to the
Authority; provided, however, that the disclosing party shall use its reasonable
efforts to obtain, at the reasonable request of the nondisclosing party, an
order or such assurance that confidential treatment shall be accorded to such
portion of the Confidential Information required to be disclosed as the
nondisclosing party shall designate. Seller recognizes and agrees that all
documents and objects containing any Intellectual Property, Confidential
Information or proprietary or business information, whether developed by Seller
or by someone else for Seller, will after the Closing Date become the exclusive
property of Purchaser and its subsidiaries. Notwithstanding the foregoing,
nothing in this Section 7.1 shall prohibit Purchaser or its representatives from
disclosing Confidential Information to potential financing sources of the
Purchaser so long as such financing sources agree to keep any such disclosed
Confidential Information confidential from third parties not involved in such
potential financing.

    

    7.2         Noncompetition. Except as
provided in this Agreement, the other Transaction Documents, and the transaction
contemplated hereof and thereof, for a period of two (2) years following the
Closing Date, Seller shall not, and Seller shall cause its Affiliates not to,
directly or indirectly engage in the Business, or engage in, own, control, or
acquire interest in, manage, operate or lend money to, or act as an officer,
manager, director, partner, member or joint venturer of, any firm, company,
partnership, entity, enterprise or business that competes with the Business
anywhere in the world.

    
      
         

      

      
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    7.3         Non-Solicitation of Employees.
For a period of two (2) years following the Closing Date, Seller shall
not, and shall not permit any of its Affiliates to, encourage, solicit, induce,
or attempt to encourage, solicit or induce any Employee, or any Person who is an
independent contractor, agent or representative as of the date hereof, of
Purchaser (or any of its subsidiaries) or the Business to leave his/her
employment (or terminate his/her relationship or devote less than full time
efforts) with Purchaser (or any of its subsidiaries) or the Business for any
reason, and Seller, shall not, and shall not permit any of its Affiliates to,
hire or attempt to hire, for any position with any other business, any Employee,
or any Person who is an independent contractor, agent or representative as of
the date hereof, with Purchaser (or any of its subsidiaries) or the Business at
such time or who has been an Employee, contractor, agent or representative with
Purchaser (or any of its subsidiaries) or the Business at any time within 6
months preceding such time; provided, however that Affiliates of Seller shall
not be prohibited from employing or otherwise working with any such Person who
contacts Seller or its Affiliates in response to general solicitations through
the use of media advertisements, professional search firms or otherwise for
employment in a business which does not compete with the Business.

    

    7.4         Reasonableness of Restrictions.
Each of Seller and Purchaser recognizes that the limitations set forth in
Sections 7.1, 7.2 and 7.3 are reasonable and not burdensome, and in the event
that such limitations are deemed to be unreasonable by a court of competent
jurisdiction, then Seller and Purchaser agree to submit to a modification or
reduction of such limitations as such court shall deem reasonable.

    

    7.5         Injunctive Relief. Seller
acknowledges that its expertise in the Business is of a special, unique,
unusual, extraordinary and intellectual character, which gives such expertise a
peculiar value, and that a breach by it of the covenants contained in Sections
7.1, 7.2 or 7.3 cannot be reasonably or adequately compensated in damages in an
Action at Law and that such breach will cause Purchaser irreparable injury and
damage. Seller further acknowledges that it possesses unique skills, knowledge
and ability and that competition in violation of the covenants contained in
Sections 7.1, 7.2 or 7.3 would be extremely detrimental to Purchaser. By reason
thereof, each of Seller and Purchaser agrees that the other shall be entitled,
in addition to any other remedies it may have under this Agreement or otherwise,
to temporary, preliminary or permanent injunctive and other equitable relief to
prevent or curtail any breach of the covenants contained in Sections 7.1, 7.2 or
7.3, without proof of actual damages that have been or may be caused to Seller
or Purchaser, as applicable, by such breach or threatened breach.

    

    7.6         Publicity. No publicity
release, announcement or other disclosure to Persons other than the parties to
this Agreement or their respective legal, financial and accounting advisors and
consultants, brokers, shareholders, stockholders, members, officers, directors
or Affiliates concerning this Agreement or the transactions contemplated by this
Agreement shall be issued by any party to this Agreement (or its/their
representatives or Affiliates) without prior consent to the form and substance
thereof by Purchaser (in the case of any proposed release or announcement by
Seller or its representatives or Affiliates) or Seller (in the case of any
proposed release or announcement by Purchaser or its representatives or
Affiliates). Notwithstanding the foregoing, in the event any such press release
or announcement is required by Law to be made by the party proposing to issue
the same, such party shall use its reasonable efforts to consult in good faith
with the other party prior to the issuance of any such press release or
announcement.

    
      
         

      

      
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    7.7     Disputes.

    

    (a)           Subject
to Section 7.7(b), in the event a dispute shall arise between the parties to
this Agreement, it is hereby agreed that the dispute shall be submitted to
arbitration in Fairfax County, Virginia in accordance with the American
Arbitration Association’s rules applicable to commercial arbitration. The
arbitrator’s decision shall be final and binding and judgment may be entered
thereon. In the event a party fails to proceed with arbitration, unsuccessfully
challenges the arbitrator’s award, or fails to comply with the arbitrator’s
award, the other party is entitled of costs of suit including a reasonable
attorney’s fee for having to compel arbitration or defend or enforce the
award.

    

    (b)           Any
dispute regarding any monetary amount calculated pursuant to this Agreement or
the Note, including but not limited to the calculation of Gross Revenues or any
payment made or to be made under Sections 2.5 or2.6, shall be submitted to an
accounting firm mutually acceptable to the parties. Such accounting firm’s
decision shall be final and binding upon the parties, except that a party may
request that the applicable accounting firm reconsider its initial decision.
Seller shall be responsible for all costs and expenses associated with such
accounting firm’s investigation and decision regarding such dispute provided
that if such accounting firm finally determines that Purchaser has underpaid an
obligation by an amount equal to the greater of five percent (5%) of the amount
payable by Purchaser for the period under review or Five Thousand Dollars
($5,000), Purchaser shall pay the costs and expenses associated with the
accounting firm’s decision.

    

    7.8         Expenses. Except as otherwise
set forth in this Agreement, Seller shall be responsible for the payment of all
costs and expenses incurred by it or any of its Affiliates in the negotiation
and preparation of this Agreement and in closing and carrying out the
transactions contemplated by this Agreement and the other Transaction Documents,
including all attorneys’ fees, accountants’ fees, broker’s fees or commissions
and related costs and expenses. Except as otherwise set forth in this Agreement,
Purchaser shall be responsible for the payment of all costs and expenses
incurred or to be incurred by Purchaser or any of its Affiliates in the
negotiation and preparation of this Agreement and the other Transaction
Documents and in closing and carrying out the transactions contemplated by this
Agreement, including all attorneys’ fees, accountants’ fees, broker’s fees or
commissions and related costs and expenses. Notwithstanding the foregoing, the
Purchaser shall be responsible for any fees and expenses incurred by Seller in
enforcing its rights under Section 5.2

    

    7.9         Survival. The representations
and warranties contained in or made pursuant to this Agreement shall survive the
Closing for a period of eighteen (18) months after the Closing Date, except
representations and warranties of Seller contained Sections 3.1 (Authority and
Enforceability) and 3.3 (Brokers) and warranties of Purchaser contained in
Sections 4.2 (Authority and Enforceability) and 4.5 (Brokers) which shall
survive forever and the obligation of Seller or Purchaser, as applicable, to
indemnify the other for any Adverse Consequences relating to such
representations and warranties shall survive without any limitation other than
the express duration of the representation or warranty to which it relates, if
any.

    

    7.10       Notices. All notices,
consents, requests, instructions, approvals, demands and other communications
provided for herein shall be validly given, made or served if in writing and
delivered personally by hand, by a nationally recognized overnight courier
service (i.e., FedEx or United Parcel Service), by United States certified or
registered first class mail, postage prepaid with return receipt requested, or
by electronic or facsimile transmission. Each such notice, consent, request,
instruction, approval, demand or other communication shall be effective if
delivered (a) personally by hand or by a nationally recognized overnight courier
service, when delivered at the address specified in this Section 7.10; (b) by
United States certified or registered first class mail sent to the address
specified in this Section 7.10 on the date appearing on the return receipt
therefore; or (c) by electronic or facsimile transmission, when such electronic
or facsimile transmission is transmitted to the electronic mail address or
facsimile transmission number specified in this Section 7.10 and the appropriate
confirmation is received. In the event that a party is unable to deliver a
notice, consent, request, instruction, approval, demand, or other communication
due to the inaccuracy of the address or facsimile transmission number provided
by the other party pursuant to this Section 7.10, or the other party’s failure
to notify the party of a change of its address or facsimile transmission number
as specified pursuant to this Section 7.10, such notice, consent, request,
instruction, approval, demand, or other communication shall be deemed to be
effective upon confirmation by a nationally recognized overnight courier service
of its failure to complete delivery to the other party’s address as set forth in
this Section 7.10 (or other address duly given to the party by the other party
in accordance with this Section 7.10).

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

    Addresses
and facsimile transmission numbers for notices (unless and until written notice
is given of any other address or facsimile transmission number):

    

    If to
Purchaser, to:

    

    NuGen
Mobility

    44645
Guilford Drive, Suite 201

    Ashburn,
VA 20147

    Attention:
Eric Takamura

    Fax: [
____________________________________ ]

    Email:
[                                    ]

    

    with a
copy to:

    

    Pepper
Hamilton LLP

    600
Fourteenth Street, NW

    Washington,
DC 20005-2004

    Attention:
Steve A. Mandell

    Fax:
(202) 220-1200

    Email:
mandells@pepperlaw.com

    

    If to
Seller, to:

    

    New
Generation Motors Corporation

    c/o

    Henry,
O'Donnell, Dahnke & Walther, P.C.

    4103
Chain Bridge Road, Suite 100

    Fairfax,
Virginia 22030

    Attention:
Bruce W. Henry

    Fax:
(703) 273-6884

    Email:
bwh@henrylaw.com

    

    7.11       Construction. Any reference to
any Law shall be deemed to include any amendments thereto, and any successor
Law, unless the context otherwise requires. “Including” means “including without
limitation” and does not limit the preceding words or terms. The word “or” is
used in the inclusive sense of “and/or”. The singular shall include the plural
and vice versa. Each word of gender shall include each other word of gender as
the context may require. References to “Articles” or “Sections” or “Schedules”
or “Exhibits” shall mean Articles or Sections of this Agreement or Schedules or
Exhibits attached to this Agreement, unless otherwise expressly indicated. The
title of each Article and the headings or titles preceding the text of the
Sections are inserted solely for convenience of reference, and shall not
constitute a part of this Agreement, nor shall they affect the meaning,
construction or effect of this Agreement. The parties have each participated in
the negotiation and drafting of this Agreement.

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

    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.

    

    7.12       Entire Agreement. This
Agreement, and the other Transaction Documents including the initial paragraph,
the recitals to this Agreement and the other Transaction Documents and all
Schedules and Exhibits attached to this Agreement, each of which are made a part
of this Agreement by this reference, constitutes the entire understanding of the
parties, supersedes any prior agreements or understandings, written or oral,
between the parties with respect to the subject matter of this Agreement and the
other Transaction Documents between Seller and Purchaser and that certain Letter
of Intent, dated September 22, 2006, between Seller and Purchaser. No
supplement, modification or amendment of this Agreement shall be binding unless
executed in writing by all of the parties to this Agreement. No waiver of any of
the provisions of this Agreement shall be deemed, or shall constitute, a waiver
of any other provision, 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.

    

    7.13       Invalidity. If any material
provision of this Agreement is determined to be unenforceable or otherwise
invalid, the remainder of this Agreement, or the application thereof to any
person or circumstances other than those as to which it is invalid or
unenforceable, shall not be affected thereby, and each provision of this
Agreement shall be valid and enforced to the fullest extent of the law,
provided, that the parties in good faith shall negotiate and execute an
amendment to this Agreement incorporating a new provision intended to achieve
the substantially same result as the unenforceable or otherwise invalid
provision.

    

    7.14       Rights of Parties. Nothing in
this Agreement, whether express or implied, is intended to confer any benefit,
right or remedy under or by reason of this Agreement on any Persons other than
the parties to this Agreement and their respective successors and permitted
assigns, nor is anything in this Agreement intended to relieve or discharge the
obligation or Liability of any other Person to any party to this Agreement, nor
shall any provision give any other Person any right of subrogation or action
over or against any party to this Agreement.

    

    7.15       Succession and Assignment.
This Agreement shall be binding upon, and inure to the benefit of, the
parties to this Agreement and their respective representatives, successors and
permitted assigns. None of the parties to this Agreement may assign either this
Agreement or any of the rights, interests or obligations hereunder without the
prior written approval of the other parties. Notwithstanding the foregoing,
Purchaser may, without the consent of Seller, assign all of its rights under
this Agreement in connection with the assignment of a security interest to any
lender of Purchaser, or to any Affiliate of Purchaser, provided that Purchaser
remains liable for all of its obligations hereunder.

    

    7.16       Governing Law. This Agreement shall be governed by and
construed under the laws of the Commonwealth of Virginia, notwithstanding the
conflicts of laws principles of Virginia or any other jurisdiction. Subject to
Section 7.7, no suit, action or proceeding with respect to this Agreement may be
brought in any court or before any similar authority other than in a court of
competent jurisdiction in the Commonwealth of Virginia and the parties hereby
submit to the exclusive jurisdiction of such courts for the purpose of such
suit, proceeding or judgment. Each of the parties hereto hereby irrevocably
waives any right which it may have had to bring such an action in any other
court, domestic or foreign, or before any similar domestic or foreign authority
and agrees not to claim or plead the same. Each of the parties hereto hereby
irrevocably and unconditionally waives trial by jury in any legal action or
proceeding in relation to this Agreement and for any counterclaim
therein.

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

    

    7.17       Counterparts. This Agreement
may be executed in two or more counterparts, each of which shall be deemed an
original, but which together shall constitute one and the same instrument. The
parties may execute this Agreement and all other agreements, certificates,
instruments and other documents contemplated by this Agreement and exchange on
the Closing Date counterparts of such documents by means of facsimile
transmission or electronic transmission and the parties agree that the receipt
of such executed counterparts shall be binding on such parties and shall be
construed as originals. After the Closing the parties shall promptly exchange
original versions of this Agreement and all other agreements, certificates,
instruments and other documents contemplated by this Agreement that were
executed and exchanged by facsimile transmission or electronic transmission
pursuant to this Section 7.17.

    

    [The
Remainder of This Page Intentionally Left Blank and Signature Page
Follows]

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

    

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

    

    
      
        
          	
                  

                

        

      

    

    

    Signature
page to

    Asset
Purchase Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

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

    

    
      
        
          	
                  

                

        

      

    

    

    Signature
page to

    Asset
Purchase AgreementMartinez-Ayme
Securities

    9495
Sunset Drive, Suite B275

    Miami,
FL  33173-5422

    

    305-271-3232

    

    November
9, 2009

    

    Eric
Takamura

    NuGen
Mobility, Inc.

    44645
Guilford Drive, Suite 201

    Ashburn,
VA  20147

    

    Dear Mr.
Takamura:

    

    This
agreement is to confirm our understanding of the engagement of Martinez-Ayme
Securities (“MAS”) as investment banker to assist NuGen Mobility, Inc. (the
“Company”),  specifically to value and raise capital, as well as,
advise, structure, make introductions and use our best efforts to position the
company for a liquidity event.  This event may take the form of
registering and listing equity, outright sale of the Company, or licensing
agreement(s) or arrangement(s).  Any introductions, for the purpose of
providing a financial investment in the Company, on terms acceptable to the
Company, MAS shall inform the Company of the identity of proposed Investor
whereupon MAS will be protected as to the compensation described below, with
respect to any transaction involving such Investors, for a period of 24 months
from the date of the introduction.

    

    In the
event of a successful transaction with or through Investors introduced by MAS,
directly or indirectly, the company will compensate MAS at closing as
follows:  (i) a cash placement fee up to a maximum of 10% of the gross
amount (7% commission and 3% non accountable expenses) of any investment in the
Company by any of the Investors and (ii) one million shares (1,000,000) of the
common stock of the Company at time of closing of this initial
transaction.  MAS will also have the right to appoint a board member.
MAS agrees that a minimum of $1,000,000 is the necessary breakpoint for the
equity consideration of the initial transaction capital raise.  If a
transaction involves consideration other than cash e.g. equity, the cash
compensation due MAS shall be based on the value of the other consideration
involved in the transaction.  MAS shall be entitled to compensation
set forth under (i) and (ii) above with respect to any transaction consummated
within 24 months by any potential investor introduced or identified by MAS to
the Company.  The cash fee due MAS shall be paid by wire transfer of
immediate available funds at each closing or any investment by any
investors.

    

    In
addition, this agreement shall commence upon execution and be effective for 12
months thereafter.  This agreement shall continue month to month after
the first year and may be terminated by written notice by either party with 30
days prior notice.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    The
Company recognizes and confirms that, in advising the Company and in fulfilling
its engagement hereunder, (i) MAS will use and rely on data, material and other
information furnished by the Company to MAS, and (ii) MAS may rely upon such
data, material and other information furnished to MAS by the Company without any
independent investigation or appraisal to verify its accuracy, completeness or
veracity, except to the extent MAS has actual knowledge to the
contrary.  Company represents and warrants that all such data,
material and other information provided by the Company will be true and accurate
in all material respects and will not contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
therein not misleading in light of the circumstances under which such statements
are made.   MAS shall be under no obligation to make independent
appraisals of assets or an independent investigation or inquiry as to any
information regarding, or any representations of, any other participant in a
Transaction or Financing, nor shall MAS have any liability with regard
thereto.  If, in MAS’s opinion after completion of its due diligence
process, the condition or prospects of the Company, financial or otherwise, are
not substantially as represented or do not fulfill MAS’s expectations, MAS shall
have the sole discretion to determine its continued participation in any
proposed financing and / or transaction.

    

    Definition
of Financing

    

    Financing,
as used herein, shall mean all amounts furnished to or for the use of the
Company with Investors directed or introduced by, or through the efforts of, MAS
after the date of this Agreement, whether by investment in equity or debt
securities of the Company, loans, loan commitments, guarantees of indebtedness,
leasing, sale and leaseback, joint ventures or licensing.

    

    Payment
of Compensation

    

    The fees
due MAS as set forth above shall be paid by bank or cashier's check at the
closing of Financing. In the event that a portion of the Financing is completed
in delayed increments, the fee shall be paid prorata as each increment is
advanced.

    

     In
the event that this Agreement shall not be renewed, or if this Agreement is
terminated for any reason, then notwithstanding any such non-renewal or
termination, MAS shall be entitled to receive the full fee provided for
hereunder for any transaction for which the discussions or introductions were
initiated during the Term of this Agreement.

    Expenses

    

    In
addition to the fees payable hereunder, and regardless of whether any
Transaction or Financing is proposed or consummated, the Company shall reimburse
MAS for all reasonable expenses, including, but not limited to: travel expenses,
legal expenses, and reasonable fees paid to third parties incurred in order to
facilitate the terms of this Agreement or otherwise in connection with the
services performed by MAS pursuant to this Agreement. Any expenses over $3,000
must have prior approval of the Company.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Confidentiality

    

    MAS will
hold in confidence any confidential information which the Company provides to
MAS pursuant to this Agreement, which is designated by an appropriate stamp or
legend as being confidential.  Notwithstanding the foregoing, MAS
shall not be required to maintain confidentiality with respect to information
(i) which is or becomes part of the public domain not due to the breach of this
Agreement by MAS; (ii) of which it had independent knowledge prior to
disclosure; (iii) which comes into the possession of MAS in the normal and
routine course of its own business from and through independent non-confidential
sources; or (iv) which is required to be disclosed by MAS by laws, rules or
regulations.  If MAS is requested or required to disclose any
confidential information supplied to it by the Company, MAS shall, unless
prohibited by law, promptly notify the Company of such request(s) so that the
Company may seek an appropriate protective order.

    Restrictions

    

    Nothing
herein contained shall be construed to limit or restrict MAS in providing
financial services and consulting advice to others, or in rendering advice or
conducting business with any third parties.

    

    Indemnification

    

    The
Company recognizes and confirms that, in advising the Company hereunder, MAS
will use and rely on data, material and other information furnished to MAS by
the Company, without independently verifying the accuracy, completeness or
veracity of same. The Company agrees to indemnify and hold harmless MAS, its
employees, agents, representatives and controlling persons from and against any
and all losses, claims, damages, liabilities, suits, actions, proceedings, costs
and expenses (collectively, “Damages”), including, without limitation,
reasonable attorney fees and expenses, as and when incurred, if such Damages
were directly or indirectly caused by, relating to, based upon or arising out of
the rendering by MAS of services pursuant to this Agreement, so long as MAS
shall not have engaged in intentional or willful misconduct, or acted grossly
negligent in connection with the services provided which form the basis of the
claim for indemnification.  This Paragraph shall survive the
termination of this Agreement. The Company hereby agrees that MAS shall not be
liable to the Company for any damages except for those arising from the MAS’s
willful gross negligence, and, MAS’s liability for any such damages shall be
limited to the fees actually collected by MAS.

    

    This
agreement is governed by and construed under the laws of the State of Florida,
and any action brought by either party against the other party to enforce or
interpret this Agreement shall be brought in an appropriate court of such
state.  In the event of any such actions, the prevailing party shall
recover all costs and expenses thereof, including reasonable attorney’s fees
from the losing party.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    If the
foregoing correctly sets forth our agreement, please sign and return the
enclosed copy of this letter.

    

    Very
truly yours,

    

    
      
        	
                /s/ Reynaldo A. Martinez

              
	 
      
	
                Reynaldo
      A. Martinez

              
	
                President

              
	
                Accepted
      and agreed to this 9th
      day of

              
	
                November,
      2009

              

      

    

    

    
      
        
          	
                  NuGen
      Mobility, Inc.

                
	 
      
	
                  By:

                	
                  /s/ Eric Takamura

                
	 
      	
                  Eric
      Takamura

                
	 
      	
                  President
      and CEO

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