Document:

exv10w17

 

Exhibit 10.17

REDEMPTION AND STOCK PURCHASE AGREEMENT

     THIS REDEMPTION AND STOCK PURCHASE AGREEMENT is made as of the 11th day of
July, 2005, by and between Thomas J. Belville (“T. Belville”) and Robert E. Belville
(“R. Belville”) (T. Belville and R. Belville hereinafter sometimes referred to individually
as “Seller” and collectively as “Sellers”), E-Rail Logistics, Inc. (“E-Rail”), a
New York corporation (hereinafter referred to as “Buyer”), and Belville Mining Company,
Inc., an Ohio corporation (hereinafter referred to as “BMC”).

RECITALS

     WHEREAS, T. Belville and R. Belville represent that each owns ten (10) shares of BMC’s common
stock (twenty (20) shares total), No par value per share (the “Common Stock”) respectively,
comprising 100% of the outstanding issued shares of BMC (the “Shares”); and

     WHEREAS, Sellers desire to sell, and Buyer desires to purchase, on the terms and conditions
set forth herein, all of the Shares; and

     NOW, THEREFORE, in consideration of the mutual covenants, conditions, and agreements herein
contained, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties do hereby agree as follows:

1. DEFINITIONS

     1.1 “Agreement” shall mean this Agreement, together with the Exhibits and Schedules
attached hereto, as the same may be amended from time to time in accordance with the terms hereof

     1.2 “Bank One Obligation” means the letter of Bank One, dated May 17, 2005, addressed
to BMC and T. Belville, setting forth Bank One’s agreement to accept a single lump sum payment of
$800,000 as full and final satisfaction of all amounts owed to it by BMC, T. Belville and R.
Belville, and to accept a single lump sum payment of $40,000 as full and final satisfaction of the
obligations of Thomas J. and Loretta Belville to Bank One, and to release all liens of Bank One
against the Real Property and stock pledged as collateral, if received on or before July 25, 2005,
as that letter agreement may be amended with the consent of the Buyer, and as reduced by the
payment of $50,000 provided for in Section 4.1 of this Agreement.

     1.3 “Equipment” shall mean all machinery, equipment, fixtures, parts and other
tangible personal property that are owned by BMC, including, without limitation, the machinery and
equipment listed on Schedule 1.3 hereof.

     1.4 “Liabilities” shall mean all liabilities of BMC as of the date of this Agreement
which are known by Sellers, in the exact or estimated amounts thereof, set forth on Schedule
1.4 hereof, including but not limited to any unpaid taxes of BMC for any taxable period that
ends on or before the Closing or, in the case of a taxable period beginning before and ending after
the Closing, the portion of such period through the end of the Closing, as the same shall be
updated prior to the Closing Date (as hereinafter defined) pursuant to Section 4.4 hereof
to reflect
the liabilities known by Sellers and amount thereof.

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     1.5 “Permits” shall mean all permits, licenses and governmental authorizations,
registrations and approvals held by BMC, including but not limited to, those listed on
Schedule 1.5 to this Agreement.

     1.6 “Real Property” shall mean all real property, surface estates, leases, easements,
options, rights-of-way, access rights, and other rights or interests in real property and
improvements thereon owned or leased by BMC, including, but not limited to, those listed on
Schedule 1.6 to this Agreement.

2. REDEMPTION AND SALE OF CORPORATE STOCK

     Upon the terms, subject to the conditions and in reliance on the representations, warranties
and covenants set forth herein, at Closing (as defined in Section 5 hereof), (a) BMC agrees
to redeem 81.596 percent of the Sellers’ Shares (the “Redemption Shares”) and Sellers agree
to tender such interest in their Shares in redemption for the Redemption Price (as defined in
Section 3 hereof), and (b) the Buyer agrees to purchase from the Sellers and the Sellers
hereby agree to sell and transfer to the Buyer, all of Sellers’ remaining interest (18.404 percent)
in the Shares (the “Sale Shares”) for the Purchase Price (as defined in Section 3
hereof), in each case free and clear of all liens, equities, encumbrances and claims of any kind
and rights of any person.

3. REDEMPTION AND PURCHASE PRICES

     3.1 The Sellers and BMC agree that the total redemption price for the interest in the
Redemption Shares to be tendered to BMC in redemption (the “Redemption Price”) shall be the
sum of (i) the amount of shareholder debt cancelled in accordance with Section 3.2 hereof
and (ii) $1,315,000, or such lesser or greater amount as provided pursuant to Section
3.1(b) hereof, which shall be paid by BMC at Closing by the execution and delivery to Sellers
of two secured promissory notes, as follows:

     (a) A self-liquidating note (the “Liquidating Note”) to be issued by BMC payable to
the order of the Sellers in the principal amount of $575,000, and subject to offset for the amount
of Sellers’ indemnity obligations as provided in Section 10.2 hereof, said note to be in
the form attached hereto as Exhibit A.

     (b) An installment note (the “Installment Note”) issued by BMC payable to the order of
the Sellers in the principal amount of $740,000 or such lesser or greater amount as determined as
follows: if the liabilities of BMC contained on Schedule 1.4, updated as provided in
Section 4.4, exceed Two Million One Hundred Seventy One Thousand Five Hundred Dollars
($2,171,500) in the aggregate, the principal amount of the Installment Note shall be reduced by the
amount of the liabilities on updated Schedule 1.4 in excess of $2,171,500, and if the
liabilities of the BMC contained on Schedule 1.4, updated as provided in Section
4.4, are less than $2,171,500 (except to the extent such reduction results from the payments
made pursuant to Sections 4.1, 4.2 and 4.3 hereof), the difference between the liabilities
on updated Schedule

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1.4 and $2,171,500 will be added to the principal amount of the Installment Note; and
provided that said Installment Note shall be subject to any offset for the amount of Sellers’
indemnity obligations as provided in Section 10.2 hereof, said Installment Note to be in
the form attached hereto as Exhibit B.

     (c) At Closing, Buyer shall provide to Sellers a first mortgage on 700 unencumbered acres
(hereinafter “Mortgage 1”), to be in the form attached hereto as Exhibit C, and a
second mortgage on 800 acres remaining (hereinafter “Mortgage 2”) (with the first mortgage
position to be held by Rollyson and Roshon as further provided herein), to be in the form attached
hereto as Exhibit D, to secure both the Liquidating Note and Installment Note (the
“Notes”) provided for in this Section. The Mortgages shall provide that any reduction in
the amount of the Notes made based on a claim by Sellers that Sellers owe the Buyer any amount
under Sellers’ indemnity under Article 10 hereof shall not constitute an event of default
or other grounds for purposes of commencing or enforcing a foreclosure on the properties subject to
Mortgage 1 or Mortgage 2, unless and until it has been finally determined, either by written
agreement of the parties, court decision, binding arbitration or other dispute resolution mechanism
agreed to by the parties, that the amount of Sellers’ liability under Article 10 applied in
reduction of the Notes (or any portion thereof) was incorrect, and BMC does not pay the amounts
past due within 10 business days following such final decision. Notwithstanding the foregoing, the
grant of Mortgages 1 and 2 are subject to the exception that an approximately 10 acre tract along
Route 140, within the tract which is subject to a mortgage held by James H. and Genevieve Rollyson
(the “Rollyson Mortgage”), known as the Globe Hollow Tract, where the Buyer is planning on
the installation of a rail line, will be excluded from the Mortgages to secure the Notes, as noted
in Section 4.6(a).

     3.2 As additional consideration for said redemption of the Redemption Shares, at Closing, all
debts owed by the Sellers to BMC, in the approximate amount of $2,070,000, excluding the
obligations to be incurred at Closing contained in the Liquidating Note and Installment Note as
provided for in Section 3.1(a), shall be canceled and forgiven in full. An itemization of
all Sellers’ debts to BMC, showing the amounts outstanding, shall be prepared by BMC and Sellers
and presented at Closing, to be attached to an instrument executed by BMC formally canceling such
debts (the “Shareholder Debt Cancellation Instrument”).

     3.3 The Sellers and the Buyer agree that the total purchase price for the interest in the Sale
Shares being sold to Buyer (the “Purchase Price”), shall be $763,500, which shall be paid
by Buyer to Sellers, in cash, as follows:

          (a) an advance payment of $10,000 shall be made by Buyer to Sellers on execution of this
Agreement; and

          (b) at Closing; $753,500 shall be paid in cash by Buyer to Sellers, by wire transfer to an
account or accounts of the Sellers pursuant to instructions provided by Sellers at least 3 business
days prior to Closing.

     3.4 The Redemption Price and Purchase Price shall be allocated by and among T. Belville and R.
Belville as mutually agreed upon by them and set forth in a Memorandum of Understanding and
Agreement by and between T. Belville and R. Belville dated May 18, 2005.

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4. PRE-CLOSING OBLIGATIONS.

     4.1 As evidence of good faith, Buyer has deposited the sum of $50,000, which deposit is being
held in escrow by Dean K. Hunt, Esq. (the “Escrow Agent”) according to the Escrow Agreement
between the parties dated June 30, 2005, as amended (the “Escrow Agreement”). Upon
execution of this Agreement, provided that this Agreement is executed on or before July 11, 2005,
the Escrow Agent shall pay said escrow deposit on behalf of the Company to Bank One, to the
Attention of Esther Bullock, Assistant Vice President, JP Morgan Chase Bank, NA, P.O. Box 29550,
Phoenix, Arizona 85036, (480) 927-6110. Upon payment of said deposit to Bank One, said payment
shall be applied to the debts of BMC required to be paid at Closing referenced in Section
5.2 and Schedule 5.2, and a reduction in the corresponding amount set forth in
Schedule 1.4 hereof.

     4.2 Reclamation Obligations. On or about May 25, 2005, the Buyer paid Sellers the
amount of $25,000 for use in performing and overseeing reclamation work on areas covered by the
Permits. On or before Closing, Sellers will present evidence to the Buyer that said $25,000 was
expended to perform reclamation work on areas covered by the Permits. Such payment shall be applied
to and reduce the corresponding debts of BMC itemized in Schedule 1.4 hereof.

     4.3 Preparing Tax Returns. Except as set forth on Schedule 4.3, Sellers
represent and warrant to the Buyer that, as of the date of this Agreement, BMC has filed all
returns, reports or declarations for federal, state or local taxes required to be filed for all
periods ending before the date hereof. On or before Closing, Sellers will cause BMC to prepare all
returns, reports or declarations listed on Schedule 4.3 (the “Unfiled Returns”). On
or about June 22, 2005, the Buyer paid Kelley, Galloway & Company, PSC the amount of $4,000 for use
in preparing the Unfiled Returns, which payment shall be applied as a reduction to the
corresponding amount set forth in Schedule 1.4 hereof..

     4.4 Schedule of BMC Liabilities. Within three (3) business days prior to Closing,
Sellers shall update or revise Schedule 1.4 hereof to reflect all liabilities of BMC as of
such time and the amounts thereof to the best of their knowledge, and including in such updated
schedule income, franchise, real estate and any other taxes of BMC not yet due and payable for the
portion of the current tax year up to and including the date of Closing, including, for purposes of
income or other relevant tax calculations, the cancellation of indebtedness income that will be
realized by BMC upon payment of the Bank One Obligation (the liabilities shown on Schedule
1.4 as so updated, hereinafter the “Updated Liabilities”), and provide a copy thereof
to the Buyer.

     4.5 New Share Certificates. BMC shall prepare, for issuance to Sellers in exchange for
and in cancellation of the Shares at Closing, new certificates representing the Redemption Shares
to be tendered in redemption to BMC under this Agreement and the Sale Shares to be sold to Buyer.

     4.6 Restructuring Certain Existing Obligations. BMC shall negotiate and prepare
documents, for execution at Closing, which implement the following restructuring of BMC’s existing
obligations to James H. and Genevieve Rollyson (the “Rollyson Obligation”), Gale

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Roshon (the “Roshon Obligation”), and Walker Equipment, Inc. (the “Walker Equipment
Obligation”):

     (a) The existing Rollyson Obligation will be satisfied and superseded in its entirety by a
payment of $50,000, in cash to the Rollysons, at Closing, as one of BMC’s Pay At Closing
Obligations, and by execution and delivery of a note by BMC its entirety by a new note in the
amount of $480,000 bearing 5.5% per annum interest payable in 24 equal monthly payments of
principal and interest of $21,165.91, being the amount which completely amortizes the debt over 24
months. Such note will be secured by a first mortgage on the same property which is currently
mortgaged under the Rollyson Mortgage, except for the approximately 10 acre portion of the Globe
Hollow Tract described in Section 3.1(c) hereof (the “Railroad Portion”), provided
that the mortgage holder shall be provided a right of ingress and egress easement over said Globe
Hollow Tract. Such note and mortgage shall otherwise be on terms and conditions reasonably
acceptable to Buyer, including an agreement to grant a mortgage on the Railroad Portion to the
Rollysons if certain rail improvements are not made thereon in a reasonable time. The Rollyson
Obligation, as so restructured, is herein referred to as the “Revised Rollyson Obligation”.

     (b) The existing Roshon Obligation will be satisfied and superseded in its entirety by a
payment of $10,000, in cash to Gale Roshon, at Closing, as one of BMC’s Pay At Closing Obligations,
and by execution and delivery of a note by BMC its entirety by a new note in the amount of $90,000
bearing 5.5% per annum interest payable in 24 equal monthly payments of principal and interest of
$3,968.61, being the amount which completely amortizes the debt over 24 months, and otherwise on
terms and conditions reasonably acceptable to Buyer. The Roshon Obligation, as so restructured, is
herein referred to as the “Revised Roshon Obligation”.

     (c) The existing Walker Equipment Obligation will be satisfied and superseded in its entirety
by a payment of $10,000, in cash, to Walker Equipment at Closing, as one of BMC’s Pay At Closing
Obligations, and by execution and delivery of a note by BMC its entirety by a new note in the
amount of $89,264.44 bearing 6.5% per annum interest payable in 36 equal monthly payments of
principal and interest of $2,735.87, being the amount which completely amortizes the debt over 36
months, and otherwise on terms and conditions reasonably acceptable to Buyer. The Walker Equipment
Obligation, as so restructured, is herein referred toas the “Revised Walker Equipment
Obligation”.

     Attached hereto as Exhibit F are copies of letters executed by the Rollysons, Roshon
and Walker Equipment indicating their agreements to enter into restructuring of their debts as
described in this Section 4.6.

     4.7 Right of Termination of Tenancy. BMC shall enter into an agreement with the tenant
John Schob, who provides property watch services with respect to the immediate area on which the
barns are located, which agreement shall permit BMC to terminate his tenancy and require him to
vacate the premises at the sole discretion of BMC upon at least thirty days prior notice at no cost
to BMC.

     4.8 Title Report. Buyer shall obtain, at Buyer’s sole cost and expense, a title report

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on the Real Property owned and leased by BMC, together with copies of all material documents
of record relating thereto, from an attorney licensed to do business in Ohio no later than July 20,
2005.

     4.9 Cooperation with Due Diligence Inquiries. BMC and Sellers shall cooperate, and
cause their accountants and other advisors to cooperate with the Buyer and its representatives in
Buyer’s due diligence investigations of BMC and Sellers and their respective assets, liabilities,
business, liens, and litigation or proceedings, and provide access to books and records, and copies
of reports, contracts, leases, documents, instruments, correspondence, or other information
reasonably requested by the Buyer or its representatives. Any such information shall be kept
confidential by the Buyer and its representatives and used solely for purposes of the transactions
contemplated by this Agreement.

5. CLOSING.

     5.1. The closing of the redemption, sale and purchase of Shares pursuant to this Agreement
(the “Closing”) shall take place at 10:00 a.m. at the offices of Best Title at 211 Center
Street, Ironton, Ohio, on Monday, July 25, 2005, or such other time and date as the parties may
mutually agree, including any extension requested by Buyer and approved by Bank One and Sellers
(the “Closing Date”), with the transactions to be conducted at such closing becoming
effective at the close of business on the Closing Date.

     5.2 Attached as Schedule 5.2 hereof is a list setting forth all Liabilities to be paid
at Closing (the “Pay At Closing Obligations”). At Closing, the Buyer shall pay all Pay At
Closing Obligations in full and provide evidence of such payment to Sellers (which may be by
evidence of wire transfer or copy of the check and accompanying letter or payment form with
envelope ready to be deposited in the mail) or, in the case of the Bank One Obligation, provide
evidence to Sellers that the Buyer has entered into an arrangement providing for the payment of
said obligation and deliver releases of Sellers from said obligations and of Loretta Belville and
Bank One’s security interest in the Shares from said obligation.

     5.3 At the Closing, BMC shall perform the following:

          (a) Exchange the certificates representing the Redemption Shares and the Sale Shares for the
certificates representing the Shares and cancel the certificates representing the Shares.

          (b) Execute and deliver to Sellers the Liquidation Note, the Installment Note, Mortgage 1, and
Mortgage 2.

          (c) Execute and deliver the Shareholder Debt Cancellation Instrument pursuant to Section
3.2.

          (d) Execute and deliver the note and mortgage referred to in Section 4.6(a) hereof
relating to the Revised Rollyson Obligation, the note referred to in Section 4.6(b) hereof
relating to the Revised Roshon Obligation, and the agreement with Walker equipment, Inc. referred
to in Section 4.6(c) hereof relating to the Revised Walker Equipment Obligation.

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     5.4 At the Closing, the Sellers shall perform the following:

          (a) Tender the certificates evidencing the Shares in exchange for the certificates evidencing
the Redemption Shares and the certificates evidencing the Sale Shares.

          (b) Deliver to BMC the certificates representing the Redemption Shares, duly endorsed, in
exchange for the Liquidation Note, the Installment Note, Mortgage 1, Mortgage 2 and the Shareholder
Debt Cancellation Instrument.

          (c) Deliver the certificates evidencing the Sale Shares to Buyer, duly endorsed.

          (d) Deliver evidence that the money provided for reclamation has been expended in accordance
with Section 4.2.

          (e) Deliver evidence that the Unfiled Returns have been prepared, in accordance with
Section 4.3, and sign any returns requiring signature.

          (f) Deliver to BMC (with a copy to Buyer) the itemization of shareholder debts required by
Section 3.2.

          (g) Deliver the certificate required by Section 8.1(a).

          (h) Deliver a resignation of the Sellers as officers, directors and all other positions of
BMC, and any benefit plans relating thereto, and cancellation of any authority as signatories on
all bank, mutual fund and other accounts, resignations and cancellations shall be deemed accepted
by BMC effective at the Closing.

          (i) Deliver to the Buyer the corporate minute book, corporate papers, and the books and
records of BMC, including but not limited to all tax records (A) relating to any taxable period
beginning before the Closing Date for which the statute of limitations has not expired, and
(B) with respect to any taxable year in which BMC sustained a net operating loss.

          (j) The Sellers shall deliver to the Buyer keys to any premises of BMC and keys to any
vehicles or equipment owned or leased by BMC, provided that T. Belville shall have one (1) year
from the date of Closing to remove personal belongings from the barns on the Real Property,
provided further that BMC and Buyer shall have no liability for loss, destruction or casualty to
such personal belongings, shall not be required to provide insurance for said personal belongings,
and T. Belville agrees to remove said personal belongings within 30 days upon notice from BMC or
Buyer that said personal belongings need to be removed at an earlier time.

          (k) Sellers shall deliver to the Buyer true, correct and complete copies off its stock record
books, which stock record books shall accurately reflect the record ownership of the BMC Shares.

     5.5 At the Closing, the Buyer shall perform the following:

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          (a) Pay to Sellers the Purchase Price in accordance with Section 3.1(b).

          (b) Appoint new directors and officers pursuant to actions in writing in lieu of
meetings of the shareholders and directors.

          (c) Pay the Pay At Closing Liabilities and provide evidence thereof or, with respect to the
Bank One Obligation, provide evidence of an alternative arrangement with Bank One and deliver the
required releases, as specified in Section 5.2 hereof.

          (d) Deliver the certificate to Sellers required by Section 9.1(a).

6. CONDUCT OF BUSINESS PENDING CLOSING

     6.1 BMC, the Sellers and the Buyer agree that pending the Closing:

          (a) BMC’s business will be conducted only in the ordinary course consistent with that
conducted within the past 12 months and BMC shall enter into no transaction except in accordance
with that standard or as is otherwise specifically contemplated by this Agreement. In no event
shall BMC borrow any money or lend or advance any funds to any person or entity, make any sale,
lease or other transfer of any Real Property or any tangible personal property (other than
inventory in the ordinary course of business) without the prior written approval of the Buyer.

          (b) No change will be made in BMC’s Certificate of Incorporation or Bylaws, except as may be
first approved in writing by the Buyer.

          (c) No change will be made in BMC’s authorized or issued shares of stock and BMC will issue no
options, warrants or other agreements for the issuance of stock or other securities of BMC, except
as contemplated by this Agreement.

          (d) BMC shall not pledge, grant any security interest on, or permit any lien or other
encumbrance upon any of its properties, or enter into any contract or agreement providing for the
same.

          (e) No contract or commitment will be entered into by or on behalf of BMC, except for those
contracts or commitments that may otherwise be approved in writing by the Buyer or otherwise
expressly contemplated by this Agreement, and as follows: (i) BMC is authorized to transfer two
motor vehicles, one 1979 Cadillac and one 1993 Ford Explorer to T. Bellville.

          (f) BMC shall not commence any action or proceeding in bankruptcy, be dissolved, liquidated,
merged or consolidated with any other corporation or entity, or acquire any corporation,
association, partnership, joint venture or other entity, or enter into any agreement to any of the
foregoing.

          (g) No Seller shall pledge, encumber, or suffer any lien to be imposed on any of the Shares,
or sell, assign or otherwise transfer all or any portion of the Shares or enter
into any agreement to do the same.

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          (h) BMC shall not distribute or otherwise transfer title to any of BMC’s property to Sellers
or to any other person or company other than transfers of property in the ordinary course of
business to unaffiliated or unrelated customers or creditors of BMC.

     6.2 Sellers shall be entitled to all revenue earned and received by BMC through the Closing
Date, provided, however, that they shall cause BMC to retain so much of such revenue as necessary
to pay debts and expenses of BMC such that the total liabilities of BMC (including but not limited
to liabilities for franchise, income, real estate and other taxes not yet due and payable but
attributable to the period prior to Closing) do not exceed $2,171,500 (less the amounts prepaid
referenced in Sections 4.1 — 4.3 hereof) as of the Closing Date. 7.

7. REPRESENTATIONS AND WARRANTIES.

     7.1 Representations and Warranties of Sellers. The Sellers and BMC jointly and
severally represent and warrant to Buyer as follows.

          (a) Organizational Standing of Company. BMC is a corporation duly organized and
validly existing in good standing under the laws of the State of Ohio and has the corporate power
to carry on its business as it is now owned and as it is now being conducted.

          (b) Subsidiaries. BMC has no subsidiaries or interests in any other entities.

          (c) Capitalization. The aggregate number of securities that BMC is authorized to issue
is Two Thousand Five Hundred (2,500) shares of Common Stock of which Twenty (20) shares are issued
and presently outstanding. Said issued and outstanding Shares are the sole securities (100%) of BMC
issued and presently outstanding. The issued and outstanding Shares are duly authorized, validly
issued, fully paid and nonassessable, have not been issued in violation of any preemptive,
subscription or other rights or laws, and when sold, transferred and delivered to the Buyer in
accordance with the terms of this Agreement, and will be free of all restrictions on transfer other
than those arising under the Securities Act of 1933, as amended (the “Securities Act”), or
state securities laws. There are no other debt or equity securities of BMC outstanding and there is
no outstanding option, warrant, right, call, subscription or other agreement or commitment to which
either of the Sellers or BMC is a party which (i) calls for the issuance, sale, pledge or other
disposition of any shares of BMC common stock, including the Shares, or any securities convertible
or exchangeable into, or other rights to acquire, any shares of BMC common stock, (ii) obligates
any Seller to grant, offer or enter into any of the foregoing, or (iii) relates to the voting,
transfer or control of the Shares. There are no agreements, contracts, obligations or undertakings
(written or oral) to which either the Sellers or BMC is a party (or by which either of them are
bound) relating to the issuance, sale or transfer of any securities of BMC.

          (d) Share Ownership. Subject to the security interest of Bank One, the Sellers: (i)
are the sole record, legal and beneficial owner of the issued and outstanding Shares; and (ii) the
delivery to Buyer of the certificates for the Shares in the manner contemplated

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by this Agreement will transfer to Buyer exclusive legal and beneficial ownership of the
Shares, free and clear of all liens, equities, encumbrances and claims of every kind, or rights of
any person.

          (e) No Stock Registration. The Shares of BMC have not been registered under the
Securities Act, or the securities laws of the state of Ohio, and the Sellers are relying upon an
exemption from such registration requirements afforded under the Securities Act, regulations
promulgated under the Securities Act, and under the securities laws of the state of Ohio.

          (f) Authority for Transaction; Binding Obligation. Sellers have full power and
authority to enter into, deliver and perform this Agreement and each instrument executed in
connection herewith or delivered pursuant hereto and to consummate the transactions contemplated
hereby. This Agreement constitutes the legal, valid and binding obligation of Sellers enforceable
against them in accordance with its terms, except as enforcement may be limited by bankruptcy,
insolvency or other laws of general application affecting the enforcement of creditors’ rights.

          (g) No Conflicts; Consents and Approvals. The execution, delivery and performance of
this Agreement by the Sellers and the consummation of the transactions contemplated hereby will not
constitute a conflict with, breach or violation of or default (or an event which with notice or
lapse of time or both would become a default) under: (i) any agreement, instrument, license,
franchise or permit to which any Seller is subject or by which any Seller is bound; (ii) any order,
writ, injunction or decree to which any Seller is subject or by which any Seller is bound; or (iii)
any law, rule or regulation to which any Seller is subject. Except for consents and approvals
already obtained, no Seller is required to submit any notice, report or other filing to or obtain
any consent or approval from any governmental authority or third party under any material agreement
to which a Seller is a party in connection with the execution and delivery by the Sellers of this
Agreement or the consummation of the transactions contemplated hereby.

          (h) Property. BMC owns or leases or has the easements or rights described in
Schedule 1.6 hereto, as described therein, and has not sold, transferred, leased, assigned
or otherwise disposed of any such estates in real property. The real property option agreement by
and between BMC and Emily Lucy C. Burch, AKA Emily Lucy C. Wingert, dated January 5, 2005, a true
and correct copy of which is attached hereto as Exhibit E, is current and valid, has not
expired or been terminated, has not been sold, transferred, assigned or otherwise disposed of, and
is subject to extension according to the terms, payments and provisions contained therein, and all
payments required to be paid thereunder have been paid except the final payment due no later than
December 31, 2005. Except as set forth in Schedule 1.6, there are no other written or oral
leases, tenancies, rights of possession, licenses or occupancy agreements covering or affecting the
Real Property granted by BMC. Additionally, BMC represents and warrants that it owns fee simple
title to the land and improvements thereon commonly referred to as the Rollyson and Roshon tracts
of property, comprising approximately 800 acres, and the approximately 10 acre portion of the tract
commonly referred to as the Globe Hollow Tract which runs along Route 140, and in addition
possesses fee simple title or permanent easements to any other property necessary to provide
ingress and

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egress to such tracts to and from a public highway, in each case subject only to the liens
described on Schedule 7.1(h).

          (i) Condemnation. BMC has received no notice of any pending or threatened
condemnation, taking by eminent domain or similar proceeding by any governmental entity with
respect to all or any portion of the Real Property and neither Sellers nor BMC have any actual
knowledge of any such threatened condemnation, taking or similar proceeding.

          (j)
Mortgages. Schedule 7.1(j) sets forth a list of all mortgages on the Real Property.

          (k) Contracts. Schedule 7.1(k) sets forth a list of all contracts of BMC which
require BMC to perform any covenants beyond a 30 day period or pay any amounts, or contain
unperformed obligations of any other party or which are the basis of any existing claim or
threatened claim by or against BMC, or which, although believed by

          (l) Other Disclosure. Schedule 7.1(1) is a due diligence checklist prepared by
Buyer for Sellers and the information set forth therein is true and correct in all material
respects.

          (m) Taxes. The liability of BMC with respect to all Unfiled Returns is approximately
$45,000, subject to being updated according to Section 4.4. As of the Closing Date, (1) all
federal, state, county and local income, excise, profits, franchise, property, sales, use,
occupancy, value-added and other tax returns, reports and forms required by law to be filed by BMC
with respect to all periods up to the Closing Date have been filed or will be prepared as provided
in Section 4.3, (2) all such returns, reports and forms are or will be true and correct,
(3) BMC has paid or will have paid all taxes and other governmental charges (including interest and
penalties) due, after giving effect to all applicable extensions, other than taxes, interest,
penalties or other charges which are (x) due and payable in connection with the Unfiled Returns, or
(y) not then yet due, or (z) being contested in good faith (the taxes and other charges described
in clauses (x), (y) and (z) as of the Closing Date being herein referred to as the “Unpaid
Taxes”). All such taxes and other assessments and levies which BMC is required by law to
withhold or to collect, other than the Unpaid Taxes, have been or will have been duly withheld and
collected and have been paid over to the proper governmental agencies or segregated and set aside
for such payment. As of the Closing Date there will be no agreement for the extension of the time
of any assessment of any tax with respect to BMC’s business. There are no audits of any of BMC’s
tax returns currently in progress nor has BMC received any notice of any forthcoming audits, except
as set forth on Schedule 7.1(m). There are no claims or proceedings pending with respect to
BMC’s business for past-due taxes, and no such claims or proceedings are threatened. Except as set
forth on Schedule 7.1(m), BMC has not received any notice of any tax lien with respect to
its business having been filed in any jurisdiction. Except asset forth on Schedule 7.1(m),
none of BMC’s tax returns or tax reports have been audited since 1990. There is no dispute or claim
concerning any tax liability of BMC either (i) claimed or raised by any taxing authority in writing
or (ii) otherwise known to BMC or the Sellers.

          (n) Compliance with Laws. Except as provided on Schedule 7.1(n), BMC has
complied in all material respects with all federal, state, local and foreign laws, rules,
ordinances,

11

 

codes, consents, authorizations, registrations, regulations, decrees, directives, judgments
and orders applicable to it and its business, including but not limited to the Surface Mining
Control and Reclamation Act of 1977, as amended, and all regulations promulgated thereunder,
Chapter 1513 of Title XV of the Ohio Revised Code, as the same has been amended, and all
regulations thereunder, all federal, state and local environmental, occupational health and safety
and land use laws, regulations, orders, rules, or ordinances (collectively “Laws”). Except
as set forth in Schedule 7.1(n), there are no pending or, to the knowledge of any Seller,
threatened (A) suits, claims, complaints, investigations, inquiries, notices or requests for
information received by BMC with respect to any alleged violation of any Laws, or (B) complaints,
notices or inquiries to BMC regarding potential liability under any Laws. Except as set forth in
Schedule 7.1(n), BMC has filed all reports and notices required by Laws and there are no
past or present conditions, events, circumstances, facts, activities, practices, incidents,
actions, omissions, or plans that can reasonably be expected to form the basis of any claim,
action, suit, proceeding, hearing, investigation, or inquiry against or involving BMC allegedly or
actually based on or related to any violation of any Laws or that is reasonably likely to require
BMC to incur any costs, expenses, damages, fines or penalties in connection therewith.

          (o) Litigation. Except as set forth on Schedule 7.1(o), there is no civil,
criminal or administrative action, suit, claim, notice, hearing, examination, inquiry, proceeding
or investigation at law or in equity or by or before any court, arbitrator or similar panel,
governmental instrumentality or other agency (“Litigation”) now in progress or pending or,
to the best knowledge of the Sellers, threatened against BMC or any Seller, or any of their
respective assets (including the Shares) or the business of BMC. None of BMC, the Sellers or the
Shares is subject to any order, writ, injunction or decree of any court of any federal, state,
municipal or other domestic or foreign governmental department, commission, board, bureau, agency
or instrumentality.

          (p) Undisclosed Liabilities. Except as set forth on Schedule 1.4 as the same
may be revised pursuant to Section 4.4 hereof, and Schedules 7.1(j), 7.1(k), 7.1(m),
7.1(n) and 7.1(o) BMC has no liability of any nature (whether due or to become due, known or
unknown, absolute or contingent), including, but not limited to, liabilities for taxes, violations
of or obligations under any Laws, incurred with respect to any of its corporate existence,
activities, operations, properties, employees, agents, consultants, contracts, omissions,
negligence or intentional misconduct, up to the Closing Date.

          (q) No Broker. The Sellers have not employed any broker or finder or incurred any
liability for any brokerage fees, commissions or finders’ fees in connection with the transactions
contemplated hereby.

          (r) No S Election. BMC has not made the election to be treated as an “S” corporation
for federal income tax purposes.

          (s) Disclosure. None of the representations or warranties made by Sellers in this
Agreement, and none of the information contained in any document heretofore furnished to the Buyer
or its agents or required to be furnished by the Sellers to the or to any of its representatives
pursuant to this Agreement and the Schedules and/or Exhibits contemplated

12

 

hereby, is or shall be false or misleading as to any material fact, or omits or shall omit to
state a material fact required to be stated therein or necessary in order to make any of the
statements made therein taken together, in light of the circumstances under which they were made,
not misleading.

          (t) Changes Affecting Representations. All of the representations and warranties set
forth in this Section 7.1 shall be true and correct in all material respects as if restated
in their entirety on the Closing Date. In the event there is any change in the truth, correctness
or completeness of any of the representations or warranties as set forth on the date of this
Agreement prior to the Closing Date, the Sellers shall promptly disclose such discrepancy or change
to the Buyer, in writing.

          (u) No Representations Concerning Minability or State of Assets. Sellers make no
representations, covenants, or warranties, expressed, implied or otherwise, concerning the quality,
quantity, minability, merchantability, or the accessibility of any coal or minerals on, in, or
under the Real Property or concerning the use or occupation that may be made of the Real Property
or the income that may be derived therefrom. Except as otherwise expressly stated in this
Agreement, all the Real Property, Equipment, Permits, and/or other real and personal property and
assets of BMC are conveyed AS IS and WHERE IS and Sellers provide no representations, covenants, or
warranties, express, implied or otherwise, concerning the Real Property, Equipment, Permits, and/or
other real and personal property and assets of BMC.

     7.2 Representations and Warranties of Buyer. Buyer represents and warrants:

          (a) Authority for Transaction. Buyer has all requisite power and authority to enter
into, deliver, and perform this Agreement and each other agreement or instrument (to which it is a
party) executed in connection herewith or delivered pursuant hereto and to consummate the
transactions contemplated hereby and such action by Buyer pursuant hereto constitute such Buyer’s
legal, valid and binding obligation, enforceable in accordance with their respective terms, except
as enforcement may be limited by bankruptcy, insolvency or other laws of general application
affecting the enforcement of creditors’ rights. Each of the Buyer’s execution, delivery and
performance of this Agreement and all other agreements and instruments executed in connection
herewith or delivered pursuant hereto and the transactions contemplated hereby have been duly
authorized.

          (b) Investment Intent. Buyer is acquiring the Shares for its own account as an
investment with no present intent to sell, transfer or otherwise distribute such stock.

          (c) No Broker. The Buyer has not employed any broker or finder or incurred any
liability for any brokerage fees, commissions or finders’ fees in connection with the transactions
contemplated hereby.

8. CONDITIONS PRECEDENT TO OBLIGATIONS OF THE BUYER.

     8.1 The obligations of the Buyer under this Agreement to consummate the transactions
contemplated hereby shall be subject to the satisfaction, on or prior to the Closing
Date, of all of the following conditions, any one or more of which may be waived at the option
of the Buyer:

13

 

          (a) No Misrepresentation or Breach of Covenants, Representations and Warranties. The
representations and warranties of Sellers contained or referred to in this Agreement shall be true
and correct in all material respects on the Closing Date, there shall have been no material breach
by the Sellers or BMC in the performance of any of Sellers’ or BMC’s covenants herein and there
shall have been delivered to the Buyer a certificate to that effect, dated the Closing Date, and
signed by the Sellers individually and a duly authorized officer of BMC.

          (b) No Material Adverse Event. Between the date hereof and the Closing Date, and
except as disclosed in the Schedules attached to this Agreement, no action, suit, proceeding or
governmental charge, complaint or investigation shall have been commenced or threatened which has
or could have a material adverse effect on the assets of BMC, nor shall any casualty or other event
have occurred which has or could have a material adverse effect on the assets of BMC, or which
could prevent the Buyer’s ability to conduct its intended operation of a landfill on the Real
Property owned by BMC.

          (c) Excessive Liabilities. The Buyer shall not have determined, in its reasonable
judgment, that the liabilities of BMC as of the Closing Date exceed $2,910,000, inclusive of
amounts shown on all Schedules hereto, amounts of taxes, interest, penalties or other charges
payable with respect to Unfiled Returns and the amounts prepaid pursuant to Sections 4.1 -
4.3 hereof. Bank One shall not require payment of more than $840,000 as full and final
satisfaction of all liabilities of BMC and for release of all liens of Bank One against the Real
Property or any other assets of BMC, except as the Bank One Obligation may amended with the consent
of the Buyer,.

          (d) Use as a Landfill. The Buyer shall not be prohibited from operating a landfill on
the Real Property owned by BMC. The Buyer shall not have discovered any condition of the Real
Property owned by BMC (i) renders the Real Property unsuitable for the conduct of a construction
and demolition debris landfill thereon, or (ii) which would require such work or additional
improvements as to render the use of such Real Property as a construction and demolition debris
landfill not economically feasible or viable, in each case (i.e., for each of clause (i) and (ii))
in the reasonable opinion of qualified landfill engineers. The Buyer shall not have discovered any
law or regulation that (x) prevents Buyer from installing and operating a construction and
demolition debris landfill on Real Property owned by the Buyer, (y) will require such work or
additional improvements to such Real Property as to render the use of such Real Property as a
construction and demolition debris landfill not economically feasible or viable in the reasonable
opinion of qualified landfill engineers. The 6 month moratorium (for July through December 2005) on
the issuance of new permits for the construction or conduct of construction and demolition debris
landfills recently enacted by Ohio will not, in the reasonable opinion of qualified attorneys
experienced in Ohio regulation of construction and demolition debris landfills, delay Buyer’s
ability to obtain such a permit by more than 4 months beyond the time period it would have normally
taken Buyer to obtain such a permit, all other things being equal.

14

 

          (e) Necessary Consents Obtained. Any consent or approval of any governmental agency or
authority, mortgagee, contract party or any other person or entity required to transfer the Shares
to the Buyer shall have been obtained, in writing.

          (f) No Change in Property. BMC’s property shall be in as good a condition as it was
upon the date of entering this Agreement, except for reasonable wear and tear.

          (g) Title Insurance. Buyer shall have a commitment for an ALTA title insurance policy
on the Real Property owned by BMC from a reputable title insurance company and authorized to do
business in Ohio insuring BMC’s ownership interest therein, at standard rates and subject only to
such permitted exceptions as do not materially affect BMC’s ability to conduct a landfill operation
thereon.

          (h) Deliveries and Payments. Sellers shall make all deliveries and payments and
perform any other obligations required of it by Section 5.4 hereof.

9. CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLERS.

     9.1 The obligations of Sellers under this Agreement to consummate the transactions
contemplated hereby, shall be subject to the satisfaction, on or prior to the Closing Date, of all
of the following conditions, any one or more of which may be waived at the option of the Sellers:

          (a) No Misrepresentation or Breach of Covenants, Representations and Warranties. The
representations and warranties of the Buyer contained or referred to in this Agreement shall be
true and correct in all material respects on the Closing Date, there shall have been no material
breach by the Buyer in the performance of any of the Buyer’s covenants herein and there shall have
been delivered to the Sellers a certificate to that effect, dated the Closing Date, and signed by a
duly authorized officer of the Buyer.

          (b) Deliveries and Payments. The Buyer shall make all deliveries and payments and
perform any other obligations required of it by Section 5.5 hereof.

10. INDEMNITIES.

     10.1 Definitions. As used in this Article 10, the following terms shall have
the following meanings: “Loss” shall mean any and all losses, claims, damages, liabilities,
expenses, actions, causes of action, charges, costs and expenses, including reasonable attorneys’
and accountants’ and other professional fees, or assessments, incurred in connection with any
matter that is the subject of indemnification pursuant to this Article 10, including, but
not limited to, reasonable costs of investigation, examination, reclamation and remediation, and
the reasonable fees and disbursements of consultants and legal counsel, and all reasonable costs
incurred by such party in connection with the investigation and enforcement of any of the
indemnification obligations set forth in this Article 10. “Ownership Defense
Costs” shall mean any and all costs or expenses, including but not limited to legal costs and
expenses, paid or incurred by the Buyer to maintain, protect or secure ownership of the Shares, or
to defend the Buyer’s rights under this Agreement, in connection with any involuntary bankruptcy

15

 

proceeding against any Seller, a voluntary bankruptcy proceeding initiated by any Seller or in
connection with any creditors rights claims asserted against any Seller or any of the Shares, and
includes any payments made by the Buyer in settlement of any such claims; provided, however, that
the Buyer shall not make any payments or agree to make payments in settlement of any such claims
without the prior written consent of Sellers, not to be unreasonably delayed, withheld or
conditioned.

     10.2 General Indemnity by Sellers. Sellers jointly and severally shall indemnify and
hold each of the Buyer, its affiliates and their respective officers, directors, managers,
employees and owners (each, a “Buyer Indemnitee”) harmless from and against any Losses that
the Buyer Indemnitee may suffer, sustain, incur or become subject to, directly or indirectly
arising out of, based upon, or by reason of (A) any breach of the warranties, representations,
covenants and agreements of any Seller or BMC contained in this Agreement, (B) any Excess
Liabilities (as hereafter hereafter defined), (C) any Ownership Defense Costs, (D) the failure of
BMC or any other person to comply with all applicable Laws with respect to actions, omissions or
events occurring prior to the Closing Date (each, a “Violation”) or any investigation,
inquiry, order, hearing, action or other proceeding by or before any governmental agency which has
resulted or is alleged to have resulted directly or indirectly from any Violation for any period
prior to the Closing Date. Sellers acknowledges that the Liquidating Note and the Installment Note
to be executed at Closing will provide that, in lieu of obtaining the payment of cash amount to any
indemnity obligation of Sellers hereunder, the amounts payable under this indemnity may be offset
against the amounts payable by the Buyer and/or BMC under such notes on a dollar for dollar basis,
at the option of the Buyer. “Excess Liabilities” means (i) any Updated Liability shown on
Schedule 1.4 hereof, as updated pursuant to Section 4.4 hereof in excess of the
amount shown on such schedule, including but not limited to any liability for taxes, interest,
penalties or other charges payable with respect to the Unfiled Tax Returns in excess of the amounts
reported or shown as due and payable with respect thereto, (ii) any Pay At Closing Liability shown
on Schedule 5.2 hereof in excess of the amount shown on such schedule, and (iii) any and
all other liabilities of BMC, of whatever nature, whether known or unknown, fixed or contingent,
with respect to BMC’s corporate existence, properties, contracts, all acts or omissions by BMC or
other events affecting BMC or its properties to the extent occurring or relating to events
occurring before the Closing, to the extent such liabilities either have not been disclosed on the
Schedules attached to this Agreement or exceed the amounts set forth on such Schedules, it being a
requirement of the disclosure of liabilities in the Schedules hereto that Sellers affix a dollar
amount to each disclosed liability, the parties agreeing that any failure to do so shall be treated
as an assertion by Sellers that the liability described is zero.

     10.3 General Indemnity by the Buyer. From and after the Closing, the Buyer shall
indemnify and hold Sellers, and their respective heirs, successors and assigns (each, a “Seller
Indemnitee”) harmless, or cause BMC to indemnify and hold each Seller Indemnitee harmless, from
and against any Losses that the Seller Indemnitee may suffer, sustain, incur or become subject to,
arising out of, based upon, or by reason of (A) any breach of the warranties, representations,
covenants and agreements of the Buyer contained in this Agreement, (B) any liabilities described in
Schedule 5.2 hereof, except to the extent that the amount thereof due and payable as of the
Closing Date exceeds the amount represented by Sellers pursuant to Schedule

16

 

5.2 hereof as due and payable as of such date, and (C) any liabilities of BMC incurred with respect
to acts or omissions of BMC or other events affecting BMC occurring from and after the Closing, to
the extent arising from such post-Closing acts, omissions or other events.

     10.4 Third Party Claims. Promptly upon receipt by an indemnified party of notice of
the commencement of any claim or action for which indemnification is to be sought pursuant to said
Section 10.2 or 10.3, such indemnified party shall notify the indemnifying party in writing
of the commencement thereof; provided, that the failure to notify the indemnifying party shall
relieve the indemnifying party from liability under said Section 10.2 or 10.3 only to the
extent that the indemnifying party was prejudiced materially as a result thereof. If any such claim
or action is brought against any indemnified party and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate therein and may elect,
by written notice delivered to the indemnified party promptly after receiving the aforesaid notice
from such indemnified party, to assume the defense thereof with counsel approved by the indemnified
party; provided, that if the defendants in any such action include both the indemnified party and
the indemnifying party and either (i) the indemnifying party agrees, or (ii) representation of both
the indemnifying party or parties and the indemnified party or parties by the same counsel is, in
the reasonable opinion of counsel to the indemnifying party, inappropriate under applicable
standards of professional conduct because of actual or potential conflicting interests between
them, then the indemnified party or parties shall have the right to select separate counsel to
assume such legal defense and to otherwise participate in the defense of such action. In no event
shall an indemnifying party be liable under this Article 10 for any settlement of any claim
or action against an indemnified party effected without its written consent, which consent shall
not be unreasonably withheld.

     10.5 Survival of Covenants and Representations and Warranties and Time Limitation
on Indemnification for Misrepresentations. All covenants of the parties in this Agreement
shall survive the Closing and the consummation of the transactions contemplated by this Agreement.
All of the representations and warranties set forth in this Agreement shall survive the Closing and
the consummation of the transactions contemplated by this Agreement for a period of the greater of
(i) five (5) years or (ii) the expiration of the applicable statute of limitations. The applicable
period of survival under this Section 10.5 relating to representations and warranties is
referred to herein as the “Indemnity Claim Period”. Notwithstanding the foregoing and
without limiting any other rights and remedies available to the parties, any assertion by any
indemnified party that an indemnifying party is liable for indemnification under the terms of
Section 10.2 or 10.3 with respect to a breach of a representation or warranty must
be made in writing and must be given to the indemnifying party on or prior to the end of the
Indemnity Claim Period to which such claim relates. If a claim for indemnification is made during
the applicable period provided in this Section 10.5, the obligations of the indemnifying
party with respect to such claim shall continue until the final resolution of the claim.

     10.6 Costs and Expenses. The indemnifying party shall pay to the indemnitee all
reasonable costs and expenses (including the reasonable fees and disbursements of the indemnitee’s
legal counsel) incurred by any indemnitee in connection with the indemnity or the enforcement of
the terms of the indemnity provided by this Article 10.

17

 

     10.7 Reclamation. At Sellers’ written election, delivered within 30 days following
receipt of any claim from Buyer of an obligation which Sellers are required to indemnify Buyer
hereunder for or relating to reclamation required on the Real Property, Sellers may undertake to
arrange for and perform such required reclamation work at their sole cost and expense and in
connection therewith may recover, transport and use materials from the Real Property at no cost to
them as material for use in performing such work, provided, however, that (i) they shall coordinate
such activities with BMC in order to eliminate or minimize any disruption to BMC ‘s business, (ii)
shall perform such work in a workmanlike and professional manner, and (iii) BMC may require
evidence that those involved in such work are adequately covered by insurance, and (iv) Sellers
shall remain liable for any obligation under this Article 10 with respect to such claim to the
extent that the work performed by them is determined by applicable authorities to be inadequate or
incomplete or otherwise unsatisfactory. If BMC obtains an industrial mining permit relating to the
limestone mining site on the Real Property (for which currently the State of Ohio has a reclamation
obligation and which Ohio will reclaim unless BMC does obtain a permit), the reclamation
obligations relating to such site will not be obligations of Sellers to Buyer, either as “Excess
Liabilities” or otherwise, under this Article 10 or otherwise under this Agreement.

11. TERMINATION.

     11.1 Right of Termination. Notwithstanding anything contained in this Agreement to the
contrary, this Agreement may be terminated at any time prior to the Closing:

          (a) by the mutual written consent of Sellers and the Buyer;

          (b) by either the Sellers or the Buyer if the other shall fail to fulfill or satisfy in any
material respect the conditions precedent to the performance of the other party’s obligations in
accordance with the terms hereof.

12. GENERAL PROVISIONS

     12.1 Completion of Schedules and Exhibits. Schedules 1.4, 1.6, 4.3, 5.2 and
7.1(h) and Exhibits A, B, E and F shall be completed at the time of execution of this
Agreement and attached hereto. All other Schedules and Exhibits referenced herein shall be
completed by Sellers and/or BMC no later than July 20, 2005, provided to Buyer and attached hereto.

     12.2 Cooperation; Best Efforts. Subject to the terms and conditions herein provided,
the Sellers and the Buyer mutually agree to use their reasonable best efforts to take, or cause to
be taken, all actions, and to do, or cause to be done, all things necessary, proper and advisable
under applicable law, to consummate and make effective the transactions contemplated by this
Agreement. In case at any time after the Closing Date any further action is necessary or desirable
to carry out the purposes of this Agreement and/or the provisions of a Liquidating Note,
Installment Note, or Escrow Agreement as provided for in this Agreement, each party, or the proper
officers and directors of each party, shall take all such necessary action, including the execution
of any additional instruments necessary to consummate the transactions contemplated hereby.

18

 

     12.3 Amendment; Waiver. No amendment, modification or discharge of this
Agreement shall be valid or binding unless set forth in writing and signed by the Buyer, the
Sellers and BMC. Any term or condition of this Agreement may be waived at any time by the party
that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in
a written instrument duly executed by or on behalf of the party waiving such term or condition. No
waiver by any party of any term or condition of this Agreement, in any one or more instances, shall
be deemed to be or construed as a waiver of the same or any other term or condition of this
Agreement.

     12.4 Expenses. Except as otherwise expressly provided in this Agreement, each party
shall pay its own costs and expenses incident to its negotiation and preparation of this Agreement
and the performance of its obligations hereunder. The Sellers shall pay all transfer taxes, sales
taxes, and other similar costs directly related to the transactions contemplated by this Agreement.

     12.4 Agreement Binding on Heirs and Assigns. This Agreement and all conditions and
provisions hereof are intended to and shall be binding upon and inure to and be for the sole and
exclusive benefit of the parties hereto and their respective heirs, personal representatives,
permitted successors and assigns (and any other person entitled to indemnity under Article
10.). Nothing expressed or mentioned in this Agreement is intended or shall be construed to
give any other person any legal or equitable benefit, right, remedy or claim under or in respect of
this Agreement or any provision herein.

     12.5 Assignment. No party may transfer or assign any of its or his rights or
obligations under this Agreement without the prior written consent of the other parties hereto and
any attempt thereat shall be null and void; provided, however, that (i) the Buyer may transfer and
assign this Agreement to Rail Waste Holdings, LLC (“RWH”), any affiliate that is owned at least
fifty percent (50%) by the same persons who own the Buyer, and/or (ii) Buyer, with Sellers approval
which shall not be unreasonably withheld, may transfer and assign this Agreement to any successor
of all or substantially all of the business or assets of E-Rail or RWH, provided that such
transferee or assignee agrees to assume the Buyer’s obligations hereunder.

     12.6 Notices. All notices, demands, requests, or other communications which may be or
are required to be given, served, or sent by any party to any other party pursuant to this
Agreement shall be in writing and shall be hand delivered, sent by overnight courier or mailed by
first-class, registered or certified mail, return receipt requested, postage prepaid, addressed as
follows:

     12.7 Applicable Law. This Agreement shall be governed by, construed and enforced in
accordance with the laws of the state of Ohio, without regard to its principles of conflict of
laws.

     12.8 Entire Agreement. This Agreement, together with its Exhibits and Schedules,
contains the entire agreement between the parties covering the subject matter hereof.

     12.9 Counterparts. This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original, but all such

19

 

counterparts shall together constitute one and the same instrument. Each counterpart may
consist of a number of copies hereof each signed by less than all, but together signed by all, of
the parties hereto.

     IN WITNESS WHEREOF, the parties have executed this agreement on the day and year first written
above.

	 	 	 	 	 
	SELLERS:
	 	 
	 
	 	 	 	 
	 

THOMAS J. BELVILLE	 	 
	 
	 	 	 	 
	 

ROBERT E. BELVILLE	 	 
	 
	 	 	 	 
	BMC:
	 	 	 	 
	 
	 	 	 	 
	BELVILLE MINING COMPANY, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 
	 
	 	 	 	 
	BUYER:
	 	 
	 
	 	 	 	 
	E RAIL LOGISTICS, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 
	Name: 
	 	 	 	 
	 

	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 

20

 

LIST OF EXHIBITS AND SCHEDULES

	 	 	 
	Exhibit A

	 	Liquidating Note
	Exhibit B

	 	Installment Note
	Exhibit C

	 	Mortgage 1
	Exhibit D

	 	Mortgage 2
	Exhibit E

	 	Option between BMC and Emily Lucy C. Burch
aka Emily Lucy C. Wingert
	Exhibit F

	 	Copies of Letters by the Rollysons, Roshon and Walker Equipment
	 
	 	 
	Schedule 1.3

	 	Equipment
	Schedule 1.4

	 	Known Liabilities
	Schedule 1.5

	 	Permits
	Schedule 1.6

	 	Real Property
	Schedule 4.3

	 	Unfiled Tax Returns
	Schedule 5.2

	 	Pay at Closing Liabilities
	Schedule 7.1(h)

	 	Liens on Rollyson, Roshon and Globe Hollow Tracts
	Schedule 7.1(j)

	 	Mortgages
	Schedule 7.1(k)

	 	Contracts
	Schedule 7.1(l)

	 	Due Diligence Checklist
	Schedule 7.1(m)

	 	Exceptions to tax Representation
	Schedule 7.1(n)

	 	Disclosure of Exceptions to Compliance with Laws
	Schedule 7.1(o)

	 	Litigation

21exv10w18

 

Exhibit 10.18

AMENDMENT TO

REDEMPTION AND STOCK PURCHASE AGREEMENT

     THIS AMENDMENT TO REDEMPTION AND STOCK PURCHASE AGREEMENT is made as of the 2nd day of
September, 2005, by and between Thomas J. Belville (“T. Belville”) and Robert E. Belville
(“R. Belville”) (T. Belville and R. Belville hereinafter sometimes referred to individually
as “Seller” and collectively as “Sellers”), E-Rail Logistics, Inc.
(“E-Rail”), a New York corporation (hereinafter referred to as “Buyer”), and
Belville Mining Company, Inc., an Ohio corporation (hereinafter referred to as “BMC”).

RECITALS

     WHEREAS, on July 11, 2005, the parties entered into a Redemption and Stock Purchase Agreement
(hereinafter the “July 11 Stock Purchase Agreement”);

     WHEREAS, the parties now wish to amend the July 11 Stock Purchase Agreement as provided
herein; and

     NOW, THEREFORE, in consideration of the mutual covenants, conditions, and agreements herein
contained, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties do hereby amend the July 11 Stock Purchase Agreement as follows:

     1. The first Whereas Clause of the July 11 Stock Purchase Agreement is revised to read as
follows:

     “WHEREAS, T. Belville and R. Belville represent that each owns 636 shares of BMC’s common
stock (1,272 shares total), $100 par value per share (the “Common Stock”) respectively,
comprising 100% of the outstanding issued shares of BMC (the “Shares”); and”

     2. Section 1.2 of the July 11 Stock Purchase Agreement is revised to read as follows:

     “1.2 “Bank One Obligation” means the letter of Bank One, dated May 17, 2005
addressed to BMC and T. Belville, as amended by letters from Bank One dated August 11, 2005 and
August 23, 2005, addressed to BMC, setting forth Bank One’s agreement to accept a single lump sum
payment of $800,000 as full and final satisfaction of all amounts owed to it by BMC, T. Belville
and R. Belville, and to accept a single lump sum payment of $40,000 as full and final satisfaction
of the obligations of Thomas J. and Loretta Belville to Bank One, and to release all liens of Bank
One against the Real Property and stock pledged as collateral, if

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received on or before September 2, 2005, as that letter agreement may be amended with the consent
of the Buyer, and as reduced by the payment of $50,000 provided for in Section 4.1 of this
Agreement, and as further reduced by two payments of $25,000 each made pursuant to the August 11,
2005 and August 23, 2005 Bank One letters, with the final settlement payment in the amount of
$740,000.00 due on or before September 2, 2005.”

     3. Section 2 of the July 11 Stock Purchase Agreement is revised to read as follows:

“2. REDEMPTION AND SALE OF CORPORATE STOCK

     Upon the terms, subject to the conditions and in reliance on the representations, warranties
and covenants set forth herein, at Closing (as defined in Section 5 hereof), (a) BMC agrees
to redeem 81.596 percent (1,038 shares) of the Sellers’ Shares (the “Redemption Shares”)
and Sellers agree to tender such interest in their Shares in redemption for the Redemption Price
(as defined in Section 3 hereof), and (b) the Buyer agrees to purchase from the Sellers and
the Sellers hereby agree to sell and transfer to the Buyer, all of Sellers’ remaining interest
(18.404 percent, 234 shares) in the Shares (the “Sale Shares”) for the Purchase Price (as
defined in Section 3 hereof), in each case free and clear of all liens, equities,
encumbrances and claims of any kind and rights of any person.”

     4. Any and all references to the “Globe Hollow Tract” and/or to the “10 acre Globe Hollow
Tract” in the July 11 Stock Purchase Agreement, including references to the Globe Hollow Tract
contained in Sections 3.1(c), 4.6(a), and 7.1(h), are revised to mean the approximately 19 acre
Globe Hollow Tract as further described in Exhibit G attached hereto.

     5. Section 3.1(c) of the July 11 Stock Purchase Agreement is revised to read as follows:

     “(c) At Closing, Buyer shall provide to Sellers a first mortgage on 700 unencumbered acres
(hereinafter “Mortgage 1”), to be in the form attached hereto as Exhibit C, and a
second mortgage on 800 acres remaining (hereinafter “Mortgage 2”) (with the first mortgage
position to be held by Rollyson and Roshon as further provided herein), to be in the form attached
hereto as Exhibit D, to secure both the Liquidating Note and Installment Note (the
“Notes”) provided for in this Section. The Mortgages shall provide that any reduction in
the amount of the Notes made based on a claim by Buyer that Sellers owe the Buyer any amount under
Sellers’ indemnity under Article 10 hereof shall not constitute an event of default or
other grounds for purposes of commencing or enforcing a foreclosure on the properties subject to

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Mortgage 1 or Mortgage 2, unless and until it has been finally determined, either by written
agreement of the parties, court decision, binding arbitration or other dispute resolution mechanism
agreed to by the parties, that the amount of Sellers’ liability under Article 10 applied in
reduction of the Notes (or any portion thereof) was incorrect, and BMC does not pay the amounts
past due within 10 business days following such final decision. Notwithstanding the foregoing, the
grant of Mortgages 1 and 2 are subject to the exception that an approximately 19 acre tract along
Route 140, within the tract which is subject to a mortgage held by James H. and Genevieve Rollyson
(the “Rollyson Mortgage”), known as the Globe Hollow Tract, where the Buyer is planning on
the installation of a rail line, will be excluded from the Mortgages to secure the Notes, as noted
in Section 4.6(a), as further described in Exhibit G, attached hereto.”

     6. Section 4.2 of the July 11 Stock Purchase Agreement is revised to read as follows:

     “4.2 Reclamation Obligations. On or about May 25, 2005, the Buyer paid Sellers the
amount of $25,000 for use in performing and overseeing reclamation work on areas covered by the
Permits. Such payment shall be applied to and reduce the corresponding reclamation debt of BMC
itemized in Schedule 1.4 hereof. Sellers will present evidence to the Buyer that said $25,000 was
expended to perform reclamation work on areas covered by the Permits. If any of the $25,000 for
reclamation work remains unspent as of the Closing, the balance remaining shall be placed in the
attorney escrow account of Thomas Klein and shall be disbursed from said escrow account upon the
presentation of receipts or invoices to Thomas Klein and Buyer for the reclamation work performed
pursuant to this section.”

     7. Section 5.1 of the July 11 Stock Purchase Agreement is revised to read as follows:

     “5.1. The closing of the redemption, sale and purchase of Shares pursuant to this Agreement
(the “Closing”) shall take place at the offices of Best Title at 211 Center Street,
Ironton, Ohio, on or before Friday, September 2, 2005, or such other time and date as the parties
may mutually agree, including any extension requested by Buyer and approved by Bank One and Sellers
(the “Closing Date”), with the transactions to be conducted at such closing becoming
effective at the close of business on the Closing Date.”

     8. Section 5.5(a) of the July 11 Stock Purchase Agreement is revised to read as follows:

3

 

     “(a) Pay to the Sellers the Purchase Price in accordance with Section 3.3”

     9. Section 7.1(c) of the July 11 Stock Purchase Agreement is revised to read as follows:

          “c. Capitalization. The aggregate number of securities that BMC is authorized to
issue is Two Thousand Five Hundred (2,500) shares of Common Stock of which One Thousand Two Hundred
and Seventy Two (1,272) shares are issued and presently outstanding. Said issued and outstanding
Shares are the sole securities (100%) of BMC issued and presently outstanding. The issued and
outstanding Shares are duly authorized, validly issued, fully paid and nonassessable, have not been
issued in violation of any preemptive, subscription or other rights or laws, and when sold,
transferred and delivered to the Buyer in accordance with the terms of this Agreement, and will be
free of all restrictions on transfer other than those arising under the Securities Act of 1933, as
amended (the “Securities Act”), or state securities laws. There are no other debt or
equity securities of BMC outstanding and there is no outstanding option, warrant, right, call,
subscription or other agreement or commitment to which either of the Sellers or BMC is a party
which (i) calls for the issuance, sale, pledge or other disposition of any shares of BMC common
stock, including the Shares, or any securities convertible or exchangeable into, or other rights to
acquire, any shares of BMC common stock, (ii) obligates any Seller to grant, offer or enter into
any of the foregoing, or (iii) relates to the voting, transfer or control of the Shares. There are
no agreements, contracts, obligations or undertakings (written or oral) to which either the Sellers
or BMC is a party (or by which either of them are bound) relating to the issuance, sale or transfer
of any securities of BMC.”

     10. The Parties state that the Schedules and Exhibits referenced in the July 11, 2005
Agreement have been completed by Sellers and/or BMC and the Parties waive the July 15, 2005
deadline contained in Section 12.1 of the July 11, 2005 Agreement for preparation of said Schedules
and Exhibits.

     11. Schedule 1.6 is revised per the attached Schedule 1.6 Revised 9-2-2005, removing the
Plibrico Lease from the schedule of properties.

     12. Pursuant to Section 5.2 of the July 11, 2005 Agreement, at Closing the Buyer will transfer
to Best Title Agency, Inc., Thomas Klein, the closing agent, sufficient funds to pay the
Liabilities set forth in revised Schedule 5.2 and the Settlement Statement prepared by Best
Title Agency, Inc. (the “Pay At Closing Obligations”). Certain of the Pay At Closing

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Obligations may be reduced prior to payment and some of the creditors listed on the Pay At
Closing Obligations listing have not been located. The parties agree that Best Title shall retain
in escrow (hereinafter the “Pay at Closing Escrow”) any balance remaining from the funds provided
for the Pay At Closing Obligations and any amounts that are not paid from escrow after 60 days
shall be returned to the Buyer. Best Title shall provide an accounting to both Buyer and Sellers
of payments from the Pay at Closing Escrow and an accounting of any balance remaining that is
returned to Buyer. The amount of the balance returned to the Buyer from the Pay at Closing Escrow
shall be added to the principal amount of the Installment Note

     IN WITNESS WHEREOF, the parties have executed this AMENDMENT on the day and year first written
above.

	 	 	 	 	 
	 

	 	SELLERS:	 	 
	 
	 	 	 	 
	 

	 	 

THOMAS J. BELVILLE
	 	 
	 
	 	 	 	 
	 

	 	 

ROBERT E. BELVILLE	 	 
	 
	 	 	 	 
	 

	 	BMC:

BELVILLE MINING COMPANY, INC.	 	 
	 
	 	 	 	 
	 

	 	 

By: THOMAS J. BELVILLE	 	 
	 

	 	Title: President	 	 
	 
	 	 	 	 
	 

	 	BUYER:

E-RAIL LOGISTICS, INC.	 	 
	 
	 	 	 	 
	 

	 	 

By: ANDREW H. KAUFMAN	 	 
	 

	 	Title: President	 	 

5

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