Document:

Exhibit 10

Exhibit 10.1

BURGER TIME CORPORATION

BUSINESS TRANSFER AGREEMENT

This Agreement made effective the 1st day of July, 2004, between Seller and Purchaser, who agree as follows:

1.

Definitions.  For the purpose of this Agreement:

a.

“Agreement” shall mean this Business Transfer Agreement between Seller and Purchaser.

b.

“Assignment of Real Estate Lease” shall mean the agreement between Seller and Purchaser pertaining to the Real Estate Lease and which shall be consented to by Dallas Vandenbos and Janice Vandenbos within seven (7) days after the Closing Date, a specimen of which is attached as Exhibit “A” to this Agreement.

c.

“Bill of Sale” shall mean the bill of sale given by Seller to Purchaser transferring the Business Assets to be Sold, a specimen of which is attached as Exhibit “B” to this Agreement.

d.

“Business” shall mean the fast food restaurant businesses known as Burger Time, which are located at:

	(1)

	Fargo, North Dakota;

	(2)

	Bismarck, North Dakota;

	(3)

	Minot, North Dakota;

	(4)

	Grand Forks, North Dakota;

	(5)

	Moorhead, Minnesota;

	(6)

	Detroit Lakes, Minnesota;

	(7)

	Elk River, Minnesota;

	(8)

	Waite Park, Minnesota;

	(9)

	Sioux City, Iowa; and,

	(10)

	Two (2) locations at Sioux Falls, South Dakota.

e.

“Business Assets to be Sold” shall collectively mean the following assets used in the operation of the Business:

(1)

“Equipment and Fixtures” shall mean the restaurant fixtures and equipment, and office equipment, including computer, desks, copier and fixtures and equipment.

(2)

“General Intangibles” shall mean the trade name of Seller and all assumed names under which it conducts business, all trade names, including “Burger Time” (as reserved in North Dakota, Minnesota, South Dakota and Iowa), all trademarks and service marks and any logos, formulas, trade secrets, technology, know-how, customer lists and telephone numbers of Seller which may be used in the operation of the Business and all Goodwill associated therewith.

(3)

“Goodwill” shall mean the intangible value of the Business as a going concern.

(4)

“Leasehold Improvements” shall mean the trade fixtures and improvements made by Seller during its tenancy under the Real Estate Lease, subject to the rights of Landlord under the Real Estate Lease relative to the trade fixtures and improvements. 

(5)

“Outdoor Sign and Assets” shall mean the tables, utility sheds, fences and signs for the purpose of advertising the Business located on the Real Estate.

(6)

“Real Estate” shall mean the real property used in the conduct of the Business, excluding the real property that is the subject of the Real Estate Lease. 

(7)

“Supplies” shall mean all non-consumable supplies, utensils and tools.

(8)

“Inventory” shall mean all food, paper products and consumable supplies.

(9)

“Vehicle” shall mean the 2003 Toyota Corolla CE/LE/S whose VIN is  1NXBR32E03Z058627.

(10)

“Permit” shall mean all licenses and permits necessary or convenient for conduct of the Business to the extent transferable.

f.

“Business Assets Not for Sale” shall collectively mean the following assets used in the operation of the Business, which are to be retained by Seller and not purchased by Purchaser:

(1)

“Accounts Receivable” shall mean all accounts receivable of the Business, including any receivables for returned checks in the process of collection and any receivables from supplier’s promotional rebates on product purchased prior to the Closing Date. 

(2)

“Cash” shall mean all cash and cash equivalents used in the operation of the Business, wherever located.

(3)

“Checking Accounts” shall mean all checking accounts.

(4)

“Refunds” shall mean all claims for tax refunds and all deposits and pre-paid expenses.

(5)

“Records” shall mean Seller’s corporate minute book, stock records and similar records, including financial records and tax returns.

(6)

“Insurance” shall mean any pre-paid worker’s compensation insurance and pre-paid insurance insuring the assets of the Seller regarding the Business.

(7)

“Vehicles” shall mean the:

(a)

2003 Toyota Corolla CE/LE/S whose VIN is 1NXBR32E13Z038936;

(b)

2002 Toyota Camry LE/XLE/SE whose VIN is 4T1BE32K02U080644; and,

(c)

2002 Toyota Tundra Limited whose VIN is 5TBBT48132S293146.

(8)

“Employee Plan Assets” shall mean all assets in any of Seller’s employee plans of any kind, including any pension, retirement, disability, medical, dental or other health insurance plan, life insurance or death benefit plan, profit sharing, deferred compensation, stock option, bonus or other incentive plan, vacation benefit plan, severance  plan or other employee benefit plan or arrangement (collectively, the “Employee Plans”).

(9)

“Actions” all causes of action that Seller may have relating to any of the foregoing or relating to liabilities not assumed by Purchaser.

g.

“Closing Date” shall mean the date this Agreement is executed by both parties hereto.  The closing of the transactions contemplated by this Agreement shall be effective as of 11:59 p.m. on the Closing Date.

h.

“Contracts for Deed” shall mean the ten (10) separate contracts between Seller and Purchaser relating to the sale of the Real Estate located in North Dakota, South Dakota, Iowa and Minnesota, specimens of which are attached as Exhibits ”C-1 through C-10” to this Agreement.

i.

“Covenant Not to Compete” shall mean the agreement by and among Seller, Douglas R. Geeslin, Ralph B. Nordick and Purchaser, a specimen of which is attached as Exhibit ”D” to this Agreement.

j.

“Financial Statements” shall mean the unaudited balance sheets and the related statements of income and retained earnings of Seller, at and as of December 28, 2003 and March 28, 2004.

k.

“Financing Statements” shall mean the instruments by which the security interest granted in the Security Agreement is perfected, a specimen of which is attached as Exhibit ”E” to this Agreement.

l.

“Guarantor” shall mean Gary Copperud, whose mailing address is 1234 Trappers Point, Fort Collins, Colorado 80524.

m.

“Inventory Amount” shall mean the current value (as determined from supplier prices) of the Retail Inventory and Supplies based upon a physical count of the Retail Inventory and Supplies as of the Closing Date, as agreed to by Seller and Purchaser.

n.

“Personal Guaranty” shall mean the instrument by which Guarantor personally guarantees the obligations of Purchaser, a specimen of which is attached as Exhibit ”F” to this Agreement.

o.

“Promissory Note” shall mean the promissory note given to Seller, dated as of the date of this Agreement, in the original amount of Three Hundred Thousand and 00/100 ($300,000.00) Dollars, a specimen of which is attached as Exhibit ”G” to this Agreement.

p.

“Purchase Price” shall have the meaning ascribed to it at Paragraph 3.a.

q.

“Purchaser” shall mean Burger Time Acquisition Corporation, a wholly-owned subsidiary of Sterion Incorporated, a corporation organized under the laws of the State of Minnesota, whose mailing address is 13828 Lincoln Street NE, Ham Lake, Minnesota 55304.

r.

“Real Estate Lease” shall mean the real estate lease dated January 1, 2004 by and among Seller as Tenant and Dallas Vandenbos and Janice Vandenbos, as Landlord, relating to real property located in Sioux Falls, South Dakota.

s.

“Security Agreement” shall mean the agreement in which Seller retains and Purchaser grants a security interest in the Business Assets to be Sold, a specimen of which is attached as Exhibit ”H” to this Agreement.

t.

“Seller” shall mean Burger Time Corporation, a corporation organized under the laws of the State of North Dakota, whose mailing address is 675 12th Avenue NE, West Fargo, North Dakota 58078.

2.

Purchase of Assets, Assumption of Liabilities and Exclusions.  Subject to the terms and conditions of this Agreement:

a.

As of the Closing Date, Seller agrees to assign, sell, transfer, convey and deliver to Purchaser and Purchaser agrees to purchase from Seller, all of the Business Assets to be Sold.

b.

Purchaser agrees to assume all obligations arising after the Closing Date under the Real Estate Lease, provided that:

(1)

Seller agrees to pay for that portion of rent, utilities and other real estate expenses pertaining to the Real Estate Lease arising prior to and including the Closing Date.

(2)

Purchaser agrees to pay that part of rent, utilities and other real estate  expenses pertaining to the Real Estate Lease arising after the Closing Date. 

c.

With respect to reoccurring ordinary monthly expenses:

(1)

Seller shall pay for any reoccurring ordinary monthly expenses, including linen service and alarm system costs arising prior to and including the Closing Date.

(2)

Purchaser agrees to pay any reoccurring ordinary monthly expenses, including linen service and alarm system costs arising after the Closing Date. 

d.

Notwithstanding the above:

(1)

Purchaser does not purchase and Seller does not sell any of the Business Assets Not For Sale; and,

(2)

Except for the assumption under the Real Estate Lease, Purchaser shall not assume any liabilities, obligations, or undertakings of Seller of any kind or nature whatsoever, whether fixed or contingent, known or unknown, determined or determinable, due or not yet due.

3.

Purchase Price.  The purchase price for the Business Assets to be Sold shall be determined, allocated and paid as follows:

a.

Determination and Allocation.  The Purchase Price shall be the sum of Two Million Eight Hundred Thousand and 00/100 ($2,800,000.00) Dollars, subject to adjustment as provided in Paragraph 3.c., plus the amounts which may be owed by Purchaser under Paragraph 2.b.(2) and 2.c.(2) and the Inventory Amount.

(1)

Allocation of Purchase Price to Business Assets to be Sold.  The Purchase Price shall be allocated as follows:

	 	 	 	 	

	

	(a)

	Business Locations:

	

	

	 	i.

	Fargo, North Dakota

	$195,000

	

	 	 	a)

	Land:

	

	$50,000

	 	 	b)

	Buildings and Leasehold Improvements:

	

	$55,000

	 	 	c)

	Equipment and Fixturies:

	

	$90,000

	 	ii.

	Bismarck, North Dakota

	$185,000

	

	 	 	a)

	Land:

	

	$40,000

	 	 	b)

	Buildings and Leasehold Improvements:

	

	$55,000

	 	 	c)

	Equipment and Fixturies:

	

	$90,000

	 	iii.

	Minot, North Dakota

	$185,000

	

	 	 	a)

	Land:

	

	$40,000

	 	 	b)

	Buildings and Leasehold Improvements:

	

	$55,000

	 	 	c)

	Equipment and Fixturies:

	

	$90,000

	 	iv.

	Grand Forks, North Dakota

	$185,000

	

	 	 	a)

	Land:

	

	$40,000

	 	 	b)

	Buildings and Leasehold Improvements:

	

	$55,000

	 	 	c)

	Equipment and Fixturies:

	

	$90,000

	 	v.

	Moorhead, Minnesota

	$185,000

	

	 	 	a)

	Land:

	

	$40,000

	 	 	b)

	Buildings and Leasehold Improvements:

	

	$55,000

	 	 	c)

	Equipment and Fixturies:

	

	$90,000

	 	vi.

	Detroit Lakes, Minnesota

	$185,000

	

	 	 	a)

	Land:

	

	$40,000

	 	 	b)

	Buildings and Leasehold Improvements:

	

	$55,000

	 	 	c)

	Equipment and Fixturies:

	

	$90,000

	 	vii.

	Elk River, Minnesota

	$465,000

	

	 	 	a)

	Land:

	

	$275,000

	 	 	b)

	Buildings and Leasehold Improvements:

	

	$90,000

	 	 	c)

	Equipment and Fixturies:

	

	$100,000

	 	viii.

	Waite Park, Minnesota

	$305,000

	

	 	 	a)

	Land:

	

	$160,000

	 	 	b)

	Buildings and Leasehold Improvements:

	

	$55,000

	 	 	c)

	Equipment and Fixturies:

	

	$90,000

	 	ix.

	Sioux City, Iowa

	$380,000

	

	 	 	a)

	Land:

	

	$175,000

	 	 	b)

	Buildings and Leasehold Improvements:

	

	$115,000

	 	 	c)

	Equipment and Fixturies:

	

	$90,000

	 	x.

	Sioux Falls, South Dakota (East)

	$185,000

	

	 	 	a)

	Land:

	

	$40,000

	 	 	b)

	Buildings and Leasehold Improvements:

	

	$55,000

	 	 	c)

	Equipment and Fixturies:

	

	$90,000

	 	xi.

	Sioux Falls, South Dakota (West)

	$145,000

	

	 	 	a)

	Land:

	

	Leased

	 	 	b)

	Buildings and Leasehold Improvements:

	

	$55,000

	 	 	c)

	Equipment and Fixturies:

	

	$90,000

	(b)

	Goodwill

	$100,000

	

	(c)

	Non-Compete Agreement

	$100,000

	

	 	 	 	 	

	

	 	TOTAL

	$2,800,000

	

(2)

Additional Purchase Price.   In addition to the Purchase Price under Paragraph 3.a. of this Agreement Purchaser shall pay to Seller the Inventory Amount by certified check or wire transfer, as Seller may direct, within three (3) business days of the Closing Date.

b.

Payment of Purchase Price.  The Purchase Price shall be payable as follows, subject to Paragraph 3.c. of this Agreement:

(1)

Cash Payment.  Purchaser shall pay to Seller on the Closing Date, in cash or by wire transfer, as Seller may direct, the sum of Five Hundred Thousand and 00/100 ($500,000.00) Dollars.

(2)

Balance of Purchase Price.  The balance of the Purchase Price in the amount of Two Million Three Hundred Thousand and 00/100 ($2,300,000.00) Dollars shall be payable as follows:

(a)

The sum of Two Million and 00/100 ($2,000,000.00) Dollars shall be payable under the terms of Ten (10) Contracts for Deed.

(b)

The sum of Three Hundred Thousand and 00/100 ($300,000.00) Dollars shall be payable pursuant to the terms set forth under the Promissory Note.

c.

Purchase Price Adjustment.  Purchaser may be entitled to the following adjustment to the Purchase Price:

(1)

If the Purchase Price is not paid in full by Purchaser to Seller by 5:00 p.m. Central Time on November 12, 2004, then:

(a)

The Purchase Price shall be increased by the sum of Three Hundred Thousand and 00/100 ($300,000.00) Dollars for a total Purchase Price of Three Million One Hundred Thousand and 00/100 ($3,100,000.00) Dollars;

(b)

Purchaser agrees to execute a promissory note pertaining to the payment of this Three Hundred Thousand and 00/100 ($300,000.00) Dollars pursuant to the terms set forth under Paragraph 3.c.(2)(a) of this Agreement, a specimen of the promissory note is attached to this Agreement as Exhibit “I”.

(2)

If the Purchase Price is increased as provided above:

(a)

The Three Hundred Thousand and 00/100 ($300,000.00) Dollars shall be payable as follows:

i.

Monthly interest only payments beginning December 1, 2004 at an annual interest rate of Six (6%) percent.

ii.

A lump sum principal payment in the amount of Three Hundred Thousand and 00/100 ($300,000.00) Dollars, plus any accrued interest, on November 12, 2009.

(b)

The Three Hundred Thousand and 00/100 ($300,000.00) Dollar increase to the Purchase Price shall be allocated to Goodwill for a total allocation to Goodwill in the amount of Four Hundred Thousand and 00/100 ($400,000.00) Dollars.

1.

Representations and Warranties of Seller.  Seller represents and warrants that:

a.

Organization.  Seller is a corporation duly organized, validly existing and in good standing under the laws of the State of North Dakota.  Seller is qualified to do business as a foreign corporation in each state in which it does business.

b.

Authority.  Seller has the right, power, legal capacity, and authority to enter into and perform Seller’s obligations under this Agreement.

(1)

No approvals or consents of any person other than Seller are necessary in connection with this Agreement, other than the consent of Landlord under the Real Estate Lease.

(2)

The execution and delivery of this Agreement by Seller has been duly authorized by its Board of Directors and Shareholders.

(3)

This Agreement has been executed and delivered by a duly authorized officer of Seller and is a valid and binding agreement of Seller, and enforceable against it in accordance with its terms.

c.

Real Property.  With respect to Real Property:

(1)

Seller has not entered into any other contracts for the sale of the Real Property, nor are there any effective rights of first refusal or options to purchase the Real Property or any other legal or equitable rights of others that might prevent the consummation of this Agreement or the use of the Property by Buyer in the conduct of the Business.

(2)

To the best of Seller’s knowledge, there are no special assessments which have been certified or are pending certification that require annual installments in excess of Two Hundred and 00/100 ($200.00) Dollars per Business location.

(3)

Seller has not been cited for any violations of any rule, regulation, code, resolution, ordinance, statute or law involving the use, maintenance, or operation or condition of the Real Property, or any part thereof or installations therein, and to the best of Seller’s knowledge, the Real Property fully and duly complies with all applicable resolutions, statutes, laws, rules, regulations, and codes of all governmental units, authorities, agencies, and environmental protection agencies having authority over the Real Property.

(4)

There is no litigation, condemnation or proceeding of any kind, or, to Seller’s knowledge, threatened against, any portion of the Real Property.

d.

Title to Certain Business Assets to be Sold; Sufficiency; Condition.  Seller has and as of the Closing Date, Seller will deliver to Purchaser, good, valid and marketable title to all of the Business Assets to be Sold (other than the Real Property and the Pepsi soft drink equipment), free and clear of all liens, pledges, mortgages, security interests, claims or encumbrances of any nature whatsoever.

(1)

Except for the soft drink equipment and the Business Assets Not for Sale, the Business Assets to be Sold constitute all property necessary for the conduct of the Business as presently conducted; and,

(2)

The Business Assets to be Sold (other than Real Property) are currently working, although with varying remaining useful lives, and are adequate for the uses to which they are being put.  All Business Assets to be Sold consisting of Retail Inventory and Supplies are of a quality and quantity usable and/or saleable in the ordinary course of the Business. EXCEPT FOR THE WARRANTIES PROVIDED IN THIS PARAGRAPH, THE BUSINESS ASSETS TO BE SOLD (OTHER THAN THE REAL PROPERTY) ARE BEING TRANSFERRED “AS IS,” “WHERE IS” WITHOUT ANY OTHER WARRANTY OF ANY KIND OR NATURE, WHETHER EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY AS TO SUITABILITY, DURABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

e.

Financial Statements.  Seller has delivered to Purchaser a true, complete and correct copy of the Financial Statements: 

(1)

The Financial Statements have been prepared in accordance with generally accepted accounting principles consistently applied by Seller throughout the period indicated and fairly present the financial position of Seller as of the respective dates of the balance sheets included in the Financial Statements, and the result of its operations for the respective periods indicated, subject to normal year end adjustments and footnotes.

(2)

Seller has informed Purchaser of the following changes which have been completed with respect to the accounting practice of Seller:

(a)

The accrual of Minnesota, Iowa and South Dakota real estate taxes;

(b)

Payment of development salary to Midland Garage Door; and,

(c)

Payment for payroll services to Seller by Midland Garage Door.

f.

Absence of Changes.  Since March 28, 2004, there has not been:

(1)

any change in the financial condition or operations of Seller, except changes in the ordinary course of business, which changes have not in the aggregate been materially adverse;

(2)

any change in Seller’s accounting methods or practices, except as set forth under Paragraph 4.e.(2); 

(3)

any sale or transfer of any asset of any amendment of any agreement of Seller except in the ordinary course of business;

(4)

any loss of or damage to the Business Assets to be Sold due to abuse, misuse, fire or other casualty.

g.

Real Estate Lease.  A true, complete and correct copy of the Real Estate Lease has been delivered to Purchaser.

(1)

There are no amendments to or modifications to the Real Estate Lease. 

(2)

The Real Estate Lease is considered valid and binding on Seller in accordance with its terms, and assuming all necessary consents are obtained pertaining to the Assignment of Real Estate Lease, the transaction contemplated by this Agreement will not result in the violation or breach of the Real Estate Lease. 

(3)

Seller has not been cited for any violations of any rule, regulation, code, resolution, ordinance, statute or law involving the use, maintenance, or operation or condition of the real property subject to the Real Estate Lease, or any part thereof or installations therein, and to the best of Seller’s knowledge the real property subject to the Real Estate Lease fully and duly complies with all applicable resolutions, statutes, laws, rules, regulations, and codes of all governmental units, authorities, agencies, and environmental protection agencies having authority over the real property subject to the Real Estate Lease.

h.

Contracts.  The Real Estate Lease constitutes the only contract, commitment or agreement reasonably necessary to enable Purchaser to carry on the Business as conducted by Seller. The following is an accurate and complete list of all written agreements, contracts, leases and commitments related to the Business to which the Seller is a party and which require aggregate annual payments by or to the Seller, or involves an unperformed commitments or services, having a value in excess of $5,000:

(1)

Pepsi America; and,

(2)

US Foods GFG Division.

i.

Tax Returns.  Within the times and in the manner prescribed by law, Corporation has filed all federal, state and local tax returns required by law and has paid all taxes, assessments, and penalties due and payable. 

(1)

Seller has provided Purchaser with copies of the 2000, 2001, 2002 and 2003 tax returns of Seller.

(2)

During the three (3) years preceding the date of this Agreement, no tax return has been subject to examination, audit or dispute by governmental authorities and none is threatened.

j.

Environmental Provisions.  To the best of Seller’s knowledge, Seller’s activities on the Real Estate and the real property subject to the Real Estate Lease, comply with applicable Environmental Laws and with any licenses or permits issued thereunder. 

(1)

Seller has informed Buyer of:

(a)

The transformer leak in Moorhead, Minnesota;

(b)

The closed monitoring well in Bismarck, North Dakota; and,

(c)

The active LUST sites in Sioux Falls (West), South Dakota.

(2)

Other than the above, Seller further represents that to the best knowledge of Seller there are no hazardous substances, hazardous materials, hazardous wastes, pollutants, or contaminants, as defined in any Environmental Laws (but including petroleum and petroleum derivatives), either stored, released or disposed of or otherwise placed or located on the Real Estate or the real property subject to the Real Estate Lease.  As used herein, “Environmental Laws” means all laws, ordinances, or regulations, state, federal or local, related to protection of the environment. 

k.

Compliance with Laws.  To the best of Seller’s knowledge, Seller is in compliance in all material respects, with applicable laws, statutes, orders, rules, regulations and requirements, as in existence on the date hereof, relating to the Business Assets to be Sold and the operation of the Business.

l.

Employee Matters.  There is no liability that will be imposed upon Purchaser with respect to any Employee Plan as a result of this Agreement.  Seller is not a party to any collective bargaining agreements nor any written employment agreements nor is Seller a party to any other contract or understanding (whether oral or written) that contains any severance pay, liabilities or obligation, except for accrued unused vacation pay or accrued unused sick leave pay and the annual incentive compensation as set forth under Paragraph 7.d. of this Agreement.

m.

Litigation.  There is no suit, action, arbitration, or legal, administrative, or other proceeding, or governmental investigation pending or, to the best knowledge of Seller, threatened, against or affecting Seller or any of the Business Assets to be Sold, the Business or the financial condition of Seller or which would prevent, impede or make illegal the consummation of the transactions contemplated by this Agreement. 

(1)

Seller is not in default with respect to any order, writ, injunction, or decree of any federal, state, local or foreign court, department, agency, or instrumentality.

(2)

Seller is not presently engaged in any legal action to recover monies due to Seller or damages sustained by Seller.

n.

No Breach or Violation.  The consummation of the transactions contemplated by this Agreement will not result in or constitute any of the following:

(1)

a default or an event that, with notice or lapse of time, or both, would be a default, breach, or violation of the Articles of Incorporation or By-Laws of Seller or any agreement, instrument or arrangement to which Seller is a party or by which Seller or the Business Assets to be Sold (or any of them) is bound;

(2)

an event that would permit any party to terminate any agreement or to accelerate the maturity of any indebtedness or other obligation of Seller; or,

(3)

the creation or imposition of any lien, charge or encumbrance on any properties of Seller.

o.

Full Disclosure.  None of the representations or warranties made by Seller, or any certificate, letter or memorandum furnished or to be furnished by Seller, or on Seller's behalf in connection with this Agreement contains or will contain as of the Closing Date any untrue statement of material fact, or omit any material fact, the omission of which would be misleading.

(1)

All representations and warranties of Seller pertaining to this Agreement are only set forth in this Agreement or the attachments to this Agreement.

(2)

Any warranties or representations made by Seller previously which is not set forth in this Agreement or on any attachment to this Agreement shall be deemed null and void and shall be treated as if the representation or warranty was never made.

2.

Representations and Warranties of Purchaser.  Purchaser represents and warrants that:

a.

Organization.  Purchaser is a corporation duly organized, existing, and in good standing under the laws of the State of Minnesota.  Purchaser is qualified to do business as a foreign corporation in each state in which the failure to be so qualified would have a material adverse effect on Purchaser.

b.

Authority.  Purchaser has the right, power, legal capacity and authority to enter into and perform Purchaser’s obligations under this Agreement.

(1)

No approvals or consents of any person other than Purchaser are necessary in connection with this Agreement.

(2)

The execution and delivery of this Agreement by Purchaser has been duly authorized by its Board of Directors and by the Board of Directors of Sterion Incorporated.

3.

Closing.  

a.

Seller's Obligations.  On the Closing Date, Seller's obligations shall include:

(1)

Seller shall execute and deliver to Purchaser:

(a)

Bill of Sale; 

(b)

Contracts for Deed;

(c)

Assignment of Real Estate Lease, with consent of Landlord to be obtained within seven (7) days after the Closing Date; 

(d)

Covenant Not to Compete;

(e)

Well disclosures or other real estate certificates (such as mechanics’ lien affidavits, FIRPTA affidavits, IRS forms) customarily delivered at the closing of commercial contract for deed transactions in the jurisdiction where the particular parcel of Real Estate is located.

(2)

A certificate executed by a duly authorized officer of Seller certifying that:

(a)

The representations and warranties of Seller in this Agreement are true and correct at and as of the Closing Date;

(b)

Seller has performed, satisfied and complied with all covenants, agreements and conditions required by this Agreement to be performed or complied with by Seller on or before the Closing Date.

(3)

A certificate from the Secretary of the State of North Dakota as to the corporate existence and good standing of Seller, dated no more than five (5) days prior to the Closing Date; and

(4)

A certificate of Seller’s Secretary, dated the Closing Date, certifying:

(a)

the incumbency of the officers signing this Agreement on behalf of Seller;

(b)

the resolutions of the Board of Directors of Seller and the shareholders of Seller authorizing the execution and delivery by Seller of this Agreement and all other documents referred to herein or related hereto and the consummation of the transactions contemplated hereby; and, 

(c)

Seller’s organizational documents attached to such certificate to be true, complete and in full force and effect and unmodified as of the Closing Date.

b.

Purchaser's Obligations.  On the Closing Date, Purchaser shall execute and deliver to Seller:

(1)

Certified check or wire transfer in the amount of Five Hundred Thousand and 00/100 ($500,000.00) Dollars payable to Seller; 

(2)

Promissory Note;

(3)

Contracts for Deed;

(4)

Security Agreement; 

(5)

Financing Statements; 

(6)

A certificate executed by a duly authorized officer of Purchaser, certifying that:

(a)

The representations and warranties of Purchaser in this Agreement are true and correct at and as of the Closing Date; and, 

(b)

Purchaser has performed, satisfied and complied with all covenants, agreements and conditions required by this Agreement to be performed or complied with by Purchaser on or before the Closing Date.

(7)

The Personal Guaranty;

(8)

A certificate from the Secretary of the State of Minnesota as to the corporate existence and good standing of Purchaser, dated no more than five (5) days prior to the Closing Date; and

(9)

A certificate of Purchaser’s Secretary, dated the Closing Date, certifying:

(a)

the incumbency of the officers signing this Agreement on behalf of Purchaser;

(b)

the resolutions of the Board of Directors of Purchaser authorizing the execution and delivery by Seller of this Agreement and all other documents referred to herein or related hereto and the consummation of the transactions contemplated hereby; and,

(c)

Seller’s organizational documents attached to such certificate to be true, complete and in full force and effect and unmodified as of the Closing Date.

4.

Seller's Obligations After Closing.  After the closing, Seller's obligations shall include:

a.

Seller's Indemnity.  Seller shall indemnify, defend and hold harmless Purchaser against and in respect of any and all claims, demands, losses, expenses, obligations, liabilities, damages, recoveries and deficiencies, including interest, penalties and reasonable attorney's fees, that Purchaser shall incur or suffer, which arise out of, result from, or relate to the Business Assets Not for Sale acts or omissions occurring prior to the Closing Date and any breach of, or failure by Seller to perform, any of Seller's representations, warranties, covenants, or agreements in this Agreement or in any schedule, certificate, Exhibit or other instrument furnished or to be furnished by Seller under this Agreement.  Seller's liability under this Paragraph shall not, in any event, exceed the Purchase Price.

b.

Notification by Purchaser.  Purchaser shall notify Seller of the existence of any claim, demand, or other matter to which Seller's indemnification obligations would apply, and shall give Seller a reasonable opportunity to defend the same at Seller's own expense and with counsel of Seller's own selection.  However, Purchaser shall at all times also have the right to fully participate in the defense at Purchaser's own expense.  If the claim is one that cannot by its nature be defended solely by Seller (including, without limitation, any federal or state tax proceeding), then Purchaser shall make available, and cause Seller to make available, all information and assistance that Seller may reasonably request.  If Purchaser shall, within a reasonable time after this notice, fail to defend, Seller shall have the right, but not the obligation, to undertake the defense of, and to compromise or settle (exercising reasonable business judgment), the claim or other matter on behalf, for the account, and at the risk, of Seller.

c.

Confidentiality.  Seller further agrees not to divulge, communicate, use to the detriment of Purchaser or for the benefit of any other person or persons, or misuse in any way, any confidential information or trade secrets of Seller.  Seller acknowledges and agrees that any information or data that Seller has acquired was received in confidence.

d.

Employee Matters.  With respect to miscellaneous employee matters:

(1)

Seller provides annual incentive compensation to key members of its organization.

(a)

As of the Closing Date, Seller will calculate the pro-rata incentive compensation for calendar year 2004 for each key member.

(b)

The pro-rata incentive compensation will be paid directly by Seller to employee within seventy-five (75) days after the Closing Date, subject to the employee still being employed by Purchaser.

(2)

Seller shall pay to its employees all unused vacation time, subject to any and all appropriate payroll deductions, within seven (7) days after the Closing Date.

e.

Further Actions.  Seller shall execute, acknowledge and deliver any further assurances, documents and instruments of transfer, reasonably requested by Purchaser and shall take any other action consistent with the terms of this Agreement that may be reasonably requested by Purchaser. If requested by Purchaser, Seller further agrees to prosecute and otherwise enforce in Seller's own name for the benefit of Purchaser, any claims, rights or benefits that are transferred to Purchaser by this Agreement and that require prosecution or enforcement in Seller's name. The prosecution or enforcement of claims, rights or benefits under this Paragraph shall be solely at Purchaser's expense, unless the prosecution or enforcement is made necessary by Seller's breach of this Agreement.

5.

Purchaser's Obligations After Closing.   After the closing, Purchaser's obligations shall include:

a.

Seller's Indemnity.  Purchaser agrees to indemnify and hold harmless Seller against, and in respect of, any and all claims, losses, expenses, costs, obligations and liabilities that Seller may incur by reason of Purchaser's breach of or failure to perform any of Purchaser's warranties, guarantees, commitments, or covenants in this Agreement or by reason of any act or omission of Purchaser, or any of Purchaser's successors or assigns, after the Closing Date, that constitutes a breach or default under, or a failure to perform, any obligation, duty or liability of Seller under any agreement to which Purchaser is a party or by which Purchaser is bound at the Closing Date, but only to the extent to which Purchaser expressly assumes these obligations, duties and liabilities under this Agreement.

b.

Notification by Seller.  Seller shall notify Purchaser of the existence of any claim, demand, or other matter to which Purchaser’s indemnification obligations would apply, and shall give Purchaser a reasonable opportunity to defend the same at Purchaser’s own expense and with counsel of Purchaser’s own selection.  However, Seller shall at all times also have the right to fully participate in the defense at Seller’s own expense.  If the claim is one that cannot by its nature be defended solely by Purchaser (including, without limitation, any federal or state tax proceeding), then Seller shall make available, and cause Purchaser to make available, all information and assistance that Purchaser may reasonably request.  If Seller shall, within a reasonable time after this notice, fail to defend, Purchaser shall have the right, but not the obligation, to undertake the defense of, and to compromise or settle (exercising reasonable business judgment), the claim or other matter on behalf, for the account, and at the risk, of Purchaser.

6.

Publicity.  All notices to third parties and all other publicity concerning the transactions contemplated by this Agreement shall be jointly planned and coordinated by Purchaser and Seller.  

a.

Neither Purchaser nor Seller shall act unilaterally in this regard without the prior written approval of the other.  However, this approval shall not be unreasonably withheld.

b.

Seller acknowledges that Purchaser’s parent corporation, Sterion Incorporated, is required to make a filing of a Current Report on Form 8-K with the Securities and Exchange Commission in connection with the transactions contemplated by this Agreement and is required to attach this Agreement as a publicly available exhibit to such Current Report on Form 8-K and Seller agrees to use its best efforts to timely review and provide its consent to such filing.

7.

Costs.  With respect to any costs:

a.

Representatives.  With respect to any broker, finder or representative:

(1)

Seller represents that Jack Chivers of Chivers Real Estate is the representative for Seller in connection with the transactions contemplated by this Agreement. Purchaser shall be solely responsible for any fee paid to Jack Chivers in connection with this Agreement. 

(2)

Purchaser represents and warrants that it has not dealt with any  broker, finder or other representative in connection with any of the transactions contemplated by this Agreement.

(3)

Other than Jack Chivers, as a broker for Seller, Purchaser and Seller do not know of any other person who may be entitled to any fee in connection with any of the transactions contemplated by this Agreement and each party shall indemnify and hold harmless the other from any claim for commission or other compensation by any other person.

b.

Expenses.  Except as set forth in Paragraph 10.c., each of Purchaser and Seller shall pay all of the costs and expenses incurred or to be incurred by that party in negotiation and preparation of this Agreement and in closing and carrying out the transactions contemplated by this Agreement.

c.

Real Estate Expenses.  With respect to the real estate expenses:

(1)

Purchaser shall pay all premiums required for the issuance of any owner’s or lender’s title insurance policy issued with respect the Real Estate.  

(2)

General real estate taxes and installments of special assessments payable therewith (“Taxes”) due and payable in the year prior to the year in which the Closing Date occurs and all prior years shall be paid by Seller. 

(a)

Taxes levied in 2003 and due and payable in 2004 shall be prorated between Seller and Buyer as of the Closing Date, based on the number of days elapsed in calendar 2004.  

(b)

Buyer shall pay the Taxes levied in 2004 and due and payable in 2005 and thereafter.  

(3)

Seller shall pay the cost of recording all Contracts for Deed and financing statements.

(4)

Buyer shall pay the state deed tax and any other recording fees pertaining to the Real Estate.

8.

Survival of Representations and Obligations.  All representations, warranties, covenants and agreements of the parties contained in this Agreement, or in any instrument, certificate, opinion, or other writing provided for in it, shall survive the closing.

9.

Administration and Construction.  This Agreement shall be administered and construed in accordance with the following provisions:

a.

Attorney's Fees and Costs.  In connection with any litigation, including appellate proceedings, arising out of this Agreement, the prevailing party shall be entitled to recover reasonable attorney's fees and costs.

b.

Notices.  Any and all notices or other communication provided for in this Agreement shall be given in writing by registered or certified mail which, unless otherwise designated by a party, shall be addressed to the addresses shown in Paragraph 1 of this Agreement.  

(1)

As to registered mail, notice shall be deemed served when properly addressed and duly accepted for mailing as registered mail in a branch of the United States Postal Service.  

(2)

As to certified mail, notice shall be deemed served when duly deposited in a United States Postal Service mailbox or at a branch of the United States Postal Service.

c.

Execution in Counterparts.  This Agreement may be executed in counterparts, each of which shall be considered as an original of the Agreement.  All executed counterparts shall constitute, and shall have the force and effect, of one and the same document, and shall be binding upon those who execute the Agreement, regardless of whether all parties execute the same document.

d.

Captions.  The captions on the paragraphs and subparagraphs of this Agreement are inserted only for the purpose of convenient reference.  The captions shall not be used to construe or interpret the Agreement nor to prescribe the scope or intent of the Agreement.

e.

Specific Performance.  The parties stipulate that it is impossible to measure in money the damages which will accrue to a party to this Agreement by reason of a failure to perform any of the obligations under this Agreement.  

(1)

Therefore, if any party to this Agreement shall institute any action or proceeding to enforce the provisions of this Agreement, any person against whom such action or proceeding is brought hereby waives the claim or defense that such party has an adequate remedy at law.  

(2)

Such person shall not urge in any such action or proceeding the claim or defense that such remedy at law exists.

f.

Severability.  The invalidity or unenforceability of any particular provision of this Agreement shall not affect its other provisions.  The Agreement shall be construed in all respects as if such invalid or unenforceable provision was omitted.

g.

Entire Agreement.  This Agreement constitutes the complete and entire understanding of the parties concerning the conveyance of the Business Assets to be Sold.  Neither party shall be bound by or be liable for any statements, warranties, guarantees, or representations not set forth in this Agreement which may have been made by any broker, agent, employee or other person representing or purporting to represent a party to this Agreement.

h.

Modification.  No change or modification of this Agreement shall be valid unless the same be in writing and signed by all of the parties to this Agreement.

i.

Persons Bound by this Agreement.  This Agreement shall be binding upon the parties and their successors in interest.  The rights and obligations of any party to this Agreement may be exercised or satisfied by that party's legal representative.

j.

Governing Law.  The provisions of this Agreement shall be governed by the laws of the State of North Dakota. Any court proceedings or litigation arising out of or pertaining to this Agreement shall be venued in state district court in Cass County, North Dakota.

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

BURGER TIME CORPORATION, Seller

  By:  /s/  Douglas R. Geeslin

Douglas R. Geeslin, 

President and Secretary

BURGER TIME ACQUISITION CORPORATION, Purchaser

   By:  /s/  Mark Buckrey

Mark Buckrey, 

Chief Financial OfficerExhibit 10

Exhibit 10.2

Corporation to Corporation

[State]

CONTRACT FOR DEED

This Agreement made this 1st day of July, 2004, between Seller and Purchaser, who agree as follows:

1.

Definitions.  For the purpose of this Agreement:

a.

"Purchaser" shall mean Burger Time Acquisition Corporation, a corporation organized under the laws of the State of Minnesota, whose mailing address is 13828 Lincoln Street NE, Ham Lake, Minnesota 55304.

b.

"Seller" shall mean Burger Time Corporation, a corporation organized under the laws of the State of North Dakota, whose mailing address is 675 12th Avenue NE, West Fargo, North Dakota 58078.

c.

"Property" shall mean the following described real estate, together with all improvements, hereditaments and appurtenances, in the County of __________, in the State of ___________: 

[legal description]

d.

"Business" shall mean the businesses known as Burger Time, which are located at:

(1)

Fargo, North Dakota;

(2)

Bismarck, North Dakota;

(3)

Minot, North Dakota;

(4)

Grand Forks, North Dakota;

(5)

Moorhead, Minnesota;

(6)

Detroit Lakes, Minnesota;

(7)

Elk River, Minnesota;

(8)

Waite Park, Minnesota;

(9)

Sioux City, Iowa; and,

(10)

Sioux Falls, South Dakota.

e.

“Promissory Note” shall mean:

(1)

That promissory note between Seller as Lender and Purchaser as Borrower dated July 1, 2004 in the original principal amount of Three Hundred Thousand and 00/100 ($300,000.00) Dollars; and,

(2)

A promissory note between Seller as Lender and Purchaser as Borrower in the original principal amount of Three Hundred Thousand and 00/100 ($300,000.00) Dollars if the total purchase price under the Business Transfer Agreement is not paid in full by November 12, 2004.

f.

“Security Agreement” shall mean the security agreement between Seller as the Secured Party and Purchaser as the Debtor, securing:

(1)

This Contract for Deed and the other nine (9) Contract for Deeds relating to the sale of the Business; and,

(2)

The Promissory Note.

g.

“Real Estate Lease” shall mean the Real Estate Lease Agreement as originally entered into by Seller as Tenant and Dallas Vandenbos and Janice Vandenbos as Landlord, and any subsequent extensions, for the property located at 2300 West 12th Street, Sioux Falls, South Dakota.

h.

"Business Transfer Agreement" shall mean the agreement between Seller and Purchaser in which Seller agrees to sell and Purchaser agrees to buy the business assets of the enterprise owned by Seller and known as Burger Time.

i.

"Purchase Price" shall mean the monetary consideration for the purchase of the Property.

j.

"Agreement" shall mean this contract for deed between Seller and Purchaser.

2.

Conveyance.  Seller hereby sells, and Purchaser hereby buys the Property. 

3.

Title.  Seller warrants that title to the Property is, on the date of this Agreement, and on the date of delivery of the warranty deed thereto, under Paragraph 4, below, shall be subject only to the following exceptions:

a.

Covenants, conditions, restrictions, declarations and easements of record, if any, not materially interfering with the use or occupancy of the Property;

b.

Reservations of minerals or mineral rights, if any;

c.

Building, zoning and subdivision laws and regulations;

d.

The lien of real estate taxes and installments of special assessments which are payable by Purchaser pursuant to this Agreement; and,

e.

The following liens or encumbrances:

NONE

4.

Purchaser’s Examination of Title; Cure by Seller.  Purchaser may, at its sole expense, obtain a commitment for a policy of title insurance covering the Property, which commitment shall be subject only to the standard exceptions to title on the ALTA form, and shall delete exceptions for survey matters or parties in possession.

a.

Purchaser may furnish Seller a copy thereof.  Seller shall cure any title defect or other exception shown thereon, at Seller’s sole cost and expense, and prior to the final payment by Purchaser hereunder and conveyance of title by Seller to Purchaser.

b.

If Purchaser cannot obtain a commitment for a policy of title insurance covering the Property without furnishing the title insurance company with a survey to the Property, Seller shall not be responsible to provide Purchaser with such survey.

5.

Delivery of Deed and Evidence of Title.  Upon Purchaser's prompt and full performance of this Agreement, Seller shall:

a.

Execute, acknowledge and deliver to Purchaser a warranty deed conveying to Purchaser marketable title in the Property, subject only to the following exceptions:

(1)

Those exceptions referred to in Paragraph 3 of this Agreement; and,

(2)

Liens, encumbrances and adverse claims or other matters which Purchaser has created, suffered or permitted to accrue after the date of this Agreement.

b.

Deliver to Purchaser the abstract of title to the Property or, if the title is registered, the owner's duplicate certificate of title.

6.

Purchase Price.  Purchaser shall pay to Seller, at Seller's mailing address, the Purchase Price in the sum of Two Hundred Fifty Thousand and 00/100 ($250,000.00) Dollars, payable as follows:

a.

Interest.  Interest shall accrue from the date of possession at the annual rate of Six (6%) percent on the unpaid principal balance.

b.

Payment Schedule.  Payments of principal and interest shall be payable as follows:

(1)

With Respect to Payments of Interest: 

(a)

The first payment of interest in the amount of One Thousand and 00/100 ($1,000.00) Dollars shall be due on August 1, 2004. 

(b)

Subsequent monthly interest payments shall be due on the 1st day of each month thereafter, through and including July 1, 2020.

(c)

Any payments of interest shall not affect or be applied to the payments of principal.

(2)

With Respect to Payments of Principal: 

(a)

At the Time of Closing, Purchaser shall pay to Seller as a down payment the sum of Fifty Thousand and 00/100 ($50,000.00) Dollars, the receipt of which is hereby acknowledged. 

(b)

The balance of the Purchase Price in the amount of Two Hundred Thousand and 00/100 ($200,000.00) Dollars shall be payable as follows:

i.

The first principal payment in the amount of Ten Thousand and 00/100 ($10,000.00) Dollars shall be due on July 1, 2005.

ii.

Subsequent annual principal payments in the amount of Ten Thousand and 00/100 ($10,000.00) Dollars shall be due on the 1st day of July of each year through and including July 1, 2020.

iii.

On July 1, 2020, the then remaining principal balance, together with all accrued interest, shall be due and payable in full.

(3)

Late Payment Service Charge.  With respect to late payments of principal:

(a)

Payments received subsequent to the due date shall be subject to a late payment service charge in the amount of One Thousand and 00/100 ($1,000.00) Dollars.

(b)

If the service charge is not paid along with the arrearage from which the service charge arose within five (5) days, then the amount of the service charge shall add to the unpaid principal balance and shall become an amount immediately due, together with interest from the date of default at the rate accruing on the unpaid principal balance, under this Agreement. 

c.

Stipulation Regarding Balloon Payment.  Purchaser and Seller stipulate that they understand that the payment due on July 1, 2020, constitutes what is commonly known as a "balloon payment."  

(1)

To the extent Seller deems necessary, Seller has determined the income tax impact of the balloon payment.  

(2)

Purchaser has considered the possibility that alternate financing of the balloon payment may not be available or, if available, may involve a higher rate of interest.

7.

Prepayment of Principal.  Prepayment of principal shall be in accordance with the following, subject to Paragraph 26 of this Agreement:

a.

Commencement.  Purchaser may prepay the unpaid principal balance at any time in full or in part without penalty. 

b.

Subsequent Installments.  Any such prepayment shall not change the amount of or postpone the due date of any subsequent installments of principal and interest until the principal balance and accrued interest shall have been paid in full.

8.

Acceleration of Principal Balance on Sale ("Due on Sale").  If the Property is conveyed, the unpaid principal balance and accrued interest shall become immediately due and payable.  

9.

Real Estate Taxes and Special Assessments.  Real estate taxes and special assessments shall be paid as follows:

a.

Proration of Taxes.  Seller shall pay all real estate taxes and installments of special assessments pertaining to January 1, 2004 to the Time of Closing.  

(1)

Purchaser shall pay all real estate taxes and installments of special assessments from the Time of Closing until December 31, 2004. 

(2)

Seller warrants that the real estate taxes and installments of special assessments which pertain to 2003 and previous years have been paid in full.

b.

Purchaser's Responsibility.  Purchaser shall pay all real estate taxes and installments of special assessments pertaining to calendar year 2005 and in all subsequent years.

c.

Special Assessments Not Certified for Collection.  Purchaser shall assume all special assessments which have not been certified for collection at the time of closing.

10.

Casualty Insurance.  At Purchaser's expense, Purchaser at all times shall insure the buildings, improvements and fixtures now or later located on or a part of the Property against loss by fire, extended coverage perils, vandalism and malicious mischief in an amount equal to their full insurable value.

a.

Risk of Loss.  Risk of loss shall pass to Purchaser when Purchaser becomes entitled to physical possession.

b.

Loss Payable Clause.  The insurance policy shall contain a loss payable clause in favor of Seller which provides that Seller's right to recover under the policy shall not be impaired by any acts or omissions of Purchaser or Seller and that Seller shall otherwise be afforded all rights and privileges customarily provided a mortgagee under the so-called "standard mortgage clause".

c.

Proof of Payment.  Purchaser shall provide proof of premium payment to Seller within fifteen (15) days of the premium due date.

d.

Notice of Damage.  In the event of damage to the Property by fire or other casualty, Purchaser shall promptly give notice of such damage to Seller and to the insurance company.

11.

Damage to the Property.  If the Property is damaged by fire or other casualty:

a.

Application of Insurance Proceeds.  The insurance proceeds paid on account of such damage shall be applied to payment of the amounts payable by Purchaser under this Agreement, even if such amounts are not then due to be paid, unless Purchaser makes a permitted election described in subparagraph b of this Paragraph. 

(1)

Such amounts shall be first applied to unpaid accrued interest and next to the installments to be paid in the inverse order of their maturity.  

(2)

Such payment shall not postpone the due date of the unpaid installments or change the amount of such installments.  

(3)

The balance of the insurance proceeds, if any, shall be the property of the Purchaser.

b.

Purchaser's Election to Rebuild.  If Purchaser is not in default under this Agreement, or after curing any such default, Purchaser may elect to have that portion of such insurance proceeds necessary to repair, replace or restore the damaged Property (the repair work) deposited in escrow with a bank or title insurance company qualified to do business in the State of North Dakota, or such other party as may be mutually agreeable to Seller and Purchaser.  

(1)

The election may be made only by written notice to Seller within sixty (60) days after the damage occurs.  In addition, the election will only be permitted if the plans and specifications and contracts for the repair work are approved by Seller, which approval Seller shall not unreasonably withhold or delay.  

(2)

If such a permitted election is made by Purchaser, Seller and Purchaser shall jointly deposit, when paid, such insurance proceeds into such escrow.  

(a)

If such insurance proceeds are insufficient for the repair work, Purchaser shall, before the commencement of the repair work, deposit into such escrow sufficient additional money to insure the full payment of the repair work.  

(b)

Even if the insurance proceeds are unavailable or insufficient to pay the cost of the repair work, Purchaser shall at all times be responsible to pay the full cost of the repair work.  

(c)

All escrowed funds shall be disbursed by the escrow agent in accordance with generally accepted sound construction disbursement procedures.

(d)

The costs incurred or to be incurred on account of such escrow shall be deposited by Purchaser into such escrow before commencement of the repair work.  

(3)

Purchaser shall complete the repair work as soon as reasonably possible and in a good and workmanlike manner and, in any event, the repair work shall be completed by Purchaser within one (1) year after the damage occurs.  

(4)

If, following the completion and payment for the repair work, there remain any undisbursed escrow funds, such funds shall be applied to payment of the amounts payable by Purchaser under this Agreement in accordance with Subparagraph a of this Paragraph.

12.

Injury or Damage Occurring on the Property.  Seller shall be free from liability and claims for damages by reason of injuries occurring on or after the date of possession to any person or persons or property while on or about the Property.

a.

Indemnification.  Purchaser shall defend and indemnify Seller from all liability, loss, costs and obligations, including reasonable attorney's fees, on account of or arising out of any such injuries.  However, Purchaser shall have no liability or obligation to Seller for such injuries which are caused by the negligence or wrongful acts or omissions of Seller.

b.

Liability Insurance.  Purchaser shall, at Purchaser's own expense, procure and maintain liability insurance against claims for bodily injury, death and property damage occurring on or about the Property in amounts reasonably satisfactory to Seller and naming Seller as an additional insured.

13.

General Insurance Provisions.  With regard to the insurance which Purchaser is required to procure and maintain under this Agreement:

a.

Authorized Companies.  The policy or policies shall be issued by an insurance company or companies licensed to do business in the State of North Dakota and acceptable to Seller.

b.

Continuous Coverage.  The insurance shall be maintained by Purchaser at all times while any amount remains unpaid under this Agreement.

c.

Required Notice.  The policy or policies shall provide for not less than ten (10) days written notice to Seller before cancellation, non-renewal, termination or change in coverage.

d.

Proof of Coverage.  Purchaser shall deliver to Seller a duplicate original or a certificate of such insurance policy or policies.

14.

Condemnation.  If all or any part of the Property is taken in condemnation proceedings instituted under power of eminent domain or is conveyed in lieu of such proceedings under threat of condemnation, the money paid pursuant to such condemnation or conveyance in lieu of condemnation shall be applied to payment of the amounts payable by Purchaser under this Agreement, even if such amounts are not then due to be paid.  

a.

Such amounts shall be applied first to unpaid accrued interest and next to the installments to be paid as provided in this Agreement in the inverse order of their maturity.  

b.

Such payment shall not postpone the due date of the installments to be paid pursuant to this Agreement or change the amount of such installments.  

c.

The balance, if any, shall be the property of Purchaser.

15.

Removal of Improvements.  Purchaser shall not renovate, modify or remove any buildings, fixtures, trees, shrubbery or improvements which are now on the Property or which may be in the future erected, placed or made on the Property, except that Purchaser may repair or replace building components or systems or fixtures or equipment therein in the ordinary course of Purchaser’s business, provided such repair or replacement conforms to all applicable ordinances and codes.  Such buildings, fixtures, trees, shrubbery and improvements shall be and shall remain the property of Seller, subject to the contractual interest of Purchaser hereunder, until this Agreement shall be fully performed by Purchaser.

16.

Liens or Adverse Claims.  Purchaser shall not create or permit to accrue liens or adverse claims against the Property which constitute a lien or claim against Seller's interest in the Property.  Purchaser shall pay to Seller all amounts, costs and expenses, including reasonable attorney's fees, incurred by Seller to remove any such liens or adverse claims.

17.

Waste.  Purchaser shall commit neither active waste nor permissive waste on the Property.

18.

Assignment of Agreement.  Purchaser shall not assign Purchaser's rights under this Agreement.

19.

Protection of Interests.  If Purchaser fails to pay any sum of money required under the terms of this Agreement or fails to perform any obligation as set forth in this Agreement, Seller may, at Seller's option, pay the same or cause the same to be performed, or both.  The amounts so paid by Seller and the cost of such performance shall be payable at once, with interest at the rate accruing on the unpaid principal balance, as an additional amount due to Seller under this Agreement.  If Seller hereafter creates, suffers or permits to accrue, any mortgage, contract for deed, lien or encumbrance against the Property and, provided Purchaser is not in default under this Agreement, Seller shall timely pay all amounts due on said mortgage, contract for deed, lien or encumbrance.  If Seller fails to do so, Purchaser may, at Purchaser's option, pay any such delinquent amounts and deduct the amounts paid from the installment(s) next coming due under this Agreement.  In any event, any such mortgage, contract for deed, lien or encumbrance shall not exceed the remaining unpaid principal balance under this Agreement.

20.

Leases.  Seller warrants that the Property is not subject to any lease agreements.

21.

Assignment of Rents.  Purchaser does hereby:

a.

Assign to Seller all of Purchaser's right, title, interest and demand in and to the rents from the Property;

b.

Assign all leases, whether oral or written, now existing or hereafter made;

c.

Empower Seller to collect said rents as they shall become due and to receipt for the same;

d.

Direct each of the tenants to pay such rents as may now be due or which may hereafter become due to Seller during the term of this Agreement;

e.

Constitute and appoint Seller as Purchaser's attorney-in-fact to renew any and all leases or to make new leases or agreements with regard to the Property as Seller shall, in Seller's sole discretion, deem proper from time to time.

However, this assignment of rents shall not become effective unless Purchaser shall default in the covenants, terms and conditions of this Agreement and shall again be suspended upon the Purchaser's cure of the default.

22.

Physical Possession.  Purchaser shall be given physical possession of the Property on the date of this Agreement.

23.

Default.  The time of performance by Purchaser of the terms of this Agreement is an essential part of this Agreement.  Should Purchaser fail to timely perform any of the terms of this Agreement, Seller may, at Seller's option, elect to declare this Agreement cancelled and terminated by notice to Purchaser in accordance with applicable law.  All right, title and interest acquired under this Agreement by Purchaser shall then cease and terminate.  All improvements made upon the Property and all payments made by Purchaser pursuant to this Agreement shall belong to Seller as liquidated damages for breach of this Agreement.  Neither the extension of the time for payment of any sum of money to be paid under this Agreement nor any waiver by Seller of Seller's rights to declare this Agreement forfeited by reason of any breach shall in any manner affect Seller's right to cancel this Agreement because of defaults subsequently occurring, and no extension of time shall be valid unless agreed to in writing.  After service of notice of default and failure to cure such default within the period allowed by law, Purchaser shall, upon demand, surrender possession of the Property to Seller.  However, Purchaser shall be entitled to possession of the Property until the expiration of such period.

24.

Cross Default.  This Agreement is made between Purchaser and Seller in conjunction with nine (9) other Contract for Deeds relating to the sale of the Business.

a.

Purchaser and Seller hereby agree that a default in this Agreement or any one (1) of the other Contract for Deeds shall:

(1)

constitute a default under this Agreement and any and all Contract for Deeds and Purchaser must cure any and all defaults under this Agreement and all other Contract for Deeds, otherwise Seller shall have the right to cancel all of the Contract for Deeds relating to the Business; 

(2)

constitute a default under the Security Agreement and Seller as Secured Party shall have the rights pursuant to the terms of the Security Agreement; and,

(3)

constitute a default under the Real Estate Lease and shall immediately allow Seller the rights as Tenant and/or Assignee under the Real Estate Lease.

b.

Purchaser and Seller further agree that in the event of cancellation, Purchasers rights to cure a default shall be limited to curing the defaults under this Agreement and all Contract for Deeds and unless a default under this Agreement and all Contract for Deeds are cured, Purchaser shall not effectuate redemption from the cancellation of this Agreement and all of the Contract for Deeds.

25.

Cross Default - Promissory Note.  With respect to the Promissory Note:

a.

This Agreement is made between Purchaser and Seller in conjunction with the Promissory Note relating to the sale of the Business.

b.

Purchaser and Seller hereby agree that a default in this Agreement or any one (1) of the other Contract for Deeds relating to the sale of the Business, shall constitute a default under the Promissory Note and Purchaser must cure any and all defaults and all other Contract for Deeds, otherwise Seller shall have the right to accelerate the Promissory Note with all accrued interest and principal remaining becoming immediately due and payable.

26.

Prepayment.  Purchaser and Seller agree that Purchaser shall have a right to pre-pay any and all of the unpaid principal balance of this Agreement and any and all other Contract for Deeds between Purchaser and Seller relating to the Business, except that any and all prepayment shall be apportioned proportionately between the unpaid principal balance under this Agreement and all other Contract for Deeds and Purchaser shall not be able to apply prepayments to any individual Contract for Deed in excess of its proportionate relationship with all of the Contract for Deeds. 

27.

Administration and Construction.  This Agreement shall be administered and construed in accordance with the following provisions:

a.

Access.  Seller covenants and warrants that there is ingress and egress to the Property.

b.

Time.  Time is of the essence of this Agreement.  Any reference in this Agreement to time periods of less than six (6) days shall in the computation of such time exclude Saturdays, Sundays and legal holidays. 

(1)

Any reference in this Agreement to time periods of six (6) days or greater shall in the computation of such time include Saturdays, Sundays and legal holidays.  

(2)

Any time period provided in this Agreement which shall end on a Saturday, Sunday or legal holiday shall extend to 5:00 p.m. on the next full business day.

c.

Attorney's Fees and Costs.  In connection with any litigation, including appellate proceedings, arising out of this Agreement, the prevailing party shall be entitled to recover reasonable attorney's fees and costs.

d.

Notices.  Any and all notices or other communication provided for in this Agreement shall be given in writing by registered or certified mail which, unless otherwise designated by a party, shall be addressed to the addresses shown in Paragraph 1 of this Agreement.  

(1)

As to registered mail, notice shall be deemed served when properly addressed and duly accepted for mailing as registered mail in a branch of the United States Postal Service.  

(2)

As to certified mail, notice shall be deemed served when duly deposited in a United States Postal Service mailbox or at a branch of the United States Postal Service.

e.

Execution in Counterparts.  This Agreement may be executed in counterparts, each of which shall be considered as an original of the Agreement.  All executed counterparts shall constitute, and shall have the force and effect, of one and the same document, and shall be binding upon those who execute the Agreement, regardless of whether all parties execute the same document.

f.

Captions.  The captions on the paragraphs and subparagraphs of this Agreement are inserted only for the purpose of convenient reference.  The captions shall not be used to construe or interpret the Agreement nor to prescribe the scope or intent of the Agreement.

g.

Specific Performance.  The parties stipulate that it is impossible to measure in money the damages which will accrue to a party to this Agreement by reason of a failure to perform any of the obligations under this Agreement. 

(1)

Therefore, if any party to this Agreement shall institute any action or proceeding to enforce the provisions of this Agreement, any person against whom such action or proceeding is brought hereby waives the claim or defense that such party has an adequate remedy at law.  

(2)

Such person shall not urge in any such action or proceeding the claim or defense that such remedy at law exists.

h.

Severability.  The invalidity or unenforceability of any particular provision of this Agreement shall not affect its other provisions.  The Agreement shall be construed in all respects as if such invalid or unenforceable provision was omitted.

i.

Entire Agreement.  This Agreement constitutes the complete and entire understanding of the parties concerning the conveyance of their Property.  Neither party shall be bound by or be liable for any statements, warranties, guarantees, or representations not set forth in this Agreement which may have been made by any broker, agent, employee or other person representing or purporting to represent a party to this Agreement.

j.

Modification.  No change or modification of this Agreement shall be valid unless the same be in writing and signed by all of the parties to this Agreement.

k.

Covenants to Run with Property.  All covenants, terms and conditions in this Agreement shall run with the Property.

l.

Persons Bound by this Agreement.  This Agreement shall be binding upon the parties and their successors in interest.  The rights and obligations of any party to this Agreement may be exercised or satisfied by that party's legal representative.

m.

Governing Law.  The provisions of this Agreement shall be governed by the laws of the State of South Dakota.  Any court proceedings or litigation arising out of or pertaining to this Agreement shall be venued in state district court in ____________ County, ___________.

n.

Recording.  Either party may record this Agreement against the Property, at its expense.

IN WITNESS OF ITS TERMS AND CONDITIONS, the parties have executed this Agreement.

BURGER TIME CORPORATION, Seller

  By____________________________________

Douglas R. Geeslin, 

President and Secretary

BURGER TIME ACQUISITION CORPORATION, Purchaser

   By___________________________________

Mark Buckrey,

Chief Financial Officer 

STATE OF MINNESOTA

)

)ss

COUNTY OF CLAY

)

On this 1st day of July, 2004, before me, a notary public within and for said County, personally appeared Douglas R. Geeslin to me known to be the President and Secretary of Burger Time Corporation, a North Dakota Corporation, described in and who executed the foregoing Agreement and acknowledged that he executed the same on behalf of the Corporation as the free act and deed of the Corporation.

Notary Public

STATE OF MINNESOTA

)

)ss

COUNTY OF CLAY

)

On this 1st day of July, 2004, before me, a notary public within and for said County, personally appeared Mark Buckrey, to me known to be the Chief Financial Officer of Burger time Acquisition Corporation, a Minnesota Corporation, described in and who executed the foregoing Agreement and acknowledged that he executed the same on behalf of the Corporation as the free act and deed of the Corporation.

Notary Public

THIS INSTRUMENT DRAFTED BY:

REAL ESTATE TAX STATEMENTS TO:

Gregory P. Hammes

Burger Time Acquisition Corporation

Vogel Law Firm

13828 Lincoln Street NE

215 30th Street North

Ham Lake, MN  55304

P.O. Box 1077

Moorhead, Minnesota 56561-1077

(218) 236-6462

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