ASSET PORCHABE AOAElJ1ENT
<br />This A69et Purchase Agreement ("Agreement") 1s entered
<br />Into ne of Mny .i(aT , 1994 between JRRM METALS, L. C., a Eansae
<br />limited liebil ity company ("Buyer") and IUWSAS METALS COMPANY, a
<br />Delaware corporation (^KMC" or "Seller").
<br />A. On November 7, 1990, CFfI Steel Corporation
<br />("CFfI") and Sts eubal0 Sarlae, including EMC, filed pet Stlons for
<br />reorgenizetlon under Chapter 11 0l the United States Bankruptcy
<br />Code, 11 U.6.C. S 101 at seq., ea encoded, (the 'Code^) with the
<br />United Stetet Bankruptcy Court for the District of UtaA (Cho
<br />"Bankruptcy Court"). Tha Bnnkruptcy Cnae Se currently jointly
<br />adminlatered under Ceae No. 900-6731 (Judge Judith A. Boulden).
<br />B. CFiI and its eubeidieriee (the "Debtors") [l led
<br />with the Bankruptcy Court the Debtors' and Rellroed Trustee's
<br />FSrst Amended and Aeetated Joint Plan of Reor~enization, doted
<br />December 1, 1993 (the ^Plan^).
<br />C. On Fabruery 13, 1997, the Court entered an order
<br />con! firming the Plan. On Match 1, 1997 (the ^EffaMlva Deta"),
<br />the Dabtara (eYCept for Danvar Ma tale Company, Albuquerque Metals
<br />Company, Esnae^ Metal^ Company end Colorado and Utah Lend
<br />Company) sold cubetantlally all of thelz assets to CFiI 6tael,
<br />L.P. Tha Debtors became raorgenizad debtors Furauent to the Plnn
<br />on the ELf active Date.
<br />D. Pursuant to this Agreement, EMC fie filing a~~motlon
<br />with the Bankruptcy Court for sn order epprovl ng thin Aseat
<br />Purcheee Agreement an6 the sale of certeln eaters (the ^Aaeete")
<br />to Buyer, tree and clear of cleima, liens and ancumbreneee Sn
<br />accordance therewith (sold order referred to herein ae the ^Sela
<br />Order").
<br />E. Tha eels of the Aeaeta pursuant to this Agreement
<br />shall be pursuant to the Plan end the Sela Order.
<br />F. Seller has provided Buyer with a copy of Seller'^
<br />most currant financlel etatamente dated March 2, 1994 (the
<br />"Fl nanclal Btatementc").
<br />Tha partlea agree s• follows:
<br />1.1. Purcheee end Sale. Subject to the terms and
<br />conditions of this Agreement, at the Closing to be held as
<br />Provided Sn Section 3 hereof, Seller shall sell, transfer,
<br />convey, aaaign end deliver the Aeaate to Buyer, free and clear o[
<br />all encumbrances except Permitted Encumbrencea, end Buyer shell
<br />purcheee the Asaate from Seller.
<br />1.7. The Aaeete. Ae aced herein, the •Aeeeta•
<br />shall tootle[ of end include all of the following:
<br />(a) All of the real property Sn vienlts,
<br />Eancec on which the facility of EMC Se located, at deacrlbed on
<br />Exhibit •A" hereto (the "101C Land^) end all bul ldinge and other
<br />improvamente thereon;
<br />(b) A11 of the tengibla pareonel property
<br />owned by Seller and used Sn the buelnas• of EMC, including
<br />without limitation the pareonel property, machinery end equipment
<br />listed on Exhi6lt ^B" hereto end all spare perte end aupplisa
<br />wherever located;
<br />(c) All of the aerap lnvantorlee on hand nt
<br />IO1C'e yard at the time of Cloning (the 'Inventory");
<br />(a) All of Seller's business records (other
<br />then records which Seller is raga fired by law to retain in its
<br />poeaaeeion or Sallar'c records relating to liabilities which era
<br />not being assumed by Buyer under this Agreement); and
<br />(e) All of Ue Sntangibl• property owned by
<br />Seller and used Sn the bualnaae of EMC, Lneluding without
<br />linltstion, nil rights to the nema "Fences Metals Company,'
<br />trsdamerka, trade nnmae, service market, claims egelnet vendors,
<br />englnaaring, soils ono other reports raleting to the RMC Land or
<br />the business of )OIC, llcansea, patmita, guarentlas or varrantlee
<br />from third potties in favor o! Seller raletinq to the RMC Land,
<br />or the buaineee of EMC, cateloquaa, customer lists,
<br />corraapondsnca vi[h present or proapactive cuatomara or
<br />auppliare, edvartleing matarlsle, end to laphons axehenga numbers
<br />idantifiad with the 1DIC Land, but apecif !cal ly nncluding any
<br />contracts of Seller Sn connection with the buclnaa^ of EMC, and
<br />also ar:elud Snq any rights Sn any insurance policies Sn vh1.eR EMC
<br />is s nerved !neared.
<br />Tha Aseata shall not Include cash, cash equivalents or
<br />accounts receivable.
<br />1.]. Purcheee Price,
<br />(a) Ae payment Sn full of the purchase price
<br />for Ue Aaeete (the 'Price"), Buyer shall pay Snller in
<br />immediately evsileble funds the cum of Thraa Nundrad Seventy Five
<br />Thousand Dollars ($775,000) plus the value of the Inventory ae
<br />determined in eccordanca with Section 1.7 (b) hereof. Upon the
<br />execution of this Agreement, Buyer shell deposit with Seller
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