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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 <br />