Thirty Seven Thousand Five Hundred Dollars ($]7, SOD) which shall
<br />be applied toward the Price but shall be nonrefundable for any
<br />reason except the Callure oC the Bankruptcy Court to approve the
<br />t ransec[Sons contemplated herein, Buyer not 1>e ing Che suceesef ul
<br />bidder under Section 1.2 be low, or the [allure of any o[ the
<br />conditlona spetlf led in Section 2.] below. C~hould Buyer not De
<br />the succeecful bidder under Section Z.3 below, the Thirty-Seven
<br />Thouoend Five Xundred Dollars (5]7,500) shall be returned to
<br />Buyer no later than two (Z) Duslnese days after the bidding
<br />process le completed.
<br />(b) The quantitlee o[ Inventory as o[ the
<br />Clocing Date shell be determined and agreed Gy phys Scel
<br />inventorle^ taken by repreaen tatlvee of Sellr.r end Buyer on the
<br />clone o[ bus in ace on the day prior to the Cloa ing Daie. The
<br />value of Inventory shall be determined Dy the then current market
<br />price for scrap vehicles es quoted by the brokers cuetomarl3y
<br />utllired by Seller Sn 1te buelnese on the data the physical
<br />love ntot Ses are taken. Payment et Closing fcr the Inventory
<br />shall ba made pursuant to Section 1.1 (a) hereof.
<br />(c) The Price shall be allocated as set
<br />forth In Exhlb it "C" hereto. Seller and Buyer acknovledga that
<br />Exh Sblt "C^ hereto Se a proper allocation of the Price end that
<br />Seller end Buyer each agree that they will not take any pos It ion
<br />Snconsls tent vi.th this el3ocetlon in preparing fine octal
<br />ctatemante, tax returns, reports to shareholders or governmental
<br />euthorltlea or otharvlea vn ich relate to the [raneac[Sone
<br />evidenced by this Agreement. Seller and Buyer shall agree to the
<br />allocations required under Section 1060 of the Internal Aavanue
<br />Code o[ 1986, es emended, end Seller and Buyer will each timely
<br />file Internal Aevenue Servlca Form 859a ref lest ing the Linal
<br />agreed upon Price ellocet ion.
<br />l.t. No Assumotion o[ L1abS11t SYB• Buyer shall
<br />not assume, or Sn any manner become reeponslble of 11aDle Lor,
<br />any debts, obligatione or 11ab111t1ec oC Seller or any other
<br />parties, whether known or unknown, fixed, contingent or
<br />otherwise, ins ludinq, but not limited to, the following:
<br />(a) LSa b131tiea, including damages, float
<br />end penalties, arising out of claims by th ltd parties (Sac ludinq
<br />any governmental agency or authority) against Seller alleging any
<br />noncompliance with ar vio la [Son of federal, see to or other law or
<br />vio lotion of rules or regulations thereunder Lnc ludinq federal,
<br />state and local environmental and worker protection laws;
<br />(b) Liabilities to employees of Seller Lor
<br />vagea, feet, commiaelone, vorkera' compenca [ion, eeverence pay,
<br />termineClon pay, vecatlon pay, unemployment b~enef Sta, or any
<br />other type of lie bilitiee, payments or mad icel or other benefits
<br />a riot ng out of their employment or the fermi n:rtlon of their
<br />employment with 6aller. with respect to cle Sma under vorkera'
<br />compensation coverage, Seller will be responsible for injuries
<br />that occurreO prior to the Closlnq and Buyer will be responelhle
<br />[or Snjur lee that occur after the Clocinq. Cla Sme for injuries
<br />taco lung from occupatlonnl diseases shall ba deemed to have
<br />occurred the day the employee ceaeee working ss a result of the
<br />injury;
<br />(c) LSaD111tiec under any .employee penalon
<br />p lens. (se defined Sn TS[le I o[ the employee Retirement Income
<br />Security Act o[ 197, ne emended ("EfIISA•)), or under any
<br />^employee vet to ra benef It plans. (ec defined Sn EAISA)
<br />established or melnta toed by Seller;
<br />(d) LSebllit Sec for Income tsx, real or
<br />personal property tax, sales tsx (except to the extent expreeely
<br />provided hateln) or other taxes of vhateoevar nature (foreign,
<br />Ceders 1, state or local) Sncluding deflciencles, interact and
<br />penalties arising out of Seller's ovnerahip of the Aasate, the
<br />conduct of Sts business or otherv Sse, except real estate tnxea on
<br />Cha qIC Lend vh Sch shell ba prorated to the data of the Clocing;
<br />(e~ L1ab111t1es with respect to pending or
<br />thraetened litigation, Sncluding but not limited to satlone
<br />Drought under any product, warranty, product liability or similar
<br />claims e11ag1nq personal injury, death, daaaga or destruction to
<br />property, economic lose or concaquentlsl damages, however
<br />arising, with respect to products manu[acturad or sold by Seller
<br />prior to the Clocinq;
<br />(C) Llabi 11t1es, cle Sms, demands, or
<br />obligatione of any nature vhetcoever arising out of any acts or
<br />events occurring prior to Cloc ing in coMaction with the
<br />ovnetsh Sp and operation of the ICNC Lend or the business o[ RNC;
<br />(g) All trade end other accounts payable end
<br />accrued expenses whether or not reflected end reserved for Sn the
<br />Flnenclsl Statements, and all debts 11ab111t1as end obligations
<br />of Seller paysbla to loaders, vendors, and other third parties)
<br />or
<br />(h) All 11ab1l1tlee and obllgatlona of
<br />Seller which vio late any representation, warranty, covenant or
<br />egraemant of seller.
<br />1.5. Sa lee Taxes. Buyer shell pay ell ealea
<br />trenater or other taxes levied on the seta oL the Aseete.
<br />1.6. Pollavlnq the Clocinq,
<br />Buyer agrees to cooperate vl h Seller Sn providing documents and
<br />other Sn[ormatlon required by Seller Sn recolving claims o[ and
<br />against the bankruptcy estate oL Seller.
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