EXHIBIT 2.1
PURCHASE AND SALE AGREEMENT
BY AND BETWEEN HY-BON ENGINEERING COMPANY, INC.
AND NGE LEASING, INC.
THIS PURCHASE AND SALE AGREEMENT is made at Midland, Midland County,
Texas, on February 28, 2003 but effective January 1, 2003 between HY-BON
ENGINEERING COMPANY, INC., Seller, (hereinafter "HY-BON") and NGE LEASING, INC.,
Purchaser (hereinafter "NGE").
Purchase and Sale
1. The Purchaser agrees to purchase from the Seller, and the Seller
agrees to sell and deliver to the Purchaser, on the Closing Date, the properties
and assets referred to in Exhibit "A". Exhibit "A", which consists of 28 HY-BON
Compressor packages, is attached to this Agreement and made a part of it by
reference.
Purchase Price
2. On delivery of the Seller's properties, assets, lease contracts and
appropriate documentation, the Purchaser will deliver to the Seller by cash
transfer or a cashier's check in the sum of $2,150,000.00.
Closing Date
3. The Closing Date is March 31, 2003 unless, before that date, the
parties mutually agree to another closing date in writing. The time and place of
the Closing shall be as the parties shall mutually agree.
Instruments of Conveyance and Transfer at Closing
4. Title Documents. At Closing, the Seller will deliver to the
Purchaser such bills of sale, endorsements, assignments, lease contracts and
other good and sufficient instruments of conveyance and transfer in a form
satisfactory to the Purchaser. These documents will contain full warranties of
title, so as to be effective to vest in the Purchaser good, absolute, and
marketable title to the assets and contracts being transferred to the Purchaser
by the Seller, free and clear of all liens, charges, encumbrances and
restrictions.
Possession of Property
5. Simultaneous with the delivery of the documents described in
paragraph 4 above, the Seller will take all steps as may be needed to put the
Purchaser in actual possession, operation, and control of the assets and
business to be transferred; nevertheless, operational control by NGE LEASING,
INC. shall become effective immediately. Administrative procedures will continue
as at present.
Sales and Transfer Taxes and Fees
6. Purchaser shall bear all applicable sales, transfer, documentary,
use, filing, and other taxes and fees excluding federal income taxes that may be
due or payable as a result of the conveyance, assignment, transfer, or delivery
of the property, assets, contracts or business transferred under this Agreement,
regardless of whether these taxes or charges are levied on the Seller or the
Purchaser.
Further Assurances to Purchaser
7. From time to time, after the Closing Date, at the request of the
Purchaser, the Seller will execute and deliver to the Purchaser such other
instruments of conveyance and transfer and take such other action as the
Purchaser may reasonably require to more effectively convey, transfer, vest in
the Purchaser, and to put the Purchaser in possession of, any of the properties
or assets to be conveyed, transferred, and delivered to the Purchaser under this
Agreement.
Assignment
8. Neither the Seller nor the Purchaser may assign this Agreement
without the consent of the other. Nothing in this Agreement, expressed or
implied, is intended to confer on any person, other than the parties to this
Agreement and their successors, any rights or remedies under or by reason of
this Agreement.
Expenses
9. Each of the parties shall bear all expenses incurred by them in
connection with this Agreement, in the consummation of the transactions
contemplated by this Agreement, and in preparation of this Agreement.
Withdraw From HY-BON Rotary Compression, L.L.C.
10. HY-BON and NGE further agree that with regard to the entity HY-BON
ROTARY COMPRESSION, L.L.C., HY-BON, Seller, shall withdraw as a member of HY-BON
ROTARY COMPRESSION, L.L.C. as of January 1, 2003. For its withdrawal, HY-BON
shall receive from HY-BON ROTARY COMPRESSION, L.L.C. its interest in the entity
as of December 31, 2002 which interest shall be computed in accordance with
Article 29(a) and 29(b) of the written Regulations of HY-BON ROTARY COMPRESSION,
L.L.C. In that the entity HY-BON ROTARY COMPRESSION, L.L.C. has not been in
existence for five (5) full years, the amount of the payment for good will
required by Section 29(b) of the Regulations of HY-BON ROTARY COMPRESSION,
L.L.C. is expressly stipulated to be $67,144.11. All payments from HY-BON ROTARY
COMPRESSION, L.L.C. to HY-BON shall be paid at the completion of the termination
accounting, but in no event shall such payment be made to HY-BON later than two
(2) months from the date of closing. It is understood by the parties hereto that
Purchaser intends to dissolve HY-BON ROTARY COMPRESSION, L.L.C. and will not
operate using the name HY-BON.
Amendment and Waiver
11. This Agreement may be amended or modified at any time, or any
provision may be waived, but only by means of an instrument in writing executed
by the Purchaser and the Seller.
Notices
12. Any notices or other communications required or permitted under
this Agreement are sufficiently given if delivered personally or sent by
registered or certified mail, postage prepaid, addressed to the Seller at:
HY-BON ENGINEERING COMPANY, INC., 2404 Commerce, Xxxxxxx, Xxxxx, 00000, (915)
697-2292, Attention: Xxxxx X. Xxxxxxxx or to the Purchaser: NGE LEASING, INC. at
0000 Xxxxx Xxxxxx Xxxx 0000, Xxxxxxx, Xxxxx, 00000, Attention: Xxxxxxx Xxxxxxxx
or at such other address furnished in writing by any party to the others. The
parties may request an address change by furnishing an address in writing to the
other party. Notice will be deemed given as of the date so delivered or on the
date of deposit in the United States mail, as the case may be.
Choice of Law
13. The laws of Texas will govern the validity of this Agreement, the
construction of its terms, and the interpretation of the rights and duties of
the parties.
Section and Other Headings
14. Section, paragraph, and other headings contained in this Agreement
are for reference purposes only and should not affect in any way the meaning or
interpretation of this Agreement.
Gender
15. All personal pronouns used in this Agreement include the other
genders, whether used in the masculine or feminine or neuter gender, and the
singular includes the plural whenever and as often as may be appropriate.
Parties in Interest
16. All the terms and provisions of this Agreement are binding on and
inure to the benefit of, and may be enforced by, the Seller and the Purchaser
and their successors and assigns.
Integrated Agreement
17. This Agreement constitutes the entire agreement between the
parties. There are no agreements, understandings, restrictions, warranties, or
representations between the parties other than those set forth in this written
Agreement.
SELLER:
HY-BON ENGINEERING COMPANY, INC.
By /s/ Xxxxx Xxxxxxxxxx
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Printed Name: Xxxxx Xxxxxxxxxx
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PURCHASER:
NGE LEASING, INC.
By /s/ Xxxxxxx Xxxxxxxx
------------------------------
Printed Name: Xxxxxxx Xxxxxxxx
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PURCHASE AND SALE AGREEMENT By and Between
Hy-Bon Engineering Company, Inc. and NGE Leasing, Inc.
EXHIBIT A
Properties and Assets Purchased and Sold
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Effective date: January 1, 2003
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Unit Term of Lease Exp. Date of
(TU) # Lease Date Description Location/Lease Name Initial Term
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900 12 months 12/4/00 7.4L Xxxxx Xxx #3 12/4/01
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901 12 months 12/4/00 7.4L Xxxxx Xxxx X#0 12/4/01
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902 12 months 1/6/01 7.4L Xxx Xxxxxx #3 1/5/02
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903 12 months 1/5/01 7.4L Xxxxx Xxxxxx #1 1/5/02
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904 12 months 1/5/01 7.4L Municipal #1 & 2 1/5/02
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905 12 months 311/01 7.4L Xxxx Xxxxx #3 3/1/02
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906 12 months 311/01 7.4L Xxxxxxxx #3 3/1/02
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907 24 months 611/01 7.4L Trailer #2 6/1/03
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908 24 months 711/01 7.4L X.X. Xxxxxx Gas Unit 1-2 7/1/03
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909 12 months 4/18/01 7.4L Xxxxxx Xxxx 0 X#0 4/18/02
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910 12 months 4/19/01 7.4L Xxxxx Xxxx X#0 4/18/02
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911 12 months 5/14/01 7.4L Xxx Xxxxxx #2 5/14/02
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912 12 months 6/1/01 7.4L Maeyers-January #2 6/1/02
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914 12 months 7/1/01 7.4L X.X. Xxxxxx 7/1/02
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915 12 months 7/1/01 7.4L Xxxx Xxxxxx #1 7/1/02
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916 12 months 9/1/01 7.4L Arizona Xxxxx #2 9/1/02
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917 12 months 10/15/01 7.4L X.X. Xxxxxxxx A2 & A5 10/15/02
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918 12 months 9/1/01 7.4L X.X. Xxxxxxx A#2 9/1/02
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919 12 months 8/1/01 7.4L Xxxxx #2 8/1/02
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920 12 months 9/1/01 7.4L Couch #1 9/1/02
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921 12 months 10/15/01 7.4L X.X. Xxxxxx #1 10/15/02
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922 12 months 10/16/01 7.4L Xxxxxx Xxxxxxxx #1 10/15/02
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923 12 months 10/16/01 7.41 Xxx. XX Xxxxxxxx 00 #00 10/15/02
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924 12 months 4/1/02 7.4L Xxxxxx Xxxxxx J12 4/1/03
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924 12 months 4/1/02 7.41 H Xxxxxx Xxxxxx 4 4/1/03
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924 12 months 4/1/02 7.4L XX Xxxxxx #5 4/1/03
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924 12 months 4/1/02 7.4L XX Xxxxxx #6 4/1/03
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925 12 months 5/1/02 7.4L Xxxxx Xxxxxxxx D #11 5/1/03
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926 12 months 2/1/02 7.4L X.X. Xxxxx G.U. #2 2/1/03
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927 12 months 8/1/02 7.4L Xxxx Xxxxx #1 8/1/03
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928 7.4L Xxxx Xxxxxx #2
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