EXHIBIT 99.1
EXECUTION COPY
ASSET ACQUISITION
AGREEMENT
Effective as of June 30,
2009
FOR THE ACQUISITION
OF
Certain Specified
Assets
of
Dynamic Health Products,
Inc.
By
USA Sports, LLC
ASSET ACQUISITION
AGREEMENT
P ARTIES :
USA S PORTS , LLC (“ B
UYER
”)
A Delaware limited liability
company
905 Artis Road
Plymouth Meeting, PA
19462
D YNAMIC H EALTH P RODUCTS , I NC .
(“ SELLER ”)
A Florida corporation
6950 Bryan Dairy Road
Largo, FL 33777
E FFECTIVE D ATE :
June 30, 2009 (the “ Effective Date
”).
B ACKGROUND : Seller, through its various divisions,
including a division focused primarily on the nutritional
supplement industry (the “ Boss Division ”), is
a distributor of a wide variety of non-prescription dietary
supplements, vitamins, over-the-counter drugs, health and beauty
care products, health food, sports nutritional products, and soft
goods (the “ Seller Business ”). A portion of
the Boss Division’s business includes the provision of
refrigeration units to businesses selling Seller’s products
(the “ Cooler Business ”). All assets relating
to the Seller Business (including, without limitation, the Boss
Division and the Cooler Business) and discussed herein are either
wholly owned or leased by Seller. The parties desire that Seller
sells and Buyer buys certain assets as further described herein
(such assets, the “ Specified Assets ”), all
pursuant to the terms and subject to the conditions set forth in
this Asset Acquisition Agreement (the “ Agreement
”).
I NTENDING T O B E L EGALLY B OUND ,
in consideration of the foregoing and the mutual agreements
contained herein and subject to the satisfaction of the terms and
conditions set forth herein, the parties hereto agree as
follows:
SECTION 1. D
EFINED T ERMS
Certain defined terms used in this
Agreement and not specifically defined in context are defined in
this Section 1 as follows:
1.1 “ Accounts Receivable
” means (a) any right to payment for goods sold, leased
or licensed or for services rendered, whether or not it has been
earned by performance, whether billed or unbilled, and whether or
not it is evidenced by any Contract (as defined in
Section 1.8 ); (b) any note receivable; or
(c) any other receivable or right to payment of any
nature.
1.2 “ Additional Cash ”
shall have the meaning set forth in Section 3.7
.
1.3 “ Additional Expenses
” shall have the meaning set forth in Section 3.7
.
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1.4 “Asset” means any
real, personal, mixed, tangible or intangible property of any
nature including Cash Assets (as defined in Section 1.5
), prepayments, deposits, escrows, Accounts Receivable, Tangible
Property (as defined in Section 1.36 ), Real Property
(as defined in Section 1.30 ), Software (as defined in
Section 1.33 ), Contract Rights (as defined in
Section 1.10 ), Intangibles (as defined in
Section 1.20 ) and goodwill, and claims, causes of
action and other legal rights and remedies.
1.5 “Cash Asset” means any
cash on hand, cash in bank or other accounts, readily marketable
securities, security deposits, certificates of deposit and other
cash-equivalent liquid assets of Seller.
1.6 “Closing Date” shall
have the meaning set forth in Section 6.1 .
1.7 “Consent” means any
consent, approval, order or authorization of, or any declaration,
filing or registration with, or any application, notice or report
to, or any waiver by, or any other action (whether similar or
dissimilar to any of the foregoing) of, by or with, any Person (as
defined in Section 1.27 ), which is necessary in order
to take a specified action or actions in a specified manner and/or
to achieve a specified result.
1.8 “Consignment
Inventory” means inventory possessed by Seller for
use in the Seller Business which is still owned by the original
vendor or supplier and title and legal ownership of such inventory
has not been passed to Seller.
1.9 “Contract” means any
written or oral contract, agreement, instrument, order,
arrangement, commitment or understanding of any nature including
sales orders, purchase orders, leases, subleases, data processing
agreements, maintenance agreements, license agreements, sublicense
agreements, loan agreements, promissory notes, security agreements,
pledge agreements, deeds, mortgages, guaranties, indemnities,
warranties, employment agreements, consulting agreements, sales
representative agreements, joint venture agreements, buy-sell
agreements, options or warrants.
1.10 “Contract Right” means
any right, power or remedy of any nature under any Contract
including rights to receive property or services or otherwise
derive benefits from the payment, satisfaction or performance of
another party’s Obligations (as defined in
Section 1.24 ), rights to demand that another party
accept property or services or take any other actions, and rights
to pursue or exercise remedies or options.
1.11 “Employee Benefit
Plan” means any employee benefit plan as defined in
Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), any “voluntary
employees’ beneficiary association” within the meaning
of Section 501(c)(9) of the Code, “welfare benefit
fund” within the meaning of Section 419 of the Code, or
“qualified asset account” within the meaning of
Section 419A of the Code, and any other plan, program, policy
or arrangement for or regarding bonuses, commissions, incentive
compensation, severance, vacation, deferred compensation, pensions,
profit sharing, retirement, payroll savings, stock options, stock
purchases, stock awards, stock ownership, phantom stock, stock
appreciation rights, equity compensation, medical/dental expense
payment or reimbursement, disability income or protection, sick
pay, group insurance, self insurance, death benefits, employee
welfare or fringe benefits of any nature, including those
benefiting retirees or former employees.
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1.12 “Encumbrance” means
any claim, interest, lien, superlien, security interest, pledge,
right of first refusal, mortgage, easement, covenant, restriction,
reservation, conditional sale, prior assignment, or other
encumbrance, claim, burden or charge of any nature.
1.13 “Entity” means any
corporation (including any non-profit corporation), general
partnership, limited partnership, limited liability partnership,
joint venture, estate, trust, company (including any company
limited by shares, limited liability company or joint stock
company), firm, society or other enterprise, association,
organization or entity.
1.14 “Environmental Laws”
means all applicable Laws (including consent decrees and
administrative orders) relating to the public health and safety and
protection of the environment including those governing the use,
generation, handling, storage and disposal or cleanup of Hazardous
Substances, all as amended.
1.15 “Good Accounts
Receivable” shall have the definition set forth in
Section 2.1.1.1(B) .
1.16 “Good Inventory” shall
have the definition set forth in Section 2.1.1.1(A)
.
1.17 “Governmental Body”
means any: (a) nation, principality, republic, state,
commonwealth, province, territory, county, municipality, district
or other jurisdiction of any nature; (b) federal, state,
local, municipal, foreign or other government;
(c) governmental or quasi-governmental authority of any nature
(including any governmental division, subdivision, department,
agency, bureau, branch, office, commission, council, board,
instrumentality, officer, official, representative, organization,
unit, body or Entity and any court or other tribunal);
(d) multi-national organization or body; or
(e) individual, Entity or body exercising, or entitled to
exercise, any executive, legislative, judicial, administrative,
regulatory, police, military or taxing authority or power of any
nature.
1.18 “Hazardous Substances”
means any substance, waste, contaminant, pollutant or material that
has been determined by any Governmental Body to be capable of
posing a risk of injury or damage to health, safety, property or
the environment including (a) all substances, wastes,
contaminants, pollutants and materials defined, designated or
regulated as hazardous, dangerous or toxic pursuant to any Law, and
(b) asbestos, polychlorinated biphenyls (“ PCBs
”), petroleum, petroleum products and urea formaldehyde, and
mold.
1.19 “including” means
including but not limited to.
1.20 “Intangible” means any
or all of the following and all rights in, arising out of, or
associated therewith: (a) all names, corporate names, domain
names, fictitious names, trademarks, trademark applications,
service marks, service mark applications, trade names, brand names,
product names, and slogans throughout the world; (b) all
inventions (whether patentable or not), formulas, invention
disclosures, improvements, trade secrets, proprietary information,
know-how, product rights, technology, technical data and all
documentation relating to any of
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the foregoing; (c) all United States,
international and foreign patents, and patent applications and all
reissues, divisions, renewals, extensions, provisionals,
continuations and continuations-in-part thereof; (d) all
copyrights, copyright registrations and applications therefore, and
all other rights corresponding thereto throughout the world;
(e) all websites, and all designs related thereto;
(f) all databases and data collections and all rights therein
throughout the world; (g) all moral and economic rights of
authors and inventors, however denominated throughout the world;
(h) any similar or equivalent rights to any of the foregoing
anywhere in the world, including any logo, formula, invention,
product right, technology or other intangible asset of any nature,
whether in use, under development or design, or inactive;
(i) Seller’s Software; and (j) any and all
contractual rights that Seller may possess, to restrict, in any
way, the ability of its former employees (including, without
limitation Joseph Mies or Bob O’Leary), to accept employment
with Buyer.
1.21 “Judgment” means any
order, writ, injunction, citation, award, decree or other judgment
of any nature of any Governmental Body or arbitration
panel.
1.22 “to the best of Seller’s
knowledge” and similar phrases mean that none of
Seller, the shareholders or directors, officers or managers of
Seller has any actual knowledge, implied knowledge or belief that
the statement made is incorrect. For this purpose, “implied
knowledge” means all information available in the books,
records and files of Seller and all information that any of such
persons should have known in the course of operating and managing
the business and affairs of Seller.
1.23 “Law” means any
provision of any foreign, federal, state or local law, statute,
ordinance, charter, constitution, treaty, code, rule, regulation or
guideline, including common law.
1.24 “Non-Assigned
Contracts” shall have the definition set forth in
Section 2.1.1(E) .
1.25 “Obligation” means any
debt, liability or obligation of any nature, whether secured,
unsecured, recourse, nonrecourse, liquidated, unliquidated,
accrued, absolute, fixed, contingent, ascertained, unascertained,
known, unknown or otherwise.
1.26 “Permit” means any
license, permit, approval, waiver, order, authorization, right or
privilege of any nature, granted, issued, approved or allowed by
any Governmental Body.
1.27 “Person” means any
individual, Entity or Governmental Body.
1.28 “Privacy Law” means
any Law relating to the privacy of any Person, including the
European Data Protection Directive (95/46/EC), the Data Protection
Act 1998, the Personal Information Protection and Electronic
Documents Act, the Health Insurance Portability and Accountability
Act of 1996 and the Financial Services Modernization Act
(Gramm-Leach-Bliley) of 1999, and any rules or regulations
promulgated under any of the foregoing.
1.29 “Proceeding” means any
demand, claim, suit, action, litigation, investigation, notice of
violation, arbitration, administrative hearing or other proceeding
of any nature.
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1.30 “Real Property” means
any real estate, land, building, condominium, town house, structure
or other real property of any nature, all shares of stock or other
ownership interests in cooperative or condominium associations or
other forms of ownership interest through which interests in real
estate may be held, and all appurtenant and ancillary rights
thereto including easements, covenants, water rights, sewer rights
and utility rights.
1.31 “Recalled Inventory”
means any inventory of Seller used in the Seller Business which is
currently subject (or which Buyer reasonably believes likely to be
subject) to a product recall or similar request to return a certain
product, batch of products or type of products to the original
producer or supplier of such inventory.
1.32 “Seller Employees”
shall have the definition set forth in Section 2.3
.
1.33 “Software” means any
computer program, operating system, application, system, firmware
or software of any nature, whether operational, active, under
development or design, non-operational or inactive, including all
object code, source code, comment code, algorithms, processes,
formulae, interfaces, navigational devices, menu structures or
arrangements, icons, operational instructions, scripts, commands,
syntax, screen designs, reports, designs, concepts, visual
expressions, technical manuals, test scripts, user manuals and
other documentation therefore, whether in machine-readable form,
programming language or any other language or symbols, and whether
stored, encoded, recorded or written on disk, tape, film, memory
device, paper or other media of any nature and all data bases
necessary or appropriate to operate any such computer program,
operating system, applications system, firmware or
software.
1.34 “Specified Assets”
shall have the definition set forth in Section 2.1.1
.
1.35 “Supplemental Specified
Assets” shall have the definition set forth in
Section 2.1.1(F) .
1.36 “Tangible Property”
means any furniture, fixtures, leasehold improvements, vehicles,
office equipment, computer equipment, other equipment, machinery,
tools, forms, supplies or other tangible personal property of any
nature.
1.37 “Tax” means
(a) any foreign, federal, state or local income, earnings,
profits, gross receipts, franchise, capital stock, net worth,
sales, use, value added, occupancy, general property, real
property, personal property, intangible property, transfer, fuel,
excise, payroll, withholding, unemployment compensation, social
security, retirement or other tax of any nature; (b) any
foreign, federal, state or local organization fee, qualification
fee, annual report fee, filing fee, occupation fee, assessment,
sewer rent or other fee or charges of any nature; or (c) any
deficiency, interest or penalty imposed with respect to any of the
foregoing.
1.38 “Tax Clearance
Certificates” means documents evidencing, to
Buyer’s reasonable satisfaction, that Seller has satisfied
all Taxes in each of Pennsylvania and Florida.
1.39 “Tax Return” means any
return (including any information return), report, statement,
schedule, notice, form, declaration, claim for refund or other
document or information filed with or submitted to, or required to
be filed with or submitted to, any governmental body in
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connection with the determination, assessment,
collection or payment of any Tax or in connection with the
administration, implementation or enforcement of or compliance with
any law relating to any Tax, including any amendment
thereto.
1.40 “VPX Inventory” means
any inventory supplied by Vitol Pharmaceutical, Inc. to
Seller.
SECTION 2. T
HE T RANSACTION
2.1 Sale and Purchase of
Specified Assets . On the
Closing Date (as defined in Section 6.1 ), effective to
the fullest extent possible at 12:01 a.m. EST on the Closing Date
and subject to the other terms and conditions of this Agreement,
Seller hereby sells, transfers, assigns and conveys to Buyer, and
Buyer hereby purchases, all right, title and interest in and to all
of the Specified Assets (as defined in Section 2.1.1 )
free and clear of any Encumbrances. Seller acknowledges and agrees
that Buyer is will not, nor does it intend to, assume any
liabilities of the Seller pursuant to this Agreement.
2.1.1. Specified
Assets . The “
Specified Assets ” include, without limitation, the
following Assets of Seller as of the Closing Date, wherever located
and whether or not reflected on Seller’s books and records
(but excluding the Assets specifically excepted below):
(A) All of the Good Inventory owned by Seller as of
the Closing Date and, except as otherwise provided for below,
valued at cost. “ Good Inventory ” shall mean
all inventory, inclusive of prepaid inventory, purchased by the
Boss Division (whether received or in transit) which is not
(1) obsolete (provided that Buyer may choose to, at its sole
discretion, purchase such obsolete inventory if the value of such
inventory is, for the purposes of calculating the Purchase Price
pursuant to Section 3.1 , deemed by the parties to be
zero ($0)); (2) Recalled Inventory (unless Buyer can receive a
dollar for dollar credit for the return of such inventory and
provided that Buyer may choose to, at its sole discretion, purchase
such Recalled Inventory if the value of such inventory is, for the
purposes of calculating the Purchase Price pursuant to
Section 3.1 , deemed by the parties to be zero ($0);
(3) VPX Inventory; or (4) Consignment Inventory. For the
avoidance of doubt, Good Inventory shall include inventory
purchased or obtained by the Boss Division subsequent to the
Effective Date.
(B) All of Seller’s Good Accounts Receivable
derived from the operation of the Boss Division and valued at face
value. “ Good Accounts Receivable ” shall mean
all the Accounts Receivable derived from the operation of the Boss
Division, excluding those (1) that are more than 60 days old;
(2) for which the corresponding customer has raised any claim
or defense to the payment; (3) for which Seller has reasonable
grounds to believe that the corresponding customer will raise a
claim or defense to payment provided that the underlying reason for
such claim or defense arose prior to the Closing Date; or
(4) for which Seller has recognized or booked on their
“Allowance for Bad Debt” account schedule. For the
avoidance of doubt, Good Accounts Receivable shall include accounts
receivable generated by the Boss Division subsequent to the
Effective Date from the sale of Good Inventory.
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(C) All of the Tangible Property (1) used in
the operation of the Boss Division or located on the premises where
the Seller Business is conducted; (2) owned by Seller as of
the Closing Date; and (3) set forth on Schedule
2.1.1(C) .
(D) All Intangibles (1) owned by Seller or
under development by Seller as of the Closing Date; (2) used
by the Boss Division; and (3) set forth on Schedule
2.1.1(D) .
(E) All of Seller’s Contract Rights under the
Specified Contracts excluding Contract Rights under
(1) this Agreement and any other Contracts entered into by
Seller with Buyer in connection with the transactions contemplated
by this Agreement; (2) Contracts that constitute or evidence
Employee Benefit Plans of Seller; (3) all Contracts relating
to the acquisition of Seller or any of Seller’s predecessors
or affiliates, provided that the Specified Assets shall include the
rights of Seller with respect to all noncompetition, nondisclosure
and other restrictive covenants made for the benefit of Seller or
its predecessors in any such Contract; (4) all Contracts
relating to the lease of Real Property leased by Seller in
connection with the Boss Division; and (4) all Contract Rights
under any Specified Contracts requiring a material Consent that is
not obtained on or before the Closing Date (“ Non-Assigned
Contracts ”); provided that, once such material Consent
is obtained, the Contract Rights under such Specified Contract
shall be deemed, automatically and without further action by the
parties, to be included in the Specified Assets as of the date such
material Consent is delivered to Buyer. “ Specified
Contracts ” shall means all those specific Contracts set
forth on Schedule 2.1.1(E) .
(F) All transferable rights under all Permits
granted or issued to Seller or otherwise held by Seller in
connection with the Boss Division as operated at the Nevada and
Scranton locations (collectively the “ Specified
Premises ”) as of the Closing Date (together with the
other Assets described in Sections 2.1.1(C) through
2.1.1(F) hereof, the “ Supplemental Specified
Assets ”).
2.2 No Liabilities
. Notwithstanding any other
provisions of this Agreement, Buyer shall not purchase the
Specified Assets subject to, and Buyer shall not in any manner
assume or be liable or responsible for any Obligations of Seller,
except Obligations arising under the Specified Contracts subsequent
to the Closing Date which are explicitly assumed by the Buyer with
the Consent of the applicable counterparty. All Obligations shall
remain the sole responsibility of Seller, and Seller shall pay and
discharge such Obligations in full as the same become
due.
2.3 Seller’s
Employees . In no event
shall Buyer be obligated to offer employment to any former or
current employee of Seller (collectively, the “ Seller
Employees ”). For the avoidance of doubt, nothing herein
shall prevent Buyer, with Seller’s permission, from offering
employment to the Seller Employees not then currently employed by
Seller at any time. In the event that Buyer does offer employment
to a Seller Employee, Seller shall, at all times, remain solely
liable for any and all obligations arising from any Seller
Employee’s previous employment with Seller including, without
limitation, any severance benefits due to such employee.
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SECTION 3. P
URCHASE P RICE
3.1 Purchase Price and
Allocation . Subject to
the adjustments described in Sections 3.4 and 3.5 , the
purchase price for the Specified Assets (“ Purchase
Price ”) shall be $2,223,351.03.
3.2 Currency and Method of
Payment . All dollar
amounts stated in this Agreement are stated in United States’
currency, and all payments required under this Agreement shall be
paid in United States’ currency. All payments required under
this Agreement, with the exception of the Note, shall be made as
follows: (a) any payment may be made by wire transfer of
immediately available United States federal funds; (b) any
payment exceeding $100,000 shall be made by wire transfer of
immediately available United States federal funds; (c) any
payment exceeding $10,000, but not exceeding $100,000, may be made
by bank certified, treasurer’s or cashier’s check; and
(d) any payment not exceeding $10,000 may be made by ordinary
check.
3.3 Purchase Price
Allocation . The Purchase
Price shall be allocated among the Specified Assets. Buyer shall
prepare an allocation (“Allocation Statement”) of the
Purchase Price among the Specified Assets in accordance with
Section 1060 of the Code and the applicable Treasury
Regulations thereunder (and any similar provision of state, local
or foreign Law, as appropriate). Buyer shall deliver the Allocation
Statement to the Seller no later than sixty (60) days
following the Closing Date. Seller shall notify Buyer of any
objections to the Allocation Statement within fifteen
(15) days after the Seller receives the Allocation Statement.
If Seller does not notify Buyer of any objections to the Allocation
Statement, within that fifteen (15) day period, the Allocation
Statement shall be construed as final. If Seller notifies Buyer of
an objection to the Allocation Statement by the end of the fifteen
(15) day period, and Seller and Buyer are unable to resolve
their differences within fifteen (15) days thereafter, then
the disputed items on the Allocation Statement shall be submitted
to a mutually agreed upon nationally recognized independent
certified public accounting firm (the “ Arbiter
”) for resolution, with the costs of the Arbiter paid fifty
percent (50%) by the Seller and fifty percent (50%) by
the Buyer, and the Arbiter shall be instructed to deliver a
finalized Allocation Statement as soon as possible. Buyer and
Seller and their respective affiliates shall report, act and file
all Tax Returns (including, but not limited to, Internal Revenue
Service Form 8594) in all respects and for all purposes consistent
with the Allocation Statement. Neither Buyer, Seller or any of
their affiliates shall take any position (whether in audits, Tax
Returns or otherwise) that is inconsistent with the information set
forth on the Allocation Statement, unless required to do so by
applicable Law.
3.4 Transactions after Effective
Date . Buyer and Seller
agree that in between the Effective Date and the Closing Date (the
“ Adjustment Period ”) the normal business
operations of the BOSS Division shall continue until Closing and a
corresponding adjustment shall be made to the Purchase Price. All
Good Inventory sold for cash, C.O.D. or via credit card and Good
Accounts Receivable collected after the Effective Date, (the
“ Additional Cash ”) shall be reduced for
expenses for rent paid, for employees and other goods and services
used to support the normal and customary business operations of the
BOSS Division, as reasonably agreed upon by Buyer and Seller (the
“ Additional Expenses ”). The amount by which
the Additional Cash exceeds the Additional Expenses shall be called
the “ Additional Net Profit ”. If the Additional
Expenses exceed the Additional Cash the difference shall be called
the “ Additional Net Loss ”. Seller shall credit
the Purchase Price (and Buyer can reduce the cash portion of the
Purchase
9
Price) in an amount equal to the Additional Net
Profit. If there is an Additional Net Loss then the Purchase Price
shall be increased by the amount of the Additional Net Loss and
that amount shall be paid in cash at Closing. Any adjustment made
to the Purchase Price hereunder shall be referred to as a “
Operations Adjustment ”. Buyer shall determine such
Operations Adjustment (such determination the “ Initial
Operations Adjustment ”) prior to the Closing and adjust
any amount due to Seller at Closing accordingly. For purposes of
clarification, all proceeds of the Specified Assets as they existed
on the Effective Date will be considered Specified Assets and will
be delivered to Buyer on the Closing Date and thereafter if
received after the Closing Date.
3.5 Buyer shall provide Seller with a subsequent
determination of the Operations Adjustment (the “ Actual
Operations Adjustment ”) within ten (10) days after
the Closing. Seller shall notify Buyer of any objections to the
amount of the Actual Operations Adjustment within fifteen
(15) days after the provision of such Actual Operations
Adjustment by Buyer. If Seller does not notify Buyer of any
objections to the amount of the Actual Operations Adjustment within
that fifteen (15) day period, the Actual Operations Adjustment
shall be construed as final. If Seller and Buyer are unable to
resolve their differences, if any, within fifteen (15) days
thereafter with regard to the Actual Operations Adjustment, then
such dispute shall be submitted to a mutually agreed upon third
party (the “ Adjustment Arbiter ”) for
resolution, with the costs of the Adjustment Arbiter paid fifty
percent (50%) by the Seller and fifty percent (50%) by the
Buyer, and the Adjustment Arbiter shall be instructed to deliver a
final Operations Adjustment amount as soon as possible (the “
Final Operations Adjustment ”). Thereafter, the
Purchase Price will be recalculated to reflect the Actual
Operations Adjustment or the Final Operations Adjustment, as
applicable, (the “ Adjusted Purchase Price ”)
and (a) if the Purchase Price actually paid by Buyer to Seller
at Closing was greater than the Adjusted Purchase Price, Seller
shall remit such difference to Buyer within ten (10) days and
(b) if the Purchase Price actually paid by Buyer to Seller at
Closing was less than the Adjusted Purchase Price, Buyer shall
remit such difference to Seller within ten
(10) days.
SECTION 4. R
EPRESENTATIONS
O F S ELLER
Knowing that Buyer is relying
thereon, Seller represents and warrants to Buyer and covenants with
Buyer, as set forth below in this Section 4
.
4.1 Organization.
(a) Seller is a corporation, duly organized, validly
existing and in good standing under the laws of the State of
Florida. Seller possesses the full corporate power and authority to
enter into and perform its obligations under this Agreement. Seller
possesses the full corporate power and authority: (i) to own
and use the Specified Assets in the manner in which such assets are
currently owned and used and (ii) to conduct the Seller
Business, with respect to the Boss Division, as such business is
currently being conducted and as Seller proposed to conduct such
business.
(b) Except as described on Schedule 4.1(b),
Seller has never acquired or succeeded to all or any portion of the
Specified Assets or businesses of any other Person, and there is no
other Person that may be deemed to be a predecessor of
Seller.
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(c) Schedule 4.1(c)
sets forth, for Seller:
(i) its exact legal name; (ii) its corporate business
form and jurisdiction and date of formation; (iii) its federal
employer identification number; (iv) its headquarters address,
telephone number and facsimile number; (v) its directors and
officers, indicating all current title(s) of each individual;
(vi) its registered agent or office in its jurisdiction of
formation (if applicable); (vii) all foreign jurisdictions in
which it is qualified and/or registered to do business, the date it
so qualified or registered, and its registered agent and/or office
in each such jurisdiction (if applicable); (viii) all
fictitious, assumed or other names of any type that are registered
or used by it or under which it has done business at any time since
such company’s date of incorporation; and (ix) any name
changes, recapitalizations, mergers, reorganizations or similar
events since its date of formation.
(d) Accurate and complete copies of the articles or
certificate of incorporation, bylaws and other organization and
related documents, each as amended to date, and all Contracts
relating to the acquisition or formation of Seller (or its
affiliates or predecessors), have been delivered to
Buyer.
4.2 Authority;
Non-Contravention.
(a) Seller has the absolute and unrestricted right,
power and authority to enter into, execute, deliver and perform its
obligations under this Agreement, and the execution, delivery and
performance of this Agreement and the consummation of the
transactions contemplated hereby by Seller has been duly authorized
by all necessary corporate actions. This Agreement constitutes the
legal, valid and binding agreement of Seller, enforceable against
Seller in accordance with its terms.
(b) Except as set forth on Schedule 4.2 ,
neither the execution, delivery and performance of this Agreement
nor the consummation or performance of any of the transactions
contemplated hereby by Seller will directly or indirectly (with or
without notice or lapse of time):
(i) contravene, conflict with or result in a
violation of (a) any of th