ASSET PURCHASE
AGREEMENT
THIS ASSET
PURCHASE AGREEMENT (this “Agreement”) is made and
entered into effective as of the 29 nd day of December, 2006 (the “Closing
Date”), by and among PRACTICEXPERT of Oklahoma,
Inc., an Oklahoma corporation ("Seller"), and
AcSel Corporation , a Virginia corporation or a
limited liability company to be formed ("Buyer").
RECITALS
A.
Seller is a medical billing and
collections company (the "Business"), and Seller owns all of the
Assets (as hereinafter defined) used in connection with the
Business.
B.
Seller desires to sell, transfer
and assign the Assets to Buyer, and Buyer desires to purchase the
Assets from Seller, upon the terms and subject to the conditions
set forth in this Agreement.
NOW, THEREFORE,
in consideration of the premises and the respective
representations, warranties, covenants and agreements contained
herein, the parties hereto hereby agree as follows:
ARTICLE
I
SALE AND PURCHASE OF
ASSETS;
ASSUMPTION OF CERTAIN
LIABILITIES
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1.1.
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Sale
and Purchase of Assets.
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Upon the terms
and subject to the conditions set forth in this Agreement, on the
Closing Date (as hereinafter defined), Seller agrees to sell,
transfer, convey, assign and deliver to Buyer, and Buyer agrees to
purchase, acquire and accept from Seller, free and clear of all
claims, liens, restrictions, encumbrances or security interests of
any nature whatsoever, all of Seller's right, title and interest in
and to all of the rights, properties, contracts and other assets of
Seller used in the Business, whether tangible or intangible,
whether real, personal or mixed, whether accrued, contingent or
otherwise, and wherever located, as more fully described on
Exhibit A . Except for the Assets listed on
Exhibit A , all other assets of the Seller are excluded from
this transaction. The Assets include:
(a)
Equipment . Such furniture, fixtures, machinery,
equipment, computers and computer equipment, parts, tools,
supplies, signage, manuals, training materials and other items of
equipment used in the Business as described on Exhibit A
(collectively, the "Equipment").
(b)
Contract Rights
. All of Seller's rights under all
contracts and leases of Seller listed on Exhibit A (the
"Assumed Contracts").
(c)
Intellectual Property
. The name “Cancer Care
Network” and all variations thereof; all computer programs,
software, manuals and related rights; and all other intellectual
property rights of any character or description used by the
Business listed on Exhibit A (collectively, the
"Intellectual Property").
(d)
Books and Records
. All of the patient lists and
records, mailing lists, marketing, sales and promotional materials
and records, manuals, training materials, and similar items, and
all books, records, files, computer software, data or databases,
correspondence, memoranda, notes and other documents or papers and
other evidence thereof relating to the Business listed on or
implied as being part of the Equipment, Assumed Contracts or
Intellectual Property on Exhibit A (collectively, the
“Books and Records”).
(e)
Permits . All assignable permits (as hereinafter
defined) owned or held by Seller for use by the Business, and all
rights related thereto listed on or implied as being part of the
Equipment, or Assumed Contracts or Intellectual Property on
Exhibit A .
Buyer shall not
purchase, and Seller shall retain, all assets of Seller except
those listed on Exhibit A or as otherwise described above
including, but not limited to:
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all cash or
cash equivalents;
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(b)
all other personal property owned
by Seller;
(c)
all rights or obligations under all
contracts of Seller other than the Assumed Contracts including, by
way of illustration and without limitation (i) any employment
agreements, Employee Plans (as hereinafter defined) or other
employment related contracts or arrangements and (ii) any contract
representing any indebtedness; and
(d)
all accounts receivable.
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1.3.
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Assumption of Certain
Liabilities.
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Upon the terms
and subject to the conditions set forth in this Agreement, on the
Closing Date, Buyer agrees to assume only those obligations
described herein (the “Assumed
Liabilities”):
(a) The Assumed Contracts which are required to be
performed after the Closing Date.
(b) $2,000 to be allocated to Seller’s
December, 2006 rent,
(c) Seller's payroll for the last 2 week period of
December, 2006 for period ending December 29, 2006,
(d) The pro-rata share of Seller's phone costs from
December 22, 2006 to December 31, 2006, not to exceed
$1,900.00.
(e)
Buyer shall assume only the Assumed
Liabilities described above. All other obligations, debts, taxes,
operating expenses, rent, utilities and other liabilities of Seller
of any kind, character or description, whether accrued, absolute,
contingent or otherwise, shall not be assumed by Buyer and shall be
retained by Seller.
ARTICLE
II
PURCHASE
PRICE
The aggregate
purchase price for the sale and purchase of the Assets (the
"Purchase Price") shall be equal to the amount of money payable to
Seller pursuant to licensing costs for use of the PRACTICEXPERT
software for each practice or user using said software.
Upon the terms
and subject to the conditions set forth in this Agreement, the
closing of the sale and purchase of the Assets (the "Closing")
shall take place: (a) at the offices of Buyer’s counsel in
Virginia Beach, Virginia, (b) on or before December 22, 2006 or at
such other place and time as the parties hereto may mutually agree
and shall be effective as of that date (the “Closing
Date”).
Upon the terms
and subject to the conditions set forth in this Agreement, at the
Closing:
(a)
Buyer shall initiate payments to
Seller of the amounts set forth in Section 2.1.
(b)
Seller shall deliver to Buyer such
deeds, bills of sale, endorsements, assignments, approvals,
authorizations and other good and sufficient instruments of
conveyance and transfer, in form and substance reasonably
satisfactory to Buyer, as shall be effective to vest in Buyer all
of Seller's right, title and interest in and to the Assets and,
simultaneously therewith, will take such steps as may be necessary
to place Buyer in actual possession and operating control of the
Assets. Delivery of the Assets shall be made at the premises of
Seller or as otherwise mutually agreed to between Buyer and
Seller.
(c)
Seller and Buyer shall deliver to
each other such other documents, certificates, instruments and
writings required to be delivered to pursuant to this
Agreement.
(d)
Beginning with the December, 2006,
client invoicing, Buyer will receive all monies billed to existing
Seller clients except as set forth on Exhibit A.
ARTICLE
III
REPRESENTATIONS AND
WARRANTIES OF SELLER
Seller hereby
represents and warrants to Buyer as follows:
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3.1.
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Organization and Qualification.
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Seller is duly
organized, validly existing and in good standing under the laws of
the State of Oklahoma and has all requisite power and authority to
own, lease and operate its properties and the Assets and to carry
on its business as now being conducted. Seller is duly qualified to
do business and in good standing in each jurisdiction in which the
nature of its business or the ownership, lease or operation of its
assets makes such qualification necessary.
Seller has all
requisite power and authority to execute and deliver this Agreement
and each other agreement, instrument or document to be executed and
delivered by Seller pursuant hereto (collectively, the "Related
Agreements"), to perform its obligations hereunder and thereunder
and to consummate the transactions contemplated hereby and thereby.
The execution and delivery of this Agreement and the Related
Agreements by Seller, the performance of this Agreement and the
Related Agreements by Seller, and the consummation of the
transactions contemplated hereby and thereby, have been duly
authorized by all necessary corporate action on the part of Seller
and no other proceeding on the part of Seller is necessary to
authorize this Agreement or the Related Agreements or to consummate
the transactions contemplated hereby and thereby. This Agreement
has been duly executed and delivered by Seller and constitutes the
valid and binding obligation of Seller, enforceable against Seller
in accordance with its terms. Upon its execution and delivery by
Seller, each Related Agreement will constitute the valid and
binding obligation of Seller, enforceable against Seller in
accordance with its terms.
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3.3.
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No
Conflict; Required Filings and Consents.
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(a)
The execution and delivery of this
Agreement and the Related Agreements by Seller does not, and the
performance of this Agreement and the Related Agreements by Seller
and the consummation of the transactions contemplated hereby and
thereby will not, (i) conflict with or violate the articles of
incorporation or bylaws, in each case as amended or restated, of
Seller, (ii) conflict with or violate any United States federal,
state, local or foreign law, statute, ordinance, rule, regulation,
order, judgment or decree applicable to Seller or by or to which
any of their properties or assets is bound or subject or (iii)
result in any breach of, or constitute a default (or an event that
with notice or lapse of time or both would constitute a default)
under, or give to others any rights of termination, amendment,
acceleration or cancellation of, or require payment under, or
result in the creation of any lien, encumbrance, security interest,
mortgage, pledge, claim, option or restriction of any kind
whatsoever (collectively "Liens") on any of the properties or
assets of Seller (including, without limitation, the Assets)
pursuant to, any agreement, lease, license, contract, note,
mortgage, indenture, arrangement or other obligation (collectively,
"Contracts") to which Seller is a party or by which any of its
properties or assets (including, without limitation, the Assets) is
bound.
(b)
The execution and delivery of this
Agreement and the Related Agreements by Seller does not, and the
performance by Seller of this Agreement and the Related Agreements
and the consummation of the transactions contemplated hereby and
thereby will not, require Seller to obtain any consent, approval,
authorization or permit of, or to make any filing with or
notification to, any court, administrative agency or commission or
other governmental entity, authority or instrumentality, whether
foreign or domestic (a "Governmental Entity"), or any third
party.
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3.4.
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Financial Statements and
Information.
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(a)
Seller shall have, prior to Closing
delivered to Buyer (i) Seller's financial statements for the fiscal
years ended December 31, 2003, 2004 and 2005, and (ii) its year to
date financial statements as of the Closing Date for 2006, all of
which have been compiled by Seller’s accountant
(collectively, the "Seller Financial Statements").
(b)
Except as set forth in the Seller
Financial Statements, (i) Seller is not subject to any liability or
obligation (whether direct or indirect, accrued, fixed, contingent
or otherwise), other than immaterial current liabilities and
obligations incurred in the ordinary and usual course of business
consistent with past practice, and (ii) and there are no facts or
circumstances of which Seller has knowledge that could result in
any claims against or obligations or liabilities of Seller that,
alone or in the aggregate, reasonably could be expected to have a
material adverse effect on the business, assets, results of
operations, condition (financial or otherwise) or prospects of
Seller (a "Material Adverse Effect").
Seller is the
true and lawful owner of, and owns all right, title and interest in
and to, all of the Assets, free and clear of all Liens. Upon the
sale of the Assets to Buyer pursuant to this Agreement, (a) all
right, title and interest in and to all of the Assets, free and
clear of all Liens, will pass to Buyer on the Closing Date and (b)
all of the Assumed Contracts, Intellectual Property and Permits
included in the Assets shall be validly assigned to Buyer by
written instruments and, except to the extent thereafter amended by
Buyer, Buyer shall have all of the rights and privileges thereunder
after the Closing Date to the same extent as though Buyer were the
original party thereto.
All of the
Assets (i) are structurally sound, are in good operating condition
and repair (subject to routine maintenance in the ordinary course
of business) and are adequate for the uses to which they are being
put in the Business, (ii) constitute all of the assets and
properties necessary and sufficient for the continued conduct of
the Business by Buyer after the Closing in the same manner as
conducted prior to the Closing and (iii) are reflected on the
Seller Financial Statements in accordance with GAAP.
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3.7.
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Contracts, Leases and Intellectual
Property.
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(a)
Exhibit A sets forth a true, correct and complete list of
all Assumed Contracts to which Seller is a party.
(b)
Each of the Assumed Contracts
listed in Exhibit A is valid, binding and enforceable in
accordance with its terms and there is not any existing default or
event of default, or any event which, with or without notice or
lapse of time or both, would constitute a default under any of such
Assumed Contracts by Seller or, to the knowledge of Seller, by any
other party thereto. In addition, with respect to each such Assumed
Contract that is a lease of real or personal property, (i) such
lease creates a valid leasehold interest in all premises or
property purported to be leased thereunder, (ii) Seller is in
possession and quiet enjoyment of all of such premises or property,
(iii) neither Seller nor, to the knowledge
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