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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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(a)
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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.
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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.
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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").
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(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.
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3.6.
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Condition of Assets.
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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 p
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