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Exhibit 2.2*
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Assets Purchase Agreement by and among Registrant and P.
Terreri and J. Giulii dated August 14, 2007
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ASSET PURCHASE AGREEMENT
This
Asset Purchase Agreement ( “Agreement” ) is made
and entered into this day of April, 2007, by American Home Food
Products, Inc., a New York corporation (“ the Seller
”) and Peter Terreri and Joseph Giulii, or their designee (
“Purchaser” ).
W I T N E S S E T H :
WHEREAS,
the Seller has exclusive ownership of various product formulations
and trademarks for products that are manufactured and marketed into
the retail and commercials channels for building materials (
“Business” );
WHEREAS,
the Seller is desirous of entering into a new business venture and
simultaneously wishes to sell the Business to the
Purchaser;
WHEREAS,
Purchaser desires to purchase from the Seller and Seller desires to
sell, assign, transfer and deliver to Purchaser, 100% of its
ownership interest in the Business, all of which shall be
undertaken pursuant to the terms and subject to the conditions set
forth in this Agreement.
NOW,
THEREFORE, in consideration of the mutual promises, covenants and
agreements set forth herein, all of which the parties deem as
adequate consideration, the parties agree as follows:
ARTICLE I
DEFINITIONS
(a) The following terms, as
used herein, have the following meanings:
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“
Affiliate ” means, with respect to any Person, any
other Person directly or indirectly controlling, controlled by, or
under common control with such other Person.
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“
Business Day ” means any day except a Saturday, Sunday
or other day on which commercial banks in the State of New York are
authorized by law to close.
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“
Lien ” means, with respect to any property or asset,
any mortgage, lien, pledge, charge, security interest or other
similar encumbrance with respect to such property or
asset.
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“
Permitted Lien ” means (i) any Lien for which the
underlying liability is disclosed on the Financial Statements, (ii)
any Lien for taxes not yet due or being contested in good faith or
(iii) any Lien which does not materially detract from
the
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value or materially interfere with the use of any asset as
currently used in the Business.
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“
Person ” means an individual, corporation,
partnership, association, trust or other entity or organization,
including a government or political subdivision or an agency or
instrumentality thereof.
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“
Tax or Taxes ” means all taxes, fees or assessments in
the nature of taxes of Seller, including without limitation, all
federal, state, county and local income, unemployment, ad valorem,
excise, sales, use and gross receipts taxes, together with any
interest and penalties thereon imposed by any Taxing Authority
whether arising prior to, on or after the Closing Date.
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“
Taxing Authority ” means any governmental authority
(domestic or foreign) responsible for the imposition of any
Tax.
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(b) Each of the following
terms is defined in the Section set forth opposite such
term:
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Term
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Section
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Assumed
Debt
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2.02
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Benefit
Arrangements
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3.11(b)
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Bill of
Sale
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10.02(b)
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Closing
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10.01
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Closing
Date
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10.01
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Deposit
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2.02
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Excluded
Assets
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2.06
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Improper
Claim
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7.03(a)(ii)(C)
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Indemnifying
Party
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7.03(b)
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Indemnified
Party
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7.03(b)
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License
Fees
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2.01A
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Non-Tendering Party
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7.03(a)
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Personal
Claim
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7.03
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Proper
Claim
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7.03(a)(i)
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Proprietary
Rights
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2.05
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Purchase
Price
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2.02
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Purchaser’s Indemnitees
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7.01
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Purchaser’s Losses
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7.01
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Seller’ Indemnitees
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7.02
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Seller’ Losses
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7.02
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Tendering
Party
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7.03(a)
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Third-Party
Claim
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7.03
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ARTICLE II
PURCHASE OF ASSETS
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2.01
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Assets Purchased . On the terms and subject to the
conditions set forth in this Agreement;
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A.
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Seller agree to sell, assign, transfer and deliver to
Purchaser, and Purchaser shall purchase, accept and acquire from
the Seller on the Closing Date, all of Seller’s right, title
and interest in the Business. The Business shall be transferred to
the Purchaser at the closing free and clear of all encumbrances and
shall specifically include, all rights of the Seller with respect
to marks, trade names, trademarks, copyrights, copyright
applications, websites, product formulations, customer files,
know-how and logos as listed on Schedule 2.01A (
“Proprietary Rights”). Seller and Purchaser
agree that the Exclusive Licensing Agreement between the Seller and
an affiliate of the Purchaser, CGM, Inc. entered into January, 2003
shall terminate on the Closing Date and shall have no further force
or effect, and that the Purchaser shall cause CGM to make a final
payment to the Seller at the Closing for all accrued and unpaid
royalties owing to the Seller up to the Closing Date. (
“License Fees” ).
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2.02
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Purchase Price . The total Purchase Price (as
defined herein) for the Business shall be: (i) eight hundred and
fifty thousand dollars ($850,000 USD)) payable to the Seller at the
Closing, and (ii) Purchaser’s assumption of seventy three
thousand dollars ($73,000) of the Seller’s unsecured
obligations as set forth on Schedule 2.02 (“ Assumed
Debt ”), (iii) payment of License Fees. The full amount
of the cash component of the Purchase Price and Licensee Fees shall
be paid to the Seller on the Closing Date by wire transfer of
immediately available funds to an account designated by
Seller’s in writing prior to the Closing Date. Upon the
execution of this Agreement, the Purchaser shall pay to Seller a
cash deposit equal to twenty five thousand dollars ($25,000)
(“ Deposit ”), which shall be deducted from the
Purchase Price at the Closing. However, if this Agreement shall not
close within seventy-five (75) days from the date this Agreement is
executed, this Agreement shall be deemed null and void, except for
this subsection 2.01, whereby the Seller shall remain obligated to
repay the Deposit in full to the Purchaser in five (5) equal
monthly installments that shall be in the form of cash paid to the
Purchaser of the reduction of certain monthly revenues that are
owed to the Seller by the Purchaser until such time as the Business
is transferred to the Purchaser.
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2.03
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Excluded Assets . It is expressly understood and agreed
by the parties hereto that the following assets of Seller and/or
the Business are specifically excluded and excepted from this
Agreement and shall at all times remain the property of Seller
(collectively, “Excluded Assets” ):
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(a)
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Any and all other assets owned by the Seller, including new
assets and the business it intends to acquire upon the Closing of
this Agreement.
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2.04
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Purchase Price Allocation . Seller and Purchaser
covenant and agree that the Purchase Price shall be allocated in
accordance with Section 1060 of the Internal Revenue Code and the
regulations thereunder. Seller and Purchaser agree that the
allocation of the Purchase Price as set forth on Schedule 2.04 is
correct. Seller and Purchaser each hereby covenant and agree that
it will not take a position on any income tax return before any
governmental agency charged with the collection of any income tax
or in any judicial proceeding that is in any way inconsistent with
the terms of this Section 2.04.
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2.05
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Excluded Assumed Liabilities . At the Closing, and
thereafter, it is acknowledged and agreed that Purchaser shall not
assume or be responsible for any liabilities of the Seller other
than those Assumed Debts enumerate on Schedule 2.02.
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ARTICLE III
REPRESENTATIONS AND WARRANTIES OF SELLER
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Seller hereby represent and warrant to Purchaser the
following:
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3.01
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Organization, Standing and Authority of Seller
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(a)
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The Seller is duly organized, validly existing and in good
standing under the laws of the State of New York. The Seller has
all requisite power and authority to execute and deliver this
Agreement and to perform its obligations hereunder. Seller is the
same legal entity that formerly did business under the corporate
name Novex Systems International, Inc., until its shareholders
voted to change the name to American Home Food Products, Inc. at
its annual shareholders meeting on January 28, 2005.
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(b)
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The execution and delivery of this Agreement by the Seller
along with the performance of the transactions contemplated herein
have been duly authorized by all necessary corporate action on the
part of the Seller. This Agreement and all documents required to be
executed and delivered by the Seller hereunder constitute legal,
valid and binding obligations of the Company that are enforceable
against Seller in accordance with their terms.
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3.02
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Government Authorizations . That to the best of
Seller’s knowledge, no consent, approval or authorization of,
or declaration, filing or registration with, any federal, state,
local or other governmental or regulatory authority is required in
connection with the execution and delivery by Seller of this
Agreement and the consummation by Seller of the transactions
contemplated hereby. Seller will
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provide Purchaser with all information necessary to affect the
recording and transfer of the Proprietary Rights to the
Purchaser.
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3.03
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Proprietary Rights .
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(a)
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Schedule 3.02 lists all U.S. and foreign names, patents, patent
applications, marks, trade names, trademarks, copyrights, copyright
applications and logos used solely in the Business.
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(b)
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Except as set forth on Schedule 3.03(b), no proceedings have
been instituted or are pending or, to the best of Seller’
knowledge, threatened which challenge the validity of the ownership
or use by Seller or the Business of the Proprietary
Rights.
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(c)
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Seller have no knowledge of the infringing use of any
Proprietary Rights or the infringement of any of such Proprietary
Rights by any other person.
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3.04
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Compliance with Laws . Except as set forth on Schedule
3.04, the Business has substantially complied with and is in
substantial compliance with all federal, state, local and foreign
laws, statutes, regulations and judicial and/or administrative
decisions applicable to the Business, except for any non-compliance
which does not have, individually or in the aggregate, a Material
Adverse Effect.
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3.05
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Litigation . Except as set forth on Schedule 3.05, to
the best of Seller’ knowledge, there is no suit, claim,
action, arbitration, proceeding or investigation, pending or
threatened, against Seller relating to the Business.
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3.06
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Brokerage . No broker, finder or agent has acted
directly or indirectly for Seller and/or the Business in connection
with this Agreement or with the transactions contemplated
hereby.
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3.07
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Lien Waiver . Seller shall receive prior written
approval from any and all holders of UCC-1 security interests in
the Business being purchased by the Purchasers pursuant to this
Agreement and that at the Closing, such Business can be properly
and rightfully conveyed to the Purchaser as the owner of the
Business. Seller further represents that its closing of the
purchase of 100% of the membership interests in Artisanal Cheese,
LLC will precede the closing of this Agreement and that upon the
closing of the Artisanal acquisition, the Business will be deemed a
non-material asset of the Seller and that any and all claims
against the Seller, whether known, unknown or contingent shall not
be impaired by the Seller’s sale of the Business to the
Purchaser. Seller further represents that it satisfied all its
obligations with its former lender, Dime Commercial Corp, which
took a collateral assignment interest in the Proprietary Rights,
and that such satisfaction is codified in a written release that
the Seller will delivery as a condition to closing.
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3.08
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Assumed Debt . Seller represents and warrants that
obligations appearing on Schedule 2.02 are unsecured trade
payables. Seller further represents that the claims are dormant,
other than for Reed Database, and that the creditors no longer
communicate with the Seller, nor respond to periodic confirmation
of debt requests from the Seller’s independent
auditors.
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ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF THE SELLING
SHAREHOLDERS
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(Intentionally Omitted – Seller is a publicly-traded
company and the Agreement doesn’t require shareholder
approval).
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ARTICLE V
REPRESENTATIONS AND WARRANTIES OF THE
PURCHASER
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Purchaser hereby represents and warrants to Seller the
following:
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5.01
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Organization, Good Standing and Authority of Purchaser
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(a)
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Purchaser is a corporation duly organized, validly existing and
in good standing under the laws of State of Pennsylvania. Purchaser
has all requisite power and authority to execute and deliver this
Agreement and to perform its obligations hereunder.
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(b)
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The execution and delivery by Purchaser and the performance by
Purchaser of the transactions contemplated herein have been duly
authorized by all necessary corporate action on the part of
Purchaser. This Agreement and all documents required to be executed
and delivered by Purchaser hereunder constitute legal, valid and
binding obligations of Purchaser enforceable against Purchaser in
accordance with their terms.
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5.02
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No Conflict . Neither the execution and delivery of this
Agreement nor the Purchaser’s performance of the transactions
contemplated herein will violate or conflict with any provisions of
Purchaser’s Articles of Incorporation or By-Laws. Purchase
agrees that the consummation and closing of this Agreement shall
terminate any rights that its affiliated entity, CGM, Inc, shall
have in an Exclusive Licensing Agreement with the
Seller.
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5.03
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Broker’s or Finder’s Fees . No broker,
finder or agent has acted directly or indirectly for Purchaser in
connection with this Agreement or with the transactions
contemplated by this Agreement.
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5.04
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No Financing Contingency . As of the Closing Date,
Purchaser shall have sufficient cash, available lines of credit or
other sources of immediately available
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funds to enable it to pay the Purchase Price and any other
amounts to be paid by it hereunder in full, other than for the
Assumed Debt.
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5.05
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Litigation . There is no action, suit, investigation or
proceeding pending, or to the knowledge of Purchaser threatened,
against Purchaser before any court or arbitrator or any
governmental body, agency or official which in any manner
challenges or seeks to prevent, enjoin, alter or materially delay
the transactions contemplated hereby.
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ARTICLE VI
COVENANTS
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6.01
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Accounts . On and after the Closing Date, Seller shall,
within five (5) days after receipt, forward to Purchaser any monies
received by Seller with respect to any goods and/or services
delivered and/or performed by the Business after the Closing
Date.
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6.02
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Reasonable Efforts; Further Assurances . Subject to the
terms and conditions of this Agreement, Purchaser and Seller will
each use its reasonable efforts to take, or cause to be taken, all
actions and to do, or cause to be done, all things necessary under
applicable laws and regulations, to consummate the transactions
contemplated by this Agreement. Seller and Purchaser each agree to
execute and deliver such other documents, certificates, agreements
and other writings and to take such other actions as may be
necessary or desirable in order to consummate the transactions
contemplated by this Agreement and to vest in Purchaser good title
to the assets owned by the Company.
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6.03
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Access .
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(a)
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On and after the Closing Date, Purchaser will afford promptly
to Seller and its agents reasonable access to the Business’
properties, books, records, employees and auditors to the extent
necessary to permit Seller to determine any matter relating to its
rights and o
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