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EXHIBIT 10.1
ASSET PURCHASE AGREEMENT
THIS ASSET PURCHASE AGREEMENT made and entered into on this 31st
day of
January, 2005, by and among FREEPORT BRICK COMPANY, INC.
("Freeport") KITTANNING
BRICK COMPANY ("Kittanning"), FREE-MADIE COMPANY ("Free-Madie"),
FREEPORT
REFRACTORIES, INC. ("Refractories" and, together with Freeport,
Kittanning and
Free-Madie, the "Sellers") and FREEPORT AREA ENTERPRISES, INC.
(the
"Shareholder"), each of the Sellers and Shareholder being a
Pennsylvania
corporation, on the one hand, and REFRACTORY & INDUSTRIAL
SUPPLY GROUP, INC., a
Tennessee corporation (the "Buyer"), and DIVERSIFIED THERMAL
SOLUTIONS, INC., a
Nevada corporation ("Diversified"), on the other hand.
W I T N E S S E T H:
WHEREAS, Sellers are engaged in the business of manufacturing
refractory
products, including but not limited to fireclay, high alumina,
ladle, barrier,
high duty, bottom pour and chemical resistant bricks; mortar,
sleeves, nozzles,
industrial grade pavers; and tools and dies used in the
refractory business
(collectively the "Business") at their plants located at Clay
Road, Adrian,
Pennsylvania 16210, Mill Street Extension, Freeport,
Pennsylvania 16229 and 114
W. Park Drive, Kittanning, Pennsylvania 16201 (the
"Facilities"); and
WHEREAS, Sellers desire to sell certain assets, as more
specifically
identified herein, and Buyer desires to purchase such assets
upon the terms and
conditions contained herein.
NOW, THEREFORE, in consideration of the premises and the mutual
covenants
contained herein, the parties, intending to be legally bound,
hereby agree as
follows:
ARTICLE I
PURCHASE AND SALE OF ASSETS
1.1 PURCHASE AND SALE OF ASSETS. On the Closing Date, as
hereinafter
defined, subject to the terms and conditions set forth in this
Agreement,
Sellers shall sell, and Buyer shall purchase, effective as of
the close of
business on the Closing Date, the following assets owned and
used by Sellers in
the ordinary course of business free from any and all liens,
charges,
restrictions or encumbrances except for such liens, charges,
restrictions or
encumbrances set forth in Schedule 1.1 (the "Permitted
Encumbrances")
(hereinafter collectively referred to as the "Assets"):
(a) All machinery, equipment, furniture, fixtures, vehicles,
tools,
spare parts and other fixed assets owned by Sellers and used, or
held for use,
exclusively in connection with the Business, including without
limitation, those
items listed on Schedule 1.1(a) attached hereto (the "Fixed
Assets");
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(b) All inventory of finished goods, work-in-process, raw
materials
and supplies of Sellers used exclusively in the Business at the
close of
business on the Closing Date, including without limitation,
those items listed
on Schedule 1.1(b) attached hereto (the "Inventory");
(c) All accounts receivable owned by Sellers on the Closing
Date
(the "Accounts Receivable") including without limitation, those
Accounts
Receivable listed on Schedule 1.1(c);
(d) All Sellers' right, title and interest in and to the
Assigned
Contracts and the Assigned Leases (each as defined in Section
2.12) as listed on
Schedule 2.12;
(e) The Facilities, consisting of the real property more
particularly described on Schedule 1.1 (e) attached hereto,
together with all
rights and appurtenances pertaining to said property and any
improvements,
fixtures and personal property situated on or attached to said
real property.
The exact legal description of the Facilities shall be
determined by surveys
prepared and certified as of current date, at Buyer's expense,
by a qualified
person or firm acceptable to Sellers which survey shall locate
all roads,
easements, utilities, burial grounds, cemeteries, church lots,
rights-of-way,
drainage districts, applicable zoning districts, any flood
hazard areas, parties
in possession, and other matters that affect that title or use
of the Facilities
for commercial operations and use and shall further reflect the
number of acres
as are contained within the exterior boundaries of the
Facilities, and shall
otherwise be satisfactory to Buyer;
(f) All data and records related to the operations of the
Business
as they are currently operated, including client and customer
lists and records,
referral sources, research and development reports and records,
production
reports and records, service and warranty records, equipment
logs, operating
guides and manuals, financial and accounting records, creative
materials,
advertising materials, promotional materials, studies, reports,
correspondence
and other similar documents and records and copies of all
personnel records
relating to those employees who are offered, and who accept,
employment with
Buyer;
(g) All of the intangible rights and property of the
Business,
subject to Section 7.5(a), including intellectual property
assets, logos, going
concern value, goodwill, post office boxes, telephone, telecopy
and email
addresses and listings of the Business;
(h) All internet URL's, website contents, software and
marketing
materials currently used by Sellers in connection with the
Business; and
(i) All rights of Sellers relating to claims for refunds
relating to
the Assets and rights to offset in respect thereof; and
(j) In addition to the Assets, on the Closing Date,
Shareholder
shall sell, transfer and convey to Buyer certain items
designated on Schedule
1.1(j).
1.2 EXCLUDED ASSETS. Notwithstanding the foregoing, the Sellers
and
Shareholder are not selling, and the Buyer is not purchasing,
pursuant to this
Agreement, any tangible or
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intangible properties, assets or rights of the Sellers or
Shareholder not
specifically included in the Assets. Without limiting the
foregoing, there shall
not be sold, assigned, transferred or delivered hereunder: (a)
any cash on hand
or in banks or marketable securities owned by the Sellers; (b)
all minute books,
stock records and corporate seals; (c) the shares of capital
stock of the
Sellers; (d) any rights or claims of the Sellers with respect to
any tax refund,
carryback or carryforward or other credits to the Sellers for
the period ending
on or prior to the Closing Date; (e) those rights relating to
deposits and
prepaid. expenses; (f) any property, casualty, workers'
compensation or other
insurance policy or related insurance services contract relating
to the Sellers
and any right of the Sellers under any such insurance policy or
contract
including, but not limited to, right to any cancellation value;
(g) key-man life
insurance policies listed on Schedule 1.2(g); (h) all personnel
records and
other records that Sellers are required by law to retain in its
possession; (i)
all prepaid items; (j) all assets of Shareholder other than the
assets of
Sellers as set forth in this Agreement and the assets listed on
Schedule 1.1(j);
(k) any rights or claims of Sellers and Shareholder against any
third party
relating to the Assets, Business or Facilities; (l) any
collective bargaining
agreements, (m) any assets associated with any pension plans
Sellers maintain,
contribute to, or sponsor, including, but not limited to, the
Retirement Plans
for Hourly and Salaried Employees of Freeport Area Enterprises
("Hourly Pension
Plan"), and (n) other property and assets expressly designated
in Schedule
1.2(l).
1.3 ASSUMPTION OF LIABILITIES. On the Closing Date, Buyer shall
assume,
and agrees to pay, perform and comply with, only the following
debts,
obligations and liabilities of Sellers:
(a) All debts, obligations and liabilities of Sellers accruing
from
and after the Closing Date pursuant to any of the Assigned
Contracts (as defined
in Section 2.12) listed on Schedule 2.12, provided that any
third party to any
of the Assigned Contracts whose approval or consent is required
in order for
Sellers to assign same to Buyer shall have been obtained;
(b) All debts, obligations and liabilities of Sellers accruing
from
and after the Closing Date pursuant to any of the Assigned
Leases (as defined in
Section 2.12) listed on Schedule 2.12, provided that (i) any
lessor named in any
of the Assigned Leases whose approval or consent is required in
order for
Sellers to assign same to Buyer shall have been obtained, or
(ii) Buyer shall
have renegotiated the terms of such Assigned Leases to Buyer's
satisfaction; and
(c) The Assumed Liabilities (as defined in Section 2.13) of
the
Sellers as shown on Schedule 2.13, which liabilities shall
include, without
limitation, all of the liabilities set forth on the Balance
Sheet (as defined in
Sec. 2.11).
Provided, however, that the foregoing assumptions and
undertakings of the Buyer
shall not relieve Sellers from any debt, obligation or liability
resulting from
a breach by Sellers of any representations, warranty or
agreement contained in
this Agreement or in any such Assigned Contract, Assigned Lease
or Assumed
Liability. Further, the foregoing assumptions and undertakings
of the Buyer
shall not restrain or limit Buyer's right to contest or assert
defenses against
third parties with respect to any such debts, obligations or
liabilities. Buyer
shall not assume any other debts, liabilities or obligations of
the Sellers
other than the Assigned Contracts, Assigned Leases or Assumed
Liabilities.
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1.4 PURCHASE PRICE AND PAYMENT TERMS. The purchase price for the
Assets
shall be a total of Five Million Dollars ($5,000,000.00) (the
"Purchase Price").
The Purchase Price shall be allocated to the Assets, Assigned
Contracts,
Assigned Leases and Assumed Liabilities in accordance with
Schedule 1.4 (which
Sellers and Buyer shall prepare and deliver following the
Closing), and shall be
payable as follows:
(a) At Closing, Buyer shall assume the Assigned Contracts,
Assigned
Leases and Assumed Liabilities in the amounts reflected on
Schedule 1.4
representing $1,084,000 of the Purchase Price, subject to the
adjustments set
forth in Section 1.5 below.
(b) Buyer shall deliver to Sellers at Closing, in
immediately
available funds, the cash portion of the Purchase Price in the
amount of Three
Million Nine Hundred Sixteen Thousand Dollars ($3,916,000) (the
"Cash Portion"),
subject to the adjustments set forth in Section 1.5 below, as
follows:
$2,415,742.39 to Sellers in accordance with the wire transfer
instructions
provided in Schedule 1.4(b)(i); $500,257.61 to National City
Bank in accordance
with the wire transfer instructions provided in Schedule
1.4(b)(ii); and
$1,000,000 to JP Morgan Chase Bank in accordance with the wire
transfer
instructions provided in Schedule 1.4(b)(iii).
1.5 ADJUSTMENTS TO CASH PORTION OF PURCHASE PRICE. The Cash
Portion of the
Purchase Price shall be adjusted as follows:
(a) Preparation of Pre-Closing Date Balance Sheet and Closing
Date
Balance Sheet.
(i) Within fifteen (15) days prior to the Closing Date, the
Sellers will prepare and deliver to the Buyer a draft combined
balance
sheet (the "Draft Pre-Closing Date Balance Sheet") for Sellers
as of the
close of business on the last day of the month ending closest to
the
Closing Date (determined on a pro forma basis as though the
Parties had
not consummated the transactions contemplated by this
Agreement). The
Sellers will prepare the Draft Pre-Closing Date Balance Sheet
in
accordance with U.S. generally accepted accounting principles
applied on a
basis consistent with the preparation of Schedule 1.4, the
Financial
Statements and the Balance Sheet; and
(ii) Within sixty (60) days after the Closing Date, the
Sellers will prepare and deliver to the Buyer a draft combined
balance
sheet (the "Draft Closing Date Balance Sheet") for Sellers as of
the close
of business on the last business day prior to the Closing Date
(determined
on a pro forma basis as though the Parties had not consummated
the
transactions contemplated by this Agreement). The Sellers will
prepare the
Draft Closing Date Balance Sheet in accordance with U.S.
generally
accepted accounting principles applied on a basis consistent
with the
preparation of Schedule 1.4, the Financial Statements and the
Balance
Sheet.
(iii) If the Buyer has any objections to the Draft
Pre-Closing
Date Balance Sheet or the Draft Closing Date Balance Sheet, it
will
deliver a detailed statement describing its objections to the
Sellers
within ten (10) days after receiving either such Balance Sheet.
The Buyer
and the Sellers will use reasonable efforts to
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resolve any such objections themselves. If the parties do not
obtain a
final resolution within five (5) days after the Sellers have
received a
statement of objections, however, the Buyer and the Sellers will
select an
independent accounting firm mutually acceptable to them to
resolve any
remaining objections. If the Buyer and the Sellers are unable to
agree on
the choice of an accounting firm, they will select a
nationally-recognized
accounting firm by lot (after excluding their respective regular
outside
accounting firms). The determination of any accounting firm so
selected
will be set forth in writing within fifteen (15) days of the
dispute being
presented to it and will be conclusive and binding upon the
parties. The
Sellers will revise the Draft Pre-Closing Date Balance Sheet
and/or the
Draft Closing Date Balance Sheet as appropriate to reflect the
resolution
of any objections thereto pursuant to this Section 1.4(a)(iii).
The
"Pre-Closing Date Balance Sheet" shall mean the Draft
Pre-Closing Date
Balance Sheet together with any revisions thereto pursuant to
this Section
1.4(a)(iii). The "Closing Date Balance Sheet" shall mean the
Draft Closing
Date Balance Sheet together with any revisions there to pursuant
to this
Section 1.4(a)(iii).
(iv) In the event the parties submit any unresolved
objections
to an independent accounting firm for resolution as provided in
Section
1.4(a)(iii) above, the Buyer and the Sellers will share
equal
responsibility for the fees and expenses of the accounting
firm.
(v) The Sellers will make the work papers and back-up
materials used in preparing the Draft Pre-Closing Date Balance
Sheet and
the Draft Closing Date Balance Sheet available to the Buyer,
its
accountants, other representatives and, if necessary, the
independent
accounting firm at reasonable times and upon reasonable notice
at any time
during (A) the preparation by the Sellers of the Draft
Pre-Closing Date
Balance Sheet or the Draft Closing Date Balance Sheet, (B) the
review by
the Buyer of the Draft Pre-Closing Date Balance Sheet or the
Draft Closing
Date Balance Sheet, and (C) the resolution by the parties of
any
objections thereto.
(b) Adjustments to Cash Portion of the Purchase Price. The
Cash
Portion of the Purchase Price will be adjusted by the amount by
which the value
of the Assets, Assumed Contracts, Assumed Leases and Assumed
Liabilities on the
Closing Date Balance Sheet differs from the value of the Assets,
Assumed
Contracts, Assumed Leases and Assumed Liabilities on the May 31,
2004 Balance
Sheet. If the value of the Assets, Assumed Contracts, Assumed
Leases and Assumed
Liabilities on the Closing Date Balance Sheet exceed the value
of the Assets,
Assumed Contracts, Assumed Leases and Assumed Liabilities on the
May 31, 2004
Balance Sheet, Buyer shall pay the full amount of the difference
to Sellers; and
if the value of the Assets, Assumed Contracts, Assumed Leases
and Assumed
Liabilities on the Closing Date Balance Sheet is less than the
value of the
Assets, Assumed Contracts, Assumed Leases and Assumed
Liabilities on the May 31,
2004 Balance Sheet, Sellers shall pay the full amount of the
difference to
Buyer. All payments due hereunder, if any, shall be made within
three (3)
business days of the final determination of the Closing Date
Balance Sheet.
ARTICLE II
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REPRESENTATIONS AND WARRANTIES OF SELLERS AND SHAREHOLDER
Sellers and Shareholder, jointly and severally, make the
following
representations and warranties to Buyer, which shall be true and
correct on the
Closing Date:
2.1 ORGANIZATION AND QUALIFICATION. Sellers and Shareholder
are
corporations duly organized, validly existing and in good
standing under the
laws of the Commonwealth of Pennsylvania. Sellers have all
requisite corporate
power and authority to own, lease and operate their properties,
and to carry on
the Business as it is now being conducted and to operate the
Facilities as they
are now being operated. Sellers are duly qualified and in good
standing to do
business in all other states in which they conduct business,
except where the
failure to be so qualified and in good standing would not have a
material
adverse effect.
2.2 AUTHORIZATION AND CONSENTS.
(a) Sellers and Shareholder have full corporate power and
authority
to enter into this Agreement and to carry out their obligations
pursuant to the
terms hereof. The execution, delivery and performance of this
Agreement by
Sellers and Shareholder have been duly authorized by all
requisite corporate
actions. This Agreement constitutes valid and legally binding
obligations of
Sellers and Shareholder enforceable in accordance with the terms
hereof. Neither
the execution and performance of this Agreement, nor the
consummation of the
transactions contemplated hereby, will (i) violate, or conflict
with, or result
in a breach of any provision of, or constitute a default (or an
event which,
with notice or lapse of time or both, would constitute a
default) under, or
result in the termination of, or accelerate the performance
required by, or
result in the creation of any lien, security interest, charge or
encumbrance
upon any of the properties or assets of Sellers under any of the
terms,
conditions or provisions of, the Articles of Incorporation or
bylaws of Sellers
and Shareholder, or any note, bond, mortgage, indenture, deed of
trust, lease,
license, contract, lien, agreement, instrument, or other
obligation to which
Sellers and Shareholder are a party or by which Sellers or any
of their
properties or assets may be bound or affected, or (ii) violate
any order, writ,
injunction, decree, statute, rule or regulation applicable to
Sellers and
Shareholder or any of their properties or assets.
(b) Except as set forth on Schedule 2.2 (b), Sellers have
obtained
all consents or approvals, notified or registered with any
governmental
authority or other third party, required on the part of Sellers
in connection
with the execution and delivery of this Agreement or the
consummation by Sellers
of the transactions contemplated hereby.
2.3 TAXES AND TAX RETURNS. For all periods through the Closing
Date,
Sellers shall have timely filed all federal, state, and local
withholding,
social security, and unemployment tax returns; and all such tax
returns are
complete and accurate in accordance with all legal requirements
applicable
thereto in all material respects. Sellers have paid all taxes
required to be
paid for such periods, and there is, and to the knowledge of the
Sellers, there
will be, no further liability (whether disclosed on such returns
or assessments)
for any such taxes, and no interest or penalties have accrued or
are accruing
with respect thereto. There are no liens on any property
relating to the
Business, Assets or the Facilities by reason of the delinquent
payment, or
non-
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payment, of any tax, assessment, fee, or other governmental
charge (except for
inchoate liens for taxes not yet due and payable).
2.4 PERMITS, ETC. Schedule 2.4 contains a listing of all
material federal,
state, and local licenses, permits, franchises, certificates,
approvals, and
authority held by Sellers relating to the operation of the
Business and the
Facilities, all of which Sellers will assign to Buyer without
charge on the
Closing Date to the extent they are assignable under applicable
law. Neither the
Business nor the Facilities require any other material license,
franchise,
permit, or governmental authorization from any governmental
body, whether
federal, state, local, or foreign.
2.5 TITLE AND CONDITION OF ASSETS.
(a) Sellers collectively have good and marketable title to
the
Assets, and the Assets are free and clear of any leases,
security interests,
mortgages, charges, liens, claims, encumbrances, easements,
restrictions,
covenants, rights of first refusal, options, or other matters
affecting title
and use of the Assets, except for the Permitted Encumbrances and
such leases,
security interests, mortgages, charges, liens, claims,
encumbrances, easements,
restrictions, covenants, rights of first refusal, options, or
other matters as
would not reasonably have a material adverse effect.
(b) All of the Fixed Assets are in reasonably good operating
condition, subject to normal wear and tear.
(c) None of the Assets is subject to any commitment or other
arrangement for its use by any third party.
(d) All items included in the Inventory are being sold "as is,
where
is." Sellers are not in possession of any inventory not owned by
Sellers. All
Inventory was purchased or produced in the ordinary course of
business of
Sellers.
(e) All Accounts Receivable reflected in Schedule 1.1(c) or on
the
accounting records of Sellers relating to the Business as of the
Closing Date
represent or will represent valid obligations arising from sales
actually made
or services actually performed by Sellers in the ordinary course
of business.
Except to the extent paid prior to the Closing Date, the
Accounts Receivable are
or will be as of the Closing Date current and collectible using
commercially
reasonable efforts net of the respective reserves shown on the
Financial
Statements and the Balance Sheet. There is no contest, claim,
defense or right
of setoff with any account debtor of an Account Receivable
relating to the
amount or validity of such Account Receivable. Schedule 1.1(c)
contains a
complete and accurate list of all Accounts Receivable as of the
Closing Date,
which list sets forth the aging of each such Account
Receivable.
2.6 NO VIOLATION OF STATUTE, DECREE, OR ORDER. Sellers are not
in default
under or in violation of any material federal, state, municipal,
or other
governmental law, ordinance, statute, or administrative or court
regulations,
rule, decision, or order, or other law of any kind relating
to
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the Business and the consummation of transactions contemplated
by this Agreement
will not constitute or result in any such material default or
violation.
2.7 EMPLOYEE BENEFIT PLANS. Except as disclosed on Schedule 2.7,
there are
no employee benefit plans (as defined in Section 3(3) of the
Employee Retirement
Security Act) or other employee benefit plans, programs, or
arrangements,
including, but not limited to, pension, vacation, short term
disability, dental,
life insurance, bonus, deferred compensation, profit sharing,
stock purchase,
stock option, performance unit plans, or other employee benefit
plans maintained
by Sellers, contributed to by Sellers, or for which Sellers
contract for the
benefit of their employees (the "Plans"). Sellers have made full
payment with
respect to all amounts and premiums which Sellers are required
to have paid as
contributions to such Plans as of the Closing Date or accrued
the same on the
Balance Sheet. Sellers are not a party to any agreement the
effect of which
would be that Buyer will be required to make contributions in
respect to past
services of any present or former employee of Sellers, or
otherwise incur any
present or continuing liability to any employee as a result of
acquiring the
Assets. Sellers do not have any obligation to provide retiree
health benefits to
any employees or former employees.
2.8 LITIGATION. Except as set forth on Schedule 2.8, there is no
(a)
material suit, action, or legal, administrative, or other
proceeding or
governmental investigation pending or, to the knowledge of the
Sellers,
threatened against Sellers, nor is there any basis therefor
known to Sellers, or
(b) writ, injunction or decree of any court or governmental
instrumentality to
which the Sellers are a party or by which they are bound which
could reasonably
be expected to have a material adverse effect on the Sellers'
ability to
complete the transactions contemplated herein.
2.9 ENVIRONMENTAL LAWS. Except as set forth on Schedule 2.9, to
the
knowledge of Sellers, Sellers have complied, and remain in
compliance in all
material respects, with the provisions of all Environmental
Laws, as hereinafter
defined, applicable to the Facilities; and neither Sellers (or
any agent or
contractor of Sellers) nor, to the knowledge of the Sellers, any
unrelated third
party, has disposed of or released any Hazardous Substances, as
hereinafter
defined, at, from, in or on any of the Facilities in violation
of applicable
Environmental Laws.
For purposes of this Agreement, "ENVIRONMENTAL LAWS" means any
and all
governmental requirements in effect as of the Closing Date,
applicable to the
Facilities, and relating to the environment, including ambient
air, surface
water, land surface or subsurface strata, or to emissions,
discharges, releases
or threatened releases of pollutants, contaminates, chemicals or
industrial
toxic or hazardous substances or wastes (including Hazardous
Substances) or
noxious noise or odor into the environment, or otherwise
relating to the
manufacture, processing, distribution, use, treatment, storage,
disposal,
recycling, removal, transport or handling of pollutants,
contaminates, chemicals
or industrial toxic or hazardous substances or wastes (including
petroleum,
petroleum distillates, asbestos or asbestos-containing material,
polychlorinated
biphenyls, chlorofluoro-carbons, or
hydrochlorofluoro-carbons).
For purposes of this Agreement, "HAZARDOUS SUBSTANCES" means any
material
or substance, or combination of materials or substances, that by
reason of
quantity, concentration, composition or characteristic is
regulated under any
Environmental Law.
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2.10 NO BROKER. No person, firm, or corporation has acted in the
capacity
of broker or finder on Sellers' behalf to bring about the
negotiation or
consummation of this Agreement or the purchase of any assets of
Sellers.
2.11 FINANCIAL STATEMENTS. Sellers previously have delivered to
Buyer true
and correct copies of their compiled financial statements, as of
December 31,
2001, December 31, 2002 and December 31, 2003, and for the
periods then ended
(collectively, the "Sellers' Financial Statements"). The
Sellers' Financial
Statements were prepared (except for the compiled financial
statements as of
December 31, 2002, and for the period then ended, of which
Buyers are aware) in
accordance with U.S. generally accepted accounting principles,
consistently
applied, and present fairly in all material respects the
financial position and
the results of operation of Sellers as of the dates and for the
periods
indicated. As of the dates of the Sellers' Financial Statements,
Sellers had no
material obligations, fixed or contingent, not adequately
reflected in the
Seller' Financial Statements or the notes or exhibits thereto.
Schedule 2.11 is
a true, correct and complete combined balance sheet of Sellers
in all material
respects as of May 31, 2004 (the "Balance Sheet").
2.12 ASSIGNED CONTRACTS AND ASSIGNED LEASES. Schedule 2.12 lists
all
assigned contracts, which shall include all open customer
purchase orders to be
assumed by the Buyer ("Assigned Contracts") and assigned leases
(the "Assigned
Leases") that are to be assigned to, and assumed by, Buyer
pursuant to Section
1.3, subject to the provisions of this Section 2.12; provided,
however, that
"Assigned Contracts" and "Assigned Leases" shall only include
those contracts
and leases as to which the consent of the other party has been
obtained in
writing prior to Closing, if consent to assignment is required
under the terms
of such contract or lease. Each Assigned Contract or Assigned
Lease to which
Seller is a party is valid and in full force and effect and
constitutes the
legal, valid and binding obligation of Seller and the other
party or parties
thereto; there are no existing defaults thereunder and no event,
act or omission
has occurred which (with or without notice, lapse of time or the
happening or
occurrence of any other event) would result in a default
thereunder. No default
exists or, except as set forth on Schedule 2.2, will exist under
any of the
Assigned Contracts and Leases as a result of the execution and
delivery or
performance of this Agreement.
2.13 LIABILITIES OF SELLERS. Attached hereto as Schedul
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