TECHNOLOGY SOLUTIONS
COMPANY
Effective as of December 31st,
2008
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ARTICLE I. PURCHASE AND SALE OF
ASSETS
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1
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Section 1.1
Conveyance and Transfer of
Assets
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1
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Section 1.2
Assumption of Liabilities and
Obligations
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2
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3
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Section 1.4
Purchase Price
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3
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Section 1.5
Payment of Cash Purchase
Price
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4
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Section 1.6
Allocation of Purchase
Price
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4
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4
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Section 2.1
Date and Place
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4
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Section 2.2
Delivery of
Documents
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4
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ARTICLE III. RELATED
TRANSACTIONS
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4
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Section 3.1
Employment
Releases
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4
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ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF
SELLER
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5
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Section 4.1
Corporate
Organization
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5
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Section 4.2
Corporate Authority; Authorization of
Agreement
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5
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5
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Section 4.4
No Undisclosed
Liabilities
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5
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Section 4.5
Absence of Changes
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6
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Section 4.6
Title to Properties;
Encumbrances
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7
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Section 4.7
Sufficiency of
Assets
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7
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Section 4.8
Real Property
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7
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7
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Section 4.10
Condition of Tangible
Assets
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7
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Section 4.11
Accounts
Receivable
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8
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Section 4.12
Intellectual Property
Matters
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8
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Section 4.13
Contracts and
Commitments
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8
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9
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Section 4.15
Compliance with
Laws
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9
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Section 4.16
Employment Matters
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10
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Section 4.17
Employee Benefit Plans and
Arrangements
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10
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11
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Section 4.19
Governmental
Consents
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11
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Section 4.20
Other Consents
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11
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Section 4.21
Product and Service
Warranty
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11
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Section 4.22
Product and Service
Liability
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11
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Section 4.23
Customers, Suppliers and Sales
Representatives
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11
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12
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Section 4.25
Brokers or Finders
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12
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12
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Section 4.27
Full Disclosure
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12
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ARTICLE V. REPRESENTATIONS AND WARRANTIES OF
PURCHASER
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12
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12
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Section 5.2
Authorization
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13
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13
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Section 5.4
Governmental
Consents
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13
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Section 5.5
Other Consents
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13
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13
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13
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Section 5.8
Compliance With the
Law
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14
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14
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Section 5.10
Full Disclosure
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14
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ii
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ARTICLE VI. CERTAIN COVENANTS OF
SELLER
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14
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Section 6.1
Satisfaction of
Conditions
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14
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ARTICLE VII. CERTAIN COVENANTS OF
PURCHASER
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15
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Section 7.1
Satisfaction of
Conditions
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15
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ARTICLE VIII. ADDITIONAL COVENANTS AND
AGREEMENTS
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15
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Section 8.1
Payment of Taxes and Certain
Expenses
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15
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Section 8.2
Noncompetition; Nonsolicitation;
Nondisclosure
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15
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Section 8.3
Mail Received After
Closing
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16
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Section 8.4
Cooperation and Records
Retention
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16
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Section 8.5
Offers of
Employment
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17
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Section 8.6
Further Assurances
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17
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ARTICLE IX. CONDITIONS TO THE OBLIGATIONS OF
PURCHASER
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17
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Section 9.1
Representations and Warranties
True
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17
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Section 9.2
Compliance with this
Agreement
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17
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Section 9.3
Documents to be
Delivered
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17
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Section 9.4
Consents, Releases and
Approvals
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18
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Section 9.5
No Injunctions
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18
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Section 9.6
Material Adverse
Changes
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18
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ARTICLE X. CONDITIONS TO THE OBLIGATIONS OF
SELLER
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19
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Section 10.1
Representations and Warranties
True
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19
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Section 10.2
Compliance with this
Agreement
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19
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Section 10.3
Payment of Purchase
Price
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19
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Section 10.4
Documents to be
Delivered
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19
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Section 10.5
No Injunction
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19
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ARTICLE XI. SURVIVAL OF REPRESENTATIONS AND
WARRANTIES; INDEMNIFICATION
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20
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Section 11.1
Survival of Representations and
Warranties
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20
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Section 11.2
Indemnification by
Seller
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20
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Section 11.3
Indemnification by
Purchaser
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21
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Section 11.4
Limitation on
Amount
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21
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Section 11.5
Notice of Claims
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22
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ARTICLE XII. MISCELLANEOUS
PROVISIONS
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22
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22
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Section 12.2
Waiver of
Compliance
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22
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23
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Section 12.4
Specific
Performance
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23
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23
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Section 12.6
Severability
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23
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24
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Section 12.8
Dispute Resolution
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24
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Section 12.9
Governing Law
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24
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Section 12.10
Counterparts
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24
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24
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Section 12.12
Entire Agreement
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24
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Section 12.13
Third Parties
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25
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Section 12.14
Performance Following
Closing
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25
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Section 12.15
Certain
Definitions
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25
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Section 12.16
Source Code Escrow
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25
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iii
THIS ASSET PURCHASE AGREEMENT
(this “Agreement”) is
entered into this 31st day of December, 2008 by and between
TECHNOLOGY SOLUTIONS COMPANY , a Delaware corporation (the
“Seller”), and VALKRE SOLUTIONS, INC, a Delaware
corporation (“Purchaser”).
WHEREAS , Seller desires to sell to Purchaser
substantially all of the assets, certain liabilities, properties,
operations and business relating to its Customer Value Creation
Consulting Practice (the “CVC Practice”), which is
engaged in the business of providing software and services related
to assisting customers indentify, measure and improve the value
they create for their clients; and Purchaser desires to purchase
from Seller such assets, liabilities, properties and business, as
set forth below and in the attached schedules, upon the terms and
subject to the conditions hereinafter set forth.
NOW, THEREFORE , in consideration of the premises and of the
respective representations, warranties, covenants, agreements and
conditions contained herein, the parties hereto, intending to be
legally bound, hereby agree as follows:
PURCHASE AND SALE OF
ASSETS
Section 1.1 Conveyance and Transfer of
Assets Upon the terms
and subject to all of the conditions contained herein and the
performance by each of the parties hereto of their respective
obligations hereunder, Purchaser hereby agrees to purchase from
Seller, and Seller hereby agrees to sell and deliver to Purchaser
at the Closing (hereinafter defined) the assets of the
Seller’s CVC Practice set forth in
Schedule 1.1(a) hereto (the “Assets”);
assign the services agreements set forth in
Schedule 1.1(b) hereto (the “Services
Agreements”) and transfer other properties of the business
which are set forth in this section, Section 1.1
(i) through (viii); all of which shall constitute
“Transferred Assets” as defined in this Agreement free
and clear of all liens, claims, encumbrances, charges, security
interests or restrictions of any type whatsoever
(“Encumbrances”), other than the Assumed Liabilities
(as defined in Section 1.2 hereof) to be assumed by Purchaser
as set forth in Section 1.2 hereof:
(i) all of the intangible rights and
property of the CVC Practice utilized exclusively in the CVC
Practice, including all such trademarks, trade names, service
marks, inventions, patents, patent rights, applications for
patents, similar rights, trade secrets, know-how, processes,
product mixes, software, licenses, including software licenses,
designs, going concern value and goodwill, and website content
directly related to the CVC Practice;
1
(ii) all marketing studies, customer lists,
files, supplier files, sales agent and manufacturers’
representatives’ files, credit files, credit data,
appraisals, valuations, and consulting studies used by the CVC
Practice and all other records and reports used exclusively by the
CVC Practice and all computers, computer programs, computer
software, computer manuals, flowcharts, printouts, data files,
program documentation and related materials and copies used
exclusively by the CVC Practice, excluding any like items
previously mentioned, which are used to run the daily operations of
Seller’s other businesses;
(iii) all deposits (other than income tax
deposits) and the appropriate amount of all expenses and deferred
charges that have been prepaid or paid in advance by Seller prior
to the Closing that directly relate to the CVC Practice
(“Pre-Paid Obligations”);
(iv) all accounts receivable of the CVC
Practice, other than those excluded pursuant to Section 1.6
hereof (the “Accounts Receivable”);
(v) all of Seller’s right, title and
interest in and to all contracts, licenses and agreements of Seller
exclusively relating to the CVC Practice that are transferable,
including personal property leases, all contracts and agreements
with customers and suppliers of Seller relating to the CVC Practice
entered into in the ordinary course of business, including open
orders (the “Contracts”), including those described on
Schedules 4.10 and 4.14 hereto;
(vi) all stationery and other printed
material, office supplies, catalogs and circulars, telephone,
telecopy and email addresses and listings exclusively related to
the CVC Practice, and the right to receive mail and other
communications and shipments of merchandise addressed to the CVC
Practice;
(vii) all
files, records and documentation relating to the CVC Practice;
and
(viii) all of Seller’s right, title
and interest in and to all of the CVC Practice’s service
agreements, maintenance agreements and express and implied
warranties of third parties that continue in effect after the
Closing.
Section 1.2 Assumption of Liabilities
and Obligations
(a) As of the Closing Date and subject to
the limitations set forth in this Section and Section 1.3
below, Purchaser shall assume and pay, discharge and perform all of
the liabilities set forth in Schedule 1.2(a) hereto
(the “Assumed Liabilities”) which shall include the
following:
(i) all obligations and liabilities of
Seller under any service agreements and other Contracts, relating
to the time period after the Closing (the “Assumed Contract
Liabilities”); and
(ii) the
CVC Current Liabilities (as defined in Section 1.6);
and
(iii) those obligations and liabilities
specifically set forth in Schedule 1.2(a)
hereto.
2
(b) Except for the Assumed Liabilities,
Purchaser shall not assume or otherwise agree to pay, discharge or
perform any other liabilities or obligations of Seller in respect
of the CVC Practice of Seller (whether accrued, absolute,
contingent or otherwise, whether or not disputed, or whether or not
disclosed to Purchaser), and the Transferred Assets shall be
transferred, assigned and conveyed to Purchaser free and clear of
all Encumbrances (other than the Assumed Liabilities).
(c) Seller shall remain responsible for the
payment of those liabilities and obligations of Seller which relate
to the CVC Practice other than Assumed Liabilities.
(d) Except as set forth in
Schedule 1.2(b) Purchaser shall assume all warranty
claims related to the CVC Practice.
Section 1.3 Prorations
Except as otherwise specifically
provided in this Agreement, real and personal property taxes and
assessments levied against the Transferred Assets, property and
equipment rentals, and similar prepaid and deferred items shall be
prorated between Purchaser and Seller in accordance with the
principle that Seller shall be responsible for such liabilities
allocable to the conduct of the CVC Practice for the period prior
to the Closing, and Purchaser shall be responsible only for such
liabilities allocable to the conduct of the Business by Purchaser
following the Closing. Seller and Purchaser shall deliver a
statement setting forth such prorations at the time of making any
such proration payment. Any prorations will, insofar as feasible,
be determined and paid on the Closing Date, with final settlement
and payment by the appropriate party occurring no later than
30 days after the actual amount becomes known.
Section 1.4 Purchase
Price Subject to the
terms and conditions hereof, in consideration of the sale,
transfer, conveyance, assignment and delivery of the Transferred
Assets and for the rights to receive and rely upon the
representations, warranties, covenants and agreements of Seller,
the Purchaser (a) shall pay Four Hundred Thousand and No/100
Dollars ($400,000.00) and (b) shall assume the Assumed Liabilities
(the “Purchase Price”); and
(a) Other Consideration Subject to
the terms and conditions hereof, in consideration of the sale,
transfer, conveyance, assignment and delivery of the Transferred
Assets and for the rights to receive and rely upon the
representations, warranties, covenants and agreements of Seller,
the Purchaser (a) shall pay a seven percent (7%) commission on
all signed contracts exceeding One Million Two Hundred and Fifty
Thousand and No/100 Dollars ($1,250,000) for a period of twelve
months from the date hereof and (b) shall make such payments
to Seller when invoiced to its clients regardless of the twelve
month period of time. For the purposes of this Section 1.4(a),
the Parties agree that contract executed between Purchaser and
Owens Corning Sales, LLC, dated December 19
th , 2008, and indentified in
Schedule 1.1(b) , for One Million and No/100 Dollars
($1,000,000) will be applied to the threshold requirements One
Million Two Hundred and Fifty Thousand and No/100 Dollars
($1,250,000) identified above.
(b) Disclosure of Records Purchaser
shall make available, upon request by Seller the books, documents,
and records of Purchaser necessary to certify and fulfill the
nature and extent of this Section 1.4.
3
Section 1.5 Payment of Cash Purchase
Price The Cash
Purchase Price payable at Closing shall be paid in the following
manner:
(a) At the Closing, Purchaser shall pay to
Seller an amount equal to the Cash Purchase Price (as defined in
Section 1.4 above) minus Two Hundred and Seventy Thousand
Dollars ($270,000.00) by wire transfer of immediately available
funds to an account designated by Seller in writing prior to
Closing; and
(b) At the Closing, Purchaser shall execute
a promissory note in form attached hereto as EXHIBIT A (the
“Promissory Note”) evidencing Purchaser’s senior
obligation to pay Two Hundred and Seventy Thousand Dollars
($270,000.00) to Seller under the terms thereof.
Section 1.6 Allocation of Purchase
Price The parties
agree that the Purchase Price shall be allocated among the
Transferred Assets as determined by Purchaser in accordance with
Section 1060 of the Internal Revenue Code of 1986, as amended (the
“Code”) and the regulations thereunder. Purchaser and
Seller shall prepare and submit Internal Revenue Form 8594
prepared in accordance with such allocation and this
Section 1.6, and Seller and Purchaser shall file all tax
returns consistent with this Section 1.6. A tentative
allocation is attached hereto as Schedule 1.6 , subject
to adjustment pursuant to Section 1.5.
Section 2.1 Date and
Place The closing of
the transaction contemplated hereby (the “Closing”)
shall take place on December 31, 2008 at the offices of Seller
in Chicago, Illinois, or at such other time and place as the
parties mutually agree. The transactions contemplated by this
Agreement shall be deemed to be effective for all purposes as of
12:01 a.m. on the Effective Date.
Section 2.2 Delivery of
Documents
(a) At Closing, Seller shall execute and
deliver to Purchaser such assignments, bills of sale and any other
instruments of transfer necessary to convey to or perfect in
Purchaser all of Seller’s right, title and interest in and to
the Transferred Assets.
(b) At Closing, Seller shall deliver to
Purchaser those other items specified in Section 9.3 and
Purchaser shall deliver to Seller those items specified in
Section 10.4.
Section 3.1 Employment
Releases At Closing,
Purchaser and Jerry Alderman, Brian Kiep, Alex Monacelli, Gbenga
Babarinde, Jamal Austin, and Matthew Cobb shall execute a
Resignation and Release Agreement in the form attached here as
Exhibit B (the “Releases”).
4
REPRESENTATIONS AND WARRANTIES
OF SELLER
Seller hereby
represents, warrants and covenants to Purchaser that:
Section 4.1 Corporate
Organization Seller
is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware; Seller has full
power and authority to carry on its business as it is now being
conducted and to own the properties and assets it now owns; and
Seller is duly licensed and qualified to do business in any state
or other jurisdiction or any foreign country or subdivision thereof
where the nature of the CVC Practice or the character and location
of any properties and assets owned or leased by the Seller for the
CVC Practice make such qualification necessary (each of which are
set forth in Schedule 4.1 ), except where the failure
to so qualify could not reasonably be expected to have a material
adverse effect on the CVC Practice or the Transferred
Assets.
Section 4.2 Corporate Authority;
Authorization of Agreement Seller has all requisite power and authority to
execute and deliver this Agreement, to consummate the transactions
contemplated hereby, and to perform all the terms and conditions
hereof to be performed by it. The execution and delivery of this
Agreement, the performance of all the terms and conditions hereof
to be performed by Seller, and the consummation of the transactions
contemplated hereby have been duly authorized and approved by the
Seller. This Agreement has been duly executed and delivered by
Seller and constitutes the valid and binding obligation of Seller
enforceable against it in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency or other
laws relating to or affecting the enforcement of creditors’
rights generally and general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity
or at law).
Section 4.3 No Violation
Except as set forth in
Schedule 4.3 , neither the execution and delivery of
this Agreement nor the consummation of the transactions
contemplated hereby will: (a) conflict with or violate any
provision of the Certificate of Incorporation or Bylaws of Seller;
(b) violate, conflict with, constitute a default (or an event
which, with or without notice, lapse of time or both, or the
occurrence of any other event, would constitute a default) under,
result in the termination of, accelerate the performance required
by, cause the acceleration of the maturity of any debt or
obligation pursuant to, or result in the creation or imposition of
any security interest, lien or other encumbrance upon any of the
Transferred Assets under any agreement or commitment to which
Seller is a party or by which Seller is bound, or to which the
Transferred Assets are subject; or (c) violate any federal,
state or local law or any judgment, decree, order, regulation or
rule of any court or governmental authority.
Section 4.4 No Undisclosed
Liabilities Seller
has no material liabilities or obligations of any nature (whether
absolute, accrued, contingent or otherwise, and whether due or to
become due) relating to the CVC Practice, the Transferred Assets or
otherwise that are not fully reflected or reserved against in the
Interim Financial Statements of Seller, except for
(a) liabilities and obligations identified in
Schedule 4.4 and (b) liabilities and obligations
incurred in the ordinary course of business and consistent with
past business practice since the date of the Interim Financial
Statements.
5
Section 4.5 Absence of
Changes Except as set
forth in Schedule 4.5 hereto, since December 31, 2007,
the Seller has conducted the CVC Practice in all material respects
only in the ordinary course, including employee terminations for
cost reduction and performance reasons, and during such period
there has been no:
(i) transactions by the CVC Practice or
affecting the CVC Practice except in the ordinary course of
business that individually or in the aggregate, has had or would
reasonably be expected to have a Material Adverse Effect on the CVC
Practice;
(ii) destruction of, damage to, or loss of
any of the assets to be included in the Transferred Assets (whether
or not covered by insurance) that could reasonably be expected to
have a Material Adverse Effect;
(iii) sale or transfer of any material
asset which would otherwise be included in the Transferred Assets
except in the ordinary course of business;
(iv) amendment or termination of any
material contract, agreement or license to which Seller is a party
in connection with the operation of the CVC Practice except for
such normal closure of service engagements with customers and
suppliers;
(v) waiver of any right of material value
with respect to the Transferred Assets;
(vi) mortgage, pledge or other encumbrance
of any of the Transferred Assets;
(vii) waiver or release of any Transferred
Asset, except in the ordinary course of business;
(viii) any capital expenditure by the CVC
Practice (or series of related capital expenditures) involving more
than $10,000 in the aggregate;
(ix) creation, incurrence, assumption, or
guarantee by Seller of any indebtedness of the CVC Practice, other
than those included in the Assumed Liabilities impacting, affecting
or that could form an Encumbrance on the Transferred
Assets;
(x) delay or postponement by Seller, beyond
its normal practice, of the payment of accounts payable and other
liabilities of the CVC Practice which are being assumed by the
Purchaser and Seller has not instituted any unusual or accelerated
collection efforts with respect to its accounts
receivable;
(xi) loan made by Seller to, or any other
transaction with, any of the CVC Practice’s officers, and
employees which could give rise to any claim or right on
Seller’s part against any such person, or on the part of any
such person against Seller, which exceeds $1,000, other than
reflected on the financial statements of Seller;
(xii) new employment contract or collective
bargaining agreement involving the CVC Practice or any of its
employees, whether written or oral, or the substantial modification
of the terms of any existing such contract or agreement (other than
wage or salary increases in the ordinary course of business);
or
(xiii) other event or condition of any
character that has or might reasonably have a material, adverse
effect on the financial condition, business, assets or prospects of
the CVC Practice as it is being purchased by the
Purchaser.
6
Section 4.6 Title to Properties;
Encumbrances Except
as set forth on Schedule 4.6 , Seller has complete and
unrestricted power and authority and the unqualified right to sell,
transfer, convey, assign, and deliver to Purchaser, and upon
consummation of the transactions contemplated by this Agreement,
Purchaser will acquire good, valid and marketable title to, all the
Transferred Assets, free and clear of all title defects or other
Encumbrances, including, without limitation, leases, chattel
mortgages, pledges, conditional sales contracts, collateral
security arrangements and other title or interest retention
arrangements. The bills of sale, deeds, assignments and other
instruments to be executed and delivered to Purchaser by Seller at
the Closing will be valid and binding obligations of Seller
enforceable in accordance with their terms, and will vest in
Purchaser good, valid and marketable title to all the Transferred
Assets, free and clear of all Encumbrances, including, without
limitation, leases, chattel mortgages, pledges, conditional sales
contracts, collateral security arrangements and other title or
interest retention arrangements.
Section 4.7 Sufficiency of
Assets The
Transferred Assets include all assets, properties and rights
currently being used by Seller in the operation of the CVC
Practice, and all assets, properties and rights necessary to permit
Purchaser to conduct the CVC Practice in all material respects in
the same manner as Seller has conducted it to date.
Section 4.8 Real Property
The Transferred Assets do not
include any interest in real property, neither fee nor
leasehold.
Section 4.9 Leases
Schedule 4.9 contains an accurate and complete list of all
leases and subleases pursuant to which Seller leases personal
property used in or relating to the CVC Practice and which are
being assumed by the Purchaser as part of the transaction
contemplated hereby. Except as set forth in
Schedule 4.9 , all such leases are valid, binding and
enforceable in accordance with their terms, except to the extent
that such enforcement may be subject to bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to
creditors’ rights and remedies generally, and are in full
force and effect; there are no existing defaults by Seller or
lessor thereunder; and no event of default has occurred which
(whether with or without notice, lapse of time or the happening or
occurrence of any other event) would constitute a material default
thereunder by any party thereto.
Section 4.10 Condition of Tangible
Assets Except as set
forth in Schedule 4.10 hereto, all material items of
tangible property and assets which comprise the Transferred Assets
contain no material defects and are in good operating condition and
repair, subject to normal routine wear and maintenance, are usable
in the regular and ordinary course of business, and conform in
their current condition to all applicable laws, ordinances, codes,
rules and regulations, and authorizations relating to their
construction, use and operation, without any need for capital
improvements or other modification or alteration. Except for leased
property identified in Schedule 4.9 , no person other
than Seller owns any equipment or other tangible assets or
properties necessary to the operation of the Business.
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Section 4.11 Accounts
Receivable Each of
the Accounts Receivables of the CVC Practice included in the
Transferred Assets represents a valid obligation arising from
services rendered or products sold in the ordinary course of
business of Seller and was created in compliance with applicable
law. Unless paid prior to Closing, the Accounts Receivables are or
will be as of Closing current and collectible net of the reserves
shown on the Interim Balance Sheet. Seller and all of its
collection agents have complied with all laws, rules and
regulations with respect to the Accounts Receivables. None of the
Accounts Receivables is subject to any right of offset or reduction
and Seller is the sole beneficial and legal owner of all Accounts
Receivables and none have been assigned to collection agents or
otherwise. The Transferred Assets include sufficient records with
respect to the receivables to determine the status of collection
efforts and to enforce collection thereof. Any liabilities arising
in connection with the creation of the receivables or the
collection by Seller or its agents of the receivables which arose
because of an act of the Seller or its agents prior to Closing
shall remain the liability of Seller.
Section 4.12 Intellectual Property
Matters Seller owns
trademarks, service marks, trade names, copyrights, inventions,
patents, patent rights, applications for patent rights, similar
rights, trade secrets, know-how, processes, formulas, and designs
(“Intellectual Property”) used or relied upon by the
CVC Practice in the conduct of its business and which are included
in the Transferred Assets, each of which are described and set
forth with particularity in Schedule 4.12, other than
licensed rights to software identified in such schedule, to which
Seller has a valid licensed interest. Seller has the right to use
and holds good and marketable title, free and clear of all
Encumbrances, to each of such items of Intellectual Property
described above in this Section 4.12. Seller has no knowledge
of the infringement by any person, firm, associate, partnership or
corporation of any such right of Seller. There is no claim pending
or, to Seller’s knowledge, threatened against Seller with
respect to alleged infringement of any trademark, service mark,
trade name or copyright owned by any person related to the CVC
Practice. No such Intellectual Property consisting of trademarks,
service marks, trade names and copyrights have been registered with
the United States Patent and Trademark Office or the United States
Copyrights Office except as described on Schedule 4.12
, and Seller is currently in compliance with all formal legal
requirements (including the timely post-registration filing of
affidavits of use and incontestability and renewal applications)
with respect to such registered Intellectual Property.
Section 4.13 Contracts and
Commitments Schedules 1.1(b) and 4.13 list all of the written or oral Contracts which
are included in the Transferred Assets, other than the leases which
are identified on Schedule 4.9 . The Contracts include
all service agreements, contracts, licenses or commitments which
are material to the business and operations of the CVC Practice,
other than the leases identified on Schedule 4.9 .
Except as set forth in Schedule 4.13 :
(i) All Contracts are valid and in full
force and effect, and are transferable and assignable to Purchaser,
which assignment or transfer will not result in any additional cost
or expense on the part of Purchaser;
(ii) Seller is not in material breach or
default under or in violation of any Contract;
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(iii) Seller is not a party to any written
or oral agreement, contract or commitment with any present or
former employee or consultant or for the employment of any person,
including any consultant, who is engaged in the conduct of the CVC
Practice;
(iv) Seller is not a party to any written
or oral commitment or agreement for any capital expenditure or
leasehold improvement in excess of $10,000 relating to the CVC
Practice, except for such normal operating expenditures of the CVC
Practice; and
Seller is not a
party to any written or oral agreement, contract or commitment
limiting or restraining the CVC Practice, or any successor thereto
from engaging or competing in any manner or in any business, nor,
to Seller’s knowledge, is any employee of the CVC Practice
engaged in the conduct of the CVC Practice subject to any such
agreement, contract or commitment.
(a) Seller maintains insurance policies
insuring the CVC Practice with financially sound insurance
companies of such types (including, but not limited to, public
liability, product and service liability, worker’s
compensation and property damage) and such amounts as are adequate
for the CVC Practice as currently conducted (and as conducted
heretofore).
(b) Schedule 4.14 contains
(i) an accurate and complete list of all policies of insurance
providing coverage for the CVC Practice, and (ii) a schedule
setting forth the aggregate claims and all individual claims made
under each such policy (or any predecessor policy) during the last
two years.
(c) No notice of cancellation (except for
those received during renewal periods), termination or reduction in
coverage has been received with respect to any policy listed in
Schedule 4.14 . Seller has not been refused any
insurance with respect to its assets or operations, nor has its
coverage been limited, by any insurance carrier to which it has
applied for any such insurance or with which it has carried
insurance during the last two years that has had or would
reasonable be expected to have a Material Adverse Effect on the CVC
Practice.
Section 4.15 Compliance with
Laws Except as set
forth in Schedule 4.15 :
(i) Seller has conducted the CVC Practice
and any other activities in accordance in all material respects
with all applicable laws, rules, regulations, judgments, orders and
other requirements of all courts, administrative agencies, or
governmental authorities having jurisdiction over Seller,
including, without limitation, applicable laws, rules, regulations
and requirements relating to antitrust, consumer protection, equal
opportunity, occupational safety and health (OSHA), ERISA,
Americans with Disabilities Act, employment, Environmental Law,
clean air, labor, wage and hour, pension, welfare and securities
matters;
(ii) Seller has not received within the
last two years any notification of any asserted present or past
failure by Seller to comply with such laws, rules or regulations
that relates in any way to the CVC Practice;
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(iii) Seller has all licenses, certificates
of occupancy, permits and other governmental authorizations or
approvals (collectively, “Licenses”) required for the
operation of the CVC Practice and the current use of the properties
of the CVC Practice, each of which are described on
Schedule 4.15 hereto, and all such Licenses are valid
and in effect; and
(iv) Seller is not materiall
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