Exhibit 2.1
ASSET PURCHASE
AGREEMENT
This ASSET PURCHASE AGREEMENT (this "Agreement") is made and
entered into on September 30, 2009 , by and among (i) Cardo
Medical, Inc., a Delaware corporation ("Buyer"); and (ii)
Vertebron, Inc., a Delaware corporation ("Seller"). Capitalized
terms used herein shall have the meanings ascribed to them in
Schedule 1.
Recitals
WHEREAS , the Seller is a Debtor-in-Possession pursuant
to Title 11 of the United States Code (11 U.S.C. §§
101-1330, as amended) (the "Bankruptcy Code"), under Case No.
09-50291 (AHWS) (hereinafter referred to as the "Bankruptcy Case"),
presently pending in the United States Bankruptcy Court for the
District of Connecticut (hereinafter referred to as the "Bankruptcy
Court"), and Seller, upon proper approval and authorization from
the Bankruptcy Court, may sell and assign assets outside of the
ordinary course of business;
WHEREAS, this Agreement shall be authorized, implemented and
approved through a sale procedure pursuant to 11 U.S.C.
§§ 363 and 365; and
WHEREAS, Buyer desires to purchase from Seller, and Seller
desires to sell to Buyer, all of the rights, title and interest in,
to and under substantially all of the assets, tangible and
intangible, of the Seller used in its business subject to the terms
and conditions of this Agreement.
Agreement
NOW, THEREFORE, in consideration of the premises and the
mutual covenants contained herein, the parties agree as
follows:
ARTICLE I
SALE AND PURCHASE OF ASSETS
1.01 Sale and Purchase of Assets; Excluded
Assets .
- Assets . On the terms and subject to
the conditions of this Agreement, at the Closing, Seller shall
sell, convey, assign, transfer and deliver to Buyer, and Buyer
shall purchase, acquire and accept delivery of, all right, title
and interest in and to substantially all of the Assets (other than
the Excluded Assets), free and clear of all Liens, including but
not limited to any Liens arising from any capitalized leases,
pursuant to Sections 363 and 365 of the Bankruptcy Code. It is
specifically understood and agreed by the parties hereto that Buyer
is acquiring, and Seller is selling, substantially all of the
tangible and intangible assets attributable to or Used by Seller in
its business, except the Excluded Assets.
- Method of Conveyance . The sale,
transfer, conveyance, assignment and delivery by Seller of the
Assets to Buyer in accordance with Section 1.01(a) shall be
effected on the Closing Date by Seller's execution and delivery to
Buyer of one or more bills of sale, assignments and other
conveyance instruments with respect to Seller's transfer of
Intangible Rights and other Assets in form and scope reasonably
satisfactory to Buyer (collectively the
"Conveyance Documents"). At the
Closing, Seller shall transfer, convey, assign and deliver good,
valid and, to the extent applicable, marketable title to all of the
Assets to Buyer pursuant to the Conveyance Documents, free and
clear of any and all Liens.
- Liabilities . Except as otherwise
provided for herein, in no event shall Buyer assume or be
responsible for or be required to pay, perform, or discharge any
liability, obligation, debt, cost, expense or commitment of Seller,
whether absolute or contingent, accrued or unaccrued, asserted or
unasserted, known or unknown, or otherwise, all of which shall be
retained by Seller.
1.02 Consideration for Assets .
- Consideration . As consideration for
the Assets being acquired by Buyer hereunder, Buyer shall pay to
Seller in cash the sum of $1,300,000.00 (the "Purchase Price")
which amount is inclusive of all cure amounts. At closing, Buyer
shall deliver to Seller the Purchase Price less the previously
funded deposit amount of $130,000.00. Seller's counsel shall pay
the Invibio cure payment of $75,000.00 directly from the proceeds
of the Purchase Price at Closing.
ARTICLE II
CLOSING
2.01 Closing . The closing of the
transactions contemplated hereby (the "Closing") shall be deemed to
occur as of 12:01 p.m., New York time, on October 1 st ,
2009 at the offices of Platzer, Swergold, Karlin, Levine, Goldberg
& Jaslow, LLP, or at such other time or on such place as may be
mutually agreeable to Seller and Buyer. The date upon which the
Closing occurs is hereinafter referred to as the "Closing
Date."
2.02 Conditions to the Obligations of Buyer to
Close . The obligations of Buyer to consummate the transactions
contemplated by this Agreement are subject to the satisfaction or
waiver, at or prior to the Closing, of the following
conditions:
- Bankruptcy Court Approval . This
Agreement and the transactions contemplated hereby are contingent
upon the approval and authorization of the Bankruptcy Court to
consummate this transaction and that Buyer is the successful bidder
for the Assets.
- Approval Order . Subject to the
approval of the Bankruptcy Court, the Seller shall seek the entry
of an Order of the Bankruptcy Court (the "Approval Order") which
provides that the Assets will be sold and assigned to Buyer, free
and clear of all Liens on the Closing Date pursuant to §§
363 and 365 of the Bankruptcy Code.
- Deliveries . At or prior to the
Closing, Seller shall deliver to Buyer, as applicable, the items
set forth on Schedule 2.02.
2.03 Conditions to the Obligations of Seller to
Close . The obligations of Seller to consummate the
transactions contemplated by this Agreement are subject to the
satisfaction or waiver, at or prior to the Closing, of the
following conditions:
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- Bankruptcy
Court Approval . This Agreement and the transactions
contemplated hereby are contingent upon the approval and
authorization of the Bankruptcy Court to consummate this
transaction and that Buyer is the successful bidder at the
Bankruptcy Court scheduled auction for the Assets.
- Deliveries . At or prior to the
Closing, Buyer shall deliver to Seller the items set forth on
Schedule 2.03.
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF SELLER
Seller hereby represents and warrants to Buyer that:
3.01 Existence . Seller is a corporation,
duly incorporated, validly existing and in good standing under the
laws of the State of Delaware and has the power to own, manage,
lease and hold its Properties and to carry on its business as and
where such Properties are presently located and such business is
presently conducted.
3.02 Authority, Approval and Enforceability
. This Agreement has been duly executed and delivered by Seller;
Seller has all requisite power and legal capacity to execute and
deliver this Agreement and all Collateral Agreements executed and
delivered or to be executed and delivered in connection with the
transactions provided for hereby, to consummate the transactions
contemplated hereby and by the Collateral Agreements, and to
perform its obligations hereunder and under the Collateral
Agreements. The execution and delivery of this Agreement and the
Collateral Agreements and the performance of the transactions
contemplated hereby and thereby has been duly and validly
authorized and approved by all action necessary on behalf of
Seller. Each of this Agreement and each Collateral Agreement to
which Seller is a party constitutes the legal, valid and binding
obligation of such party, enforceable in accordance with its
terms.
3.03 Sale Free and Clear of Liens . On the
terms and subject to the conditions of this Agreement, at the
Closing, Seller shall sell, convey, assign, transfer and deliver to
Buyer, and Buyer shall purchase, acquire and accept delivery of,
all right, title and interest in and to substantially all of the
Assets (other than the Excluded Assets), free and clear of all
Liens, including but not limited to any Liens arising from any
capitalized leases, pursuant to Sections 363 and 365 of the
Bankruptcy Code. It is specifically understood and agreed by the
parties hereto that Buyer is acquiring, and Seller is selling,
substantially all of the tangible and intangible assets
attributable to or Used by Seller in its business, except the
Excluded Assets. Notwithstanding paragraph 6.01 of this Agreement,
this representation and warranty shall survive closing and
confirmation of a Chapter 11 Plan. Nothing herein shall be deemed
to sell or transfer to Buyer, the outstanding sums (if any) due by
Buyer to Seller under the Accelerated Innovation, LLC
agreement.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF BUYER
Buyer represents and warrants to Seller that:
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4.01 Existence . Buyer is a corporation duly
organized, validly existing and in good standing under the laws of
the State of Delaware. Buyer has the power to own, manage, lease
and hold its properties and to carry on its business as and where
such properties are presently located and such business is
presently conducted.
4.02 Authority, Approval and Enforceability
. This Agreement has been duly executed and delivered by Buyer, and
Buyer has all requisite corporate power to execute and deliver this
Agreement and all Collateral Agreements executed and delivered or
to be executed and delivered by Buyer, as applicable, in connection
with the transactions provided for hereby, to consummate the
transactions contemplated hereby and by the Collateral Agreements,
and to perform its respective obligations hereunder and under the
Collateral Agreements. The execution and delivery of this Agreement
and the Collateral Agreements and the performance of the
transactions contemplated hereby and thereby have been duly and
validly authorized and approved by all action necessary on behalf
of Buyer. This Agreement and each Collateral Agreement to which
Buyer is a party constitutes, or upon execution and delivery will
constitute, the legal, valid and binding obligation of Buyer,
enforceable in accordance with its terms, except as such
enforcement may be limited by general equitable principles or by
applicable bankruptcy, insolvency, moratorium, or similar laws and
judicial decisions from time to time in effect which affect
creditors' rights generally.
ARTICLE V
POST-CLOSING OBLIGATIONS
5.01 Further Assurances . Following the
Closing, Seller or Buyer shall execute and deliver such documents,
and take such other action, as shall be reasonably requested by
Seller or Buyer to carry out the transactions contemplated by this
Agreement. Seller shall, and shall cause its respective Affiliates,
employees, consultants and agents to, take all reasonable actions
necessary and reasonably requested by Buyer to facilitate the
orderly transition of the Assets of Seller to Buyer.
ARTICLE VI
MISCELLANEOUS
6.01 Survival . The representations and
warranties of the parties set forth in this Agreement shall survive
and continue to be in full force and effect following the Closing
until the confirmation of the Chapter 11 Plan by the Bankruptcy
Court.
6.02 Brokers . Seller and Buyer each
represent to one another that no
Broker has been used with respect to this transaction.
6.03 Notices . Any notice, request,
instruction, correspondence or other document to be given hereunder
by any party hereto to another shall be in writing and delivered
personally, sent by facsimile or sent by overnight courier, charges
prepaid, as follows:
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IF TO SELLER:
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Vertebron Inc.
80 Hathaway Drive
Stratford, CT 06615
Attention: Paul J. Sendro, President
Fax: (203) 380-9346
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With a copy to
:
Platzer, Swergold, Karlin, Levine, Goldberg & Jaslow,
LLP
1065 Avenue of the Americas - 18th Floor
New York, New York 10018 Esq.
Attention: Sherri D. Lydell, Esq. and
Scott K. Levine, Esq.
Fax: 212-593-0353
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IF TO PARENT OR BUYER:
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Cardo Medical, Inc.
8899 Beverly Blvd.
Suite 619
Los Angeles, CA 90048
Attention: Andrew A. Brooks, M.D.
Fax: (310) 861-5299
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With a copy to:
Philip J. Landau, Esq.
Shraiberg, Ferrara & Landau, P.A.
2385 NW Executive Center Drive
Suite 300
Boca Raton, Florida 33431
(Fax) (561) 998-0047
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Each of the above addresses for notice purposes may be changed
by providing appropriate notice hereunder. Notice given (i) by
personal delivery shall be effective upon actual receipt, (ii) by
facsimile shall be effective upon the date sent (with confirmation)
if sent before 5 p.m. on a Business Day, and if not, on the next
business day, and (iii) by overnight courier, on the date
delivered. Anything to the contrary contained herein
notwithstanding, notices to any party hereto shall not be deemed
effective with respect to such party until such notice would, but
for this sentence, be effective both as to such party and as to all
other Persons to whom copies are provided above to be given.
6.04 Governing Law . The provisions of this
agreement and the documents delivered pursuant hereto shall be
governed by and construed in accordance with the laws of the State
of Delaware (excluding any conflict of law rule or principle that
would result in the application of the laws of another
jurisdiction). Each party hereto irrevocably submits to the
jurisdiction of The
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United States Bankruptcy Court for the District of Connecticut
in any action or proceeding arising out of or relating to this
Agreement or any of the Collateral Agreements, and each party
hereby irrevocably agrees that all claims in respect of any such
action or proceeding must be brought and/or defended only in such
court. Each party irrevocably waives, to the fullest extent each
may effectively do so, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court, and
each party hereto consents to service of process by any means
authorized by the applicable law of the forum in any action brought
under or arising out of this Agreement or any of the Collateral
Agreements. EACH PARTY HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND
EFFECTIVELY DO SO, TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING
ARISING HEREUNDER.
6.05 Entire Agreement; Amendments and
Waivers . This Agreement, together with