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Exhibit
10.1
P URCHASE A
GREEMENT
BY
AND AMONG
C LEAR P
OINT R ESOURCES , I NC
.
A D ELAWARE
CORPORATION
AND
C LEAR P
OINT HRO, LLC
A D
ELAWARE L IMITED L
IABILITY C OMPANY
AND
AMS O
UTSOURCING , I NC .
A M ONTANA C
ORPORATION
D ATED : F
EBRUARY 7, 2008
TABLE OF
CONTENTS
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Page |
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BACKGROUND
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1 |
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ARTICLE I
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THE TRANSACTION |
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1 |
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Sale and
Purchase |
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1 |
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1.2
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Purchase
Price |
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1 |
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1.3
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Deliveries |
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1 |
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ARTICLE II
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REPRESENTATIONS AND WARRANTIES OF CPR
AND HRO |
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3 |
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2.1
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Organization |
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3 |
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2.2
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Capitalization and Ownership |
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3 |
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2.3
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Authorization and Enforceability |
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3 |
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2.4
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No
Violation of Laws or Agreements |
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3 |
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2.5
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Brokerage |
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4 |
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ARTICLE III
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REPRESENTATION AND WARRANTIES OF
BUYER |
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4 |
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3.1
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Organization |
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4 |
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3.2
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Authorization and Enforceability |
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4 |
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3.3
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No
Violation of Laws or Agreements |
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4 |
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3.4
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Financial
Statements |
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5 |
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3.5
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Absence
of Undisclosed Liabilities |
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5 |
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3.6
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Litigation |
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5 |
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3.7
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Compliance with Laws |
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5 |
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3.8
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Consents |
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6 |
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3.9
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Brokerage |
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6 |
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ARTICLE IV
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CERTAIN ADDITIONAL COVENANTS AND
AGREEMENTS |
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6 |
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4.1
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Acknowledgment by Buyer |
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6 |
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4.2
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Costs and
Expenses |
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6 |
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4.3
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Public
Announcement |
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6 |
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4.4
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Access |
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7 |
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4.5
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Post-Closing Cooperation |
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7 |
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4.6
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Tax
Matters |
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7 |
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4.7
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Audit |
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7 |
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ARTICLE V
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INDEMNIFICATION |
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7 |
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5.1
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Indemnification |
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7 |
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5.2
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Condition
of Indemnification of Third Party Claims |
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8 |
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5.3
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Procedure
for Claims |
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9 |
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5.4
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Sole
Remedy |
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9 |
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ARTICLE VI
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MISCELLANEOUS |
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9 |
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6.1
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Nature
and Survival of Representations |
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9 |
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6.2
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Notices |
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9 |
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6.3
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Successors and Assigns |
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10 |
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6.4
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Governing
Law |
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10 |
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6.5
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Headings;
Interpretation |
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10 |
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6.6
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Counterparts |
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10 |
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6.7
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Further
Assurances |
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10 |
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6.8
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Amendment
and Waiver |
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10 |
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6.9
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Severability |
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10 |
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6.10
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No Other
Beneficiaries |
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11 |
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6.11
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Entire
Agreement |
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ii
PURCHASE
AGREEMENT
This PURCHASE AGREEMENT (the
“ Agreement ”), effective as of the 7
th
day of February 2008 (the
“ Closing Date ”), by and among
ClearPoint Resources, Inc., a Delaware corporation (“
CPR ”), ClearPoint HRO, LLC, a Delaware Limited
Liability Company (“ HRO ”), and AMS
Outsourcing, Inc., a Montana Corporation (“
Buyer ”).
B A C K G R O U N
D
CPR owns all of the issued
and outstanding securities of HRO (the “ Stock
”) including but not limited to insurance policies, client
lists and bank accounts. Buyer desires to purchase, and CPR desires
to sell, the Stock and assets, on the terms and subject to the
conditions set forth in this Agreement.
NOW, THEREFORE, in
consideration of the foregoing premises and the mutual covenants,
promises and agreements herein contained, and for other good and
valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and intending to be legally bound hereby, the
parties hereto agree as follows:
ARTICLE I
THE
TRANSACTION
1.1 Sale and Purchase
. Subject to the terms and conditions set forth herein, the CPR
hereby sells, transfers and assigns the Stock to Buyer, and Buyer
hereby purchases the Stock from the CPR.
1.2 Purchase Price .
The aggregate purchase price for the Stock shall be paid in the
form of an earn out payment equal to twenty percent of the earnings
before interest, taxes, depreciation and amortization (“
Earn Out Payment ”) of the operations of HRO
for a period of twenty four months following the closing of the
transactions. The Earn Out Payment shall be paid in arrears on the
first business day of every month. Unpaid Fees shall be subject to
interest at a rate of one and one-half percent (1.5%) per
month.
1.3 Deliveries
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(a) Deliveries by CPR
. On the Closing Date, CPR will deliver to Buyer the
following:
(i) Stock Certificates
. To the extent certificated, certificates evidencing its Stock
accompanied by stock powers duly executed in blank or duly executed
instruments of transfer;
(ii) Secretary’s
Certificate . A certificate dated as of the Closing Date,
executed by CPR’s Secretary, to the effect that: (A) the
officer of CPR executing this Agreement is an incumbent officer of
CPR, (B) the copy of the Articles of Incorporation of HRO
attached to such certificate is true, correct and complete, and is
in effect on and as of the Closing Date and that the Articles of
Incorporation have not been amended, modified or revised
since
they have been filed, (C) the copy
of the bylaws of HRO attached to such certificate are true, correct
and complete, and are in effect on and as of the Closing Date and
that the bylaws have not been amended, modified or revised since
their adoption, and (D) the copy of the resolutions of the
board of directors of CPR attached to such certificate, which
authorize the actions taken in connection with the transactions
contemplated hereby, including the execution and delivery of this
Agreement, were duly adopted and continue in full force and
effect;
(iii) Good Standing .
A Certificate of Good Standing for HRO certified by the Secretary
of State of Delaware as of a date not more than three (3) days
prior to the Closing Date;
(iv) intentionally left
blank
(v) UCC Termination
Statement . An as filed copy of a UCC Termination Statement
with respect to HRO.
(vi) Resignations .
Seller shall deliver to Buyer prior to the Closing Date, such
resignations of board members, officers or employees of the
business as Buyer shall indicate, each such resignation to be
effective on the Closing Date.
(vii) Bank Accounts .
By closing date, Seller will have transferred all signature cards
and any necessary passcodes as well as a reconciliation of all HRO
balances and bank accounts.
(viii) Insurance
Policy . The parties agree that all the assets and liabilities
related to three insurance policies (ACE, AIG and XL) shall be
transferred to Buyer as set forth in Exhibit B. The assets include
prepaid, insurance, collateral deposits, and letter of credits with
ACE. Liabilities include but are not limited to any and all claims
related to the aforementioned policies. Such letter of credit with
ACE can only be released by specific written approval from
ACE.
(ix) FEIN CPR
transfers the use of 20-8735506 to Buyer.
(x) Client List CPR
will deliver the Client List as attached as Exhibit A of this
Agreement. CPR agrees that shall not approach said clients for a
period of three years without the written consent of Buyer and will
refer any unsolicited questions from Clients to Buyer during that
year.
(b) Deliveries by
Buyer . On the Closing Date, Buyer will deliver to CPR the
following:
(i) Secretary’s
Certificate . A certificate dated as of the Closing Date,
executed by Buyer’s Secretary, to the effect that:
(A) the officer of Buyer executing this Agreement is an
incumbent officer of Buyer, (B) the copy of the Articles of
Incorporation of
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Buyer attached to such certificate is
true, correct and complete, and is in effect on and as of the
Closing Date and that the Articles of Incorporation have not been
amended, modified or revised since they have been filed,
(C) the copy of the bylaws of Buyer attached to such
certificate is true, correct and complete, and is in effect on and
as of the Closing Date and that the bylaws have not been amended,
modified or revised since their adoption, and (D) the copy of
the resolutions of the board of directors of Buyer attached to such
certificate, which authorize the actions taken in connection with
the transactions contemplated hereby, including the execution and
delivery of this Agreement, were duly adopted and continue in full
force and effect;
(ii) Good Standing . A
Certificate of Good Standing for Buyer certified by the Secretary
of State of the state of organization as of a date not more than
three (3) days prior to the Closing Date; and
(iii) Satisfactory
Instruments . All instruments and documents required from the
Buyer to effectuate and consummate the transactions contemplated
hereby shall be delivered to CPR and shall be in form and substance
reasonably satisfactory to CPR and its counsel.
ARTICLE II
REPRESENTATIONS AND
WARRANTIES OF CPR AND HRO
CPR and HRO hereby, severally
and not jointly, represent and warrant to Buyer as
follows:
2.1 Organization . CPR
and HRO are corporations duly organized, validly existing and in
good standing under the laws of the state in which they were
organized and each has all requisite corporate power and authority
to enter into this Agreement and to perform its obligations
hereunder.
2.2 Capitalization and
Ownership . There are no outstanding options, warrants, rights,
agreements, puts, calls, commitments or demands of any character
relating to the securities of HRO or which may require HRO to issue
any securities and no outstanding securities convertible into or
exchangeable for any of such securities. CPR owns all of the issued
and outstanding securities of HRO. There are no voting trust
agreements or other agreements restricting the voting, dividend
rights or disposition of any of the Stock.
2.3 Authorization and
Enforceability . The execution, delivery and performance by CPR
and HRO of this Agreement and the consummation by each of them of
the transactions contemplated hereby have been duly authorized by
all necessary corporate action on the part of CPR and HRO. This
Agreement has been duly executed and delivered by CPR and HRO and
constitutes the legal, valid and binding obligations of CPR and
HRO, enforceable against CPR and HRO in accordance with its terms,
except (a) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, and other laws of general application
affecting enforcement of creditors’ rights generally, and
(b) as limited by laws relating to the availability of
specific performance, injunctive relief, or other equitable
remedies.
2.4 No Violation of Laws
or Agreements . The execution and delivery of this Agreement
does not, and the consummation of the transactions contemplated by
this Agreement
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and the compliance with the terms,
conditions and provisions of this Agreement by CPR and HRO will not
(a) contravene any provision of the respective entities’
charter or organizational documents, (b) conflict with or
result in a breach of or constitute a default (or an event which
might, with the passage of time or the giving of notice or both,
constitute a default) under any of the terms, conditions or
provisions of any indenture, mortgage, loan or credit agreement or
any other agreement or instrument to which CPR or HRO is a party or
by which any of them or any of their assets may be bound or
affected, or any judgment or order of any court or governmental
department, commission, board, agency or instrumentality, domestic
or foreign, or any applicable law, rule or regulation,
(c) result in the creation or imposition of any lien, charge
or encumbrance of any nature whatsoever upon CPR’s or
HRO’s assets or give to others any interests or rights
therein, or (d) result in the maturation or acceleration of
any liability or obligation of CPR or HRO (or give others the right
to cause such a maturation or acceleration).
2.5 Brokerage .
Neither CPR nor HRO has made any agreement or taken any other
action which might cause anyone to become entitled to a
broker’s fee or commission as a result of the transactions
contemplated hereunder.
ARTICLE III
REPRESENTATION AND
WARRANTIES OF BUYER
Buyer represents and warrants
to the CPR as follows:
3.1 Organization . The
Buyer is a corporation duly organized, validly existing and in good
standing under the laws of the state in which it was organized and
the Buyer has all requisite corporate power and authority to enter
into this Agreement and to perform its obligations hereunder. The
Buyer has all requisite corporate power and corporate authority to
own or lease their respective properties and assets as now owned or
leased and to carry on its business as and where now being
conducted.
3.2 Authorization and
Enforceability . The execution, delivery and performance by the
Buyer of this Agreement and the consummation by it of the
transactions contemplated hereby have been duly authorized by all
necessary corporate action on the part of the Buyer. This Agreement
has been duly executed and delivered by the Buyer and constitutes
the legal, valid and binding obligations of the Buyer, enforceable
against the Buyer in accordance with its terms, except (a) as
limited by applicable bankruptcy, insolvency, reorganization,
moratorium, and other laws of general application affecting
enforcement of creditors’ rights generally, and (b) as
limited by laws relating to the availability of specific
performance, injunctive relief, or other equitable
remedies.
3.3 No Violation of Laws
or Agreements . The execution and delivery of this Agreement
does not, and the consummation of the transactions contemplated by
this Agreement and the compliance with the terms, conditions and
provisions of this Agreement by the Buyer will not
(a) contravene any provision of the Buyer’s charter or
organizational documents, (b) conflict with or result in a
breach of or constitute a default (or an event which might, with
the passage of time or the giving of notice or both, constitute a
default) under any of the terms, conditions or provisions of any
indenture, mortgage, loan or credit agreement or any other
agreement or instrument to which the Buyer is a party or by which
it or its assets may be bound
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or affected, or any judgment or order of
any court or governmental department, commission, board, agency or
instrumentality, domestic or foreign, or any applicable law, rule
or regulation, (c) result in the creation or imposition of any
lien, charge or encumbrance of any nature whatsoever upon the
Buyer’s assets or give to others any interests or rights
therein, (d) result in the maturation or acceleration of any
liability or obligation of the Buyer (or give others the right to
cause such a maturation or acceleration), or (e) result in the
termination of or loss of any right (or give others the right to
cause such a termination or loss) under any agreement or contract
to which the Buyer is a party or by which it may be
bound.
3.4 Financial
Statements . Buyer has attached hereto as Schedule 3.4
copies of the following financial statements (collectively, the
“ Financial Statements ”): (a)10K, which will be
filed prior to December 31, 2007 with the SEC. Upon filing
this will be forwarded to Seller. The Financial Statements are
true, correct and complete in all material respects, present fairly
the financial condition and operating results of the Buyer as of
the dates, and for the periods, indicated therein, and have been
prepared in a manner consistent throughout the periods indicated
and with each other. Schedule 3.4 indicates in what manner
the preparation of the Financial Statements varies from GAAP.
Attached to Schedule 3.4 are copies of Buyer’s
insurance loss run on property, casualty, workers’
compensation and liability insurance.
3.5 Absence of Undisclosed
Liabilities . Buyer has no Liabilities of any nature, other
than (a) those reflected on the Balance Sheet, (b) those
incurred in the ordinary course of business since the Balance Sheet
Date, or (c) as set forth in Schedule 3.5 . There were
no material loss contingencies (as such term is used in Statement
of Financial Accounting Standards No. 5 issued by FASB in
March, 1975 (“ FAS No. 5 ”)), which were
not adequately provided for on the Balance Sheet as required by FAS
No. 5. For purposes of this Section 3.5, the term “
Liabilities ” means any liability or obligation
of any kind, character or description (whether known or unknown,
asserted or unasserted, matured or unmatured, fixed or contingent,
secured or unsecured, accrued or unaccrued, liquidated or
unliquidated, joint or several, absolute or otherwise and whether
due or to become due.
3.6 Litigation .
Except as set forth in Schedule 3.6 , there is no Legal
Proceeding that is pending or, to Buyer’s knowledge,
threatened against Buyer or Buyer’s subsidiaries, affiliates,
assets, properties, business, operating results and/or operations,
or directors, officers or shareholders of Buyer, in their
capacities as such, and there is no basis for any such Legal
Proceeding. There has been no default under any laws applicable to
Buyer’s business and Buyer has not received any notices from
any governmental authority regarding any alleged defaults
applicable to Buyer under any laws. There has been no default with
respect to any court order, writ or judgment applicable to Buyer.
There are no presently outstanding judgments, decrees, orders or
awards of any court or any governmental authority against or
affecting Buyer or Buyer’s subsidiaries, affiliates, assets,
properties, business, operating results and/or operations. For
purposes of this Section 3.6, the term “ Legal
Proceeding ” shall mean any lawsuit, action,
arbitration, audit, hearing, litigation or suit (whether civil,
criminal, administrative, judicial or investigative, whether formal
or
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