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Exhibit
10.1
UNIT PURCHASE
AGREEMENT
Agreement entered into on
November 21, 2007, by and among Lumigen, Inc., a Michigan
corporation (the “ Buyer ”), and Hashem
Akhavan-Tafti, A. Paul Schaap, Richard S. Handley, and Gary T.
Priestap (collectively the “ Sellers ”). The
Buyer and the Sellers are sometimes referred to herein individually
as a “Party” and collectively as the “
Parties .”
The Sellers in the aggregate
own 80.1% of the outstanding Units of Nexgen Diagnostics LLC, a
Delaware limited liability company (“ NexGen
”).
Buyer owns 19.9 of the
outstanding Units of NexGen.
This Agreement contemplates a
transaction in which the Buyer will purchase from the Sellers, and
the Sellers will sell to the Buyer, all of their outstanding Units
of NexGen in return for cash.
Now, therefore, in
consideration of the premises and the mutual promises herein made,
and in consideration of the representations, warranties, and
covenants herein contained, the Parties agree as
follows.
1. Definitions
.
“ Adverse
Consequences ” means all actions, suits, proceedings,
hearings, investigations, charges, complaints, claims, demands,
injunctions, judgments, orders, decrees, rulings, damages, dues,
penalties, fines, costs, amounts paid in settlement, Liabilities,
obligations, Taxes, liens, losses, expenses, and fees, including
court costs and reasonable attorneys’ fees and
expenses.
“ Affiliate
” has the meaning set forth in Rule 12b-2 of the regulations
promulgated under the Securities Exchange Act of 1934, as
amended.
“ Applicable
Percentage ” as set forth on Appendix I attached
hereto.
“ Buyer ”
has the meaning set forth in the preface above.
“ Closing
” has the meaning set forth in §2(c) below.
“ Closing Date
” has the meaning set forth in §2(c) below.
“ Code ”
means the Internal Revenue Code of 1986, as amended.
“ Confidential
Information ” means any information concerning the
businesses and affairs of NexGen that is not already generally
available to the public.
“ Disclosure
Schedule ” has the meaning set forth in §4
below.
“ Financial
Statements ” has the meaning set forth in §4(g)
below.
“ Improvements
” has the meaning set forth in §4(l) below.
“ Intellectual
Property ” means (i) all inventions and discoveries
(whether or not patentable or reduced to practice), patents, patent
applications, improvements thereto, invention disclosures, and
other rights of invention, worldwide, including without limitation
any reissues, divisions, continuations and continuations in part,
provisionals, reexamined patents or other applications or patents
claiming the benefit of the filing date of any such application or
patent (collectively, “Patents”); (ii) all
copyrights in both published works and unpublished works, all
rights in copyrights, including derivative rights, moral rights,
website content, and other rights or authorship and exploitation,
and any applications, registrations and renewals in connection
therewith, worldwide (collectively, “Copyrights”);
(iii) all know how, trade secrets, confidential information,
technical information, software, data, process technology, plans,
drawings, and blue prints (collectively, “Trade
Secrets”); (iv) rights to exclude others from
appropriating any of such intellectual property,
including the rights to sue for and
remedies against past, present and future infringements of any or
all of the foregoing and rights or priority and protection or
interests therein; and (v) any other proprietary, intellectual
property and other rights relating to any or all of the foregoing
anywhere in the world.
“ Knowledge
” means actual knowledge of a fact or other matter following
the exercise of a reasonable inquiry and investigation with respect
to such fact or other matter.
“ Knowledge of
NexGen ” means the Knowledge of any of the
Sellers.
“ Liability
” means any liability (whether known or unknown, whether
asserted or unasserted, whether absolute or contingent, whether
accrued or unaccrued, whether liquidated or unliquidated, and
whether due or to become due), including any liability for
Taxes.
“ LLC Agreement
” means Limited Liability Company Agreement of Nexgen
Diagnostics LLC dated as of November 8, 2006, as
amended.
“ Lumigen
” has the meaning set forth in the preface above.
“ NexGen ”
has the meaning set forth in the preface above.
“ Ordinary Course of
Business ” means the ordinary course of business
consistent with past custom and practice (including with respect to
quantity and frequency).
“ Party ”
has the meaning set forth in the preface above.
“ Person ”
means an individual, a partnership, a corporation, an association,
a joint stock company, a trust, a joint venture, an unincorporated
organization, or a governmental entity (or any department, agency,
or political subdivision thereof).
“ Purchase Price
” has the meaning set forth in §2(b) below.
“ Securities Act
” means the Securities Act of 1933, as amended.
“ Security
Interest ” means any mortgage, pledge, lien, encumbrance,
charge, or other security interest, other than
(a) mechanic’s, materialmen’s, and similar liens,
(b) liens for Taxes not yet due and payable or for Taxes that
the taxpayer is contesting in good faith through appropriate
proceedings, (c) purchase money liens and liens securing
rental payments under capital lease arrangements, and
(d) other liens arising in the Ordinary Course of Business and
not incurred in connection with the borrowing of money.
“ Sellers
” has the meaning set forth in the preface above.
“ SOL
Representations ” means the representations and
warranties in §§3(a) and (b), and 4(a), (b), (c),
(d) and (k).
“ Subsidiary
” means any corporation with respect to which a specified
Person (or a Subsidiary thereof) owns a majority of the common
stock or has the power to vote or direct the voting of sufficient
securities to elect a majority of the directors.
“ Tax ”
means any federal, state, or local income, license, excise,
severance, stamp, occupation, premium, windfall profits, capital
stock, franchise, profits, personal property, use, transfer,
registration, alternative or add-on minimum, estimated, or other
tax of any kind whatsoever, including any interest, penalty, or
addition thereto, whether disputed or not.
“ Tax Return
” means any return, declaration, report, claim for refund, or
information return or statement relating to Taxes, including any
schedule or attachment thereto, and including any amendment
thereof.
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“ Unit ”
means an undivided interest in NexGen, including the rights and
benefits set forth in that certain Limited Liability Company
Agreement of Nexgen Diagnostics LLC dated as of November 8,
2006, as amended (the “LLC Agreement”), together with
all obligations of the holders thereof set forth in such
Agreement.
2. Purchase and Sale of
NexGen Units .
(a) Basic Transaction
. On and subject to the terms and conditions of this Agreement, at
the Closing the Buyer agrees to purchase from each of the Sellers,
and each of the Sellers agrees to sell to the Buyer, all of his
NexGen Units for the consideration specified below in this
§2.
(b) Purchase Price .
The Buyer agrees to pay to the Sellers $450,000 per Unit for an
aggregate purchase price for the Seller Units of $36,045,000 (the
“ Purchase Price ”) by delivery of cash payable
by wire transfer or delivery of other immediately available funds
at the Closing. The Purchase Price shall be allocated among the
Sellers in proportion to their respective holdings of NexGen Units
as set forth in §4(b) of the Disclosure Schedule.
(c) Signing and
Closing . The closing of the transactions contemplated by this
Agreement (the “ Closing ”) shall take place at
the offices of Buyer’s parent, Beckman Coulter, Inc in
Fullerton, California, commencing at 9:00 a.m. local time on
November 30, 2007 or such other date or location as the Buyer
and the Sellers may mutually determine (the “ Closing
Date ”).
(d) Deliveries at the
Closing . At the Closing, (i) the Sellers will deliver to
the Buyer the various certificates, instruments, and documents
referred to in §6(a) below, (ii) the Buyer will deliver
to the Sellers the various certificates, instruments, and documents
referred to in §6(b) below, and (iii) the Buyer will wire
to each of the Sellers in accordance with attached Appendix I the
consideration specified in §2(b) above.
3. Representations and
Warranties Concerning the Transaction .
(a) Representations and
Warranties of the Sellers . Each of the Sellers represents and
warrants to the Buyer severally, but not jointly, and only with
respect to himself, that the statements contained in this
§3(a) are true and correct and shall be true and correct in
all material respects as of the Closing Date as though such
representations and warranties were made at that time, except as
set forth in Annex I attached hereto (which will be
delivered to Buyers not later than November 23,
2007).
(i) Sellers. The
Sellers are individuals.
(ii) Authorization of
Transaction. Each of the Sellers has full power and authority
to execute and deliver this Agreement and to perform his
obligations hereunder. This Agreement constitutes the valid and
legally binding obligation of the Sellers, enforceable in
accordance with its terms and conditions, except to the extent that
enforceability hereof may be limited by bankruptcy, insolvency, and
other similar laws affecting the rights and remedies of creditors
generally and general equitable principles. The Sellers need not
give any notice to, make any filing with, or obtain any
authorization, consent, or approval of any government or
governmental agency in order to consummate the transactions
contemplated by this Agreement.
(iii)
Noncontravention. Neither the execution and the delivery of
this Agreement, nor the consummation of the transactions
contemplated hereby, will (A) violate any injunction,
judgment, order, decree, ruling, charge, or other restriction of
any government, governmental agency, or court to which any of the
Sellers is subject or (B) conflict with, result in a breach
of, constitute a default under, result in the acceleration of,
create in any party the right to accelerate, terminate, modify, or
cancel, or require any notice under any agreement, contract, lease,
license, instrument, or other arrangement to which any of the
Sellers is a party or by which he or it is bound or to which any of
his or its assets is subject.
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(iv) Brokers’
Fees. The Sellers have no Liability or obligation to pay any
fees or commissions to any broker, finder, or agent with respect to
the transactions contemplated by this Agreement for which the Buyer
could become liable or obligated.
(v) NexGen Units. The
Sellers holds of record and own beneficially the number of NexGen
Units set forth next to his name in §4(b) of the Disclosure
Schedule, free and clear of any restrictions on transfer (other
than any restrictions under the Securities Act and state securities
laws), Security Interests, options, warrants, purchase rights,
contracts, commitments, equities, claims, and demands. None of the
Sellers is a party to any option, warrant, purchase right, or other
contract or commitment that could require such Seller to sell,
transfer, or otherwise dispose of any Units of NexGen (other than
this Agreement). None of the Seller is a party to any voting trust,
proxy, or other agreement or understanding with respect to the
voting of any of the Units of NexGen.
(b) Representations and
Warranties of the Buyer . The Buyer represents and warrants to
the Sellers that the statements contained in this §3(b) are
true and correct and shall be true and correct in all material
respects as of the Closing Date as though such representations and
warranties were made at that time, except as set forth in Annex II
attached hereto (which will be delivered to Buyers not later than
November 23, 2007).
(i) Organization of the
Buyer. The Buyer is a corporation duly organized, validly
existing, and in good standing under the laws of
Michigan.
(ii) Authorization of
Transaction. The Buyer has full power and authority (including
full corporate power and authority) to execute and deliver this
Agreement and to perform its obligations hereunder. This Agreement
constitutes the valid and legally binding obligation of the Buyer,
enforceable in accordance with its terms and conditions, except to
the extent that enforceability hereof or thereof may be limited by
bankruptcy, insolvency, and other similar laws affecting the rights
and remedies of creditors generally and general equitable
principles. The Buyer need not give any notice to, make any filing
with, or obtain any authorization, consent, or approval of any
government or governmental agency in order to consummate the
transactions contemplated by this Agreement.
(iii)
Noncontravention. Neither the execution and the delivery of
this Agreement, nor the consummation of the transactions
contemplated hereby, will (A) violate any constitution,
statute, regulation, rule, injunction, judgment, order, decree,
ruling, charge, or other restriction of any government,
governmental agency, or court to which the Buyer is subject or any
provision of its charter or bylaws or (B) conflict with,
result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate,
terminate, modify, or cancel, or require any notice under any
agreement, contract, lease, license, instrument, or other
arrangement to which the Buyer is a party or by which it is bound
or to which any of its assets is subject.
(iv) Brokers’
Fees. The Buyer has no Liability or obligation to pay any fees
or commissions to any broker, finder, or agent with respect to the
transactions contemplated by this Agreement for which any Seller
could become liable or obligated.
(v) Investment. The
Buyer is acquiring the NexGen Units for its own account for
investment only, and not with a view to or for sale in connection
with any distribution thereof within the meaning of the Securities
Act.
4. Representations and
Warranties Concerning NexGen . The Sellers represent and
warrant to the Buyer that the statements contained in this §4
are true and correct and shall be true and correct in all material
respects as of the Closing Date as though such representations and
warranties were made at that time, except as set forth in the
disclosure schedule delivered by the Sellers to the Buyer not later
than November 23, 2007 and initialed by the Parties (the
“ Disclosure Schedule ”). The Disclosure
Schedule will be arranged in paragraphs corresponding to the
lettered and numbered paragraphs contained in this
§4.
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(a) Organization,
Qualification, and Corporate Power . NexGen is a limited
liability company duly organized, validly existing, and in good
standing under the laws of Delaware. §4(a) of the Disclosure
Schedule lists the managers of NexGen. The Sellers have delivered
to the Buyer correct and complete copies of the Certificate of
Formation and Limited Liability Company Agreement of NexGen (as
amended to date). The minute books (containing the records of
meetings of the members, the board of managers, and any committees
of the board of managers), are correct and complete. NexGen is not
in default under or in violation of any provision of its
Certificate of Formation or Limited Liability Company
Agreement.
(b) Capitalization .
The entire authorized capital Units of NexGen consists of 100
NexGen Units, of which all 100 NexGen Units are issued and
outstanding. All of the issued and outstanding NexGen Units have
been duly authorized, are validly issued and fully paid and are
held of record by the respective Sellers as set forth in §4(b)
of the Disclosure Schedule, with the remaining 19.9 Units being
held by Buyer. There are no outstanding or authorized options,
warrants, purchase rights, subscription rights, conversion rights,
exchange rights, or other contracts or commitments that could
require NexGen to issue, sell, or otherwise cause to become
outstanding any of its additional Units. There are no outstanding
or authorized unit appreciation, phantom unit, profit
participation, or similar rights with respect to NexGen. There are
no voting trusts, proxies, or other agreements or understandings
with respect to the voting of the Units of NexGen.
(c) Noncontravention .
Neither the execution and the delivery of this Agreement, nor the
consummation of the transactions contemplated hereby, will
(i) violate any constitution, statute, regulation, rule,
injunction, judgment, order, decree, ruling, charge, or other
restriction of any government, governmental agency, or court to
which NexGen is subject or any provision of the Certificate of
Formation or Limited Liability Company Agreement of NexGen or
(ii) conflict with, result in a breach of, constitute a
default under, result in the acceleration of, create in any party
the right to accelerate, terminate, modify, or cancel, or require
any notice under any agreement, contract, lease, license,
instrument, or other arrangement to which NexGen is a party or by
which it is bound or to which any of its assets is subject (or
result in the imposition of any Security Interest upon any of its
assets). NexGen does not need to give any notice to, make any
filing with, or obtain any authorization, consent, or approval of
any government or governmental agency in order for the Parties to
consummate the transactions contemplated by this
Agreement.
(d) Brokers’
Fees . NexGen has no Liability or obligation to pay any fees or
commissions to any broker, finder, or agent with respect to the
transactions contemplated by this Agreement.
(e) Title to Assets .
NexGen does not own nor does it lease any tangible personal
property.
(f) Subsidiaries .
NexGen does not have any Subsidiaries.
(g) Financial
Statements . Attached hereto as Exhibit A are unaudited
consolidated balance sheets and statements of income and cash flow
as of and for the period from November 8 –
December 31, 2006 and January 1 – October 30,
2007 for NexGen (the “ Financial Statements ”).
The Financial Statements present fairly the financial condition of
NexGen as of such dates and the results of operations of NexGen for
such periods, are correct and complete, and are consistent with the
books and records of NexGen.
(h) Events Subsequent to
the Financial Statements . Except that NexGen has, subsequent
to October 30, 2007, distributed all of the cash identified in
the Financial Statements, since such date there has not been any
material adverse change in the business, financial condition,
operations, results of operations of NexGen and NexGen has only
been operated in the Ordinary Course of Business.
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(i) Undisclosed
Liabilities . NexGen has no Liability other than:
(i) Liabilities to the extent
and for the respective amounts reflected as a liability on the
Financial Statements;
(ii) Liabilities or
obligations incurred in the Ordinary Course of Business since the
date of the Financial Statements that are not required to be set
forth on the Disclosure Schedules;
(iii) obligations for
performance (but not for breach) under contracts; and
(iv) the other liabilities
and obligations specifically disclosed on the Disclosure
Schedules.
(j) Legal Compliance .
NexGen has complied in all material respects with all applicable
laws (including rules, regulations, codes, plans, injunctions,
judgments, orders, decrees, rulings, and charges thereunder) of
federal, state, and local governments and, to the Knowledge of
Sellers, no action, suit, proceeding, hearing, investigation,
charge, complaint, claim, demand, or notice has been filed or
commenced against it alleging any failure so to comply.
(k) Tax Matters .
NexGen has filed or caused to be filed all Tax Returns that it was
required to file. All such Tax Returns were accurately prepared in
all material respects. All Taxes owed by NexGen (whether or not
shown on any Tax Return) have been paid or provision has been made
for the payment thereof, except such Taxes, if any, set forth on
Section 4(k) of the Disclosure Schedules and are being
contested in good faith and as to which adequate reserves have been
provided in the Financial Statements. NexGen is currently not the
beneficiary of any extension of time within which to file any Tax
Return. There are no Security Interests on any of the assets of
NexGen that arose in connection with any failure (or alleged
failure) to pay any Tax.
(l) Real Property .
NexGen neither owns nor leases real property.
(m) Intellectual
Property .
(i) §4(m)(i) of the
Disclosure Schedule identifies each patent which has been issued to
NexGen with respect to any of its Intellectual Property, identifies
each pending patent application which NexGen has made with respect
to any of its Intellectual Property, identifies each invention
disclosure or record (including identification of all laboratory
notebooks pertaining to such invention) with respect to its
Intellectual Property and identifies each license, sublicense,
agreement, or other permission NexGen has granted to any third
party with respect to any of its Intellectual Property (together
with any exceptions). The Sellers have made available to the Buyer
true and correct copies of all such patents, applications,
licenses, sublicenses, agreements, and permissions (as amended to
date), have made available to the Buyer correct and complete copies
of all other written documentation evidencing ownership and
prosecution (if applicable) of each such item, and agrees to
maintain such copies on the current Lumigen premises through the
Closing.
(ii) §4(m)(ii) of the
Disclosure Schedule identifies each item of Intellectual Property
that any third party owns and that NexGen uses pursuant to license,
sublicense, agreement, or permission. The Sellers have made
available to the Buyer true and correct copies of all such
licenses, sublicenses, agreements, and permissions (as amended to
date) and agrees to maintain such copies on the current Lumigen
premises through the Closing. With respect to each item of
Intellectual Property required to be identified in §4(m)(ii)
of the Disclosure Schedule:
(A) the license, sublicense,
agreement, or permission covering the item is legal, valid,
binding, enforceable, and in full force and effect as to
NexGen;
(B) the license, sublicense,
agreement, or permission will continue to be legal, valid, binding,
enforceable, and in full force and effect on identical terms
followi
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