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EXHIBIT 10.4
EXECUTION COPY
TRANSITION SERVICES AGREEMENT
THIS TRANSITION SERVICES AGREEMENT, is dated as of, and
effective as of,
February 22, 2005 (this "Agreement"), and is by and between
SENTIGEN HOLDING
CORPORATION, a Delaware corporation ("Sentigen"), and CELL &
MOLECULAR
TECHNOLOGIES, INC., a Delaware corporation ("CMT", and together
with Sentigen,
collectively, the "Sellers"), and CHEMICON SPECIALTY MEDIA,
INC., a Delaware
corporation ("CSM"), CHEMICON INTERNATIONAL, INC., a California
corporation
("Chemicon"), and SEROLOGICALS CORPORATION, a Delaware
corporation
("Serologicals", and together with CSM and Chemicon,
collectively, the "Buyers")
(collectively, the "Parties").
RECITALS
WHEREAS, pursuant to an Asset Purchase Agreement, dated the date
hereof
(the "Purchase Agreement"), by and among Sellers and Buyers, CSM
has purchased
from CMT and CMT has sold to CSM, all of the assets comprising
or used in the
operations of the Specialty Media Division (the "Division") of
CMT; and
WHEREAS, in order to provide for an efficient and orderly
transition of
the ownership and management of the business of the Division,
Sellers have
agreed to enter this Agreement to provide certain transition
services after the
Closing to Buyers on the terms and conditions set forth
herein;
NOW, THEREFORE, in consideration of the mutual covenants and
agreements
herein expressed and for other good and valuable consideration,
the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto
agree as
follows:
ARTICLE I
CONSTRUCTION
Section 1.1. Definitions and Interpretation. Capitalized terms
used but
not otherwise defined in this Agreement shall have the meanings
ascribed to such
terms in the Purchase Agreement. All references to Articles and
Sections shall
be deemed to be references to Articles and Sections of this
Agreement unless the
context shall otherwise require. The headings of the Articles
and Sections are
included for convenience of reference only and are not intended
to be part of or
to affect the meaning or interpretation of this Agreement. Any
reference in this
Agreement to a "day" or a number of "days" (without the explicit
qualification
of "business") shall be interpreted as a reference to a calendar
day or number
of calendar days. The definitions
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of terms defined herein shall apply equally to both singular and
plural forms of
the defined terms.
ARTICLE II
TRANSITION SERVICES
Section 2.1 In General. During the period beginning on the
Closing Date
and ending at the close of business on June 30, 2005, subject to
such extensions
as may be mutually agreed to by the parties in writing and
subject to the right
of the Buyers to terminate the obligation of the Sellers
hereunder as provided
below (the "Transition Period"), the Sellers agree to furnish,
or to cause their
respective affiliates to furnish, to the Buyers the services
specified in the
following subsections of this Article II and such other services
as the Parties
shall mutually agree are necessary to effect an orderly
transition of the
ownership of the business of the Division from the Sellers to
Buyers (referred
to herein collectively as the "Transition Services"). During the
Transition
Period, the Sellers agree to furnish, or to cause their
respective affiliates to
furnish, the services of such persons whose services shall be
reasonably
necessary to provide the Transition Services (the "Transition
Employees"). The
Transition Employees shall be available to provide Transition
Services for
Buyers but shall not be required to devote their full time and
attention to the
Transition Services. The work schedule of the Transition
Employees shall be as
mutually agreed upon by the parties. The Buyers shall be
permitted, upon the
provision of not less than 30 days' notice to the Sellers, to
instruct the
Sellers to cease providing some or all of the Transition
Services.
Section 2.2. Management Information and Telecommunications
Services.
During the Transition Period, the Sellers (i) shall permit the
Division's
information technology equipment to remain connected to the
Sellers' internal
computer network and shall provide network helpdesk and support
sufficient to
ensure the operation of such equipment and such network on the
same basis as the
Sellers' equipment and network operate; (ii) shall provide the
Division with
access to Microsoft Outlook, Microsoft Word, Microsoft Excel and
Microsoft
PowerPoint to the extent permitted by the Sellers' licenses with
Microsoft
Corporation; (iii) shall provide the Division and the Buyers
with access to the
Sellers' MAS 200 accounting software to the extent permitted by
the Sellers'
licenses with Best Software, Inc.; (iv) shall permit the
Division's
telecommunications equipment to remain connected to the Sellers'
telephone
switch; and (v) shall provide local and long distance telephone
service and
internet access to the Division to the extent permitted by the
terms of the
Sellers' existing agreements with its service providers. If the
provision of any
management information or telecommunications service to be
provided by the
Sellers would infringe or violate a license, royalty agreement,
or other
agreement or arrangement to which either Seller is a party, then
the Sellers
shall provide Buyers with notice of said potential infringement
or violation (a
"MIS Violation Notice"). Within ten days following receipt of a
MIS Violation
Notice, the Sellers shall cease providing the management
information service
that was subject to the MIS Violation Notice.
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Section 2.3. Accounting. During the Transition Period, the
Sellers shall,
or shall cause their respective affiliates to, provide the
following accounting
services to the Buyers with respect to the Division: (i)
generating invoices to
customers; (ii) mailing invoices; (iii) receiving cash payments
and remitting
such cash payments in accordance with Buyers' instructions; (iv)
overseeing
accounts payable administration; (v) issuing to vendors checks
drawn off Buyers'
accounts; (vi) recording the acquisition or disposition of fixed
assets; and
(vii) assisting with the transfer of all accounting data
recorded by the Sellers
to the Buyers' financial system. With respect to the accounting
Transition
Services described in clause (vii) of the preceding sentence,
the Sellers shall
provide batch posting reports with respect to all accounting
data recorded by
the Sellers in Microsoft Excel format. The accounting Transition
Services
provided pursuant to this Section 2.3 will be supervised by the
Sellers' senior
accounting management. The accounting Transition Services shall
not include the
following: (i) general ledger creation or maintenance; (ii)
financial statement
preparation; (iii) credit analysis; or (iv) tax reporting,
preparation,
compliance or planning.
Section 2.4. Document Management. During the Transition Period,
the
Sellers agree to assist the Buyers to identify and to retrieve
any of the
Division's historical business records that have been co-mingled
with the
Sellers' historical business records.
ARTICLE III
PAYMENT FOR TRANSITION SERVICES
Section 3.1. Pricing. The Buyers shall pay to Sellers for the
Transition
Services a fee for the Transition Services in accordance with
the fo
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