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Document Preview Agreement for the Purchase and Sale of Assets |
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Title: |
Agreement for the Purchase and Sale of Assets |
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Entities: |
Accpac International Inc.; American Industrial Real Estate Association; Aremissoft Corp.; Electronic Data Systems Corp.; Pervasive Software Inc.; PNC Bank, NA |
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Date: |
2000 |
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Size: |
Preview shows 21KB of 115KB total |
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Price: |
$36 |
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ID: |
#1272264 |
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Start of Preview |
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<SEQUENCE>3
<FILENAME>0003.txt
<DESCRIPTION>EXHIBIT 10.18
<TEXT>
AGREEMENT FOR THE PURCHASE
AND SALE OF ASSETS
Between
AremisSoft Corporation, a Delaware corporation,
as Purchaser,
Eltrax Systems, Inc., a Minnesota corporation,
and Eltrax Hospitality Group, Inc., a Georgia corporation,
as Seller
This Agreement for the Purchase and Sale of Assets (the "Agreement") is
made this 28th day of September, 2000, by and among AremisSoft Corporation ( the
"Purchaser"), a Delaware corporation, Eltrax Systems, Inc., a Minnesota
corporation ("ESI"), and Eltrax Hospitality Group, Inc., a Georgia corporation
("EHGI"), and provides for the Purchaser to acquire substantially all of the
assets of EHGI, subject to the liabilities assumed in this Agreement by the
Purchaser and no other liabilities. All references to dollars in this Agreement
refer to United States dollars unless otherwise specified.
WHEREAS, the Purchaser desires to acquire, on the terms and subject to the
conditions reflected below, the business of EHGI insofar as the same is
conducted through the use of the Acquired Assets; and
WHEREAS, ESI and EHGI believe that it is desirable and in their best
interests to sell the Acquired Assets to the Purchaser;
NOW, THEREFORE, the parties to this Agreement for the Purchase and Sale of
Assets do hereby agree as follows:
ARTICLE I
DEFINITIONS
As used in this Agreement, the capitalized terms identified below in this
Article I shall have the meanings indicated, and variants and derivatives of the
following terms shall have correlative meanings. To the extent that certain of
the definitions set forth below express agreements between or among parties to
this Agreement, or contain representations or warranties or covenants of a
party, the parties agree to the same by execution of this Agreement. The parties
to this Agreement agree that agreements, representations, warranties, and
covenants expressed in any part or provision of this Agreement shall for all
purposes of this Agreement be treated in the same manner as other such
agreements, representations, warranties, and covenants contained elsewhere in
this Agreement, and the Article or Section of this Agreement within which such
an agreement, representation, warranty, or covenant appears shall have no
separate meaning or effect on the same.
<PAGE> 2
1.1 [Omitted]
1.2 Acquired Assets: The assets to be acquired by the Purchaser pursuant to
the terms hereof, as identified on Section 1.2 of the Acquired Business
Disclosure Document attached hereto, including, but not limited to all
Intellectual Property and Software Products used in the Acquired Business, and
all other assets of EHGI, tangible or intangible (including contractual,
warranty, and other rights), the use or value of which is related to the assets
so identified.
1.3 Acquired Business: The businesses in which the Acquired Assets are
utilized, as described on Section 1.3 of the Acquired Business Disclosure
Document attached hereto.
1.4 Acquired Business Balance Sheet: The balance sheet as at July 31, 2000
or, if available prior to the Closing, the balance sheet as at the date provided
for in Section 8.1(15) included in the Unaudited Financial Statements of the
Acquired Business, excluding the Excluded Assets.
1.5 Acquired Business Disclosure Document: The document delivered by ESI
and EHGI to the Purchaser containing certain disclosures relative to this
Agreement, a copy of which is attached to this Agreement as Exhibit 1.5.
1.6 Acquired Facilities: All warehouses, stores, plants, production
facilities, manufacturing facilities, processing facilities, fixtures, and
improvements owned or leased by EHGI or otherwise used in connection with the
operation of the Acquired Business or leased or subleased to others, but only
to the extent that the same consist of Acquired Assets.
1.7 Affiliate: When used with respect to a person, an "affiliate" of that
person is a person Controlling, Controlled by, or under common Control with that
person.
1.8 Agreement: This Agreement for the Purchase and Sale of Assets,
including all of its Schedules and Exhibits specifically referred to in this
Agreement that have been or are to be delivered by a party to this Agreement to
another such party in connection with the Transaction or this Agreement, and
including all duly adopted amendments, modifications, and supplements to or of
this Agreement and such Schedules and Exhibits.
1.9 Assumed Liabilities: The Liabilities of EHGI to be assumed by the
Purchaser pursuant to this Agreement, as specifically identified in Section 1.9
to the Acquired Business Disclosure Document or as described on Section 6.5
below, and no other Liabilities.
1.10 Business Day: Any day that is not a Saturday, Sunday, or a day On
which banks in New York, New York, are authorized to close.
1.11 Closing: The completion of the Transaction, to take place as Described
in Article II.
1.12 Closing Date: The date on which the Closing actually occurs, as agreed
by the parties, but shall not in any event be prior to satisfaction or waiver of
the conditions to Closing set forth in Article VIII hereof.
<PAGE> 3
1.13 Closing Time: The time at which the Closing actually occurs, which
shall take place at 5:00 p.m. eastern daylight time, on the Closing Date, unless
otherwise agreed by the parties.
1.14 Code: The Internal Revenue Code of 1986, as amended and in effect at
the time of execution of the Agreement.
1.15 [Omitted]
1.16 Consideration: The net sum of $7,965,000 to be paid by the Purchaser
to ESI or EHGI at the Closing for the Acquired Assets.
1.17 Control: Generally, the power to direct the affairs of an Entity by
reason of either (i) owning or controlling the right to vote a sufficient number
of shares of voting stock or other voting interest of such Entity, or (ii)
having the right to direct the general management of the affairs of such Entity
by contract or otherwise.
1.18 Counsel to ESI and EHGI: Jaffe, Raitt, Heuer & Weiss, P.C., One
Woodward Avenue, Suite 2400, Detroit, MI 48226.
1.19 Counsel to the Purchaser: Bartel Eng Linn & Schroder, 300 Capitol
Mall, Suite 1100, Sacramento, CA 95814.
1.20 Entity: A corporation, partnership, sole proprietorship, joint
venture, or other form of organization formed for the conduct of a business,
whether active or passive.
1.21 ERISA: The Employee Retirement Income Security Act of 1974 as amended
and in effect at the time of execution of this Agreement.
1.22 [Omitted]
1.23 Excluded Assets: Notwithstanding the definition of the Acquired Assets
or the Acquired Business, the assets identified in Section 1.23 of the Acquired
Business Disclosure Document shall not be deemed part of the Acquired Assets.
1.24 GAAP: Generally accepted accounting principles, as in effect in the
United States on the date of any statement, report or determination that
purports to be, or is required to be, prepared or made in accordance with "GAAP"
consistently applied throughout the periods to which reference is made.
1.25 HSR Act: The Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended.
1.26 Intellectual Property: All Software Products (including, but not
limited to, all versions, renewals, modifications and extensions of any Software
Product), patents, patent applications, trade and service marks, trade and
service mark registrations, trade names, copyrights,
<PAGE> 4
licenses, sublicenses, inventions, trade secrets, technology, know-how, domain
names, customer lists, prospect lists and other similar intangible property.
1.27 Inventories: The stock of raw materials, work-in-process and finished
goods, including but not limited to finished goods purchased for resale, held by
EHGI for manufacturing, assembly, processing, finishing, sale, or resale to
others (including other Subsidiaries or divisions of EHGI), from time to time in
the ordinary course of the business of EHGI in the form in which such
inventories then are held or after manufacturing, assembling, finishing,
processing, incorporating with other goods or items, refining, or the like.
1.28 IRS: The United States Internal Revenue Service.
1.29 Liabilities: At any point in time (the Determination Time), the
obligations of a person or Entity, whether known or unknown, contingent or
absolute, recorded on its books or not, arising or resulting in any way from
facts, events, agreements, obligations or occurrences that existed or transpired
at a prior point in time, or resulted from the passage of time to the
Determination Time.
1.30 Local Counsel: Special counsel retained by the Purchaser, ESI or EHGI,
as the case may be, to advise as to certain matters of state law or local law in
states or localities in which the Purchaser, ESI or EHGI, as the case may be,
desires such Local Counsel.
1.31 Multiemployer Plan: A "multiemployer plan," as defined in ERISA
Section 3(37) or Section 414(f) of the Code, or, in either case, successor
provisions to such provisions adopted by amendments to ERISA or the Code, as the
case may be, and regulations adopted under ERISA or the Code.
1.32 Parent: An Entity which Controls, directly or indirectly, or through
one or more intermediaries, a Subsidiary.
1.33 [Omitted]
1.34 Payables: Liabilities of a party arising from the borrowing of money
or the incurring of obligations for services, merchandise or goods purchased.
1.35 [Omitted]
1.36 [Omitted]
1.37 Pension Plan: A "pension plan" or "employee pension benefit plan," as
defined in Section 3(2) of ERISA or successor provisions to such provision
adopted by amendments to ERISA or any regulations adopted under ERISA or the
Code.
1.38 [Omitted]
<PAGE> 5
1.39 Projections: The projections of economic results of the Acquired
Business, prepared by ESI or EHGI on a monthly basis through December 31, 2000
and delivered to the Purchaser pursuant to the terms of this Agreement. Such
Projections include, separately and consolidated, projected financial results
for each separate business operation of the Acquired Business and for each
separate facility of the Acquired Business.
1.40 Proprietary Rights: Trade secrets, copyrights, patents, trademarks,
service marks, customer lists, and all similar types of intangible property
developed, created or owned by EHGI in connection with the Acquired Assets, or
used by EHGI in connection with its business, whether or not the same are
entitled to legal protection.
1.41 Purchaser: AremisSoft Corporation, a Delaware corporation.
1.42 Receivables: Accounts receivable, notes receivable, and other
obligations appearing as assets on the books of EHGI, and customarily reflected
as assets in balance sheets of entities prepared in accordance with GAAP,
indicating moneys owed to EHGI.
1.43 [Omitted]
1.44 [Omitted]
1.45 Software Products: Any instruction or instructions, in source-code or
object code format, for controlling the operation of any computer processing
unit together with all user documentation related thereto. Software Products
include, but are not limited to, the applications identified on Section 1.45 of
the Acquired Business Disclosure Document.
1.46 Subsidiary: With respect to any Entity, another Entity of which fifty
percent (50%) or more of the effective voting power, or the effective power to
elect a majority of the board of directors or similar governing body, or fifty
percent (50%) or more of the true equity interest; is owned by such first
Entity, directly or indirectly.
1.47 Transaction: The sale of the Acquired Assets, and the assumption of
the Assumed Liabilities, for the Consideration as contemplated by, and subject
to the terms and conditions of, this Agreement.
1.48 Unaudited Financial Statements: The balance sheet as at July 31, 2000
or (if available prior to the Closing) the balance sheet as at the date provided
for in Section 8.1(15), the balance sheet as at December 31, 1999, the income
statement for the period ended July 31, 2000 or (if available prior to the
Closing) for the period ended as of the date provided for in Section 8.1(15),
the income statement for the period ended December 31, 1999 and the related
notes provided therewith, for the Acquired Business, excluding therefrom the
Excluded Assets, prepared in accordance with GAAP, other than the presentation
of appropriate footnote disclosure, schedules, the division of equity and
inter-company accounts, as required by GAAP and, in the case of the December 31,
1999 balance sheet, annual maintenance obligations during 2000 have been
eliminated from deferred revenue accounts.
<PAGE> 6
1.49 Welfare Plan: A "welfare plan" or an "employee welfare benefit plan,"
as defined in Section 3(1) of ERISA or successor provisions to such provision
adopted by amendments to ERISA and regulations adopted under ERISA and the Code.
ARTICLE II
THE TRANSACTION
2.1 The Transaction. On the Closing Date, and at the Closing Time, subject
in all instances to each of the terms, conditions, provisions and limitations
contained in this Agreement, EHGI shall, and ESI shall cause EHGI to, sell,
transfer, convey, and assign to the Purchaser, by instruments reasonably
satisfactory in form and substance to the Purchaser and its counsel, and the
Purchaser shall acquire from EHGI, the Acquired Assets, and shall assume the
Assumed Liabilities, and only those Liabilities and no others, in exchange for
the Consideration. ESI and EHGI represent that the Acquired Assets are all the
assets reasonably necessary for the conduct of the Acquired Business in the
ordinary course (exclusive of working capital) in the same manner as that in
which such business has been conducted in the immediate past, including, without
limitation, all Proprietary Rights, Software Products and Intellectual Property
used in the ordinary conduct of the Acquired Business and all contract,
warranty, and other intangible rights relating to or arising out of such
Acquired Business. ESI and EHGI further represent that all assets and
liabilities of Eltrax International, Inc. of the type included in the Acquired
Assets and Assumed Liabilities, other than the assets to be transferred pursuant
to definitive agreements as provided in Section 11.1 below and shares of any
Subsidiaries of Eltrax International, Inc., have been transferred to EHGI or
will be transferred to EHGI prior to the Closing and are reflected in the
Acquired Business Balance Sheet. Neither the Purchaser nor any of its Affiliates
is assuming, becoming liable for, agreeing to discharge or in any manner
becoming in any way responsible for any of the Liabilities of ESI or EHGI other
than the Assumed Liabilities. Purchaser hereby agrees to pay, perform or
discharge all of the Assumed Liabilities. ESI hereby represents that, prior to
the Closing, neither ESI nor any Affiliate of ESI other than EHGI holds any
right, title or interest to the Acquired Assets and there are no other
agreements, understandings, or arrangements which, as of or after the Closing,
would materially adversely effect the Acquired Assets and the Acquired Business,
the ability of EHGI to sell, transfer, convey and assign the Acquired Assets and
the Acquired Business to the Purchaser or result in the assumption of any
Liabilities by the Purchaser other than the Assumed Liabilities.
2.2 Manner of Payment. Payment of the Consideration by the Purchaser shall
be made in immediately available funds by wire transfer of federal funds to such
account or accounts of ESI or EHGI or of designated third-parties (it being
understood that ESI and EHGI will be using a portion of the Consideration
proceeds to pay amounts owed certain third-parties who have played legal,
financial and other advisory roles in connection with the Transaction) as shall
have been adequately described to the Purchaser in writing not less than three
Business Days prior to the Closing.
2.3 Closing. The Closing hereunder shall simultaneously take place at the
offices of Purchaser, Counsel to the Purchaser, ESI, EHGI, Counsel to ESI and
EHGI, or at such other places as the parties to this Agreement may agree upon,
on the Closing Date.
<PAGE> 7
2.4 Sales and Property Taxes. It being the intent of the parties that the
Transaction be exempt from sales, use and transfer taxes pursuant to the "Casual
Sale" provisions of Section 560-12-1-.07 of the Official Code of Georgia tax
rules and regulations, EHGI shall pay all sales, use and transfer taxes, if any,
arising from the transfer of the Acquired Assets and the Acquired Business.
Purchaser will not be responsible for any employee related withholding taxes
accrued prior to the Closing, other than those related to the salaried employees
referenced in Section 6.5 below.
ARTICLE III
ACQUISITION OF FOREIGN OPERATIONS
3.1 Agreement to Acquire Foreign Operations. On or prior to the Closing
Date, ESI shall, and ESI shall cause its Subsidiaries to, sell, transfer, convey
and assign to the Purchaser certain assets and liabilities of the operations of
EHGI currently conducted in the foreign jurisdictions of Australia (Eltrax
(Australia) Pty. Ltd.), Belgium (Eltrax Group, Inc.), Hong Kong (Eltrax
Hospitality Ltd.), Malaysia (Eltrax (Malaysia) SBD. BHD), Norway (Eltrax Systems
Scandinavia AS), Singapore (Eltrax Systems Pte. Ltd.), Switzerland (Eltrax
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