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Title: |
Asset Purchase Agreement |
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Date: |
2003 |
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Preview shows 14KB of 161KB total |
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$55 |
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#1701813 |
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<SEQUENCE>3
<FILENAME>exhibit_2-1.txt
<DESCRIPTION>FANSTEEL ASSET PURCHASE AGREEMENT
<TEXT>
ASSET PURCHASE AGREEMENT
BY AND AMONG
FANSTEEL INC.,
PHOENIX AEROSPACE CORPORATION,
AS SELLER,
AND
STOUTHEART EAST CORPORATION,
WPC III INC.,
AS PURCHASER,
AND
RICHARD BURKHART
AS GUARANTOR
DATED AS OF JULY 29, 2003
<PAGE>
TABLE OF CONTENTS
Page
----
ARTICLE I DEFINED TERMS.......................................................2
1.1 Defined Terms......................................................2
1.2 Other Definitional and Interpretive Matters........................2
ARTICLE II PURCHASE AND SALE OF THE ASSETS....................................3
2.1 Purchased Assets...................................................2
2.2 Excluded Assets....................................................4
2.3 Purchaser Cooperation..............................................4
2.4 Division of Purchased Assets.......................................5
ARTICLE III Purchase Price....................................................5
3.1 Purchase Price.....................................................5
3.2 Deposit .....................................................8
3.3 Assumed Liabilities................................................8
3.4 Excluded Liabilities...............................................9
3.5 No Expansion of Third-Party Rights................................10
3.6 Allocation of the Purchase Price among the Purchased Assets.......10
3.7 Taxes.............................................................10
ARTICLE IV CLOSING; CLOSING CONDITIONS; PRE-CLOSING
COVENANTS..............................................11
4.1 Time and Place of the Closing.....................................10
4.2 Closing Transactions..............................................11
4.3 The Seller's Closing Deliveries...................................11
4.4 The Purchaser's Closing Deliveries................................12
4.5 Conditions to the Purchaser's Obligations.........................12
4.6 Conditions to the Seller's Obligation.............................13
4.7 Affirmative Covenants of the Seller...............................14
4.8 Negative Covenants of the Seller..................................14
4.9 Covenants of the Purchaser........................................15
4.10 Bankruptcy Actions................................................15
ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE SELLER.......................17
5.1 Organization, Power and Authority; Subsidiaries...................17
5.2 Capitalization; Ownership of Purchased Assets.....................17
5.3 Financial Statements..............................................17
5.4 Liabilities.......................................................17
5.5 Real Estate.......................................................18
5.6 Good Title to and Condition of Assets.............................18
i
<PAGE>
5.7 Intellectual Property Rights......................................18
5.8 Power, Authority, Execution and Delivery..........................18
5.9 Absence of Litigation.............................................18
5.10 Governmental Authorization; Consents..............................18
5.11 Due Authorization; Binding Obligation; No Conflicts...............19
5.12 Compliance with Laws..............................................19
5.13 Purchased Assets and Related Matters..............................19
5.14 Insurance.........................................................19
5.15 Environmental.....................................................19
5.16 Disclaimer of Other Representations and Warranties................19
ARTICLE VI REPRESENTATIONS AND WARRANTIES OF THE PURCHASER...................20
6.1 Organization, Power and Authority.................................20
6.2 Due Authorization; Binding Obligation; No Conflicts...............20
6.3 Litigation........................................................21
6.4 Compliance with Laws..............................................21
6.5 Financial Performance.............................................21
ARTICLE VII CERTAIN ACTIONS AFTER THE CLOSING................................21
7.1 Employees of the Business.........................................21
7.2 Books and Records.................................................22
7.3 Use of Name.......................................................22
7.4 Postal Addresses..................................................22
7.5 Termination of Lease Agreement....................................22
7.6 Agreement to Turn Over Assets of the Other........................22
7.7 Access to Purchased Assets Located on Seller's Premises...........23
ARTICLE VIII TERMINATION.....................................................23
8.1 Termination.......................................................23
8.2 Effect of Termination.............................................24
ARTICLE IX INDEMNIFICATION...................................................24
9.1 Agreements to Indemnify...........................................24
9.2 Settlement of Claims..............................................25
9.3 Satisfaction of Indemnification Claims by the Purchaser Parties...27
ARTICLE X ACCESS TO INFORMATION..............................................27
ARTICLE XI MISCELLANEOUS.....................................................28
11.1 Survival of Representations and Warranties........................28
11.2 Transaction Expenses..............................................28
11.3 Amendment and Modification........................................28
ii
<PAGE>
11.4 Entire Agreement..................................................28
11.5 Execution in Counterpart..........................................29
11.6 Notices...........................................................29
11.7 Governing Law.....................................................30
11.8 Confidentiality; Publicity........................................30
11.9 Severability......................................................30
11.10 Assignment........................................................31
11.11 Binding Effect; No Third-Party Beneficiaries......................31
11.12 Negotiation Representations.......................................31
11.13 Cumulative Remedies...............................................31
11.14 Bulk Transfer.....................................................31
11.15 Guaranty..........................................................31
DISCLOSURE SCHEDULES
Schedule 1.2.5 - Knowledge Officers
Schedule 2.1(d) - Leasehold Rights
Schedule 3.1 - Purchase Price Calculation Example
Schedule 3.3 - Assumed Liabilities
Schedule 3.6 - Purchase Price Allocation
Schedule 4.7(e) - Filings
Schedule 5.3 - Financial Statements
Schedule 5.5.1 - Owned Real Estate
Schedule 5.5.2 - Leases
Schedule 5.6 - Title
Schedule 5.7 - Intellectual Property
Schedule 5.9 - Litigation
Schedule 5.10 - Consents
Schedule 5.14 - Insurance
Schedule 5.15 - Environmental
APPENDIX
Appendix I - Definitions
EXHIBITS
Exhibit A - Form of Indemnity Note
Exhibit B - Bidding Procedures
Exhibit C - Deposit Escrow Agreement
iii
<PAGE>
ASSET PURCHASE AGREEMENT
THIS ASSET PURCHASE AGREEMENT ("AGREEMENT") is made and entered into this
29th day of July 2003 by and among Fansteel Inc., a Delaware corporation
("FSI"), Phoenix Aerospace Corporation, a Delaware corporation ("PAC",
collectively with FSI, the "SELLER"), Stoutheart East Corporation, a Texas
corporation ("STOUTHEART EAST"), WPC III Inc., a Texas corporation ("WPC III"
and, collectively with Stoutheart East, the "PURCHASER"), and Richard Burkhart
("BURKHART").
RECITALS
A. WHEREAS, on January 15, 2002 (the "FILING DATE"), FSI and certain of its
domestic wholly-owned subsidiaries (collectively, the "DEBTORS") including PAC,
each filed a voluntary petition for relief under chapter 11 of Title 11 of the
United States Code, 11 U.S.C. ss.ss. 101, ET SEQ. (the "BANKRUPTCY CODE") in the
United States Bankruptcy Court for the District of Delaware under case number
01-10109, which chapter 11 case was transferred to the United States District
Court for the District Court of Delaware (the "BANKRUPTCY COURT") on January 22,
2002 and assigned Civil Action No.: 02-44, and the Debtors continue to manage
their properties as debtors and debtors-in-possession pursuant to sections 1107
and 1108 of the Bankruptcy Code;
B. WHEREAS, on July 23, 2003, the Debtors filed a joint disclosure
statement with respect to their Plan of Reorganization;
C. WHEREAS, the Plan of Reorganization contemplates and is conditioned upon
consummation of the sale contemplated pursuant to this Agreement;
D. WHEREAS, the Plan of Reorganization provides for, among other things,
the escrow of the cash proceeds from the sale so as to provide a cash
distribution to general unsecured creditors of the Debtors;
E. WHEREAS, FSI, among other things, operates certain divisions known as,
California Drop Forge ("CAL DROP"), Hydro Carbide-Gulfport ("HG") and Hydro
Carbide-Latrobe ("HL" and, together with Cal Drop and HG, the "DIVISIONS");
F. WHEREAS, the Divisions are engaged primarily in the business of
manufacturing, distribution and sales of specialty metals;
G. WHEREAS, the assets of PAC consist solely of real property located at
1033 Alhambra Avenue, Los Angeles, California and a lease agreement with FSI
with respect thereto (collectively, the "PAC ASSETS");
H. WHEREAS, the Seller desires to sell, transfer and assign to the
Purchaser and the Purchaser desires to purchase from the Seller, pursuant to and
in accordance with the Bankruptcy Code, the Purchased Assets (as defined below)
for consideration comprised of cash, the Indemnity Note (as defined below) and
the assumption of the Assumed Liabilities (as defined below), all as herein
provided and on the terms and conditions hereinafter set forth; and
<PAGE>
I. WHEREAS, the foregoing sale would be effected pursuant to the terms of
this Agreement and an order of the Bankruptcy Court under sections 363 and 365
of the Bankruptcy Code (the "SALE ORDER").
NOW, THEREFORE, in consideration of the foregoing and the respective
representations, warranties, covenants, and agreements set forth herein, the
parties hereto agree as follows:
ARTICLE I
DEFINED TERMS
1.1 DEFINED TERMS. For the purposes of this Agreement, defined terms shall
have meanings set forth or referenced in Appendix I.
1.2 OTHER DEFINITIONAL AND INTERPRETIVE MATTERS. Unless otherwise expressly
provided, for purposes of this Agreement, the following rules of interpretation
shall apply:
1.2.1 GENDER AND NUMBER. Any reference in this Agreement to gender
shall include all genders, and words imparting the singular number only shall
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