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Title: |
Asset Purchase Agreement |
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Entities: |
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Date: |
2000 |
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Size: |
Preview shows 13KB of 108KB total |
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Price: |
$42 |
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ID: |
#1703439 |
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ASSET PURCHASE AGREEMENT
by and between
NESTLE USA, INC.
as "Seller"
and
NUTRISYSTEM.COM INC.
as "Buyer"
Dated: August 25, 2000
<PAGE>
ASSET PURCHASE AGREEMENT
TABLE OF CONTENTS
Page
----
ARTICLE I. DEFINITIONS .................................................... 1
-----------
1.1 Defined Terms ..................................................... 1
1.2 Other Defined Terms ............................................... 6
ARTICLE II. PURCHASE AND SALE OF ASSETS ................................... 7
---------------------------
2.1 Transfer of Purchased Assets ...................................... 7
2.2 Assumption of Liabilities ......................................... 7
2.3 Purchase Price .................................................... 7
2.4 Taxes ............................................................. 7
2.5 Closing Costs; Transfer Taxes and Fees ............................ 8
ARTICLE III. CLOSING ...................................................... 8
-------
3.1 Closing ........................................................... 8
3.2 Conveyances at Closing ............................................ 8
ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF SELLER....................... 9
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4.1 Organization ...................................................... 9
4.2 Authorization ..................................................... 10
4.3 Title ............................................................. 10
4.4 Consents and Approvals ............................................ 10
4.5 Absence of Certain Changes or Events .............................. 10
4.6 Contracts and Commitments ......................................... 11
4.7 No Conflict or Violation .......................................... 11
4.8 Financial Statements .............................................. 12
4.9 Litigation ........................................................ 12
4.10 No Brokers ........................................................ 12
4.11 Investment ........................................................ 12
4.12 Inventory ......................................................... 13
4.13 Litigation ........................................................ 14
ARTICLE V. REPRESENTATIONS AND WARRANTIES OF BUYER ........................ 14
---------------------------------------
5.1 Organization of Buyer ............................................. 14
5.2 Authorization ..................................................... 14
5.3 No Conflict or Violation .......................................... 14
5.4 Consents and Approvals ............................................ 15
5.5 No Brokers ........................................................ 15
5.6 Litigation ........................................................ 15
5.7 Capitalization .................................................... 15
5.8 Validity of Buyer Common Stock; Compliance with Securities Laws ... 15
5.9 SEC Reports and Financial Statements .............................. 16
i
<PAGE>
Page
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ARTICLE VI. COVENANTS OF SELLER AND BUYER .................................. 16
-----------------------------
6.1 Further Assurances ................................................. 16
6.2 Notification of Certain Matters .................................... 16
6.3 Access to Information .............................................. 17
6.4 Consents; Books and Records; Commercially Reasonable Best Efforts .. 17
6.5 Conduct of Business ................................................ 17
6.6 Updated Schedules .................................................. 18
6.7 Copack Agreement ................................................... 18
ARTICLE VII. CONDITIONS TO SELLER'S OBLIGATIONS ............................ 18
----------------------------------
7.1 Representations, Warranties and Covenants .......................... 18
7.2 Consents; Regulatory Compliance and Approval ....................... 18
7.3 No Actions or Court Orders ......................................... 19
7.4 Ancillary Documents ................................................ 19
7.5 Opinion of Counsel to Buyer ........................................ 19
ARTICLE VIII. CONDITIONS TO BUYER'S OBLIGATIONS ............................ 20
---------------------------------
8.1 Representations, Warranties and Covenants .......................... 20
8.2 Consents; Regulatory Compliance and Approval ....................... 21
8.3 No Actions or Court Orders ......................................... 21
8.4 Ancillary Documents ................................................ 21
ARTICLE IX. ACTIONS BY SELLER AND BUYER AFTER THE CLOSING .................. 21
---------------------------------------------
9.1 Tax Matters ........................................................ 21
ARTICLE X. SURVIVAL AND INDEMNIFICATION .................................... 21
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10.1 Survival of Representations, Etc ................................... 21
10.2 Indemnifications. .................................................. 22
10.3 Tax Indemnifications ............................................... 25
10.4 Insurance Proceeds ................................................. 25
10.5 Exclusive Remedy ................................................... 25
ARTICLE XI. MISCELLANEOUS .................................................. 26
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11.1 Termination ........................................................ 26
11.2 Assignment ......................................................... 27
11.3 Notices ............................................................ 27
11.4 Choice of Law ...................................................... 28
11.5 Jurisdiction; Services of Process .................................. 28
11.6 Entire Agreement; Amendments and Waivers ........................... 28
11.7 Multiple Counterparts .............................................. 29
11.8 Expenses ........................................................... 29
11.9 Severability of Provisions ......................................... 29
11.10 Titles; Gender .................................................... 29
11.11 Publicity ......................................................... 29
11.12 Confidential Information .......................................... 29
11.13 No Third-Party Beneficiary ........................................ 31
ii
<PAGE>
11.14 Representation of Counsel; Mutual Negotiation .................... 31
11.15 No Reliance on Other Information ................................. 31
iii
<PAGE>
ASSET PURCHASE AGREEMENT
This Asset Purchase Agreement, dated as of August 25, 2000 (this
"Agreement"), is entered into by and between nutrisystem.com inc., a Delaware
---------
corporation ("Buyer") and Nestle USA, Inc., a Delaware corporation ("Seller"
----- ------
and, together with Buyer, the "parties").
-------
RECITALS
Seller desires to sell certain Purchased Assets (as defined below),
including, but not limited to, certain assets of the Sweet Success business of
Nestle USA, Inc., and Buyer desires to purchase such Purchased Assets and assume
certain liabilities, upon the terms and subject to the conditions of this
Agreement.
AGREEMENT
NOW THEREFORE, in consideration of the respective covenants and promises
contained herein and for other good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the parties hereto agree as follows:
ARTICLE I.
DEFINITIONS
-----------
1.1 Defined Terms. As used herein, the terms below shall have the following
-------------
meanings. Any of such terms, unless the context otherwise requires, may be used
in the singular or plural, depending upon the context.
"Accounts Receivable" shall mean all accounts and notes receivable (whether
-------------------
current or noncurrent), including the customer accounts receivable (including
accounts receivable for any products shipped prior to the Closing but not
invoiced) outstanding as of the Closing Date, and any other rights to receive
payments as of the Closing Date, including all trade accounts receivable
representing amounts receivable in respect of goods shipped, products sold or
services rendered on or prior to the Closing Date, and the full benefit of all
securities of such accounts or debts.
"Action" shall mean any action, claim, suit, litigation, proceeding, labor
------
dispute, arbitral action, governmental audit, inquiry, criminal prosecution,
investigation or unfair labor practice charge or complaint.
"Affiliate" shall have the meaning set forth in the Securities Exchange Act
---------
of 1934, as amended, and the rules and regulations thereunder.
"Ancillary Agreements" shall mean the following: (a) the Intellectual
--------------------
Property Purchase Agreement, (b) the Transition Trademark License, (c) the
Transition Services Agreement, (d) the Registration Rights Agreement and (e) all
other instruments of transfer and assumption delivered pursuant to Section 3.2.
<PAGE>
"Assignment of Contract Rights" shall mean the Assignment of Contract
-----------------------------
Rights, in the form of Exhibit A attached hereto, to be entered into at Closing
by Seller and Buyer.
"Assumption Agreement" shall mean the Assumption Agreement in the form
--------------------
attached hereto as Exhibit B, to be entered into at Closing by Buyer.
"Bill of Sale" shall mean the Bill of Sale, in the form attached hereto as
------------
Exhibit C, to be executed at Closing by Seller in favor of Buyer.
"Books and Records" shall mean all business records, tangible data,
-----------------
documents, supplier lists, sales literature, and market research materials, in
each case which relate exclusively to the Business (the "Information");
-----------
provided, however, that "Books and Records" shall exclude (i) all tax returns
and all worksheets, notes, files or documents primarily related thereto,
wherever located, (ii) all documents prepared in connection with the
transactions contemplated by this Agreement, (iii) all minute books and
corporate records of Seller and its Affiliates, (iv) all Information of Seller
or Seller's Affiliates to the extent not related to the Business, and (v) all
Information which relates to centralized research and development and sales and
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