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Title: |
Asset Purchase Agreement |
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Entities: |
Kendle International Inc.; Clinical Pharmacologic Research, Inc.; Thomas S. Clark; E. Stuart Clark; Charles T. Clark |
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Date: |
2002 |
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Size: |
Preview shows 18KB of 144KB total |
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Price: |
$52 |
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ID: |
#281787 |
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ASSET PURCHASE AGREEMENT
AMONG
KENDLE INTERNATIONAL INC.
CLINICAL PHARMACOLOGIC RESEARCH, INC.
THOMAS S. CLARK, M.D.
E. STUART CLARK
AND
CHARLES T. CLARK
January 29, 2002
{PAGE}
TABLE OF CONTENTS
PAGE
1. DEFINITIONS................................................................1
2. PURCHASE AND SALE OF ACQUIRED ASSETS.......................................7
(a) BASIC TRANSACTION......................................................7
(b) PURCHASE PRICE.........................................................7
(c) NET WORKING CAPITAL ADJUSTMENT.........................................8
(d) THE CLOSING............................................................9
(e) DELIVERIES AT THE CLOSING..............................................9
(f) ALLOCATION.............................................................9
3. REPRESENTATIONS AND WARRANTIES OF KENDLE..................................10
(a) ORGANIZATION OF KENDLE................................................10
(b) AUTHORIZATION OF TRANSACTION..........................................10
(c) NONCONTRAVENTION......................................................10
(d) CAPITALIZATION........................................................11
(e) SEC REPORTS...........................................................11
(f) BROKERS' FEES.........................................................11
4. REPRESENTATIONS AND WARRANTIES OF CPR.....................................12
(a) ORGANIZATION, QUALIFICATION, AND CORPORATE POWER......................12
(b) CAPITALIZATION........................................................12
(c) NONCONTRAVENTION......................................................13
(d) BROKERS' FEES.........................................................13
(e) TITLE TO ASSETS.......................................................13
(f) SUBSIDIARIES..........................................................13
(g) FINANCIAL STATEMENTS; NET WORKING CAPITAL.............................14
(h) EVENTS SUBSEQUENT TO MOST RECENT FISCAL YEAR END......................14
(i) UNDISCLOSED LIABILITIES...............................................16
(j) LEGAL COMPLIANCE......................................................16
(k) TAX MATTERS...........................................................16
(l) REAL PROPERTY.........................................................17
(m) INTELLECTUAL PROPERTY.................................................18
(n) TANGIBLE ASSETS.......................................................21
(o) CONTRACTS.............................................................21
{PAGE}
-ii-
(p) NOTES AND ACCOUNTS RECEIVABLE.........................................22
(q) POWERS OF ATTORNEY....................................................22
(r) INSURANCE.............................................................23
(s) LITIGATION............................................................23
(t) EMPLOYEE BENEFITS.....................................................24
(u) GUARANTIES............................................................25
(v) ENVIRONMENTAL, HEALTH, AND SAFETY MATTERS.............................25
(w) CERTAIN BUSINESS RELATIONSHIPS WITH CPR...............................26
(x) DISCLOSURE............................................................27
5. [INTENTIONALLY DELETED]...................................................27
6. POST-CLOSING COVENANTS....................................................27
(a) GENERAL...............................................................27
(b) LITIGATION SUPPORT....................................................27
(c) TRANSITION............................................................27
(d) CONFIDENTIALITY.......................................................28
(e) KENDLE SHARES.........................................................28
(f) OPENING BALANCE SHEET AUDIT...........................................28
(g) WHITE PAPER...........................................................29
(h) NON-COMPETITION COVENANT..............................................30
(i) PAYMENT OF EXCLUDED LIABILITIES AND ASSURED LIABILITIES...............30
(j) CPR CASE REPORT DOCUMENTS.............................................31
7. CONDITIONS TO OBLIGATION TO CLOSE.........................................31
(a) CONDITIONS TO OBLIGATION OF KENDLE....................................31
(b) CONDITIONS TO OBLIGATION OF CPR AND THE SELLERS.......................33
8. REMEDIES FOR BREACHES OF THIS AGREEMENT...................................34
(a) SURVIVAL OF REPRESENTATIONS AND WARRANTIES............................34
(b) INDEMNIFICATION PROVISIONS FOR BENEFIT OF KENDLE......................34
(c) INDEMNIFICATION PROVISIONS FOR BENEFIT OF THE SELLERS.................35
(d) MATTERS INVOLVING THIRD PARTIES.......................................35
(e) DETERMINATION OF ADVERSE CONSEQUENCES.................................36
(f) [Intentionally deleted]...............................................37
(g) OTHER INDEMNIFICATION PROVISIONS......................................37
(h) LIMITATIONS ON INDEMNIFICATION........................................37
{PAGE}
-iii-
9. TAX COVENANTS.............................................................37
10. TERMINATION..............................................................38
(a) TERMINATION OF AGREEMENT..............................................38
(b) EFFECT OF TERMINATION.................................................39
11. MISCELLANEOUS............................................................39
(a) NATURE OF CERTAIN OBLIGATIONS.........................................39
(b) PRESS RELEASES AND PUBLIC ANNOUNCEMENTS...............................39
(c) NO THIRD-PARTY BENEFICIARIES..........................................39
(d) ENTIRE AGREEMENT......................................................39
(e) SUCCESSION AND ASSIGNMENT.............................................39
(f) COUNTERPARTS..........................................................40
(g) HEADINGS..............................................................40
(h) NOTICES...............................................................40
(i) GOVERNING LAW.........................................................41
(j) AMENDMENTS AND WAIVERS................................................41
(k) SEVERABILITY..........................................................41
(l) EXPENSES..............................................................41
(m) CONSTRUCTION..........................................................42
(n) INCORPORATION OF EXHIBITS, ANNEXES, AND SCHEDULES.....................42
(o) SPECIFIC PERFORMANCE..................................................42
(p) SUBMISSION TO JURISDICTION............................................42
{PAGE}
-iv-
EXHIBITS
Exhibit A - Form of Note
Exhibit B - Escrow Agreement
Exhibit C - Financial Statements
Exhibit D - Form of Consulting Agreement
Exhibit E - Form of Non-Competition and Non-Disclosure Covenants
Exhibit F - Form of Opinion of Counsel to Kendle
Exhibit G - Form of Right of First Offer Agreement
Exhibit H - Form of Investor Letter
Exhibit I - Form of Registration Rights Agreement
Exhibit J - Form of Opinion of Counsel to CPR
Annex I Distribution of Purchase Price to CPR Shareholders
Annex II Allocation of Purchase Price
Disclosure Schedule Exceptions to Representations and Warranties
Concerning CPR
{PAGE}
ASSET PURCHASE AGREEMENT
THIS ASSET PURCHASE AGREEMENT ("Agreement") is made and entered into
this 29th day of January 2002 among KENDLE INTERNATIONAL INC., an Ohio
corporation ("Kendle"), CLINICAL AND PHARMACOLOGIC RESEARCH, INC., a West
Virginia corporation ("CPR"), THOMAS S. CLARK, M.D. ("TC"), CHARLES T. CLARK
("CC"), and E. STUART CLARK ("EC") (TC, CC, and EC, collectively, the
"Sellers"). Kendle, CPR and the Sellers are referred to herein collectively as
the "Parties".
R E C I T A L S:
---------------
A. The Sellers, together with certain other shareholders of CPR, own
all of the issued and outstanding capital stock of CPR.
B. This Agreement contemplates a transaction in which Kendle will
purchase from CPR and CPR will sell to Kendle, substantially all of the assets
of CPR and Kendle will assume certain obligations of CPR in return for cash,
promissory notes convertible into Kendle Shares and Kendle Shares.
NOW, THEREFORE, in consideration of the premises and the mutual
undertakings and agreements herein made, the Parties agree as follows:
1. DEFINITIONS.
"ACQUIRED ASSETS" means all right, title, and interest in and to all of
the assets of CPR, including all of its: (a) real property, leaseholds and
subleaseholds therein, improvements, fixtures, and fittings thereon, and
easements, rights-of-way, and other appurtenants thereto (such as appurtenant
rights in and to public streets); (b) tangible personal property (such as
machinery, office equipment, inventories of raw materials and supplies,
furniture, automobiles, trucks, and other materials); (c) Intellectual Property,
including the names "CPR" and "Clinical and Pharmacologic Research", goodwill
associated therewith, licenses and sublicenses granted and obtained with respect
thereto, and rights thereunder, remedies against infringements thereof, and
rights to protection of interests therein under the laws of all jurisdictions;
(d) leases, subleases and rights thereunder; (e) agreements, contracts,
indentures, mortgages, instruments, Security Interests, guaranties, other
similar arrangements and rights thereunder including, but not limited to, all
agreements and arrangements with Mylan; (f) accounts, notes executed in favor of
CPR and other receivables; (g) claims, deposits, prepayments, refunds, causes of
action, choses in action, rights of recovery, rights of set off and rights of
recoupment; (h) franchises, approvals, permits, licenses, orders, registrations,
certificates, variances and similar rights obtained from governments and
governmental agencies; and (i) books, records, ledgers, files, documents,
correspondence, lists, plats, architectural plans, drawings and specifications,
creative materials, advertising and promotional materials, studies, reports, and
other printed or written materials; PROVIDED, however, that the Acquired Assets
shall not include any Excluded Asset.
{PAGE}
-2-
"ADVERSE CONSEQUENCES" means all damages, dues, penalties, fines,
costs, amounts paid in settlement, Liabilities, obligations, Taxes, losses,
expenses and fees, including (without limitation) 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.
"AFFILIATED GROUP" means any affiliated group within the meaning of
Code sec. 1504(a) or any similar group defined under a similar provision of
state, local or foreign law.
"ASSUMED LIABILITIES" means (a) all Liabilities of CPR set forth in the
Most Recent Balance Sheet, (b) all Liabilities of CPR which have arisen after
the Most Recent Fiscal Month End in the Ordinary Course of Business (other than
any Liability resulting from, arising out of, relating to, in the nature of, or
caused by any breach of contract, breach of warranty, tort, infringement, or
violation of law, and (c) all obligations of CPR under the agreements,
contracts, leases, licenses, and other arrangements referred to in the
definition of Acquired Assets either (x) to furnish goods, services, and other
non-cash benefits to another party after the Closing or (y) to pay for goods,
services, and other non-cash benefits that another party will furnish to it
after the Closing; PROVIDED, however, that the Assumed Liabilities shall not
include any Excluded Liability.
"BASIS" means any past or present fact, situation, circumstance,
status, condition, activity, practice, plan, occurrence, event, incident,
action, failure to act or transaction that forms or could form the basis for any
specified consequence.
"CASH COMPONENT" has the meaning set forth in sec. 2(b)(ii) below.
"CLOSING" has the meaning set forth in sec. 2(d) below.
"CLOSING DATE" has the meaning set forth in sec. 2(d) below.
"CODE" means the Internal Revenue Code of 1986, as amended.
"COBRA" means the requirements of Part 6 of Subtitle B of Title I of
ERISA and Code sec. 4980B.
"CPRC" means CPR Communications, Inc., a West Virginia corporation.
"CONFIDENTIAL INFORMATION" means any information concerning the
businesses and affairs of CPR that, as of the date hereof, is not generally
available to the public.
"CONTROLLED GROUP" has the meaning set forth in Code sec. 1563.
"CPR" has the meaning set forth in the first recital above.
{PAGE}
-3-
"CPR SHARE" means any share of the common stock, par value $.05 per
share, of CPR.
"DISCLOSURE SCHEDULE" has the meaning set forth in sec. 4 below.
"EMPLOYEE BENEFIT PLAN" means any: (a) nonqualified deferred
compensation or retirement plan or arrangement or any severance, stock option,
incentive, bonus or fringe benefit plan; (b) qualified defined contribution
retirement plan or arrangement that is an Employee Pension Benefit Plan; (c)
qualified defined benefit retirement plan or arrangement that is an Employee
Pension Benefit Plan (including any Multiemployer Plan), or (d) Employee Welfare
Benefit Plan or material fringe benefit or other retirement, bonus, or incentive
plan or program.
"EMPLOYEE PENSION BENEFIT PLAN" has the meaning set forth in ERISA
sec. 3(2).
"EMPLOYEE WELFARE BENEFIT PLAN" has the meaning set forth in ERISA
sec. 3(1).
"ENVIRONMENTAL, HEALTH, AND SAFETY REQUIREMENTS" shall mean all
federal, state, local and foreign statutes, regulations, ordinances and other
provisions having the force or effect of law, all judicial and administrative
orders and determinations, all contractual obligations and all common law
concerning public health and safety, worker health and safety, and pollution or
protection of the environment, including without limitation all those relating
to the presence, use, production, generation, handling, transportation,
treatment, storage, disposal, distribution, labeling, testing, processing,
discharge, release, threatened release, control, or cleanup of any hazardous
materials, substances or wastes, chemical substances or mixtures, pesticides,
pollutants, contaminants, toxic chemicals, petroleum products or byproducts,
asbestos, polychlorinated biphenyls, noise or radiation, each as amended and as
now or hereafter in effect.
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