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Asset Purchase Agreement

 

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Title:

Asset Purchase Agreement

Entities:

Lynch Corp.

Date:

2007

Size:

Preview shows 19KB of 124KB total

Price:

$62

ID:

#2896119

 

 

► Purchase & Sale ► Purchase ► Asset Purchase Agreements
► Commodities ► Chemical Manufacturing

 

 

Start of Preview


                            ASSET PURCHASE AGREEMENT

--------------------------------------------------------------------------------


                                 BY AND BETWEEN


                               LYNCH SYSTEMS, INC.
                                (AS THE "SELLER)


                                       AND


                       OLIVOTTO GLASS TECHNOLOGIES S.P.A.
                                (AS THE "BUYER")


                                  MAY 17, 2007




ARTICLE I.    ASSETS TO BE PURCHASED.........................................................1
   Section 1.1.  Description of Assets.......................................................1
   Section 1.2.  Non-Assignment of Certain Property..........................................2
ARTICLE II.   ASSUMPTION OF LIABILITIES AND OBLIGATIONS......................................3
ARTICLE III.  PURCHASE PRICE.................................................................3
   Section 3.1.  Purchase Price..............................................................3
   Section 3.2.  Deposit.....................................................................4
   Section 3.3.  Closing Payment.............................................................4
   Section 3.4.  Calculation of Estimated Closing Date Net Asset Value.......................4
   Section 3.5.  Allocation of Purchase Price................................................6
   Section 3.6.  Consignment of Certain Items................................................6
ARTICLE IV.   CLOSING........................................................................6
ARTICLE V.    REPRESENTATIONS AND WARRANTIES.................................................6
   Section 5.1.  Representations and Warranties of Buyer.....................................6
   Section 5.2.  Representations and Warranties of Seller....................................8
   Section 5.3.  Effect of Disclosures on Schedules.........................................17
   Section 5.4.  Disclaimer of Other Warranties.............................................17
   Section 5.5.  Closing Date Effect........................................................17
ARTICLE VI.   COVENANTS.....................................................................17
   Section 6.1.  Covenant Against Disclosure................................................17
   Section 6.2.  Covenant Against Competition...............................................17
   Section 6.3.  Injunctive Relief..........................................................17
   Section 6.4.  Access to Records..........................................................17
   Section 6.5.  Transition of Customers....................................................18
   Section 6.6.  Operate Business in the Ordinary Course....................................18
   Section 6.7.  Certain Negative Covenants.................................................18
   Section 6.8.  Update Disclosure..........................................................18
   Section 6.9.  Severability...............................................................18
   Section 6.10.  Further Assurances........................................................19
   Section 6.11.  Announcements.............................................................19
   Section 6.12.  Employees of Seller.......................................................19
ARTICLE VII.  CLOSING DELIVERIES............................................................19
   Section 7.1.  Deliveries by Seller.......................................................19
   Section 7.2.  Deliveries by Buyer........................................................20
ARTICLE VIII. CONDITIONS PRECEDENT TO CLOSING...............................................21
   Section 8.1.  Conditions to Obligation of Each Party to Effect the Transaction...........21
   Section 8.2.  Additional Conditions to Obligations of Buyer..............................21
   Section 8.3.  Additional Conditions to Obligations of Seller.............................22
ARTICLE IX.  TERMINATION, AMENDMENT AND WAIVER..............................................22
   Section 9.1.  Termination................................................................22
   Section 9.2.  Effect of Termination......................................................23
   Section 9.3.  Waiver.....................................................................23
ARTICLE X.    INDEMNIFICATION...............................................................23
   Section 10.1.  Survival of Representations, Warranties and Agreements....................23
   Section 10.2.  Indemnification...........................................................24
   Section 10.3.  Limitations on Indemnification............................................25


                                               i


   Section 10.4.  Procedure for Indemnification with Respect to Third-Party Claims..........26
   Section 10.5.  Procedure for Indemnification with Respect to Non-Third-Party Claims......27
   Section 10.6.  Cooperation in the Defense of Claims......................................27
ARTICLE XI.   MISCELLANEOUS PROVISIONS......................................................27
   Section 11.1.  Notices...................................................................27
   Section 11.2.  Entire Agreement..........................................................28
   Section 11.3.  Binding Effect; Assignment................................................28
   Section 11.4.  Captions..................................................................28
   Section 11.5.  Expenses of Transaction...................................................28
   Section 11.6.  Waiver; Consent...........................................................28
   Section 11.7.  No Third Party Beneficiaries..............................................29
   Section 11.8.  Counterparts..............................................................29
   Section 11.9.  Remedies of Buyer.........................................................29
   Section 11.10.  Bulk Sales Laws..........................................................29
   Section 11.11.  Governing Law; Consent to Jurisdiction...................................29
   Section 11.12.  Exhibits and Schedules...................................................30
   Section 11.13.  Knowledge................................................................30


                             TABLE OF DEFINED TERMS

Term                                                                                   Section
----                                                                                   -------

Accounts Payable........................................................................2.1(a)
Accrued Liabilities.....................................................................2.1(b)
Actual Closing Date Net Asset Value.....................................................3.4(b)
Adjusted Carrying Value.................................................................3.4(a)
Adjustment Report.......................................................................3.4(b)
Allocation Certificate.....................................................................3.5
Arbiter.................................................................................3.4(d)
Assignments and Assumptions.............................................................7.1(b)
Assumed Liabilities..........................................................................2
Business...............................................................Introductory Paragraphs
Business Day............................................................................3.4(a)
Buyer..................................................................Introductory Paragraphs
Certificate of Assumed Liabilities......................................................7.1(f)
Closing......................................................................................4
Closing Date.................................................................................4
Closing Payment............................................................................3.3
Code...............................................................................5.2(n)(iii)
Consigned Items............................................................................3.6
Contest Notice............................................................................10.5
Contracts...............................................................................1.1(f)
Contracts Liabilities...................................................................2.1(c)
Damages................................................................................10.2(a)
Deposit....................................................................................3.2
Employee Benefit Plans...............................................................5.2(n)(i)


                                              ii


Employee Severance Payments.............................................................5.2(t)
Encumbrances...............................................................................1.1
Environmental Laws..................................................................5.2(l)(ii)
Environmental Permits..............................................................5.2(l)(iii)
ERISA................................................................................5.2(n)(i)
Escrow Agent...............................................................................3.2
Escrow Agreement...........................................................................3.2
Estimated Closing Date Net Asset Value..................................................3.4(a)
Excluded Liabilities.........................................................................2
Execution Date.........................................................Introductory Paragraphs
Financial Statements....................................................................5.2(e)
GAAP....................................................................................3.4(a)
Governmental Authority..................................................................5.1(c)
Hazardous Material..................................................................5.2(l)(ii)
Indemnifiable Claim....................................................................10.2(a)
Indemnification Notice....................................................................10.4
Indemnified Party......................................................................10.3(d)
Indemnifying Party.....................................................................10.3(d)
Inventory...............................................................................1.1(g)
Knowledge................................................................................11.13
Lease...................................................................................7.1(i)
Losing Party............................................................................3.4(e)
Material Adverse Effect.................................................................5.2(a)
Miscellaneous Assets....................................................................1.1(i)
Non-Third Party Claim Indemnification Notice..............................................10.5
Objection Notice........................................................................3.4(c)
Permits.................................................................................1.1(c)
Personal Property.......................................................................1.1(a)
Preliminary Statement...................................................................3.4(a)
Prevailing Party........................................................................3.4(e)
Property...................................................................................1.1
Personal Property.......................................................................1.1(b)
Personal Property Leases................................................................1.1(e)
Premises................................................................................7.1(h)
Proprietary Rights......................................................................1.1(d)
Purchase Price.............................................................................3.1
Real Property..............................................................................1.1
Receivables.............................................................................1.1(b)
Seller.................................................................Introductory Paragraphs
Severance Contribution.....................................................................3.1
Warranty Liabilities....................................................................2.1(d)


                                           SCHEDULES

Schedule 1.1(a)  -    Personal Property
Schedule 1.1(b)  -    Receivables


                                              iii


Schedule 1.1(c)  -    Permits
Schedule 1.1(d)  -    Proprietary Rights
Schedule 1.1(e)  -    Personal Property Leases
Schedule 1.1(f)  -    Contracts
Schedule 1.1(g)  -    Inventory
Schedule 1.1(h)  -    Miscellaneous Assets
Schedule 1.1(l)  -    Excluded Assets
Schedule 1.1(m)  -    Real Property
Schedule 2.1(a)  -    Accounts Payable
Schedule 2.1(b)  -    Accrued Liabilities
Schedule 3.4(a)  -    Adjusted Carrying Value
Schedule 5.2(b)  -    Authorization
Schedule 5.2(c)  -    Conflicts
Schedule 5.2(f)  -    Changes
Schedule 5.2(g)  -    Liabilities
Schedule 5.2(h)  -    Taxes
Schedule 5.2(i)  -    Liens
Schedule 5.2(j)  -    Insurance
Schedule 5.2(k)  -    Litigation
Schedule 5.2(l)  -    Compliance with Laws
Schedule 5.2(n)  -    Employee Benefit Plans
Schedule 5.2(o)  -    Labor Matters
Schedule 5.2(p)  -    Encumbrances
Schedule 5.2(q)  -    Contracts and Commitments
Schedule 5.2(r)  -    Receivables
Schedule 5.2(s)  -    Non-GAAP Inventory
Schedule 5.2(t)  -    Employees


EXHIBITS

Exhibit A...Escrow Agreement
Exhibit B...Bill of Sale
Exhibit C...Assignments and Assumptions
Exhibit D...Assignment of Proprietary Rights
Exhibit E...Certificate of Assumed Liabilities
Exhibit F...Lease


                                       iv


                            ASSET PURCHASE AGREEMENT

            THIS AGREEMENT dated May 17, 2007 (the "Execution  Date"), is by and
between OLIVOTTO GLASS TECHNOLOGIES  S.P.A., an Italian  corporation  ("Buyer"),
and LYNCH SYSTEMS, INC., a South Dakota corporation ("Seller").

                              W I T N E S S E T H:

            WHEREAS,  Seller,  INTER ALIA, designs,  develops,  manufactures and
markets a broad range of manufacturing  equipment for the electronic display and
consumer glass industries (the "Business"); and

            WHEREAS,  Buyer  desires to  purchase,  and Seller  desires to sell,
certain of Seller's  operating  assets relating to the Business,  upon the terms
and subject to the conditions set forth in this Agreement.

            NOW,  THEREFORE,  in  consideration  of the  premises and the mutual
promises herein contained, Buyer and Seller hereby agree as follows:

                        ARTICLE I. ASSETS TO BE PURCHASED

            SECTION 1.1.  DESCRIPTION  OF ASSETS.  Upon the terms and subject to
the  conditions  set forth in this  Agreement,  Seller  hereby agrees to convey,
sell, transfer, assign and deliver to Buyer, and Buyer hereby agrees to purchase
from  Seller,  on the  Closing  Date (as defined  below),  free and clear of all
liens, security interests,  claims, pledges,  charges,  encumbrances,  equities,
rights of use, levies, taxes, imposts and restrictions (the "Encumbrances"), all
right, title and interest of Seller in and to the assets,  properties and rights
(contractual  or  otherwise)  of  Seller  that are used in  connection  with the
Business set forth below:

            (a) All machinery,  equipment, tooling, parts, furniture,  supplies,
      and other  tangible  personal  property  used in  conducting  the Business
      listed on Schedule 1.1(a) (the "Personal Property");

            (b)  All  accounts  receivable  relating  to or  arising  out of the
      operation of the Business listed on Schedule 1.1(b) (the "Receivables");

            (c) All franchises,  licenses,  permits,  consents,  authorizations,
      approvals and certificates of any  Governmental  Authority (as hereinafter
      defined) used in conducting  the Business  listed on Schedule  l.l(c) (the
      "Permits");

            (d) Subject to clause (xi) of the final  paragraph  of this  Section
      1.1,  all  patents,  inventions,  trade  secrets,  processes,  proprietary
      rights,  proprietary  knowledge,   know-how,  design  archives,   computer
      software, URLs, web sites including content and coding, trademarks, names,
      service marks, trade names,  copyrights,  symbols,  logos,  franchises and
      permits  owned by  Seller  and used in  conducting  the  Business  and all
      applications therefor,  registrations thereof and licenses, sublicenses or
      agreements in respect thereof, that Seller owns or has the right to use or
      to which Seller is a party and all filings,  registrations or issuances of


                                       1


      any of the  foregoing  with or by any  federal,  state,  local or  foreign
      Governmental  Authority and all related  goodwill as set forth on Schedule
      1.1(d) (collectively, the "Proprietary Rights");

            (e) All leases of equipment or other tangible personal property used
      in  conducting  the  Business  listed on Schedule  1.1(e)  (the  "Personal
      Property Leases");

            (f) All contracts,  agreements, contract rights, license agreements,
      third    party    guaranties,    indemnifications,    arrangements,    and
      understandings,  whether oral or written, to which Seller is a party which
      relate  to  the  License   Agreements   listed  on  Schedule  1.1(f)  (the
      "Contracts");

            (g) All  inventories of materials,  work-in-process,  finished goods
      and supplies listed on Schedule 1.1(g) (the "Inventory");

            (h) All security deposits,  prepaid expenses and other miscellaneous
      assets of the  Business  listed on  Schedule  1.1(h)  (the  "Miscellaneous
      Assets");

            (i) All books of  account,  customer  lists,  client  lists,  files,
      papers, records and telephone numbers used in conducting the Business;



 

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