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Title: |
Asset Purchase Agreement |
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Entities: |
Gevity HR Inc.; UBS Warburg LLC; Powell, Goldstein, Frazer & Murphy LLP; Sidley Austin Brown & Wood LLP |
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Date: |
2004 |
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Size: |
Preview shows 18KB of 112KB total |
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Price: |
$50 |
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ID: |
#356377 |
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ASSET PURCHASE AGREEMENT
AMONG
GEVITY HR, INC.,
EPIX HOLDINGS CORPORATION
AND
THE SUBSIDIARIES OF EPIX HOLDINGS CORPORATION NAMED HEREIN
March 26, 2004
{PAGE}
TABLE OF CONTENTS
LIST OF EXHIBITS AND SCHEDULES
{TABLE}
{S} {C}
1.0 Definitions 1
2.0 Basic Transaction 1
2.01 Purchase and Sale of Assets...................................................................... 1
2.02 Assumption of Assumed Liabilities................................................................ 1
2.03 Purchase Price and Payment....................................................................... 1
2.04 The Closing...................................................................................... 2
2.05 Deliveries at the Closing........................................................................ 2
2.06 Allocation....................................................................................... 3
2.07 Apportionments................................................................................... 3
2.08 Designated Employees............................................................................. 3
3.0 Representations and Warranties of the Seller and the Subsidiaries 4
3.01 Organization and Capitalization of the Seller and the Subsidiaries............................... 4
3.02 Authorization of Transaction..................................................................... 5
3.03 Non-contravention................................................................................ 5
3.04 Brokers' Fees.................................................................................... 5
3.05 Title to Assets.................................................................................. 6
3.06 Schedule of Transferred Clients 6
3.07 Tax Matters...................................................................................... 6
3.08 Powers of Attorney............................................................................... 6
3.09 Insurance Contracts.............................................................................. 6
3.10 Litigation....................................................................................... 7
3.11 Client Service Agreements........................................................................ 7
3.12 Worksite Employees; Designated Employees......................................................... 7
3.13 Assumed Employee Plans........................................................................... 8
3.14 Intentionally Omitted............................................................................ 10
3.15 Financial Statements............................................................................. 10
3.16 Events Subsequent to the Balance Sheet Date...................................................... 11
3.17 Legal Compliance................................................................................. 11
3.18 Disclosure....................................................................................... 11
3.19 Referral Sources................................................................................. 11
4.0 Representations and Warranties of the Purchaser. 11
4.01 Organization of the Purchaser.................................................................... 11
4.02 Authorization of Transaction..................................................................... 11
4.03 Non-contravention................................................................................ 12
4.04 Brokers' Fees.................................................................................... 12
5.0 Post-Closing Covenants 12
5.01 General; Access.................................................................................. 12
5.02 Litigation Support............................................................................... 13
5.03 Transition....................................................................................... 13
5.04 Confidentiality.................................................................................. 13
5.05 Covenant Not to Compete.......................................................................... 13
5.06 Tax Matters...................................................................................... 14
5.07 WARN Act......................................................................................... 14
5.08 Agreements with Referral Sources................................................................. 14
5.09 Voluntary Correction Program..................................................................... 15
{/TABLE}
i
{PAGE}
{TABLE}
{S} {C}
6.0 Remedies for Breaches of this Agreement. 15
6.01 Survival of Representations, Warranties, Covenants and Agreements................................ 15
6.02 Indemnification Provisions for Benefit of the Purchaser.......................................... 15
6.03 Indemnification Provisions for Benefit of the Seller............................................. 17
6.04 Matters Involving Third Parties.................................................................. 18
6.05 Exclusive Remedies............................................................................... 19
6.06 Mitigation....................................................................................... 19
7.0 Miscellaneous. 19
7.01 Employee Matters................................................................................. 19
7.02 Press Releases and Public Announcements.......................................................... 19
7.03 No Third Party Beneficiaries..................................................................... 20
7.04 Entire Agreement................................................................................. 20
7.05 Succession and Assignment........................................................................ 20
7.06 Counterparts..................................................................................... 20
7.07 Headings......................................................................................... 20
7.08 Notices.......................................................................................... 20
7.09 Governing Law.................................................................................... 21
7.10 Amendments and Waivers........................................................................... 21
7.11 Severability..................................................................................... 22
7.12 Expenses......................................................................................... 22
7.13 Construction..................................................................................... 22
7.14 Incorporation of Exhibits and Schedules.......................................................... 22
7.15 Specific Performance............................................................................. 22
{/TABLE}
Exhibit A - List of Subsidiaries
Exhibit B - Form of Transition Services Agreement
Exhibit C - Apportionment Schedule
Exhibit D - Professional Services Agreement
Exhibit E - Assignment and Assumption Agreements
Exhibit F - Escrow Agreement
DISCLOSURE SCHEDULE
Schedule of Transferred Clients: List of Clients, Annual Administrative Fee,
Number of Worksite Employees and Other Information
ii
{PAGE}
ASSET PURCHASE AGREEMENT
This Asset Purchase Agreement (this "Agreement") is made and entered
into as of March 26, 2004, by and among Gevity HR, Inc., a Florida corporation
(the "Purchaser"), EPIX Holdings Corporation, a Delaware corporation (the
"Seller"), and the subsidiaries of the Seller listed on Exhibit A attached
hereto (individually, a "Subsidiary", and collectively, the "Subsidiaries"). The
Purchaser, the Seller and the Subsidiaries are referred to herein individually
as a "Party" and collectively as the "Parties."
RECITALS
WHEREAS, this Agreement contemplates a transaction in which
simultaneously with the execution and delivery of this Agreement the Purchaser
will purchase, and the Seller and the Subsidiaries will sell and assign to
Purchaser, certain assets of the professional employer organization services
business (the "PEO Business") of the Seller and the Subsidiaries.
NOW, THEREFORE, in consideration of the premises and the mutual
promises made in this Agreement, and in consideration of the representations,
warranties, and covenants contained in this Agreement, the Parties agree as
follows.
1.0 DEFINITIONS. For purposes of this Agreement and the Acquisition
Documents, the capitalized terms shall have the meanings set forth in the
attached Glossary of Terms.
2.0 BASIC TRANSACTION.
2.01 Purchase and Sale of Assets. Upon and subject to the
terms and conditions of this Agreement, simultaneously with the execution and
delivery of this Agreement, the Purchaser is purchasing from the Seller and the
Subsidiaries, and the Seller and the Subsidiaries are selling, transferring,
conveying, assigning, and delivering to the Purchaser, all of the Acquired
Assets, free and clear of all liens, claims, charges, Security Interests, and
encumbrances of any kind or nature.
2.02 Assumption of Assumed Liabilities. Upon and subject to
the terms and conditions of this Agreement, simultaneously with the execution
and delivery of this Agreement, the Purchaser is assuming and becoming
responsible for the performance and satisfaction of the Assumed Liabilities.
Under no circumstances will the Purchaser assume or have any responsibility with
respect to any of the Excluded Liabilities. The Seller will remain responsible
for the performance and satisfaction of the Excluded Liabilities.
2.03 Purchase Price and Payment.
(a) The purchase price for the Acquired Assets shall
be $36 million, subject to adjustment as provided in Section 2.03(b) (the
"Purchase Price"). Simultaneously with the execution and delivery of this
Agreement, the Purchaser is delivering $33.5 million of the Purchase Price to
EPIX I, Inc., for its own account as a Subsidiary and as agent for the Seller
and the Subsidiaries, by wire transfer or other delivery of immediately
available funds. On the Closing Date, the Purchaser will deposit $2.5 million of
the Purchase Price with the Escrow
1
{PAGE}
Agent, to be held and disbursed in accordance with this Agreement and the
provisions of the Escrow Agreement.
(b) In the event the Seller is required to pay
directly or indirectly to AIG a Short-Rate Penalty as a result of the
termination by the Seller of its workers' compensation insurance program with
AIG, the Purchase Price shall be increased by an amount equal to one-half of the
amount of the Short-Rate Penalty paid by the Seller to AIG up to a maximum
amount of $800,000, and references to the Purchase Price in this Agreement shall
mean the sum of (i) $36 million plus (ii) the amount owed by the Purchaser
pursuant to this Section 2.03(b). The Purchaser shall pay any amount so owed by
wire transfer of immediately available funds to an account specified by the
Seller within three days after receiving notice from the Seller specifying the
amount of such short-rate penalty due, accompanied by written evidence
reasonably satisfactory to the Purchaser establishing that such payment is due.
2.04 The Closing. The Closing is taking place simultaneously
with the execution and delivery of this Agreement at the offices of the
Purchaser, 600 301 Boulevard West, Suite 202, Bradenton, Florida. The Closing
shall be effective and deemed to occur for all purposes hereunder at 12:01 a.m.
eastern time on March 27, 2004 following the Closing Date (the "Effective
Time").
2.05 Deliveries at the Closing. In addition to any other
documents to be delivered under other provisions of this Agreement, at the
Closing:
(a) the Seller and the Purchaser have approved the
attached schedule of Transferred Clients which identifies as of March 19, 2004
(i) each of the Transferred Clients, (ii) the annualized administrative fees for
such Transferred Clients, (iii) the number of Worksite Employees of such
Transferred Clients and (iv) the payroll processing periods for the Transferred
Clients (the "Schedule of Transferred Clients");
(b) the Seller has executed, acknowledged (if
appropriate) and delivered (or caused the Subsidiaries to execute, acknowledge
and deliver) to the Purchaser:
(i) evidence that the consents listed in
Schedule 2.05 of the Disclosure Schedule have all been
obtained;
(ii) assignment agreement(s) transferring
title to the Acquired Assets to the Purchaser in the form
attached as Exhibit E; and
(iii) a certificate of the Secretary of the
Seller and the Secretaries of each of the Subsidiaries
certifying and attaching all requisite resolutions or actions
of the boards of directors and shareholders of the Seller and
the Subsidiaries approving the execution and delivery by the
Seller and the Subsidiaries, as the case may be, of the
Acquisition Documents to which they are a party and the
consummation of the transactions contemplated in such
Acquisition Documents, and certifying to the incumbency and
signatures of the officers of the Seller and the Subsidiaries
executing the Acquisition Documents and any other document
relating to the transactions contemplated by this Agreement;
2
{PAGE}
(c) the Purchaser has executed, acknowledged (if
appropriate), and delivered to the Seller and the Subsidiaries:
(i) assumption agreement(s) pursuant to
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