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8-K - FORM 8-K - PROFESSIONAL VETERINARY PRODUCTS LTD /NE/ | c60250e8vk.htm |
Exhibit 2.1
ASSET SALE AND PURCHASE AGREEMENT
THIS ASSET SALE AND PURCHASE AGREEMENT (this Agreement) is made and entered into this 9th
day of September, 2010, by and between PROFESSIONAL VETERINARY PRODUCTS, LTD., Debtor in
Possession, a Nebraska corporation (hereinafter referred to as Seller), and IVESCO Holdings LLC,
a Delaware limited liability company (hereinafter referred to as Buyer).
WITNESSETH:
WHEREAS, Seller is currently, in possession of its assets as a Debtor in Possession pursuant
to Title 11, U.S. Code, in the Chapter 11 case of Professional Veterinary Products, Ltd., Case No.
10-82436 (hereinafter referred to as the Bankruptcy Case), presently pending in the United States
Bankruptcy Court for the District of Nebraska (hereinafter referred to as the Bankruptcy Court),
and Seller, upon proper approval and authorization from the Bankruptcy Court, may sell and assign
assets outside of the ordinary course of business;
WHEREAS, Buyer has submitted a Bid, pursuant to and as defined in the Auction and Bid
Procedures (the Bid Procedures) approved by the Bankruptcy Court pursuant to its August 26, 2010
Order Approving Auction and Bid Procedures for Sale of Certain of the Debtors Assets (Docket No.
78).
WHEREAS, Seller has selected Buyer as a Stalking Horse Bidder, as defined in the Bid
Procedures, and
WHEREAS, Seller desires to sell, assign, transfer and convey to Buyer certain of its
properties and assets, and Buyer desires to acquire such properties and assets, all upon the terms
and conditions set forth herein;
NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
contained herein, the parties hereto agree as follows:
SECTION 1. DEFINITIONS.
The following terms used in this Agreement shall have the following meanings unless some other
meaning is clearly intended:
Auction and Bid Procedures means the process described in Exhibit C hereto.
Closing means the closing of the transaction contemplated by this Agreement.
Closing Date means the second business day following the satisfaction of all conditions
precedent to the consummation of the transactions contemplated by this Agreement (as set forth in
Sections 8 and 9 of this Agreement), or such other date as the parties may mutually agree upon in
writing.
Code means the United States Bankruptcy Code (Title 11 of the United States Code) as in
effect on the date hereof.
Debtors means Exact Logistics, LLC; ProConn, LLC; and Seller.
Deposit means the deposit in the amount of $339,988 delivered by Buyer to Sellers Counsel
pursuant to the Bid Procedures.
Disclosure Schedule means Exhibit D attached hereto and made a part hereof
containing the various exceptions to the representations, warranties and covenants of Seller
contemplated by the provisions of this Agreement and other information pertinent to this Agreement
or the Closing.
Employees means the employees of Seller as of the Closing Date.
Excluded Inventory means those goods and that product and material that prior to the Closing
Date, the Sellers (i) identify as being (x) not in good condition, (y) not merchantable and/or (z)
having a manufacturers dating of less than 6 months remaining; and (ii) segregate from the
Inventory.
Inventory has the meaning set forth on Exhibit A but shall not include the Excluded
Inventory.
Knowledge means the actual knowledge of Steve Price, as such knowledge may exist at the date
hereof without inquiry into the matter to which reference to Knowledge is made.
SECTION 2. PURCHASE OF ASSETS AND ASSUMPTION OF LIABILITIES.
2.1 Assets. Subject to the terms and conditions hereof, and subject to the
representations and warranties made herein, on the Closing Date Seller will sell, assign, transfer
and convey to Buyer all of Sellers right, title and interest in and to the Inventory (the
Transferred Assets). The Transferred Assets shall not include the Excluded Inventory.
2.2 As Is Transaction. BUYER HEREBY ACKNOWLEDGES AND AGREES THAT, EXCEPT AS
OTHERWISE EXPRESSLY PROVIDED HEREIN, SELLER MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND,
EXPRESS OR IMPLIED, WITH RESPECT TO THE TRANSFERRED ASSETS, OR INCOME TO BE DERIVED OR EXPENSES TO
BE INCURRED IN CONNECTION THEREWITH, THE ENVIRONMENTAL CONDITION OR OTHER MATTER RELATING TO THE
PHYSICAL CONDITION OF ANY TANGIBLE PERSONAL PROPERTY OR ANY REAL PROPERTY OR IMPROVEMENTS (REAL
ESTATE) LEASED BY SELLER, THE ZONING OF ANY SUCH REAL ESTATE, THE VALUE OF THE TRANSFERRED ASSETS
(OR ANY PORTION THEREOF), THE TITLE TO THE TRANSFERRED ASSETS (OR ANY PORTION THEREOF). WITHOUT IN
ANY WAY LIMITING THE FOREGOING, SELLER HEREBY DISCLAIMS ANY WARRANTY, EXPRESS OR IMPLIED, OF
MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE AS TO ANY PORTION OF THE TRANSFERRED ASSETS.
BUYER FURTHER ACKNOWLEDGES THAT BUYER HAS CONDUCTED AN INDEPENDENT INSPECTION AND INVESTIGATION OF
THE PHYSICAL CONDITION OF THE TRANSFERRED ASSETS AND OTHER MATTERS RELATING TO OR AFFECTING THE
TRANSFERRED ASSETS AS BUYER DEEMED NECESSARY OR APPROPRIATE AND THAT IN PROCEEDING WITH ITS
ACQUISITION OF THE TRANSFERRED ASSETS, EXCEPT FOR ANY REPRESENTATIONS AND WARRANTIES EXPRESSLY SET
FORTH HEREIN, BUYER IS DOING SO BASED SOLELY UPON SUCH INDEPENDENT INSPECTIONS AND INVESTIGATIONS.
ACCORDINGLY, BUYER WILL ACCEPT THE TRANSFERRED ASSETS AT THE CLOSING AS IS, WHERE IS, AND WITH
ALL FAULTS.
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2.3 No Assumption of Liabilities. The Buyer does not assume any debts,
obligations or liabilities of Seller. Any and all debts, obligations and liabilities of Seller
whether accrued or contingent or due or not due shall be and remain the obligations and
liabilities of Seller to pay or discharge, and Buyer shall not be obligated for them or be deemed
to have assumed them by reason of the purchase of the Transferred Assets or otherwise.
2.4 Employees. Buyer shall have the right, but no obligation to offer employment to
any Employees of Seller. Buyer does not anticipate that it will offer employment to any of Sellers
Employees. In the event Buyer, in its sole discretion, shall determine to offer employment to any
of the Employees of Seller, Buyer, in its sole discretion shall determine the compensation and
benefits it offers to any such Employees. Buyer shall not be obligated to adopt or maintain any
particular employee benefit for any of Sellers Employees hired by Buyer.
2.5 Excluded Assets. Buyer shall not purchase any assets or rights other than the
Inventory described in Section 2.1 above. All assets other than the Inventory shall be referred to
herein as the Excluded Assets.
SECTION 3. PURCHASE PRICE.
3.1 Amount. The purchase price for the Transferred Assets (the Purchase Price)
shall be $3,399,876 (a) less the book value of Inventory, as of the Closing Date, that is not in
good condition and not merchantable (collectively, the Nonmerchantable Inventory); (b) less the
book value of Inventory, as of the Closing Date, with manufacturers datings of less than 6 months
remaining (collectively, the Stale Inventory); (c) less the positive difference, if any, between
(x) the book value of Inventory as reported by Seller as of September 7, 2010; and (y) the Closing
Date Inventory Value. For purposes of clarity, the book value of Inventory as reported by Seller
as of September 7, 2010 included the book value of the Excluded Inventory and will be included in
the computation mandated by Section 3.1(c)(x).
3.2 Payment of Purchase Price. At the Closing on the Closing Date, (i) Buyer shall
pay $2,379,913 to Seller by wire transfer in accordance with the instructions on Exhibit F;
and (ii) Seller shall cause its Counsel to deliver the Deposit to Seller on Buyers behalf
(collectively, the Closing Payment). The balance of the Purchase Price, if any, shall be paid in
accordance with and pursuant to Section 3.9.
3.3 Supplemental Purchase Price. Buyer shall pay to Seller 30% of the net sales
proceeds realized from its sale of the Excess Inventory, as defined on Exhibit A (the Supplemental
Purchase Price). For purposes of this Section 3.3, net sales proceeds shall mean the sales
proceeds received by Buyer from the third party liquidators less shipping and logistics expenses.
3.4 Payment of Supplemental Purchase Price. The Supplemental Purchase Price shall be
paid to Seller within 150 days of the Closing after any setoff for claims Buyer holds pursuant to
Section 3.9.
3.5 Estimated Inventory Value. On the Closing Date, Seller shall prepare and deliver
to Buyer a statement setting forth Sellers good faith determination of the book value of the
Inventory based upon a physical inventory completed by Seller on the day before the Closing Date
(the Closing Date Inventory Value). Buyer, or its agents, shall have the right to be present and
observe the physical inventory completed by Seller. The Closing Date Inventory Value shall not
include the value of Excluded Inventory.
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3.6. Preliminary Statement. No later than five (5) business days following Buyers
removal of the Inventory from Sellers facilities pursuant to Section 3.10, Buyer shall prepare and
deliver to Seller a draft settlement statement (the Preliminary Inventory Statement) setting
forth (i) the identity and book value, as of the Closing Date, of the Nonmerchantable Inventory;
(b) the identity and book value, as of the Closing Date, of Stale Inventory; and (c) Buyers
calculation of the book value of Inventory as reported by Seller as of September 7, 2010; and the
Closing Date Inventory Value. Seller or its agent(s) shall have the right to be present at such
time as Buyer takes possession of the Inventory and categorizes the Inventory as Nonmerchantable
Inventory and/or Stale Inventory. If Seller elects not to be present at such time as Buyer takes
possession of the Inventory and categorizes the Inventory as Nonmerchantable Inventory and/or Stale
Inventory, Seller shall be bound by Buyers determinations of the Nonmerchantable Inventory and the
Stale Inventory.
3.7. Buyer Review. Seller shall have five (5) business days following receipt of the
Preliminary Inventory Statement (the Review Period) to notify Buyer in writing of any objections
to the Preliminary Inventory Statement (a Notice of Objection). Any such Notice of Objection
shall specify in reasonable detail the nature of each objection so asserted and the basis
therefore. If Seller does not deliver any Notice of Objection during the Review Period, the
Inventory Value set forth on the Preliminary Inventory Statement shall become final and binding.
3.8 Arbitration. In the event the parties shall be unable to resolve within ten (10)
business days any matter set forth in a Notice of Objection, such disagreement shall be referred
for resolution to a mutually acceptable third party selected by the parties (the Arbitrator).
The Arbitrator shall be requested to furnish written notice to Seller and Buyer of its resolution
of any such disagreements referred as soon as practicable and such resolution shall be final and
binding upon the parties. All fees, costs and expenses of the Arbitrator shall be paid by the
party whose calculation of the Inventory values differs the greatest from the Inventory values
determined by the Arbitrator.
3.9 Settlement. Within three (3) business days following the date the Inventory value
becomes final and binding pursuant to the terms of this Section 3, Seller shall, at its cost and
expense, remove the Nonmerchantable Inventory and the Stale Inventory from the Buyers premises.
Within three (3) days following the date the Inventory values becomes final and binding pursuant to
the terms of this Section 3, Buyer shall remit to Seller, in immediately available funds, the
amount, if any, by which the Purchase Price exceeds the Closing Payment (plus interest thereon from
the Closing Date at the Prevailing Rate), or, in the event the Closing Payment exceeds the Purchase
Price, Seller shall remit to Buyer, in immediately available funds, the amount of such overpayment
(plus interest thereon from the Closing Date at the Prevailing Rate). For purposes of this
Agreement, the Prevailing Rate shall mean six percent (6%) per annum. In the event Seller
fails to immediately remit to Buyer in immediately available funds the amount of Buyers
overpayment, Buyer shall be permitted to setoff amounts owing to the Seller pursuant to Section 3.4
without further order of the Bankruptcy Court.
3.10 Inventory Removal. Buyer shall remove all Inventory from Sellers facilities
within three (3) weeks following Closing (the Removal Date). During the period between Closing
and the Removal Date, Seller shall maintain security and utility service at its facilities and
shall provide Buyer with access to conduct the removal of the Inventory. Buyer shall be
responsible for any damage, injury or death occurring during or by reason of the removal of such
Inventory. If such Inventory is not removed by such date, Buyer shall reimburse Seller for any
costs incurred by Seller after such date which are directly related to such Inventory.
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SECTION 4. CLOSING.
4.1 Closing Date. The Closing shall take place at 10:00 a.m. on the Closing Date, at
the office of McGrath North Mullin & Kratz, PC LLO, 1601 Dodge Street, Suite 3700, Omaha, Nebraska
68102.
4.2 Transfer of Assets. At the Closing on the Closing Date, effective as of 11:59
p.m.:
(a) Seller shall sell, assign, transfer and convey to Buyer (or its designee) all of its
right, title and interest in and to the Transferred Assets. Such sale, assignment, transfer and
conveyance shall be effected or evidenced by delivery by Seller to Buyer of applicable bills of
sale, assignments/assumptions and other documents reasonably acceptable in form and substance to
Buyer and Seller. Buyer shall pay all applicable transfer, sales and use taxes on the transfer.
SECTION 5. SELLERS REPRESENTATIONS AND WARRANTIES.
Seller hereby represents and warrants to Buyer as follows (except as set forth on the
Disclosure Schedule):
5.1 Authorization for Agreement. The execution, delivery and performance of this
Agreement by Seller and the consummation of the transactions contemplated hereby will have been
duly authorized by all necessary actions of Seller prior to the Closing, and this Agreement is, and
any documents or instruments to be executed and delivered by Seller pursuant hereto will be, legal,
valid and binding obligations of Seller enforceable in accordance with their terms.
5.2 Organization. Seller is a corporation duly organized, validly existing and in
good standing under the laws of the State of Nebraska. Subject to Bankruptcy Court approval, Seller
has all requisite corporate power and authority to enter into this Agreement and to sell, assign,
transfer and convey the Transferred Assets to Buyer under this Agreement. Except as set forth on
the Disclosure Schedule, neither the execution and delivery of this Agreement nor the sale of the
Transferred Assets by Seller requires the consent or approval of, the giving of notice to,
registration, filing or recording with or the taking of any other action by Seller in respect of
any federal, state or local governmental authority.
5.3 Title to Properties. Seller has good title to all of the Transferred Assets. At
the Closing, Seller will transfer to Buyer good title to all of the Transferred Assets, free and
clear of all liens, security interests, claims and encumbrances.
5.4 No Litigation. No suit, action or legal, administrative, arbitration or other
proceeding or, to Sellers Knowledge, no investigation by any governmental agency, pertaining to
the Transferred Assets, is pending or, to Sellers Knowledge, has been threatened by or against
Seller concerning or arising out of Sellers use, operation or ownership of the Transferred Assets.
5.5 Finders Fee. Other than Alliance Management, whose fee shall be paid by Seller,
Seller has not employed or retained any broker, agent, finder or other party, or incurred any
obligation for brokerage fees, finders fees or commissions with respect to the transactions
contemplated by this Agreement, or otherwise dealt with anyone purporting to act in the capacity of
a finder or broker with respect thereto.
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5.6 No Violations. To Sellers Knowledge, (a) Sellers operation, use and ownership
of the Transferred Assets is in material compliance with all applicable laws, regulations, codes,
orders and decrees, (b) there are no pending, threatened or asserted investigations or violations
of any applicable laws, regulations, orders, ordinances, decrees, permits, or codes asserted
against Seller in connection with its use, operation or ownership of the Transferred Assets, and
(c) the sale of the Transferred Assets to Buyer pursuant to the terms of this Agreement will not
violate, breach or cause a default under any applicable laws, regulations, orders, permits or
codes, or the charter, bylaws or any agreement to which Seller is party or any of the Transferred
Assets are subject.
SECTION 6. REPRESENTATION AND WARRANTIES OF BUYER.
Buyer represents and warrants to Seller as follows:
6.1 Authorization for Agreement. The execution, delivery and performance of this
Agreement by Buyer and the consummation of the transactions contemplated hereby will have been duly
authorized by all necessary actions of Buyer prior to the closing, and this Agreement is, and any
documents or instruments to be executed and delivered by Buyer pursuant hereto will be, legal,
valid and binding obligations of Buyer enforceable in accordance with their terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, moratorium, or similar laws
from time to time in effect which affect creditors rights generally and by legal and equitable
limitations on the availability of equitable remedies.
6.2 Organization. Buyer is a limited liability company duly organized, validly
existing and in good standing under the laws of the State of Delaware. Buyer has all requisite
power and authority to enter into this Agreement and to perform its obligations hereunder. Neither
the execution and delivery of this Agreement nor the consummation of the transactions contemplated
hereby by Buyer requires the consent or approval of, the giving of notice to, registration, filing
or recording with or the taking of any other action by Buyer in respect of any federal, state or
local governmental authority.
6.3 No Violation. The execution and delivery of this Agreement and all other
agreements, instruments and documents contemplated hereby by Buyer and the consummation of the
transactions contemplated hereby and thereby will not conflict with or violate or constitute a
breach or default under the articles of incorporation of Buyer or any provision of any mortgage,
trust indenture, lien, lease, agreement, instrument, or court order, judgment or decree to which
Buyer is bound.
6.4 Finders Fees. Buyer has not employed or retained any broker, agent, finder or
other party or incurred any obligation for brokerage fees, finders fees or commissions with
respect to the transactions contemplated by this Agreement, or otherwise dealt with anyone
purporting to act in the capacity of a finder or broker with respect thereto.
6.5 No Litigation. No suit, action or legal, administrative, arbitration or other
proceeding or, to Buyers knowledge, no investigation by any governmental agency, is pending or, to
Buyers knowledge, has been threatened by or against Buyer which would materially and adversely
affect the ability of Buyer to consummate the transaction provided for in this Agreement.
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SECTION 7. COVENANTS OF SELLER.
7.1 Sellers Chapter 11 Bankruptcy Case. On September 10, 2010 or such later date as
set by the Bankruptcy Court, Seller shall seek the Bankruptcy Courts entry of an Order approved by
the Buyer in its reasonable discretion which (a) authorizes Sellers sale of the Transferred Assets
to Buyer pursuant to this Agreement; and (b) authorizes the payment of a breakup fee in the amount
of $100,000 at any closing of a sale of the Inventory to a purchaser other than Buyer, so long as
the conditions set forth in Section 9 hereof have been satisfied.
7.2 Access. From and after the date of this Agreement until the Closing Date, Seller
shall, upon reasonable advance notice, (i) afford to Buyers officers, independent public
accountants, counsel, lenders, consultants and other representatives, reasonable access during
normal business hours to the Transferred Assets and all records pertaining to the Transferred
Assets, and (ii) provide introductions to Sellers suppliers and customers which relate to the
Inventory. Buyer, however, shall not be entitled to access to any materials containing privileged
communications or information about employees, disclosure of which might violate an employees
reasonable expectation of privacy. Buyer expressly acknowledges that nothing in this Section is
intended to give rise to any contingency to Buyers obligations to proceed with the transactions
contemplated herein.
7.3 Ordinary Course. Subject to the purchase and sale of inventory in the ordinary
course of business, prior to and up to the Closing, Seller shall maintain the Transferred Assets in
the manner in which they have been maintained since the commencement of the bankruptcy proceedings
and maintain the Transferred Assets in substantially the same condition as of the date of this
Agreement, ordinary wear and tear excepted.
7.4 Notice of Developments. Seller shall give Buyer prompt written notice of any
material adverse development causing a breach of any of its own representations and warranties or
its inability to meet the closing conditions set forth in Section 8.
7.5 Efforts to Close. Subject to the terms and conditions of this Agreement, Seller
agrees to use reasonable good faith efforts to take, or cause to be taken, all actions and to do,
or cause to be done, all things necessary, proper or advisable under applicable laws, regulations
and agreements to consummate and make effective the transactions contemplated by this Agreement.
SECTION 8. CONDITIONS PRECEDENT TO BUYERS OBLIGATIONS.
The obligations of Buyer at the Closing hereunder are subject, at Buyers election, to the
satisfaction on or prior to the Closing Date of the conditions set forth below. Notwithstanding the
failure of any one or more of such conditions (other than the approval of the Bankruptcy Court),
Buyer may nevertheless proceed with Closing without satisfaction, in whole or in part, of any one
or more of such conditions and without written waiver.
8.1 Representations and Warranties. The representations and warranties made by Seller
in this Agreement shall be true and correct in all material respects on and as of the Closing Date
with the same effect as though such representations and warranties had been made or given on and as
of the Closing Date.
8.2 Compliance with Agreement. Seller shall have performed and complied in all
material respects with all of its obligations under this Agreement which are to be performed or
complied with by it prior to or on the Closing Date.
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8.3 Bankruptcy Court Approval. This Agreement and the transactions contemplated
thereby and the bid protections set forth in Exhibit C (including the break-up fee and bid
protection provided for therein) shall have been approved by the Bankruptcy Court as provided in
Exhibit C, and a final unstayed court order shall have been entered on or before September
10, 2010 (or such later time to which Buyer consents in writing), in the form of Exhibit I
hereto or otherwise approved by Buyer in writing (a) authorizing the sale of the Transferred Assets
to Buyer in accordance with the provisions of this Agreement, free and clear of all liens, claims
and encumbrances, pursuant to Sections 363(b) and (f) of the Code, containing a good faith
finding as to Buyer pursuant to Section 363(m) of the Code; and (b) approving the payment of a
break-up fee in the amount of $100,000 to Buyer in the event that the Bankruptcy Court approves the
sale of the Inventory to another party, so long as the conditions set forth in Section 9 hereof
have been satisfied.
8.4. Financing. On or before September 13, 2010, Buyer shall have received the
necessary consent and approval of Wells Fargo Capital Finance to finance Buyers payment of the
Purchase Price.
SECTION 9. CONDITIONS PRECEDENT TO SELLERS OBLIGATIONS.
The obligations of Seller at the Closing hereunder are subject, at Sellers election, to the
satisfaction on or prior to the Closing Date of the conditions set forth below. Notwithstanding the
failure of any one or more of such conditions, Seller may nevertheless proceed with Closing without
satisfaction, in whole or in part, of any one or more of such conditions and without written
waiver.
9.1 Representations and Warranties. The representations and warranties made by Buyer
in this Agreement shall be true and correct in all material respects on and as of the Closing Date
with the same effect as though such representations and warranties had been made or given on and as
of the Closing Date.
9.2 Compliance with Agreement. Buyer shall have performed and complied in all
material respects with all of its obligations under this Agreement which are to be performed or
complied with by it prior to or on the Closing Date.
9.3. Financing. On or before September 13, 2010, Buyer shall have received the
necessary consent and approval of Wells Fargo Capital Finance to finance Buyers payment of the
Purchase Price.
SECTION 10. SURVIVAL OF COVENANTS, AGREEMENTS, REPRESENTATIONS AND WARRANTIES.
The representations and warranties contained in this Agreement shall not survive the Closing;
provided, however, that all of Buyers covenants, agreements and obligations contained in Section
2.2 and Section 3 shall survive the Closing indefinitely.
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SECTION 11. MISCELLANEOUS.
11.1 Expenses. Except for the break-up fee contemplated by this Agreement, each of
the parties hereto agrees to be responsible for its own, without right of reimbursement from the
other, costs incurred by it incident to the performance of its obligations hereunder, whether or
not the transactions contemplated by this Agreement shall be consummated, including, without
limitation, those costs incident to the preparation of this Agreement, and the fees and
disbursements of legal counsel, accountants and consultants employed by the respective parties in
connection with the transactions contemplated by this Agreement.
11.2 Termination and Abandonment. This Agreement may be terminated and abandoned on
or prior to the Closing Date as follows: (a) by mutual written consent of the parties hereto, (b)
by Seller if the conditions precedent contained in Section 9 hereof have not been fulfilled on or
prior to the Closing Date, (c) by Buyer if the conditions precedent contained in Section 8 hereof
have not been fulfilled on or prior to the Closing Date, or (d) by either party if either the
approval of the Closing by the Bankruptcy Court is not obtained or if the Closing has not occurred,
in each case, within 10 days after the date hereof for reasons other than the breach or default of
Seller or Buyer. In the event of termination by any party as provided above, written notice shall
promptly be given to the other party and each party shall pay its own expenses incident to the
preparation for the consummation of this Agreement and the transactions contemplated hereby. If
the Closing does not occur due to the failure of Buyer to close in breach of its obligations under
this Agreement, the damages that Seller may claim as a result of such breach shall be liquidated
and limited to the amount of the Deposit and the parties agree that such amount constitutes
reasonable liquidated damages for Buyers wrongful failure to close.
11.3 Inform of Litigation. During the period from the date of this Agreement to the
Closing Date, each party will promptly inform the other party in writing of any litigation
commenced against such party in respect of the transactions contemplated by this Agreement.
11.4 Assignment. This Agreement shall not be assigned by either party without the
prior written consent of the other party and any attempted assignment without such written consent
shall be null and void and without legal effect.
11.5 Governing Law. This Agreement shall be governed by and construed and interpreted
in accordance with the laws of the State of Nebraska applicable to agreements made and to be
performed entirely within such state, including all matters of construction, validity and
performance.
11.6 Amendment and Modification. Buyer and Seller may amend, modify and supplement
this Agreement in such manner as may be mutually agreed by them in writing.
11.7 Notices. All notices, requests, demands and other communications hereunder shall
be deemed to be duly given if delivered by hand, if mailed by certified or registered mail with
postage prepaid, if delivered by fax (with confirmation confirmed) or if sent by
nationally-recognized overnight courier as follows:
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If to Seller: | ||
Professional Veterinary Products, Ltd. | ||
10077 South 134th Street | ||
Omaha, NE 68138 | ||
Attention: Steve Price | ||
With a copy to: | ||
McGrath North Mullin & Kratz, PC LLO | ||
First National Tower | ||
1601 Dodge Street | ||
Suite 3700 | ||
Omaha, NE 68102 | ||
Attention: Robert Bothe, Esq. | ||
Patrick Straka, Esq. | ||
Fax: (402) 341-0216 | ||
and to: | ||
Alliance Management | ||
Carlson Towers, Suite 110 | ||
601 Carlson Parkway | ||
Minneapolis, MN 55305 | ||
Attn: Alex Smith | ||
James Cullen | ||
If to Buyer: | ||
IVESCO Holdings LLC | ||
910 Shaver Street | ||
Springdale, AR 72762 | ||
Attn: Robert DiMarzo | ||
Office:479-717-1800 | ||
800-222-6945 | ||
FAX: 800-433-9715 | ||
email: robert.dimarzo@ivescollc.com |
or to such other addresses as either party may provide to the other in writing.
11.8 Entire Agreement. Except for any confidentiality agreements between the parties
(which shall survive the execution and delivery of this Agreement), this Agreement cancels, merges
and supersedes all prior and contemporaneous understandings and agreements relating to the subject
matter of this Agreement, written or oral, between the parties hereto and contains the entire
agreement of the parties hereto, and the parties hereto have no agreements, representations or
warranties relating to the subject matter of this Agreement which are not set forth herein.
11.9 Successors. This Agreement shall be binding upon and shall inure to the benefit
of each of the parties hereto and to their respective successors and permitted assigns. In the
event that a Chapter 11 trustee should be appointed for Seller, or in the event that Sellers
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Chapter 11 case should be converted to a case under Chapter 7, the obligations of Seller
hereunder shall be binding upon such trustee or successor Chapter 7 estate.
11.10 Counterparts. This Agreement may be executed in one or more counterparts each
of which shall be deemed an original but all of which together shall constitute but one and the
same instrument.
11.11 Headings. The headings used in this Agreement are for convenience only and
shall not constitute a part of this Agreement.
11.12 Schedules. All of the exhibits and schedules attached hereto are incorporated
herein and made a part of this Agreement by reference.
11.13 Jurisdiction. During Sellers Bankruptcy Case, any suit, action or proceeding
between the parties hereto relating to this Agreement or to any agreement, document or instrument
delivered pursuant hereto or in connection with the transactions contemplated hereby, or in any
other manner arising out of or relating to the transactions contemplated by or referenced in this
Agreement shall be commenced and maintained exclusively in the Bankruptcy Court. The parties hereto
submit themselves unconditionally and irrevocably to the personal jurisdiction of such court.
Subsequent to Sellers Bankruptcy Case, any suit, action or proceeding between the parties hereto
relating to this Agreement or to any agreement, document or instrument delivered pursuant hereto or
in connection with the transactions contemplated hereby, or in any other manner arising out of or
relating to the transactions contemplated by or referenced in this Agreement shall be commenced and
maintained exclusively in the United States District Court for the District of Nebraska, or if that
court lacks jurisdiction over the subject matter, in a state court of competent subject matter
jurisdiction sitting in Douglas County, Nebraska. The parties hereto submit themselves
unconditionally and irrevocably to the personal jurisdiction of such courts, as applicable. The
parties further agree that venue shall be in the District of Nebraska. The parties hereto
irrevocably waive any objection to such personal jurisdiction or venue, including, but not limited
to, the objection that any suit, action or proceeding brought in the District of Nebraska, has been
brought in an inconvenient forum.
[Signature page follows]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the day and year first above written.
PROFESSIONAL VETERINARY PRODUCTS, LTD., Debtor in Possession |
||||
By: | /s/ Steve Price | |||
Name: | Steve Price | |||
Title: | President | |||
IVESCO Holdings LLC |
||||
By: | /s/ Robert DiMarzo | |||
Name: | Robert DiMarzo | |||
Title: | Executive Chairman |
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Exhibits
A.
|
The Inventory/Transferred Assets | |
B.
|
Omitted | |
C.
|
Auction and Bid Procedures | |
D.
|
Disclosure Schedule | |
E.
|
Omitted | |
F.
|
Wire Transfer Instructions | |
G.
|
Omitted | |
H.
|
Omitted | |
I.
|
Bankruptcy Court Order Approving Sale (to be supplied) |
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Exhibit A
InventoryThe Transferred Assets
InventoryThe Transferred Assets
1. | Inventory means the product, materials and goods held for sale by Sellers as described in A below but excluding the Excluded Inventory. |
A. | All product, materials and goods held for sale by Seller on the Closing Date. |
2. Excess Inventory means all Inventory that Buyer sells via a third party liquidator within 120
days of Closing.
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Exhibit B
Omitted
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Exhibit C
Auction and Bid Procedures
Auction and Bid Procedures
1. | Bid Procedures approved by the Bankruptcy Court pursuant to its August 26, 2010 Order Approving Auction and Bid Procedures for Sale of Certain of the Debtors Assets; | |
2. | Payment to Buyer of $100,000 in the event that a bid for the Inventory other than the Buyers Bid is accepted and approved by the Bankruptcy Court, so long as the conditions set forth in Section 9 hereof have been satisfied. |
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Exhibit D
Disclosure Schedule
Disclosure Schedule
[None.]
17
Exhibit E
Omitted
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Exhibit F
Wire Transfer Instructions
Wire Transfer Instructions
[To be completed]
19
Exhibit G
Inventory Valuation
Inventory Valuation
Omitted
20
Exhibit H
Allocation of Purchase Price
Allocation of Purchase Price
[To be completed]
21
Exhibit I
Bankruptcy Court Order Approving Sale
Bankruptcy Court Order Approving Sale
See attached.
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AMENDMENT AGREEMENT
THIS AGREEMENT, dated this 13th day of September, 2010, by and between PROFESSIONAL
VETERINARY PRODUCTS, LTD., Debtor in Possession, a Nebraska corporation (hereinafter referred to as
Seller), and IVESCO Holdings LLC, a Delaware limited liability company (hereinafter referred to
as Buyer).
RECITALS
(a) | On September 9, 2010, Seller and Buyer entered into an Asset Sale and Purchase Agreement (the Purchase Agreement). | ||
(b) | Seller and Buyer desire to amend the Purchase Agreement as hereinafter set forth. |
AGREEMENT
1. Section 3.2 of the Purchase Agreement is hereby deleted in its entirety and replaced with
the following:
3.2 Payment of Purchase Price. At the Closing on the Closing Date, (i) Buyer shall pay $1,196,422.94 to Seller by wire transfer in accordance with the instructions on Exhibit F; and (ii) Seller shall cause its Counsel to deliver the Deposit to Seller on Buyers behalf (collectively, the Closing Payment). The balance of the Purchase Price, if any, shall be paid in accordance with and pursuant to Section 3.9. |
2. Section 8.3 of the Purchase Agreement is hereby deleted in its entirety and replaced with
the following:
8.3 Bankruptcy Court Approval. This Agreement and the transactions contemplated thereby and the bid protections set forth in Exhibit C (including the break-up fee and bid protection provided for therein) shall have been approved by the Bankruptcy Court as provided in Exhibit C, and a final unstayed court order shall have been entered on or before September 13, 2010 (or such later time to which Buyer consents in writing), in the form of Exhibit I hereto or otherwise approved by Buyer in writing (a) authorizing the sale of the Transferred Assets to Buyer in accordance with the provisions of this Agreement, free and clear of all liens, claims and encumbrances, pursuant to Sections 363(b) and (f) of the Code, containing a good faith finding as to Buyer pursuant to Section 363(m) of the Code; and (b) approving the payment of a break-up fee in the amount of $100,000 to Buyer in the event that the Bankruptcy Court approves the sale of the Inventory to another party, so long as the conditions set forth in Section 9 hereof have been satisfied. |
3. This Agreement may be executed in one or more counterparts, each of which shall be regarded
as an original and all of which shall constitute one and the same instrument.
[Signatures on following page]
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IN WITNESS WHEREOF, Seller and Buyer have each executed this Agreement on the date first above
written.
PROFESSIONAL VETERINARY PRODUCTS, LTD., Debtor in Possession |
||||
By: | /s/ Steve Price | |||
Name: | Steve Price | |||
Title: | President | |||
IVESCO Holdings LLC |
||||
By: | /s/ Randy Ingram | |||
Name: | Randy Ingram | |||
Title: | V.P. Finance | |||
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