Common use of PURCHASE AND SALE OF PREFERRED INTERESTS Clause in Contracts

PURCHASE AND SALE OF PREFERRED INTERESTS. 2 SECTION 1.1 ISSUANCE AND PURCHASE OF PREFERRED INTERESTS 2 SECTION 1.2 PAYMENT FOR PREFERRED INTERESTS 2 ARTICLE II PURCHASE AND SALE OF SELLERS’ INTERESTS 2 SECTION 2.1 SALE OF INTERESTS 2 SECTION 2.2 PURCHASE PRICE AND PAYMENTS FOR THE INTERESTS 3 SECTION 2.3 PAYMENTS IN CASH; PAYMENTS TO THE SELLERS 4 SECTION 2.4 WITHHOLDING 4 SECTION 2.5 DETERMINATION OF EBITDA 4 ARTICLE III CLOSINGS 6 SECTION 3.1 INITIAL CLOSING 6 SECTION 3.2 SUBSEQUENT CLOSINGS 6 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY 6 SECTION 4.1 ORGANIZATION AND QUALIFICATION 7 SECTION 4.2 INTERESTS IN OTHER PERSONS 7 SECTION 4.3 CAPITALIZATION 7 SECTION 4.4 FUNDAMENTAL DOCUMENTS; OTHER RECORDS 8 SECTION 4.5 AUTHORIZATION; ABSENCE OF CONFLICTS 8 SECTION 4.6 GOVERNMENTAL APPROVALS 9 SECTION 4.7 FINANCIAL STATEMENTS 9 SECTION 4.8 TAX MATTERS 10 SECTION 4.9 COMPLIANCE WITH LAWS 11 SECTION 4.10 LITIGATION 14 SECTION 4.11 AGREEMENTS 14 SECTION 4.12 REAL ESTATE 16 SECTION 4.13 ACCOUNTS AND NOTES RECEIVABLE 16 SECTION 4.14 INVENTORIES 17 SECTION 4.15 PRODUCT WARRANTIES; RETURNS 17 SECTION 4.16 TANGIBLE PROPERTY 17 SECTION 4.17 INTELLECTUAL PROPERTY 18 SECTION 4.18 TITLE; LIENS 19 SECTION 4.19 LIABILITIES; INDEBTEDNESS 19 SECTION 4.20 LABOR AGREEMENTS 20 SECTION 4.21 DISCRIMINATION AND OCCUPATIONAL SAFETY 20 SECTION 4.22 ENVIRONMENTAL PROTECTION 21 SECTION 4.23 EMPLOYEE BENEFIT PLANS 22 SECTION 4.24 EMPLOYEES; COMPENSATION 24 SECTION 4.25 FOREIGN CORRUPT PRACTICES ACT 24 SECTION 4.26 INSURANCE 25 SECTION 4.27 OPERATIONS OF THE COMPANY 25 SECTION 4.28 POTENTIAL CONFLICTS OF INTEREST 26 SECTION 4.29 BANKS, BROKERS AND PROXIES 27 SECTION 4.30 NO BROKER 27 SECTION 4.31 FULL DISCLOSURE 27 ARTICLE V REPRESENTATIONS AND WARRANTIES OF EACH SELLER 27 SECTION 5.1 TITLE TO INTERESTS 27 SECTION 5.2 AUTHORITY RELATIVE TO THIS AGREEMENT 27 SECTION 5.3 ABSENCE OF CONFLICTS 28 SECTION 5.4 GOVERNMENTAL APPROVALS 28 SECTION 5.5 LITIGATION 28 SECTION 5.6 NO BROKER 28 ARTICLE VI REPRESENTATIONS AND WARRANTIES OF BUYER 28 SECTION 6.1 ORGANIZATION 28 SECTION 6.2 AUTHORITY RELATIVE TO THIS AGREEMENT 28 SECTION 6.3 ABSENCE OF CONFLICTS 29 SECTION 6.4 NO BROKER 29 SECTION 6.5 PURCHASE FOR INVESTMENT 29 SECTION 6.6 GOVERNMENTAL APPROVALS 29 SECTION 6.7 FULL DISCLOSURE 30 ARTICLE VII COVENANTS AND AGREEMENTS 30 SECTION 7.1 PRE-CLOSING CONDUCT OF BUSINESS OF THE COMPANY 30 SECTION 7.2 PAYMENT OF INTERCOMPANY DEBTS 30 SECTION 7.3 REVIEW OF THE COMPANY 30 SECTION 7.4 BEST EFFORTS 30 SECTION 7.5 ADVICE OF CHANGES 31 SECTION 7.6 RESTRICTIONS ON THE COMPANY AND THE SELLERS 32 SECTION 7.7 CONFIDENTIALITY 32 SECTION 7.8 COOPERATION AND EXCHANGE OF INFORMATION 33 SECTION 7.9 FURTHER ASSURANCES 33 SECTION 7.10 QUALITY CONTROLS 34 SECTION 7.11 ACCOUNTING SOFTWARE 34 SECTION 7.12 ACCOUNTING MANAGER 34 SECTION 7.13 FINANCIAL REPORTS 34 SECTION 7.14 SAS 70 COMPLIANCE 34 SECTION 7.15 AUDITORS 34 SECTION 7.16 NOTIFICATION OF CERTAIN MATTERS; UPDATING DISCLOSURE SCHEDULES AND EXHIBITS 34 SECTION 7.17 PARENT SERVICE AGREEMENTS 35 SECTION 7.18 PARENT CORPORATE SERVICES 35 SECTION 7.19 PARENT INFRASTRUCTURE; OTHER SERVICES 35 SECTION 7.20 EQUITY GRANTS 36 SECTION 7.21 PAYMENT OF INCENTIVE PAYMENTS 36 SECTION 7.22 754 ELECTION 36 SECTION 7.23 TAXES 37 ARTICLE VIII CONDITIONS PRECEDENT TO THE OBLIGATION OF BUYER TO EFFECT THE PURCHASE OF INTERESTS AT THE INITIAL CLOSING 37 SECTION 8.1 REPRESENTATIONS AND COVENANTS 37 SECTION 8.2 OPERATING AGREEMENT OF THE COMPANY 37 SECTION 8.3 OPINION OF COUNSEL TO THE COMPANY 38 SECTION 8.4 LOAN FROM PARENT 38 SECTION 8.5 GOOD STANDING CERTIFICATES 38 SECTION 8.6 GOVERNMENTAL PERMITS AND APPROVALS 38 SECTION 8.7 LEGISLATION 38 SECTION 8.8 LEGAL PROCEEDINGS 38 SECTION 8.9 THIRD PARTY CONSENTS 39 SECTION 8.10 NO MATERIAL ADVERSE CHANGE 39 SECTION 8.11 INSTRUMENTS OF TRANSFER 39 SECTION 8.12 RESIGNATIONS OF DIRECTORS 39 SECTION 8.13 NON-COMPETITION/EMPLOYMENT 39 SECTION 8.14 DOCUMENTS RELATING TO THE SATISFACTION OF FVA VENTURES DEBT 39 SECTION 8.15 FIRPTA CERTIFICATES 40 SECTION 8.16 APPROVAL OF COUNSEL TO BUYER 40 SECTION 8.17 FDA/FTC RECALL 40 SECTION 8.18 QUALITY CONTROL PLAN 40 SECTION 8.19 WAIVER OF SELLERS’ RIGHT UNDER THE OPERATING AGREEMENT 40 SECTION 8.20 DISPOSITION AGREEMENT 40 ARTICLE IX CONDITIONS PRECEDENT TO THE OBLIGATION OF THE COMPANY AND THE SELLERS TO EFFECT THE SALE OF INTERESTS AT THE INITIAL CLOSING 40 SECTION 9.1 REPRESENTATIONS AND COVENANTS 40 SECTION 9.2 GOVERNMENT PERMITS AND APPROVALS 41 SECTION 9.3 PURCHASE PRICE 41 SECTION 9.4 APPROVAL OF COUNSEL TO THE COMPANY AND THE SELLERS 41 ARTICLE X CONDITIONS TO SUBSEQUENT CLOSINGS 41 SECTION 10.1 CONDITIONS PRECEDENT TO THE OBLIGATION OF BUYER TO EFFECT THE SUBSEQUENT CLOSINGS 41 SECTION 10.2 CONDITIONS TO CLOSING BY THE SELLERS OF THE SUBSEQUENT CLOSINGS 43 ARTICLE XI SURVIVAL OF REPRESENTATIONS AND WARRANTIES; TERMINATION 44 SECTION 11.1 SURVIVAL OF REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE SELLERS 44 SECTION 11.2 TERMINATION OF AGREEMENT 45 SECTION 11.3 EXTENSION OF TERMINATION DATES 46 SECTION 11.4 EFFECT OF TERMINATION 46 ARTICLE XII INDEMNIFICATION 47

PURCHASE AND SALE OF PREFERRED INTERESTS. 2 SECTION 1.1 ISSUANCE AND PURCHASE OF PREFERRED INTERESTS 2 SECTION 1.2 PAYMENT FOR PREFERRED INTERESTS 2 ARTICLE II PURCHASE AND SALE OF SELLERS’ INTERESTS 2 SECTION 2.1 SALE OF INTERESTS INTERESTS. 2 SECTION 2.2 PURCHASE PRICE AND PAYMENTS FOR THE INTERESTS INTERESTS. 3 SECTION 2.3 PAYMENTS IN CASH; PAYMENTS TO THE SELLERS 4 SECTION 2.4 WITHHOLDING 4 SECTION 2.5 DETERMINATION OF EBITDA EBITDA. 4 ARTICLE III CLOSINGS 6 SECTION 3.1 INITIAL CLOSING 6 SECTION 3.2 SUBSEQUENT CLOSINGS 6 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY 6 SECTION 4.1 ORGANIZATION AND QUALIFICATION QUALIFICATION. 7 SECTION 4.2 INTERESTS IN OTHER PERSONS 7 SECTION 4.3 CAPITALIZATION 7 SECTION 4.4 FUNDAMENTAL DOCUMENTS; OTHER RECORDS 8 SECTION 4.5 AUTHORIZATION; ABSENCE OF CONFLICTS CONFLICTS. 8 SECTION 4.6 GOVERNMENTAL APPROVALS 9 SECTION 4.7 FINANCIAL STATEMENTS STATEMENTS. 9 SECTION 4.8 TAX MATTERS MATTERS. 10 SECTION 4.9 COMPLIANCE WITH LAWS 11 SECTION 4.10 LITIGATION 14 SECTION 4.11 AGREEMENTS 14 SECTION 4.12 REAL ESTATE 16 SECTION 4.13 ACCOUNTS AND NOTES RECEIVABLE 16 SECTION 4.14 INVENTORIES 17 SECTION 4.15 PRODUCT WARRANTIES; RETURNS RETURNS. 17 SECTION 4.16 TANGIBLE PROPERTY 17 SECTION 4.17 INTELLECTUAL PROPERTY PROPERTY. 18 SECTION 4.18 TITLE; LIENS 19 SECTION 4.19 LIABILITIES; INDEBTEDNESS INDEBTEDNESS. 19 SECTION 4.20 LABOR AGREEMENTS 20 SECTION 4.21 DISCRIMINATION AND OCCUPATIONAL SAFETY 20 SECTION 4.22 ENVIRONMENTAL PROTECTION PROTECTION. 21 SECTION 4.23 EMPLOYEE BENEFIT PLANS 22 SECTION 4.24 EMPLOYEES; COMPENSATION 24 SECTION 4.25 FOREIGN CORRUPT PRACTICES ACT 24 SECTION 4.26 INSURANCE 25 i SECTION 4.27 OPERATIONS OF THE COMPANY 25 SECTION 4.28 POTENTIAL CONFLICTS OF INTEREST 26 SECTION 4.29 BANKS, BROKERS AND PROXIES 27 SECTION 4.30 NO BROKER 27 SECTION 4.31 FULL DISCLOSURE 27 ARTICLE V REPRESENTATIONS AND WARRANTIES OF EACH SELLER 27 SECTION 5.1 TITLE TO INTERESTS 27 SECTION 5.2 AUTHORITY RELATIVE TO THIS AGREEMENT 27 SECTION 5.3 ABSENCE OF CONFLICTS 28 SECTION 5.4 GOVERNMENTAL APPROVALS 28 SECTION 5.5 LITIGATION 28 SECTION 5.6 NO BROKER 28 ARTICLE VI REPRESENTATIONS AND WARRANTIES OF BUYER 28 SECTION 6.1 ORGANIZATION 28 SECTION 6.2 AUTHORITY RELATIVE TO THIS AGREEMENT 28 SECTION 6.3 ABSENCE OF CONFLICTS 29 SECTION 6.4 NO BROKER 29 SECTION 6.5 PURCHASE FOR INVESTMENT 29 SECTION 6.6 GOVERNMENTAL APPROVALS 29 SECTION 6.7 FULL DISCLOSURE 30 ARTICLE VII COVENANTS AND AGREEMENTS 30 SECTION 7.1 PRE-CLOSING CONDUCT OF BUSINESS OF THE COMPANY 30 SECTION 7.2 PAYMENT OF INTERCOMPANY DEBTS 30 SECTION 7.3 REVIEW OF THE COMPANY 30 SECTION 7.4 BEST EFFORTS 30 SECTION 7.5 ADVICE OF CHANGES 31 SECTION 7.6 RESTRICTIONS ON THE COMPANY AND THE SELLERS 32 SECTION 7.7 CONFIDENTIALITY 32 SECTION 7.8 COOPERATION AND EXCHANGE OF INFORMATION 33 SECTION 7.9 FURTHER ASSURANCES 33 SECTION 7.10 QUALITY CONTROLS 34 SECTION 7.11 ACCOUNTING SOFTWARE 34 SECTION 7.12 ACCOUNTING MANAGER 34 SECTION 7.13 FINANCIAL REPORTS 34 SECTION 7.14 SAS 70 COMPLIANCE 34 SECTION 7.15 AUDITORS 34 SECTION 7.16 NOTIFICATION OF CERTAIN MATTERS; UPDATING DISCLOSURE SCHEDULES AND EXHIBITS 34 SECTION 7.17 PARENT SERVICE AGREEMENTS 35 SECTION 7.18 PARENT CORPORATE SERVICES 35 SECTION 7.19 PARENT INFRASTRUCTURE; OTHER SERVICES 35 SECTION 7.20 EQUITY GRANTS 36 SECTION 7.21 PAYMENT OF INCENTIVE PAYMENTS 36 SECTION 7.22 754 ELECTION 36 SECTION 7.23 TAXES 37 ARTICLE VIII CONDITIONS PRECEDENT TO THE OBLIGATION OF BUYER TO EFFECT THE PURCHASE OF INTERESTS AT THE INITIAL CLOSING 37 SECTION 8.1 REPRESENTATIONS AND COVENANTS 37 SECTION 8.2 OPERATING AGREEMENT OF THE COMPANY 37 SECTION 8.3 OPINION OF COUNSEL TO THE COMPANY 38 SECTION 8.4 LOAN FROM PARENT 38 SECTION 8.5 GOOD STANDING CERTIFICATES 38 SECTION 8.6 GOVERNMENTAL PERMITS AND APPROVALS 38 SECTION 8.7 LEGISLATION 38 SECTION 8.8 LEGAL PROCEEDINGS 38 SECTION 8.9 THIRD PARTY CONSENTS 39 SECTION 8.10 NO MATERIAL ADVERSE CHANGE 39 SECTION 8.11 INSTRUMENTS OF TRANSFER 39 SECTION 8.12 RESIGNATIONS OF DIRECTORS 39 SECTION 8.13 NON-COMPETITION/EMPLOYMENT 39 SECTION 8.14 DOCUMENTS RELATING TO THE SATISFACTION OF FVA VENTURES DEBT 39 SECTION 8.15 FIRPTA CERTIFICATES 40 SECTION 8.16 APPROVAL OF COUNSEL TO BUYER 40 SECTION 8.17 FDA/FTC RECALL 40 SECTION 8.18 QUALITY CONTROL PLAN 40 SECTION 8.19 WAIVER OF SELLERS’ RIGHT UNDER THE OPERATING AGREEMENT 40 SECTION 8.20 DISPOSITION AGREEMENT 40 ARTICLE IX CONDITIONS PRECEDENT TO THE OBLIGATION OF THE COMPANY AND THE SELLERS TO EFFECT THE SALE OF INTERESTS AT THE INITIAL CLOSING 40 SECTION 9.1 REPRESENTATIONS AND COVENANTS 40 SECTION 9.2 GOVERNMENT PERMITS AND APPROVALS 41 SECTION 9.3 PURCHASE PRICE 41 SECTION 9.4 APPROVAL OF COUNSEL TO THE COMPANY AND THE SELLERS 41 ARTICLE X CONDITIONS TO SUBSEQUENT CLOSINGS 41 SECTION 10.1 CONDITIONS PRECEDENT TO THE OBLIGATION OF BUYER TO EFFECT THE SUBSEQUENT CLOSINGS 41 SECTION 10.2 CONDITIONS TO CLOSING BY THE SELLERS OF THE SUBSEQUENT CLOSINGS 43 ARTICLE XI SURVIVAL OF REPRESENTATIONS AND WARRANTIES; TERMINATION 44 SECTION 11.1 SURVIVAL OF REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE SELLERS 44 SECTION 11.2 TERMINATION OF AGREEMENT 45 SECTION 11.3 EXTENSION OF TERMINATION DATES 46 SECTION 11.4 EFFECT OF TERMINATION 46 ARTICLE XII INDEMNIFICATION 4727