ASSET PURCHASE AGREEMENT
THIS
ASSET PURCHASE AGREEMENT (this “Agreement”) is made and entered into effective
as of the 29nd
day of
December, 2006 (the “Closing Date”), by and among
PRACTICEXPERT of Oklahoma, Inc., an
Oklahoma corporation ("Seller"), and AcSel
Corporation,
a
Virginia corporation or a limited liability company to be formed ("Buyer").
RECITALS
A. Seller
is
a medical billing and collections company (the "Business"), and Seller owns
all
of the Assets (as hereinafter defined) used in connection with the Business.
B.
Seller
desires to sell, transfer and assign the Assets to Buyer, and Buyer desires
to
purchase the Assets from Seller, upon the terms and subject to the conditions
set forth in this Agreement.
NOW,
THEREFORE, in consideration of the premises and the respective representations,
warranties, covenants and agreements contained herein, the parties hereto hereby
agree as follows:
ARTICLE
I
SALE
AND PURCHASE OF ASSETS;
ASSUMPTION
OF CERTAIN LIABILITIES
1.1.
|
Sale
and Purchase of Assets.
|
Upon
the
terms and subject to the conditions set forth in this Agreement, on the Closing
Date (as hereinafter defined), Seller agrees to sell, transfer, convey, assign
and deliver to Buyer, and Buyer agrees to purchase, acquire and accept from
Seller, free and clear of all claims, liens, restrictions, encumbrances or
security interests of any nature whatsoever, all of Seller's right, title and
interest in and to all of the rights, properties, contracts and other assets
of
Seller used in the Business, whether tangible or intangible, whether real,
personal or mixed, whether accrued, contingent or otherwise, and wherever
located, as more fully described on Exhibit
A.
Except
for the
Assets listed on Exhibit
A,
all
other assets of the Seller are excluded from this transaction. The Assets
include:
(a) Equipment.
Such
furniture, fixtures, machinery, equipment, computers and computer equipment,
parts, tools, supplies, signage, manuals, training materials and other items
of
equipment used in the Business as described on Exhibit
A
(collectively, the "Equipment").
(b)
Contract
Rights.
All of
Seller's rights under all contracts and leases of Seller listed on Exhibit
A
(the
"Assumed Contracts").
(c)
Intellectual
Property.
The
name “Cancer Care Network” and all variations thereof; all computer programs,
software, manuals and related rights; and all other intellectual property rights
of any character or description used by the Business listed on Exhibit
A
(collectively, the "Intellectual Property").
(d) Books
and Records.
All of
the patient lists and records, mailing lists, marketing, sales and promotional
materials and records, manuals, training materials, and similar items, and
all
books, records, files, computer software, data or databases, correspondence,
memoranda, notes and other documents or papers and other evidence thereof
relating to the Business listed on or implied as being part of the Equipment,
Assumed Contracts or Intellectual Property on Exhibit
A
(collectively, the “Books and Records”).
(e) Permits.
All
assignable permits (as hereinafter defined) owned or held by Seller for use
by
the Business, and all rights related thereto listed on or implied as being
part
of the Equipment, or Assumed Contracts or Intellectual Property on Exhibit
A.
1.2.
|
Excluded
Assets.
|
Buyer
shall not purchase, and Seller shall retain, all assets of Seller except those
listed on Exhibit
A
or as
otherwise described above including, but not limited to:
(a)
|
all
cash or cash equivalents;
|
(b)
all
other
personal property owned by Seller;
(c) all
rights or obligations under all contracts of Seller other than the Assumed
Contracts including, by way of illustration and without limitation (i) any
employment agreements, Employee Plans (as hereinafter defined) or other
employment related contracts or arrangements and (ii) any contract representing
any indebtedness; and
(d) all
accounts receivable.
1.3. |
Assumption
of Certain Liabilities.
|
Upon
the
terms and subject to the conditions set forth in this Agreement, on the Closing
Date, Buyer agrees to assume only those obligations described herein (the
“Assumed Liabilities”):
(a) The
Assumed Contracts which are required to be performed after the Closing Date.
(b) $2,000
to
be allocated to Seller’s December, 2006 rent,
(c) Seller's
payroll for the last 2 week period of December, 2006 for period ending Xxxxxxxx
00, 0000,
(x) The
pro-rata share of Seller's phone costs from December 22, 2006 to December 31,
2006, not to exceed $1,900.00.
(e)
Buyer
shall assume only the Assumed Liabilities described above. All other
obligations, debts, taxes, operating expenses, rent, utilities and other
liabilities of Seller of any kind, character or description, whether accrued,
absolute, contingent or otherwise, shall not be assumed by Buyer and shall
be
retained by Seller.
2
ARTICLE
II
PURCHASE
PRICE
2.1.
|
Purchase
Price.
|
The
aggregate purchase price for the sale and purchase of the Assets (the "Purchase
Price") shall be equal to the amount of money payable to Seller pursuant to
licensing costs for use of the PRACTICEXPERT software for each practice or
user
using said software.
2.2.
|
Closing.
|
Upon
the
terms and subject to the conditions set forth in this Agreement, the closing
of
the sale and purchase of the Assets (the "Closing") shall take place: (a) at
the
offices of Buyer’s counsel in Virginia Beach, Virginia, (b) on or before
December 22, 2006 or at such other place and time as the parties hereto may
mutually agree and shall be effective as of that date (the “Closing Date”).
2.3.
|
Closing
Matters.
|
Upon
the
terms and subject to the conditions set forth in this Agreement, at the
Closing:
(a) Buyer
shall initiate payments to Seller of the amounts set forth in Section
2.1.
(b) Seller
shall deliver to Buyer such deeds, bills of sale, endorsements, assignments,
approvals, authorizations and other good and sufficient instruments of
conveyance and transfer, in form and substance reasonably satisfactory to Buyer,
as shall be effective to vest in Buyer all of Seller's right, title and interest
in and to the Assets and, simultaneously therewith, will take such steps as
may
be necessary to place Buyer in actual possession and operating control of the
Assets. Delivery of the Assets shall be made at the premises of Seller or as
otherwise mutually agreed to between Buyer and Seller.
(c) Seller
and Buyer shall deliver to each other such other documents, certificates,
instruments and writings required to be delivered to pursuant to this
Agreement.
(d) Beginning
with the December, 2006, client invoicing, Buyer will receive all monies billed
to existing Seller clients except as set forth on Exhibit A.
ARTICLE
III
REPRESENTATIONS
AND WARRANTIES OF SELLER
Seller
hereby represents and warrants to Buyer as follows:
3.1. |
Organization
and Qualification.
|
Seller
is
duly organized, validly existing and in good standing under the laws of the
State of Oklahoma and has all requisite power and authority to own, lease and
operate its properties and the Assets and to carry on its business as now being
conducted. Seller is duly qualified to do business and in good standing in
each
jurisdiction in which the nature of its business or the ownership, lease or
operation of its assets makes such qualification necessary.
3
3.2. |
Authority.
|
Seller
has all requisite power and authority to execute and deliver this Agreement
and
each other agreement, instrument or document to be executed and delivered by
Seller pursuant hereto (collectively, the "Related Agreements"), to perform
its
obligations hereunder and thereunder and to consummate the transactions
contemplated hereby and thereby. The execution and delivery of this Agreement
and the Related Agreements by Seller, the performance of this Agreement and
the
Related Agreements by Seller, and the consummation of the transactions
contemplated hereby and thereby, have been duly authorized by all necessary
corporate action on the part of Seller and no other proceeding on the part
of
Seller is necessary to authorize this Agreement or the Related Agreements or
to
consummate the transactions contemplated hereby and thereby. This Agreement
has
been duly executed and delivered by Seller and constitutes the valid and binding
obligation of Seller, enforceable against Seller in accordance with its terms.
Upon its execution and delivery by Seller, each Related Agreement will
constitute the valid and binding obligation of Seller, enforceable against
Seller in accordance with its terms.
3.3. |
No
Conflict; Required Filings and Consents.
|
(a)
The
execution and delivery of this Agreement and the Related Agreements by Seller
does not, and the performance of this Agreement and the Related Agreements
by
Seller and the consummation of the transactions contemplated hereby and thereby
will not, (i) conflict with or violate the articles of incorporation or bylaws,
in each case as amended or restated, of Seller, (ii) conflict with or violate
any United States federal, state, local or foreign law, statute, ordinance,
rule, regulation, order, judgment or decree applicable to Seller or by or to
which any of their properties or assets is bound or subject or (iii) result
in
any breach of, or constitute a default (or an event that with notice or lapse
of
time or both would constitute a default) under, or give to others any rights
of
termination, amendment, acceleration or cancellation of, or require payment
under, or result in the creation of any lien, encumbrance, security interest,
mortgage, pledge, claim, option or restriction of any kind whatsoever
(collectively "Liens") on any of the properties or assets of Seller (including,
without limitation, the Assets) pursuant to, any agreement, lease, license,
contract, note, mortgage, indenture, arrangement or other obligation
(collectively, "Contracts") to which Seller is a party or by which any of its
properties or assets (including, without limitation, the Assets) is bound.
(b) The
execution and delivery of this Agreement and the Related Agreements by Seller
does not, and the performance by Seller of this Agreement and the Related
Agreements and the consummation of the transactions contemplated hereby and
thereby will not, require Seller to obtain any consent, approval, authorization
or permit of, or to make any filing with or notification to, any court,
administrative agency or commission or other governmental entity, authority
or
instrumentality, whether foreign or domestic (a "Governmental Entity"), or
any
third party.
3.4. |
Financial
Statements and Information.
|
(a) Seller
shall have, prior to Closing delivered to Buyer (i) Seller's financial
statements for the fiscal years ended December 31, 2003, 2004 and 2005, and
(ii)
its year to date financial statements as of the Closing Date for 2006, all
of
which have been compiled by Seller’s accountant (collectively, the "Seller
Financial Statements").
4
(b) Except
as
set forth in the Seller Financial Statements, (i) Seller is not subject to
any
liability or obligation (whether direct or indirect, accrued, fixed, contingent
or otherwise), other than immaterial current liabilities and obligations
incurred in the ordinary and usual course of business consistent with past
practice, and (ii) and there are no facts or circumstances of which Seller
has
knowledge that could result in any claims against or obligations or liabilities
of Seller that, alone or in the aggregate, reasonably could be expected to
have
a material adverse effect on the business, assets, results of operations,
condition (financial or otherwise) or prospects of Seller (a "Material Adverse
Effect").
3.5. |
Warranty
of Title.
|
Seller
is
the true and lawful owner of, and owns all right, title and interest in and
to,
all of the Assets, free and clear of all Liens. Upon the sale of the Assets
to
Buyer pursuant to this Agreement, (a) all right, title and interest in and
to
all of the Assets, free and clear of all Liens, will pass to Buyer on the
Closing Date and (b) all of the Assumed Contracts, Intellectual Property and
Permits included in the Assets shall be validly assigned to Buyer by written
instruments and, except to the extent thereafter amended by Buyer, Buyer shall
have all of the rights and privileges thereunder after the Closing Date to
the
same extent as though Buyer were the original party thereto.
3.6. |
Condition
of Assets.
|
All
of
the Assets (i) are structurally sound, are in good operating condition and
repair (subject to routine maintenance in the ordinary course of business)
and
are adequate for the uses to which they are being put in the Business, (ii)
constitute all of the assets and properties necessary and sufficient for the
continued conduct of the Business by Buyer after the Closing in the same manner
as conducted prior to the Closing and (iii) are reflected on the Seller
Financial Statements in accordance with GAAP.
3.7. |
Contracts,
Leases and Intellectual Property.
|
(a) Exhibit
A sets
forth a true, correct and complete list of all Assumed Contracts to which Seller
is a party.
(b)
Each
of
the Assumed Contracts listed in Exhibit
A
is
valid, binding and enforceable in accordance with its terms and there is not
any
existing default or event of default, or any event which, with or without notice
or lapse of time or both, would constitute a default under any of such Assumed
Contracts by Seller or, to the knowledge of Seller, by any other party thereto.
In addition, with respect to each such Assumed Contract that is a lease of
real
or personal property, (i) such lease creates a valid leasehold interest in
all
premises or property purported to be leased thereunder, (ii) Seller is in
possession and quiet enjoyment of all of such premises or property, (iii)
neither Seller nor, to the knowledge of Seller, any other party to such lease
has received notice of any violation of any applicable ordinance or other law,
order, regulation or requirement (including, without limitation, any Hazardous
Materials Law (as hereinafter defined) relating to the premises or property
leased thereunder, and (iv) such lease is freely assignable to Buyer and all
landlord and other approvals have been secured. For each such Assumed Contract,
Seller has secured and provided to Buyer a written assignment executed by the
parties to each Assumed Contract, assigning same to the Buyer.
5
(c) At
Buyer’s option, Buyer may secure a new lease for the Business locations upon
terms acceptable to Buyer or Buyer may declare this Agreement null and
void.
(d) All
Intellectual Property is freely assignable to Buyer and all necessary
assignments and approvals have been secured. For each such Intellectual
Property, Seller has secured and provided Buyer a written assignment executed
by
the Parties for each Intellectual Property assigned to Buyer.
3.8. |
Permits.
|
All
licenses, permits and other authorizations required by any Governmental Entity
pursuant to applicable provisions of laws, ordinances, rules and regulations
(collectively, "Permits"), are held by Seller and are current and in full force
in order to operate the Business and Seller has secured written assignments
authorizing the assignment of the Permits to Buyer. Buyer has obtained, or
can
obtain, any Permit not assignable to Buyer.
3.9. |
Compliance
with Law.
|
Seller
is
in compliance with the terms and conditions of all of the Permits and all laws,
rules, regulations and orders applicable to Seller or its Business; and Seller
has not received any notification that Seller or any of its business practices
is in violation of any Permit or any such law, rule, regulation or order.
3.10. |
Absence
of Litigation.
|
There
is
no claim, action, suit, proceeding or investigation of any kind, at law or
in
equity (including actions or proceedings seeking injunctive relief), by any
patient, third party or before any Governmental Entity pending or, to the
knowledge of Seller, threatened against Seller, and Seller is not a party or
subject to or in default under any judgment, order or decree of any Governmental
Entity or court, or any settlement agreement.
3.11. |
Taxes.
|
(a) All
Tax
Returns required to be filed on or prior to the Closing Date have been duly
and
timely filed, each such Tax Return has been prepared in compliance with all
applicable law's and regulations, and all such Tax Returns are true, accurate
and complete in all respects. All Taxes have been duly paid on a timely basis,
except for Taxes not yet due and payable for which adequate reserves have been
established in accordance with GAAP.
(b) No
Tax
Return is currently under audit by any taxing authority and no notice of any
such audit has been received, and (ii) no deficiencies for any Taxes have been
proposed, asserted or assessed by any taxing authority with respect to
liabilities for Taxes which have not been fully paid or finally
settled.
(c) Seller
has complied with all withholding Tax requirements and procedures and, in the
case of social security, unemployment, employee payroll and withholding Taxes,
has withheld amounts from its employees and, with respect to such employees,
has
filed all Tax Returns regarding employee income Tax withholding and social
security, unemployment Taxes and all other payroll Taxes in compliance with
applicable Tax withholding provisions and has made all required remittances
in
respect of such amounts withheld.
6
3.12. |
Hazardous
Materials.
|
(a) As
used
in this Agreement:
(i) "CERCLA"
means the Comprehensive Environmental Response, Compensation, and Liability
Act
of 1980, 42 U.S.C. Section 9601 et
seq.,
as
amended.
(ii) "Hazardous
Materials" means any hazardous or toxic substance, material or waste which
is or
becomes considered as such by any governmental entity or is otherwise regulated
or subject to liability under the laws, rules or regulations of any such
jurisdiction, and includes, without limitation, any material or substance that
is or becomes defined as "hazardous substance," "pollutant," "contaminant,"
"toxic chemical," "hazardous material," "toxic substance," or "hazardous
chemical" under any Hazardous Materials Law. Without limiting the generality
of
the foregoing, the term "Hazardous Material" includes, without limitation,
any
substance containing petroleum or any derivative of petroleum.
(iii)
"Hazardous
Materials Laws" means (A) CERCLA; (B) the Emergency Planning and Community
Right-to-Know Act, 42 U.S.C. Section 11001 et
seq.;
(C)
the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801 et
seq.;
(D)
the Toxic Substances Control Act, 15 U.S.C. Section 2601 et
seq.;
(E)
the Occupational Safety and Health Act of 1970, 29 U.S.C. Section 651
et
seq.;
(F)
the Federal Water Pollution Control Act, 33 U.S.C. Section 1251 et
seq.;
(G)
the Solid Waste Disposal Act, 42 U.S.C. Section 6901 et
seq.;
(H)
the Clean Air Act, 42 U.S.C. Section 7401 et
seq.;
(I)
the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. Section 136
et
seq.;
(J)
regulations promulgated under any of the above statutes; and (K) any applicable
federal, state or local statute, ordinance, rule or regulation that relates
to
environmental conditions, human health, industrial hygiene or Hazardous
Materials, in each case, as amended.
(iv)
"Real
Property" means all real property (currently or formerly) owned, operated or
leased by Seller and all portions and parcels thereof, including, without
limitation, the land and all buildings and improvements thereon and all
easements appurtenant thereto.
(b) Neither
Seller, nor any current or previous owner, tenant, occupant, operator or user
of
any Real Property, has released, discharged, or disposed of any Hazardous
Materials on, under, in or about the Real Property. No underground tanks or
underground deposits of Hazardous Materials exist or formerly existed on, under,
in or about the Real Property.
(c) Seller
and any current or previous owner, tenant, occupant, operator or user of any
Real Property have, kept and maintained the Real Property, including, without
limitation, the groundwater on or under the Real Property, and conducted its
business in compliance with all applicable Hazardous Materials Laws.
(d) There
are
no (i) enforcement, clean-up, removal, mitigation or other governmental or
regulatory actions instituted, or contemplated or threatened pursuant to any
Hazardous Materials Laws concerning or dealing with any Real Property or the
business of Seller, (ii) claims made or threatened by any third party, including
any Governmental Entity, against Seller, or, to the knowledge of Seller and
the
Shareholder, any current or previous owner, tenant, occupant, operator or user
of any Real Property or any Real Property, relating to damage, contribution,
cost recovery, compensation, loss or injury resulting from any Hazardous
Materials, (iii) occurrences or conditions at any Real Property, at any other
property, or associated with the business of Seller which could give rise to
any
such governmental or regulatory action or third-party claim, or (iv) occurrences
or conditions at any Real Property which could subject Seller or the Real
Property to any restrictions on ownership, occupancy, transferability or use
of
the Real Property under any Hazardous Materials Laws.
7
3.13. |
No
Misleading Statements.
|
Neither
this Agreement (including the Exhibits hereto), and Related Agreements nor
any
certificate or other document delivered by Seller or the Shareholder in
connection herewith contains, or will contain when delivered, any untrue
statement of a material fact or omits to state, or will omit to state when
delivered, a material fact necessary in order to make the statements made herein
or therein (or in any such Exhibit), in light of the circumstances under which
they were made, not misleading.
3.14. |
Brokers.
|
No
broker, finder or investment banker is entitled to any brokerage, finder's
or
other fee or commission in connection with the transactions contemplated by
this
Agreement based upon arrangements made by or on behalf of Seller.
ARTICLE
IV
REPRESENTATIONS
AND WARRANTIES OF BUYER
Buyer
hereby represents and warrants to Seller as follows:
4.1. |
Organization
and Authority.
|
Buyer
is
a Virginia corporation duly organized, validly existing and in good standing
under the laws of the Commonwealth of Virginia, and has all requisite power
and
authority to execute and deliver this Agreement, to perform its obligations
hereunder and to consummate the transactions contemplated hereby. The execution
and delivery of this Agreement by Buyer, the performance of this Agreement
by
Buyer and the consummation of the transactions contemplated hereby have been
duly authorized by all necessary corporate action on the part of Buyer and
no
other proceeding on the part of Buyer is necessary to authorize this Agreement
or to consummate the transactions contemplated hereby. This Agreement has been
duly executed and delivered by Buyer and constitutes the valid and binding
obligation of Buyer, enforceable against Buyer in accordance with its terms.
4.2. |
No
Conflict; Required Consents and Approvals.
|
(a) The
execution and delivery of this Agreement by Buyer does not, and the performance
of this Agreement by Buyer and the consummation of the transactions contemplated
hereby will not, (i) conflict with or violate the articles of organization
or
the operating agreement of Buyer, (ii) conflict with or violate any United
States federal, state, local or foreign law, statute, ordinance, rule,
regulation, order, judgment or decree applicable to Buyer or by or to which
any
of its properties or assets is bound or subject or (iii) result in any breach
of, or constitute a default (or an event that with notice or lapse of time
or
both would constitute a default) under, any Contracts to which Buyer is a party
or by which any of its properties or assets is bound.
8
(b) The
execution and delivery of this Agreement by Buyer do not, and the performance
by
Buyer of this Agreement and the consummation of the transactions contemplated
hereby will not, require Buyer to obtain any consent, approval, authorization
or
permit of, or to make any filing with or notification to, any court,
administrative agency or commission or other Governmental Entity, or any third
party.
4.3. |
Brokers.
|
No
broker, finder or investment banker is entitled to any brokerage, finder's
or
other fee or commission in connection with the transactions contemplated by
this
Agreement based upon arrangements made by or on behalf of Buyer.
ARTICLE
V
INDEMNIFICATION
5.1. |
Seller
Indemnity.
|
Seller
shall indemnify and hold Buyer harmless from and against any malpractice,
liability, loss, damage, claim, cost or expense (including, without limitation,
expenses of investigation and defense and reasonable fees and disbursements
of
counsel), Liens or other obligations of any nature whatsoever (collectively,
"Losses"), incurred by Buyer and arising out of or based upon (a) any breach
by
Seller or its respective representations, warranties, covenants or agreements
set forth in this Agreement or in any document or instrument delivered by Seller
at the Closing pursuant hereto; (b) any claim, action, suit, proceeding or
investigation of any kind, at law or in equity, arising from acts, omissions,
events or other conditions that occurred or existed with respect to the Assets
or the Business at any time prior to the Closing; or (c) any obligations, debts,
taxes, operating expenses, rent, utilities and other liabilities of Seller
of
any kind, character or description, whether accrued, absolute, contingent or
otherwise, that are not Assumed Liabilities.
5.2. |
Buyer
Indemnity.
|
Buyer
shall indemnify and holder Seller and Shareholders harmless from and against
any
Losses incurred by Seller or Shareholders and arising out of or based upon
(a)
any breach by Buyer of its respective representations, warranties, covenants
or
agreements set forth in this Agreement or in any document or instrument
delivered by Buyer at the Closing; and (b) any claim, action, suit, proceeding
or investigation of any kind, at law or in equity, arising from acts, omissions,
events or other conditions that occurred with respect to the Business following
the Closing.
5.3. |
Defense
or Prosecution of Claims.
|
As
promptly as practicable after a party entitled to indemnification (the
“Indemnified Party”) discovers grounds for a claim for indemnification
hereunder, Indemnified Party shall deliver a written claim for indemnification
to the other party or parties (the “Indemnifying Party”), specifying in
reasonable detail the basis therefor and, if known, the amount, or an estimate
of the amount, of the Losses arising therefrom. Thereafter, Indemnified Party
shall provide to Indemnifying Party all information and documentation reasonably
available to it to support and verify such claim. If the facts giving rise
to a
claim for indemnification hereunder arise out of the claim of any third party,
or if there is any claim against a third party, Indemnifying Party may, at
its
option, assume the defense or the prosecution thereof, with counsel satisfactory
to Indemnified Party, at the sole cost and expense of Indemnifying Party,
unless
(i) such
claim seeks an order, injunction or other equitable relief against Indemnified
Party or (ii) Indemnified Party shall have reasonably concluded that there
is a
conflict of interest between Indemnifying Party on the one hand, and Indemnified
Party, on the other hand, in the defense or prosecution of such claim. After
any
assumption of the defense or prosecution of any claim by Indemnifying Party,
it
shall not be liable to Indemnified Party for any legal expenses thereafter
incurred by Indemnified Party in connection with the defense or prosecution
thereof other than reasonable costs of investigation and oversite and any costs
incurred in the course of such defense or prosecution. In any such event,
whether or not Indemnifying Party does so assume the defense or prosecution
thereof, Indemnifying Party and Indemnified Party shall cooperate in the defense
or prosecution thereof and shall furnish such records and information and attend
at such proceedings as may be reasonably requested in connection herewith.
Indemnifying Party shall have no indemnification obligations with respect to
any
claim or demand that is settled by Indemnified Party without the prior written
consent of Indemnifying Party (which consent shall not be unreasonably
withheld), other than any claim or demand as to which Indemnifying Party shall
not have assumed the defense or prosecution thereof.
9
5.4. |
Set-Off/Payments.
|
All
Losses incurred by the parties that are subject to indemnification hereunder
shall be payable within 20 days after a valid claim for indemnification is
made
in accordance with this Article V.
ARTICLE
VI
MISCELLANEOUS
AND GENERAL
6.1. |
Payment
of Expenses.
|
Whether
or not the transactions contemplated by this Agreement are consummated, each
party hereto shall pay its own expenses incident to preparing for, entering
into
and carrying out this Agreement and the transactions contemplated hereby.
6.2. |
Survival.
|
The
representations and warranties of Seller set forth in Article III of this
Agreement and Seller’s obligation to take such actions as may be required
thereby, shall survive the Closing for two years; provided, however except
for Sections 3.1, 3.2, 3.5, 3.7 and 3.8 or where the Buyer may be entitled
to
injunctive relief or other equitable remedies, after the Closing, there shall
be
no cause of action against \any of Seller’s directors, officers, employees,
affiliates, agents and assigns by Buyer with respect to a breach of any of
Seller’s representations or warranties unless Buyer shall demonstrate fraudulent
activity of the part of an officer, or director or employee of Seller making
such representation or warranty.
10
6.3. |
Entire
Agreement; Assignment; Etc.
|
This
Agreement constitute the entire agreement, and supersede all other agreements,
understandings, representations and warranties, both written and oral, among
the
parties with respect to the subject matter hereof, and shall not be assignable
by operation of law or otherwise and is not intended to create any obligations
to, or rights in respect of, any persons other than the parties hereto
provided,
however,
that,
at any time prior to the Closing Date, Buyer may assign all or any part of
its
rights and obligations hereunder to any wholly owned subsidiary of Buyer and,
in
the event of any such assignment, Buyer shall nevertheless remain fully
responsible to Seller and the Shareholder for all obligations of Buyer
hereunder.
6.4. |
Captions.
|
The
Article, Section and paragraph captions herein are for convenience of reference
only, do not constitute part of this Agreement and shall not be deemed to limit
or otherwise affect any of the provisions hereof.
6.5. |
Severability.
|
If
any
term or other provision of this Agreement, or any portion thereof, is invalid,
illegal or incapable of being enforced by any rule of law or public policy,
all
other terms and provisions of this Agreement, or remaining portion thereof,
shall nevertheless remain in full force and effect so long as the economic
or
legal substance of the transactions contemplated hereby is not affected in
any
manner materially adverse to any party. Upon such determination that any such
term or other provision, or any portion thereof, is invalid, illegal or
incapable of being enforced, the parties hereto shall negotiate in good faith
to
modify this Agreement so as to effect the original intent of the parties as
closely as possible in an acceptable manner to the end that the transactions
contemplated hereby are consummated to the fullest extent possible.
6.6. |
Modification
or Amendment.
|
The
parties hereto may modify or amend this Agreement at any time, only by a written
instrument duly executed and delivered by each party hereto.
6.7. |
Notices.
|
All
notices and other communications given or made pursuant hereto shall be in
writing and shall be deemed to have been duly given on the date delivered,
if
delivered personally, on the third business day after being mailed by registered
or certified mail (postage prepaid, return receipt requested), in each case,
to
the parties at the following addresses, or on the date sent and confirmed by
electronic transmission to the telecopier number specified below (or at such
other address or telecopier number for a party as shall be specified by notice
given in accordance with this Section):
(a) | If to Buyer, to: |
AcSel
Corporation
|
Attn:
Xxxx Xxxxxxx
0000
Xxxxxxxx Xxxx, Xxxxx 000
Xxxxxxxx
Xxxxx, XX 00000
Fax:
_________________
11
(b) |
If
to Seller:
|
PRACTICEXPERT
|
Attn:
Xxxx Xxxx
Corporate
Park 111
000
Xxxxxx Xxxxxx
Xxxxxxxxx,
XX
Fax:
_________________
No
provision of this Agreement, including this Section, shall be deemed to
constitute consent to the manner and address for service of process in
connection with any legal proceeding (including such arising out of or in
connection with this Agreement), which service shall be effected as required
by
applicable law.
6.8. |
Failure
or Delay Not Waiver; Remedies
Cumulative.
|
No
failure or delay on the part of any party hereto in the exercise of any right
hereunder shall impair such right or be construed to be a waiver of, or
acquiescence in, any breach of any representation, warranty, covenant or
agreement herein, nor shall any single or partial exercise of any such right
preclude other or further exercise thereof or of any other right. All rights
and
remedies existing under this Agreement are cumulative to, and not exclusive
of,
any rights or remedies otherwise available.
6.9. |
Counterparts.
|
This
Agreement may be executed in the original or by telecopy in any number of
counterparts, each of which shall be deemed to be an original and call of which
together shall constitute one and the same instrument.
6.10. |
Governing
Law.
|
This
Agreement shall be governed by and construed in accordance with the law of
the
Commonwealth of Virginia, without regard to the conflicts of laws principles
thereof.
IN
WITNESS WHEREOF, the parties have executed this Asset Purchase Agreement on
the
date set forth above.
BUYER
ACSEL
CORPORATION,
a
Virginia corporation
|
||
|
|
|
By: | /s/ Xxxx Xxxxxxx | |
Xxxx Xxxxxxx, Vice-President |
SELLER
PRACTICEXPERT
of
Oklahoma, Inc.
an
Oklahoma corporation
|
||
|
|
|
By: | /s/ Xxxx Xxxx | |
President |
||
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