Contract
Exhibit
99.1
THIS
STOCK PURCHASE AGREEMENT (this "Agreement") is made as of June 5, 2008, by and
among POSITRON CORPORATION, a publicly-owned Texas corporation (“Positron”),
POSITRON PHARMACEUTICAL COMPANY, an entity to be formed in the State of Nevada
("Buyer"), DOSE SHIELD CORPORATION, an Indiana corporation (the "Company") and
NUKEMED, INC., an Indiana corporation (“NukeMed”) and XXXXXXX XXXXXX,
individually (the "Sellers") and XXXX XXXXXX, individually (collectively, the
"Parties"). Certain other terms used herein are defined below in
Article I or elsewhere in this Agreement.
RECITALS
WHEREAS,
the Company is in the business of research, development, design, and manufacture
of certain medical equipment, including, but not limited to those certain
products bearing the name “Pharm-Assist” and “Cardio-Assist” (collectively, the
“Equipment”);
WHEREAS, the Sellers are the
owners of all the issued and outstanding capital stock of the
Company;
WHEREAS,
Buyer is a publicly-owned Texas corporation with a class of securities
registered pursuant to Section 12(g) of the Securities Exchange Act of 1939, as
Amended and is in the business of research, development, design, and manufacture
of certain medical equipment, including, but not limited to devices utilizing
positron emission tomography technology;
WHEREAS, on and subject to the
terms and conditions of this Agreement, Buyer desires to purchase from Sellers,
and Sellers desire to sell to Buyer, all of the issued and outstanding capital
stock of the Company (the "Dose Shares"), certain contracts to which NukeMed is
a party related to the Business (“NukeMed Contracts”) and the intellectual
property owned by one or more of the Sellers and related to the Business (the
“Seller IP”), both as set forth herein;
NOW, THEREFORE, in
consideration of the foregoing recitals and the mutual promises,
representations, warranties and covenants hereinafter set forth and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
ARTICLE
I
DEFINITIONS
For convenience, certain terms used
in more than one part of this Agreement are
listed in alphabetical order and defined
or referred to below (such terms as well as any other terms defined
elsewhere in this Agreement shall
be equally applicable to both
the singular and plural forms of
the terms defined).
"Acquisition
Proposal" is defined in Article 5.3.
"Action"
is defined in Article 10.5(a).
"Affiliates"
means, with respect to a particular party, persons or entities controlling,
controlled by or under common control with that party, as well as any officers,
directors and majority-owned entities of that party or of its Affiliates. For
the purposes of the foregoing, ownership, directly or indirectly, of 10% or more
of the voting stock or other equity interest shall be deemed to constitute
control.
"Agreement" means this Agreement and
the Exhibits and Disclosure
Schedules attached hereto, as each may be
amended, restated, supplemented or modified from time to
time.
"Assets"
means all of the assets, properties, goodwill and rights of every kind and
description, real and personal, tangible and intangible, wherever situated and
whether or not reflected in the most recent Financial Statements, that are owned
or possessed by the Company.
"Balance
Sheet" is defined in Article 3.5.
"Balance
Sheet Date" is defined in Article 3.5.
"Benefit
Plan" means: (i) as to employees employed in the United States, any (a)
"employee benefit plan" as defined in Section 3(3) of ERISA, and (b)
supplemental retirement, bonus, deferred compensation, severance, incentive
plan, program or arrangement or other employee fringe benefit plan, program or
arrangement; and (ii) as to employees employed outside the United States of
America, all employee benefit, health, welfare, supplemental unemployment
benefit, bonus, pension, profit sharing, deferred compensation, stock
compensation, stock purchase, retirement, hospitalization insurance, medical,
dental, legal, disability and similar plans or arrangements or
practices.
"Business"
means the business of research, development, design, and manufacture of devices
used in automation of radiopharmaceutical dispensing, including, but not limited
to “Pharm-Assist” products and “Cardio-Assist” products.
"Buyer
Indemnifiable Damages" is defined in Article 10.1.
"Buyer
Indemnified Party" is defined in Article 10.1.
"Charter
Documents" means an entity's certificate or articles of incorporation,
certificate defining the rights and preferences of securities, articles of
organization, general or limited partnership agreement, certificate of limited
partnership, joint venture agreement or similar document governing the
entity.
"Claim
Notice" is defined in Article 10.3(a).
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"Claim
Response" is defined in Article 10.3(a).
"Closing"
is defined in Article 2.3.
"Closing
Certificates" means the certificates to be delivered by Sellers under Article
8.3 and any other provisions hereof.
"Closing
Date" may be used to refer to the date of the Initial Closing or the Final
Closing, as the case may be.
"Code"
means the Internal Revenue Code of 1986, as amended.
“Company”
means Dose Shield Corporation and any successor-in-interest as a result of any
merger or reorganization with the Buyer and/or Positron.
"Company
Contracts" is defined in Article 3.16.
"Confidential
Information" means any trade secrets of the Company and any information
concerning the businesses and affairs of the Company that is not already
generally available to the public, including personnel information, know-how and
other technical information, customer lists, customer information and supplier
information.
"Contract"
means any written or oral contract, agreement, lease, instrument, or other
commitment that is binding on any person or its property under applicable
law.
"Court
Order" means any judgment, decree, injunction, order or ruling of any federal,
state, local or foreign court or governmental or regulatory body or authority
that is binding on any person or its property under applicable law.
"Damages"
is defined in Article 10.1.
"Default"
means (a) a breach, default or violation, (b) the occurrence of an event that
with or without the passage of time or the giving of notice, or both, would
constitute a breach, default or violation, or (c) with respect to any Contract,
the occurrence of an event that with or without the passage of time or the
giving of notice, or both, would give rise to a right of termination,
renegotiation or acceleration or a right to receive damages or a payment of
penalties.
"Disclosure
Schedule" means any of the schedules referred to herein containing information
relating to any of the Sellers that have been provided to Buyer on the date
hereof.
"Dose
Shares" is defined in Article 2.1.
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"EBITDA"
means the earnings before interest, taxes, depreciation and amortization of the
Company and their subsidiaries on a consolidated basis as determined by
independent certified public accountants or auditors in accordance with
GAAP.
"Encumbrances"
means any lien, mortgage, security interest, pledge, restriction on
transferability, defect of title or other claim, charge or encumbrance of any
nature whatsoever on any property or property interest.
"Environmental
Condition" is defined in Article 3.15(b).
"Environmental
Law" means all Laws and Court Orders currently applicable to the Company
relating to pollution and protection of the public or the environment as well as
any principles of common law under which a party may be held liable for the
release or discharge of any Hazardous Substances into the
environment.
"ERISA"
means the Employee Retirement Income Security Act of 1974, as
amended.
"Exchange
Act" means the Securities Exchange Act of 1934, as amended.
"Expiration
Date" is defined in Article 10.4.
"Financial
Statements" is defined in Article 3.5.
"GAAP"
means generally accepted accounting principles in the United States as in
effect, from time to time.
"Governmental
Permits" means all governmental permits, licenses, registrations, certificates
of occupancy, approvals and other governmental authorizations.
"Hazardous
Substances" means any toxic or hazardous gaseous, liquid or solid material or
waste that may or could pose a hazard to the environment or human health or
safety including (i) any "hazardous substances" as defined by the federal
Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C.
sec. 9601 et seq., (ii) any "extremely hazardous substance," "hazardous
chemical," or "toxic chemical" as those terms are defined by the federal
Emergency Planning and Community Right-to-Know Act, 42 U.S.C. sec. 11001 et
seq., (iii) any "hazardous waste," as defined under the federal Solid Waste
Disposal Act, as amended by the Resource Conservation and Recovery Act, 42
U.S.C. sec. 6901 et seq., (iv) any "pollutant," as defined under the federal
Water Pollution Control Act, 33 U.S.C. sec. 1251 et seq., as any of such laws in
clauses (i) through (iv) as amended, and (v) any regulated substance or waste
under any Environmental Laws or Court Orders that have been enacted, promulgated
or issued by any federal, state or local governmental authorities concerning
protection of the environment.
"Immaterial
Lease" is defined in Article 3.10.
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"Indemnifiable
Loss" is defined in Article 10.6.
"Indemnified
Party" is defined in Article 10.3(a).
"Indemnitor"
is defined in Article 10.3(a).
"Indemnity
Payment" is defined in Article 10.6.
"Intellectual
Property" means any copyrights, patents, trademarks, servicemarks, trade names,
information, proprietary rights, processes, technology rights and licenses,
trade secrets, franchises, know-how, inventions, designs, software, software
revisions and other intellectual property.
"Knowledge"
means actual knowledge.
"Inventory"
means all inventory, including raw materials, supplies, work in process and
finished goods.
"Law"
means any statute, law, ordinance, regulation, order or rule of any federal,
state, local, foreign or other governmental agency or body or of any other type
of regulatory body, other than an Environmental Law, including those covering
energy, safety, health, transportation, bribery, recordkeeping, zoning,
anti-discrimination, antitrust, wage and hour, and price and wage control
matters.
"Liability"
means any direct or indirect liability, indebtedness, obligation, claim, loss,
damage, deficiency, guaranty or endorsement of or by the Company, absolute or
contingent, accrued or unaccrued, due or to become due, liquidated or
unliquidated.
"Liquidated
Claim Notice" is defined in Article 10.3(a).
"Litigation"
means any lawsuit, action, arbitration, administrative or other proceeding,
criminal prosecution or governmental investigation or inquiry.
"Material
Adverse Effect" means a material adverse effect on the Business of the Company
taken as a whole, including the Assets, financial condition, results of
operations, competitive position and products.
"Minor
Contract" means any Contract that is terminable by a party on not more than 30
days' notice without any Liability and any Contract under which the obligation
of a party (fulfilled and to be fulfilled) involves an amount of less than
$10,000.
“Net
Revenues” means the net billed revenue for each fiscal year of the Company, on
an accrual basis, that is actually collected by the Company.
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“NukeMed
Contracts” shall mean the following: (i) that certain NuView Distribution
Contract NukeMed, Inc. and NuView Radiopharmaceuticals, Inc. dated as of April
28, 2008; (ii) that certain Service Agreement between NukeMed, Inc. and the
Company dated April 1, 2004; (iii) certain Purchase and Requisition Contracts
for Equipment that NukeMed, Inc. holds with customers that involve the Business;
and (iv) any and all agreements between NukeMed, Inc. and the Society of Nuclear
Medicine regarding the Company and/or the Business.
"Ordinary
course" or "ordinary course of business" means the ordinary course of business
that is consistent with past custom and practice (including with respect to
quantity and frequency).
"Patents"
means all patents, patent applications, and inventions and discoveries
that may be patentable.
"Person"
means any natural person, corporation, partnership, limited liability company,
proprietorship, association, trust or other legal entity.
"Personal
Property Leases" is defined in Article 3.10.
"Positron
Shares" is defined in Article 2.2.
"Purchase
Price" is defined in Article 2.1.
"Real
Estate Leases" is defined in Article 3.8.
"Real
Property" is defined in Article 3.8.
"Response
Period" is defined in Article 10.3(a).
"Securities
Act" means the Securities Act of 1933, as amended.
"Sellers
Indemnified Party" is defined in Article 10.2.
“Seller
IP” means any copyrights, patents, trademarks, servicemarks, trade names,
information, proprietary rights, processes, technology rights and licenses,
trade secrets, franchises, know-how, inventions, designs, software, software
revisions and other intellectual property owned by one or more of the Sellers
ans related to the Business as set forth on Schedule 3.18(B).
"Stock
Consideration" is defined in Article 2.2.
"Taxes"
means all taxes, duties, charges, fees, levies or other assessments imposed by
any taxing authority including, without limitation, income, gross receipts,
value-added, excise, withholding, personal property, real estate, sale, use, ad
valorem, license, lease, service, severance, stamp, transfer, payroll,
employment, customs, duties, alternative, add-on minimum, estimated and
franchise taxes (including any interest, penalties or additions attributable to
or imposed on or with respect to any such assessment).
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"Tax
Return" means any return (including any information return), report, statement,
schedule, notice, form, estimate or declaration of estimated tax relating to or
required to be filed with any governmental authority in connection with the
determination, assessment, collection or payment of any Tax.
"Trade
Secrets" means all know-how, trade secrets, confidential information, customer
lists, software, technical information, data, process technology, plans,
drawings, and blue prints, owned, used or licensed (as licensor or licensee) by
the Company, except for any such item that is (i) generally available to the
public, (ii) becomes available to a Person on a non- confidential basis from a
source other than the Company or its representatives, which has represented to
the Person (and which the Person has no reason to disbelieve after due inquiry)
that it is entitled to disclose it or (iii) was in the possession of or was
known to the Person on a non-confidential basis prior to the disclosure thereof
to the Person by the Company or its representatives.
"Transaction
Documents" means this Agreement and the documents contemplated
hereby.
"Transactions"
means the sale of the Dose Shares and the other transactions contemplated by the
Transaction Documents.
"Unliquidated
Claim" is defined in Article 10.3(a).
"Welfare
Plan" is defined in Article 3.20.
ARTICLE
II
PURCHASE
AND SALE
2.1
Purchase and Sale. Subject to the terms and conditions contained in this
Agreement, Sellers shall sell, assign, transfer and
deliver to Buyer, and Buyer shall purchase from Sellers, all of the
Sellers' issued and outstanding shares of capital stock of
any form, class or designation of the Company
(the "Dose Shares"), the Seller IP and the NukeMed Contracts, in
exchange for a purchase price which shall be paid under the terms and
conditions as set forth herein (the “Purchase Price”).
2.2
Purchase Price. The Purchase Price for the Dose
Shares, the Seller IP and the NukeMed Contracts shall be delivered to
the Sellers pro rata in accordance with their ownership of the Dose
Shares immediately prior to the Closing as set forth in SCHEDULE 3.4 (the "Pro
Rata Portion") as follows: (i) Eighty Million (80,000,000) shares
("Positron Shares") of Positron’s common stock, par value $0.01 per share
("Stock Consideration"), payable as described below; (ii) cash in the amount of
Six Hundred Thousand Dollars ($600,000.00) ("Cash Consideration") payable as
described below; (iii) earn out payments equal to the lesser of (x) fifty
percent (50%) of the Net Revenue generated from sales of Pharm-Assist equipment
or (y) $600,000, payable as described below ("Earn-out Consideration"); (iv)
advances in the Company equal to four hundred fifty thousand dollars ($450,000),
payable as described below, and (v) royalties equal to one and one-half percent
(1.5%) of the Net Revenues generated from sales of all Equipment, payable to an
entity or person to be designated by the Sellers, as described below ("Royalty
Consideration").
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(a)
Issuance of Stock Consideration. The Positron Shares shall be
newly-issued as of the Closing and delivered by Positron to the Sellers as
follows: (i) At the Closing, Positron shall issue to Sellers Forty Million
(40,000,000) of the Positron Shares (the "Initial Stock Consideration"); and
(ii) the remaining Forty Million (40,000,000) Positron Shares shall be issued
within five (5) business days after an independent third-party chosen by Buyer
and/or Positron and approved by the Sellers or Sellers Assignees, which approval
shall not be unreasonably withheld, tests and confirms that the Cardio-Assist
device is deemed to be in commercially reasonable working order and is ready for
resale no later than December 31, 2009
(b) Cash
Consideration. On or before December 31, 2008, Buyer and/or Positron
shall deliver cash to the Sellers in the amount of Six Hundred Thousand Dollars
($600,000) as follows: (i) Sixty Thousand Dollars ($60,000.00) at the Closing
(the “Initial Cash Consideration”); and (ii) Five Hundred Forty Thousand Dollars
($540,000.00) (the “Installment Cash Consideration”) on or before December 31,
2008 (the “Cash Performance Date”) through funds the Buyer intends to raise
through a private placement of its securities (the
“Offering”). Payment of the Installment Cash Consideration shall be
made to sellers within fifteen (15) days of the break of funds from escrow from
the Offering of Positron’s securities. If the Installment Cash
Consideration is not paid by the Cash Performance Date, the Seller’s shall have
the option of: (i) extending the Cash Performance Date to December 31, 2009
whereby the Installment Cash Consideration shall accrue interest at the rate of
eight percent (8%) per annum, commencing January 1, 2009; or (ii). terminating
the Agreement the Agreement in accordance with Article 12.1 hereof.
(c)
Earn-out Consideration. On or before December 31, 2009, the Sellers
shall receive Earn-out Consideration in an amount equal to the lesser of (x)
fifty percent (50%) of the Net Revenues, including collection of the Company’s
accounts receivable existing as of the closing date, generated from sales of the
Pharm-Assist device or (y) Six Hundred Thousand Dollars ($600,000).
(d)
Advance Consideration. At the Closing, the Buyer and/or Positron shall
immediately commence advancing the Company funds to pay the following Company
expenses: (i) research and development of Cardio-Assist; (ii) Mo/Tc Generator
and Sr/Rb Generator; (iii) Payroll; and (iv) General and Administrative
expenses. Said advances shall be in the minimum monthly amount of One Hundred
Fifty Thousand Dollars ($150,000) for a period of three months following the
Closing. Following the Closing, all expenses of the Company shall be
expenses of the Buyer and the payment thereof must be approved in advance by
Xxxx Xxxxxx and Xxxxx Xxxx.
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(e)
Royalty Consideration. So long as this Agreement remains effective,
the Buyer shall pay to the Sellers or to an entity or person of the Sellers'
designation, one and one half percent (1.5%) of the Net Revenues generated by
the Company on the sale of all Equipment.
2.3
Closing. The closing (the “Closing”) of the transactions contemplated
by this Agreement shall occur immediately following the execution of this
Agreement, providing the closing conditions set forth in Article 8 and Article 9
have been satisfied or waived (the “Closing Date”).
2.4 Items
to be Delivered Immediately Prior to or at Closing. At or immediately
prior to the Closing: (i) Sellers shall deliver to Buyer a
certificate or certificates representing all of the Dose Shares, duly endorsed
in blank or accompanied by stock powers duly executed in blank; (ii) Sellers
shall deliver to Buyer, and Buyer shall deliver to Sellers, the certificates
referred to in Articles 8 and 9; (iii) Buyer shall deliver to the Sellers
certificates representing the Positron Shares evidencing the Initial Stock
Consideration.
ARTICLE
III
REPRESENTATIONS
AND WARRANTIES
OF
SELLERS AND THE COMPANY
Each of
the Sellers and the Company, jointly and severally, hereby represents and
warrants to Buyer, with all such representations and warranties only to Sellers’
Knowledge, as follows:
3.1
Corporate Status. The Company is a corporation duly organized,
validly existing and in good standing under the Laws of the State of Indiana and
are qualified to do business as foreign corporations in the
jurisdictions where they are required to be so qualified unless the failure to
be so qualified would not have a
Material Adverse Effect. The Charter Documents
and bylaws of the Company that have been delivered to Buyer as of the date
hereof are effective under applicable Laws and are current, correct and
complete.
3.2 Authorization
Delivered. Each Seller has the requisite power and authority to
execute and deliver the Transaction Documents to which they are a party and to
perform the Transactions performed or to be performed. Each
Transaction Document executed and delivered by the Sellers has been duly
executed and delivered by each Seller and constitutes a valid and binding
obligation of the Sellers, enforceable against such Seller in accordance with
its terms, except as limited by applicable bankruptcy, creditor, insolvency and
other laws of similar effect and by general principles of equity.
3.3
Consents and Approvals. Except as set forth on SCHEDULE 3.3
attached hereto, neither the execution and delivery by any
Seller of the Transaction Documents to which it is a party, nor the performance
of the Transactions performed or to be performed by any Seller,
require any filing, consent or approval, constitute a Default or cause any
payment obligation to arise under (a) Court Order to which any Seller
is subject, (b) the Charter Documents or bylaws of the Company or (c)
any material Contract, Governmental Permit or other document to which the
Company is a party or by which the properties or other assets of the Company may
be subject.
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3.4 Stock
Ownership.
(a) The
Sellers are the sole record and beneficial owners of all of the issued and
outstanding shares of capital stock of any form, class and designation of the
Company, and the respective shares owned by the Sellers are specified on
SCHEDULE 3.4. There exists no options, warrants, calls, commitments
or other rights of any character (including conversion or preemptive rights)
relating to the acquisition of any issued or unissued common stock or other
securities of the Company.
(b) The
Sellers recognize that the Buyer would have no adequate remedy at law if the
Sellers have created, issued or otherwise transferred, any shares of the capital
stock not set forth in SCHEDULE 3.4. Therefore, the
Sellers hereby agree and covenant that the existence of any shares not set forth
in SCHEDULE 3.4 shall be retired, cancelled, and dispossessed of any voting,
liquidation, dividend or other rights.
3.5 Financial Statements. Attached
hereto as SCHEDULE 3.5 are the balance sheets as of December 31, 2007 and 2006
(each a "Balance Sheet") which have been prepared in
accordance with GAAP and present fairly, in all material respects,
the financial position of the Company, and the results of its operations and its
cash flows for the period then ended.
3.6 INTENTIONALLY
LEFT BLANK
3.7 Title
to Assets and Related Matters. The Company has good and marketable
title to, valid leasehold interests in or valid licenses to use, all of its
Assets, including but not limited to the Equipment, free from any Encumbrances
except those specified in SCHEDULE 3.7.
3.8 Real
Property. SCHEDULE 3.8 lists all real estate used in the operation of the
Business as well as any other real estate that is owned, in the possession of or
leased by the Company and the improvements (including and other structures)
located on such real estate (collectively, the "Real Property"), and lists any
lease agreements to which the Company is a party (the "Real Estate
Leases").
3.9
Certain Personal Property. SCHEDULE 3.9 lists each item of tangible personal
property that was reflected in the audited Financial Statements and that has a
fair market value in excess of $5,000. Except for those items subject to the
Personal Property Leases and certain computer hardware and software owned by the
Company’s employees or consultants with an aggregate value of less than $5,000,
no Person other than the Company owns any vehicles, material equipment or other
material tangible assets located on the Real Property that have been used in the
Business or that are necessary for the operation of the
Business.
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3.10
Personal Property Leases. SCHEDULE 3.10 lists all existing lease
agreements to which any of the assets or properties (other than
Real Property) used by the Company in the operation of the Business
are subject, except those lease agreements under which the aggregate annual
payments are less than $10,000 (each, an "Immaterial Lease"). All such leases
(excluding Immaterial Leases) are referred to herein as the "Personal Property
Leases."
3.11 Accounts
Receivable. All accounts receivable of the Company (a) are valid and genuine,
(b) arise out of bona fide sales and deliveries of goods, performance of
services or other business transactions, (c) are not subject to valid defenses,
set-offs or counterclaims other than normal returns and allowances, and (d) were
generated only in the ordinary course of business.
3.12
Equipment. All equipment reflected on the Balance Sheet and all equipment owned
by the Company was acquired and has been maintained in accordance with the
regular business practices of the Company, consists of items of a quality and
quantity useable in the ordinary course of the Company’s business consistent
with past practice, and is valued in conformity with GAAP applied on a
consistent basis.
3.13
Liabilities. The Company does not have any material Liabilities,
other than (a) Liabilities specified in SCHEDULE 3.13, (b) Liabilities specified
its respective Balance Sheets (except as
heretofore paid or discharged),
(c) Liabilities incurred in the ordinary course
of business since the Balance Sheet Date
that, individually or in
the aggregate, are not material to
the Business, or (d) Liabilities under any
Contracts that were not required under GAAP to have
been specifically disclosed or reserved for on
its respective Balance Sheets.
3.14
Taxes. Except as set forth on SCHEDULE 3.14, the Company’s
Tax matters are described below:
(a) The
Company has timely filed all Tax Returns required to be filed. All such Tax
Returns are true, correct and complete in all respects. The Company
has paid in full on a timely basis all Taxes owed by it, whether or not shown on
any Tax Return, except where the failure to file such return or pay such taxes
would not have a Material Adverse Effect. No claim has ever been made by an
authority in a jurisdiction where the Company does not file Tax Returns that the
Company is subject to taxation in that jurisdiction.
(b) There
are no ongoing examinations or claims against the Company for Taxes, and no
notice of any audit, examination or claim for Taxes, whether pending or
threatened, has been received. The Company has not waived or extended
the statute of limitations with respect to the collection or assessment of any
Tax.
(c) From
its date of incorporation, the Company has operated pursuant to a taxable year
end of January 31 and has utilized GAAP for income Tax purposes.
(d) The
Company has withheld and paid all Taxes required to have been withheld and paid,
and have complied with all information reporting and backup withholding
requirements, including record maintenance requirements, in connection with
amounts paid to any employee, independent contractor, creditor, or third
party.
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(e)
Copies of (i) any Tax examinations, (ii) extensions of statutory limitations for
the collection or assessment of Taxes, and (iii) the Tax Returns of the Company
for the last four fiscal years have been made available to Buyer.
(f) There
are no Liens on the Assets relating to or attributable to Taxes. To the Sellers'
Knowledge, there is no basis for the assertion of any claim relating to or
attributable to Taxes, except for taxes not yet due, which, if adversely
determined, would result in a Lien on the Assets of the Company or otherwise
have a material adverse effect on the Business the Company.
(g) The
Company has not filed consent under Section 341(f) of the
Code. The Company is not and has not been a
United States real property
holding company within the meaning of
Section 897(c) of the Code during the period specified in Section
897(c)(1)(A)(I) of the Code.
(h) The
Company has not been at any time, a party to a tax sharing, tax indemnity or tax
allocation agreement, and the Company has not assumed by contract the tax
liability of any other person.
3.15
Legal Proceedings and Compliance with Law.
(a) To
the Sellers' Knowledge, except as set forth on SCHEDULE 3.15: (i) there is no
Litigation that is pending or, to Sellers' Knowledge, threatened
against the Company, (ii) no Default exists under any Laws
or Environmental Laws, and (iii) the Company has not
received any notices from
any governmental entity alleging any Defaults
under any Laws or Environmental Laws. To the Sellers' Knowledge, the Company is
not in Default of any Court Order.
(b)
Without limiting the generality of Article 3.15(a), to the Sellers' Knowledge,
there is not any Environmental Condition (i) at the premises at which the
Business has been conducted by the Company (ii)
at any property owned,
leased, occupied or operated at any
time by the Company, or (iii) at any property at which
wastes have been deposited or disposed of by or at the behest or
direction of the Company, nor has the Company received written notice of any
such Environmental Condition. "Environmental Condition" means any
condition or circumstance, including the presence of Hazardous Substances,
whether created by the Company or a
third party, at or relating to any
such property or premises specified in any of clauses (i)
through (iii) above that did, does or
may reasonably be expected to give rise to any civil or
criminal liability on the part of the Company under an Environmental
Law.
(c) The
Company has delivered to
Buyer complete copies of any
written reports, studies
or assessments in the possession or custody of
the Company or any Seller that relate to any Environmental Condition
and SCHEDULE 3.15 lists all other reports, studies and assessments concerning
the environment of which any Seller has Knowledge.
12
(d)
Except as set forth on SCHEDULE 3.15, to the Sellers' Knowledge, (i) the Company
has obtained and is in substantial compliance with all material Governmental
Permits that are required in the operation of the Business as currently operated
or that relate to the Real Property, (ii) all of such Governmental Permits are
currently valid and in full force, and (iii) the Company has timely filed such
renewal applications as may be required with respect to its Governmental
Permits. To the Sellers' Knowledge, no revocation, cancellation or withdrawal of
any Governmental Permit has been threatened.
3.16
Contracts.
(a)
SCHEDULE 3.16 lists all Contracts of the following types to which the Company is
a party or by which it is bound, except for Minor Contracts:
(i)
Any contract with any present or former Seller, director, officer,
employee, partner or consultant of the Company or any Affiliate
thereof.
(ii)
Any contract for
the future purchase of, or payment
for, supplies or products, or for the lease of any real or
personal property or for the performance of services by a
third party that involves an amount in excess
of $10,000;
(iii)
Any contract to sell or
supply products or to
perform services that involves an amount in excess
of $10,000;
(iv)
Any contract to lease to or to operate for any other party any real or personal
property that involves an amount in excess of $10,000;
(v) Any
notes, debentures, bonds, conditional sale agreements, equipment trust
agreements, letter of credit agreements, reimbursement agreements, loan
agreements or other Contracts for the borrowing or lending
of money (including loans to or from officers, directors, partners, Sellers or
Affiliates of the Company or any members of their immediate families),
agreements or arrangements for a line of credit or for a guarantee of, or other
undertaking in connection with, the indebtedness of any other
Person;
(vi)
Any Contracts under which any Encumbrances exist; and
(vii) Any
other Contracts (other than Minor Contracts and those
described in any of (i) through (vi) above) not made in
the ordinary course of business.
(b) The
Contracts listed in SCHEDULE 3.16 and the Minor Contracts excluded from SCHEDULE
3.16 based on the term or amount thereof are referred to herein as the "Company
Contracts." Except as set forth on SCHEDULE 3.16, the Company is not in Default
under any Company Contracts (including any Real Estate Leases and Personal
Property Leases) that would have a Material Adverse Effect. The Company has not
received any communication from, or given any communication to, any other party
indicating that the Company or such other party, as the case may be, is in
Default under any Company Contract. To the Knowledge of the Sellers, (i) none of
the other parties to any such Company Contract is in Default thereunder, and
(ii) each such Company Contract is enforceable against the other parties thereto
in accordance with the terms thereof.
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3.17
Insurance. All policies or binders of insurance held by or on behalf of the
Company, specifying with respect to each policy the insurer, the amount of the
coverage, the type of insurance, the risks insured, the expiration date, the
policy number, and any pending claims thereunder have previously been delivered
to Buyer by the Company. Except as set forth on SCHEDULE 3.17, to the Sellers'
Knowledge, there is no Default with respect to any such policy or binder, nor
has there been any failure to give any notice or present any claim under any
such policy or binder in a timely fashion or in the manner or detail required by
the policy or binder. The Company has not received any notice of nonrenewal or
cancellation with respect to, or disallowance of any claim under, any such
policy or binder.
3.18
Intellectual Property
(a)
Intellectual Property. The Company and the Sellers have good and valid title to
and ownership of all Intellectual Property necessary for its Business and
operations (as now conducted and as proposed to be conducted). A list of all
Intellectual Property owned by the Company is set forth on SCHEDULE 3.18. There
are no outstanding options, licenses or agreements of any kind to which the
Company is a party or by which it is bound relating to any Intellectual
Property, whether owned by the Company or another person, except as disclosed on
SCHEDULE 3.18. To the Knowledge of the Sellers, the Business of the Company as
formerly and presently conducted did not and does not conflict with or infringe
upon any Intellectual Property right, owned or claimed by another.
(b)
Contracts. SCHEDULE 3.18 lists all Contracts relating to Intellectual Property
to which the Company is a party or by which the Company is bound, except for any
license implied by the sale of a product and perpetual, paid-up licenses for
commonly available software programs having a value of less than $5,000 under
which any Company is a licensee and lists the royalties paid or received by the
Company. There are no outstanding and, to Sellers' Knowledge, no threatened
disputes or disagreements with respect to any such agreement.
(c)
Know-How Necessary for the Business. The Intellectual Property included in the
Assets and the Equipment constitute all of the Intellectual Property that is, to
the Sellers’ Knowledge, necessary for the operation of the Business as it is
currently conducted. Except as described on SCHEDULE 3.18, the Company is the
owners of all right, title and interest in and to each item of Intellectual
Property, free and clear of any Encumbrances, and to the Knowledge of the
Sellers, have the right to use without payment to a third party all of the
Intellectual Property.
3.19
Employees. Company is not (a) a party to, involved in or, to the Sellers’
Knowledge, threatened by, any labor dispute or unfair labor practice charge, or
(b) currently negotiating any collective bargaining agreement. The Company has
not experienced during the last three years any work stoppage. Sellers have
delivered to Buyer a complete and correct list of the names and salaries, bonus
and other cash compensation of all employees (including officers) of the
Company. SCHEDULE 3.19 lists the directors and officers of the
Company.
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3.20
ERISA
(a)
SCHEDULE 3.20 contains a complete list of all Benefit Plans sponsored or
maintained by the Company or under which the Company is obligated. Sellers have
delivered to Buyer (i) accurate and complete copies of all such Benefit Plan
documents and all other material documents relating thereto, including (if
applicable) all summary plan descriptions, summary annual reports and insurance
contracts, (ii) accurate and complete detailed summaries of all unwritten
Benefit Plans, (iii) to the Sellers' knowledge, accurate and complete copies of
the most recent financial statements and actuarial reports with respect to all
such Benefit Plans for which financial statements or actuarial reports are
required or have been prepared, and (iv) accurate and complete copies of all
required annual reports for all such Benefit Plans prepared within the last
three years. SCHEDULE 3.20 denotes which such benefit Plans
provide benefits that are funded through an insurance policy by placing the word
"insured" next to such Benefit Plan.
(b) To
the Knowledge of any of the Sellers, all such Benefit Plans conform (and at all
times have conformed) in all material respects to, and are being administered
and operated (and have at all times been administered and operated) in material
compliance with, the requirements of ERISA, the Code and all other applicable
Laws. All returns, reports and disclosure statements Required to be made under
ERISA and the Code with respect to all such Benefit Plans have been timely filed
or delivered. To the Knowledge of any of the Sellers, there have not been any
"prohibited transactions," as such term is defined in Section 4975 of the Code
or Section 406 of ERISA involving any of the Benefit Plans, that would subject
any Seller or the Company to any material penalty or tax imposed under the Code
or ERISA.
(c)
Except as is set forth in SCHEDULE 3.20, any such Benefit Plan that is intended
to be qualified under Section 401(a) of the Code and exempt from tax under
Section 501(a) of the Code has
been determined by the Internal Revenue Service
to be so qualified or an application for such determination is
pending. Any such determination that has been obtained remains in effect and has
not been revoked, and with respect to any application that is pending, the
Company does not have any reason to suspect that such application for
determination will be denied. Nothing has occurred since the date of
any such determination that is reasonably likely to affect adversely such
qualification or exemption, or result in the imposition of excise taxes on the
Company or income taxes on unrelated business income under the Code or ERISA
with respect to any such Benefit Plan.
(d) The
Company does not sponsor a defined benefit plan subject to Title IV of ERISA,
nor do they have a current or contingent obligation to contribute to any
multi-employer plan (as defined in Section 3(37) of ERISA). The Company does not
have any liability with respect to any employee benefit plan (as defined in
Section 3(3) of ERISA) other than with respect to such Benefit
Plans.
15
(e) There
are no pending or, to the Sellers' Knowledge, any threatened
claims by or on behalf of any
such Benefit Plans, or by or on behalf of any
individual participants or beneficiaries of any such Benefit Plans, alleging any
breach of fiduciary duty on the part of the Company or any of
its officers,
directors or employees under ERISA or any
other applicable regulations, or
claiming benefit payments (other than those made in the
ordinary operation of such plans), nor is there, to the Sellers'
Knowledge, any basis for such claim. The Benefit Plans are not the
subject of any pending (or to Seller’s Knowledge, any threatened) investigation
or audit by the Internal Revenue Service or the Department of
Labor.
(f) The
Company does not have Benefit Plans.
(g) With
respect to any such Benefit Plan that is an employee welfare benefit plan
(within the meaning of Section 3(1) of ERISA) (a "Welfare Plan") and except as
specified in SCHEDULE 3.20, (i) each Welfare Plan for which contributions are
claimed by the Company as deductions under any provision of the Code complies
with all applicable requirements pertaining to such deduction, (ii) with respect
to any welfare benefit fund (within the meaning of Section 419 of the Code)
related to a Welfare Plan, there is no disqualified benefit (within the meaning
of Section 4976(b) of the Code) that would result in the imposition of a tax
under Section 4976(a) of the Code, (iii) any Benefit Plan that is a group health
plan (within the meaning of Section 4980B(g)(2) of the Code) complies, and in
each and every case has complied, with all of the applicable requirements of
Section 4980B of the Code, ERISA, Title XXII of the Public Health Service Act
and the Social Security Act, and (iv) all Welfare Plans may be amended or
terminated at any time on or the Closing Date. Except as specified in SCHEDULE
3.20, no Benefit Plan provides any health, life or other welfare coverage to
employees of the Company beyond termination of their employment with the Company
by reason of retirement or otherwise, other than coverage as may be required
under Section 4980B of the Code or Part 6 of ERISA, or under the continuation of
coverage provisions of the laws of any state or locality.
3.21
Corporate Records. The minute books of the Company contain complete,
correct and current copies of its Charter Documents and bylaws and of all
minutes of meetings, resolutions and other proceedings of their Board of
Directors and Sellers. The stock record books of the Company are complete,
correct and current.
3.22
Absence of Certain Changes. Except as contemplated by this Agreement,
the Company has conducted the Business in the ordinary course since
inception. Since the Balance Sheet Date, except as set forth on
SCHEDULE 3.22, there has not been to the Sellers' Knowledge:
(a) any
change that has had or is reasonably likely to have a Material Adverse
Effect;
(b) any
declaration or payment of any dividend or purchase or redemption of
shares;
16
(c) any
increase in the compensation payable or to become payable to any director,
officer, employee or agent, except for increases for non-officer employees made
in the ordinary course of business, nor any other change in any employment or
consulting arrangement except in the ordinary course of business;
(d) any
sale, assignment or transfer of Assets, or any additions to or transactions
involving any Assets, other than those made in the ordinary course of
business;
(e) other
than in the ordinary course of business, any waiver or release of any claim or
right or cancellation of any debt held;
(f) any
material decrease in the Company’s working capital, other than the results of
the ordinary course of business;
(g) other
than in the ordinary course of business, any incurrence of indebtedness for
borrowed money or issuance of any debt securities; or
(h) any
payments to any Affiliate of the Company, other than those made in the ordinary
course of business.
3.23
Customers. The Company has used reasonable business efforts to maintain, and
currently maintains, good working relationships with all of its customers except
where the failure to have such a relationship would not have a Material Adverse
Effect on the Business. SCHEDULE 3.23 contains a list of the names of each of
the 10 customers that, in the aggregate, for the period from January 1, 2007,
through March 31, 2008, were the largest dollar volume customers of products or
services, or both, sold by the Company. None of such customers has given the
Company written notice terminating, canceling or threatening to terminate or
cancel any Contract or relationship with the Company or its
Affiliates.
3.24
Previous Sales; Warranties. The Company has not breached any express or implied
warranties in connection with the sale or distribution of goods or the
performance of services, except for breaches that, individually and in the
aggregate, are not material and are consistent with the past practices of the
Business.
3.25
Finder's Fees. No Person has been retained by the Sellers that will be entitled
to any commission or finder's or similar fee in connection with the
Transaction.
3.26
Accuracy of Information. To the Seller's Knowledge, no representation or
warranty by the Company or any Seller in any Transaction Document, and no
information contained therein contains any untrue statement of a material fact
or omits to state any material fact necessary in order to make the statements
contained herein or therein not misleading in light of the circumstances under
which such statements were made.
3.27
Additional Information SCHEDULE 3.27 accurately lists the
following:
17
(a) the
names and addresses of every bank or other financial institution in which the
Company maintains an account (whether checking, saving or otherwise),
or lock box or safe deposit box, and the account numbers
and names of Persons having signing authority or other access thereto;
and
(b) all
names under which the Company has conducted the Business or which it has
otherwise used at any time during the past five years.
ARTICLE
IV
REPRESENTATIONS
AND WARRANTIES OF POSITRON
Positron
hereby represents and warrants to Sellers as follows:
4.1 Organizational
Status. Positron is
a corporation duly organized,
validly existing and in good standing under the Laws of the State of
Texas and is qualified to do business in
any jurisdiction where it is required to be so qualified.
The Charter Documents of Positron that have been delivered to Sellers as of the
date hereof are effective under applicable Laws and are current, correct and
complete.
4.2 Authorization. Positron
has the requisite power and authority to own its assets and to carry on its
business. Positron has the requisite power and authority to execute
and deliver the Transaction Documents to which it is a party and to perform the
Transactions performed or to be performed by it. Such execution, delivery and
performance by Positron have been duly authorized by all necessary corporate
action. Each Transaction Document has been duly executed and delivered by
Positron and constitutes a valid and binding obligation of Positron, enforceable
against Positron in accordance with its terms.
4.3
Consents and Approvals. Except as set forth in SCHEDULE 4.3 hereof, neither the
execution and delivery by Positron of the Transaction Documents to
which it is a party, nor the performance of the
Transactions performed or to be performed by Positron, require any
filing, consent or approval, constitute a Default or cause any payment
obligation to arise under (a) any Law or Court Order to which Positron is
subject, (b) the Charter Documents or bylaws of Positron or (c) any Contract,
Governmental Permit or other document to which Positron is a party or by which
the properties or other assets of Positron may be
subject.
4.4 No
Proceedings. No suit, action or other proceeding is pending or, to Positron's
knowledge, threatened before any Governmental Authority seeking to restrain
Positron or prohibit Positron's entry into this Agreement or prohibit the
Closing, or seeking damages against Positron or its properties as a result of
the consummation of this Agreement.
4.5 Capitalization;
Ownership of Shares. The authorized capital stock of Positron consists of
800,000,000 authorized shares of common stock, $0.01 par value, 5,450,000
authorized shares of Series A Preferred Stock, $1.00 par value, 9,000,000
authorized shares of Series B Preferred Stock, $1.00 par value, 840,000
authorized shares of Series C Preferred Stock, $1.00 par value, 3,000,000
authorized shares of Series G Preferred Stock, $1.00 par value. As of
the Closing: (a) 114,490,384 shares of Positron's common stock are issued
and outstanding; (b) 457,599 shares of Positron’s Series A Preferred Stock
are issued and outstanding; (c) 6,088,611 shares of Positron's Series B
Preferred Stock are issued and outstanding, (d) 0 shares of Positron’s
Series C Preferred Stock are issued and outstanding; (e) 111,391 shares of
Positron's Series G Preferred Stock are issued and outstanding; (f) 19,425,000
options to acquire any Positron Common Stock are outstanding; (g) 57,624,100
warrants to purchase any Positron Common Stock are outstanding; (h) 100,000,000
shares of Common Stock pledged to secure a Promissory Note made in favor of
Imagin Molecular Corporation, a publicly-owned Delaware corporation and
affiliate of the Positron which note may be converted into an undetermined
amount of the Positron’s securities; and (i) an undetermined number of shares of
Common Stock reserved for issuance to consummate the Offering. The
Positron Shares issued to the Sellers pursuant to the terms of this Agreement
will be duly authorized, validly issued, fully paid and
nonassessable. None of such shares of Positron Shares will be issued
to the Sellers in violation of any preemptive or preferential rights of any
Person.
18
4.6 No
Liens on Shares of Positron Shares. The Positron Shares to be issued to the
Sellers pursuant to the terms of this Agreement (a) will be free and clear of
any liens, restrictions, security interests, claims, rights of another, or
Encumbrances of any kind whatsoever; (b) will not be subject to any outstanding
options, warrants, calls, or similar rights of any other person to acquire the
same; and (c) will not be subject to any restrictions on transfer thereof.
Positron has the full power and authority to convey, and will convey to the
Sellers, good and marketable title to such shares of Positron Shares, free and
clear of all such liens, restrictions, security interests, claims, rights of
another or Encumbrances of any kind whatsoever.
4.7 SEC
Reports and Financial Statements. Positron has timely
filed all reports required to be filed with the Securities and Exchange
Commission (the "SEC") pursuant to the Exchange Act (collectively, the "Positron
SEC Reports"). As of their respective dates, the Positron SEC Reports
complied in all material respects with the requirements of the Securities Act or
the Exchange Act, as the case may be, and the rules and regulations of the SEC
promulgated hereunder applicable to such Positron SEC Reports. None of such
Positron SEC Reports, as of their respective dates, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. Each of the
audited balance sheets of Positron and the related audited statements of
operations, stockholders equity and cash flows and unaudited interim
financial statements included in the Positron SEC
Reports complied as to form, as of
their respective dates of filing with the SEC, in all
material respects, with applicable accounting requirements
and the published rules and regulations of the
SEC with respect thereto and fairly presented
the consolidated financial position and the results of operations and
the changes in financial position of Positron and its
consolidated subsidiaries as of the respective dates or for the
respective periods set forth therein, all inconformity with GAAP
consistently applied during the periods involved, except as otherwise noted
therein.
19
4.8 No
Person has been retained by Positron that will be entitled to any commission or
finder's or similar fee in connection with the Transactions.
4.9
Accuracy of Information. To Positron's Knowledge, no representation or warranty
by Positron in any Transaction Document, and no information contained therein or
otherwise delivered by or on behalf of Positron to any other party in connection
with the Transactions contains any untrue statement of a material fact or omits
to state any material fact necessary in order to make the statements contained
herein or therein not misleading in light of the circumstances under which such
statements were made.
ARTICLE
V
REPRESENTATIONS
AND WARRANTIES OF BUYER
Buyer
hereby represents and warrants to Sellers as follows:
5.1
Organizational Status. Buyer is, or at the Closing will be, a corporation duly
organized, validly existing and in good standing under the Laws of the State of
Nevada and is qualified to do business in any jurisdiction where it is required
to be so qualified. The Charter Documents of Buyer that have been delivered to
Sellers as of the date hereof are effective under applicable Laws and are
current, correct and complete.
5.2
Authorization. Buyer has the requisite power and authority to own its assets and
to carry on its business. Buyer has the requisite power and authority to execute
and deliver the Transaction Documents to which it is a party and to perform the
Transactions performed or to be performed by it. Such execution, delivery and
performance by Positron have been duly authorized by all necessary corporate
action. Each Transaction Document has been duly executed and delivered by Buyer
and constitutes a valid and binding obligation of Buyer, enforceable against
Buyer in accordance with its terms.
5.3
Consents and Approvals. Except as set forth in SCHEDULE 5.3 hereof, neither the
execution and delivery by Buyer of the Transaction Documents to which it is a
party, nor the performance of the Transactions performed or to be performed by
Buyer, require any filing, consent or approval, constitute a Default or cause
any payment obligation to arise under (a) any Law or Court Order to which Buyer
is subject, (b) the Charter Documents or bylaws of Buyer or (c) any Contract,
Governmental Permit or other document to which Buyer is a party or by which the
properties or other assets of Buyer may be subject.
4.4 No
Proceedings. No suit, action or other proceeding is pending or, to Buyer's
knowledge, threatened before any Governmental Authority seeking to restrain
Buyer or prohibit Buyer's entry into this Agreement or prohibit the Closing, or
seeking damages against Buyer or its properties as a result of the consummation
of this Agreement.
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ARTICLE
VI
COVENANTS
OF SELLERS AND THE COMPANY
6.1
Conduct of the Business. Except as contemplated or otherwise consented to by
Buyer in writing, after the date of this Agreement, the Company shall carry on
the Business in the ordinary course. In furtherance of and in addition to such
restriction, (a) the Company shall not amend its Charter Documents or bylaws;
merge or consolidate with, or purchase substantially all of the assets of, or
otherwise acquire any business of, any corporation, partnership or other
business organization or business division thereof; split, combine or reclassify
its outstanding capital stock; enter into any Contract or otherwise incur any
Liability outside the ordinary course of business; discharge or satisfy any
Encumbrance or pay or satisfy any material Liability except pursuant to the
terms thereof; compromise, settle or otherwise adjust any material claim or
litigation; make any capital expenditure involving in any individual case more
than $10,000; incur any indebtedness for borrowed money or issue any debt
securities; declare or pay any dividend or other distribution on its capital
stock; materially decrease its working capital; increase the salaries or other
compensation payable to any employee, or take any action, or fail to take any
reasonable action within its control, as a result of which any of the changes or
events listed in Article 3.22 would be likely to occur, and (b) the Company
shall maintain and service the Assets consistent with past custom and practice
and preserve intact the current business organization of the
Company.
6.2
Access to Information. From the date of this Agreement to the Initial Closing,
the Sellers shall cause the Company to give to Buyer and its officers,
employees, counsel, accountants and other representatives access to and the
right to inspect, during normal business hours, all of the assets, records,
contracts and other documents relating to the Company as the other party may
reasonably request so long as such access does not interfere with the normal
business operations of the Company. Buyer shall not use such information for
purposes other than in connection with the transactions contemplated by this
Agreement and shall otherwise hold such information in confidence until such
time as such information otherwise becomes commonly known and will sign such
standard and customary non-disclosure agreements as are reasonably requested by
the Company.
6.3 Existing
Employment Agreements and Other Liabilities. Each Seller, effective
as of the Closing, hereby consents to the cancellation of any Contract that the
Sellers have with the Company, including any employment agreement, and also
releases and discharges the Company and the Buyer from any and all Liabilities
other than (a) those arising out of this Agreement or any other Transaction
Documents and (b) those related to wages or expenses due to the Sellers in the
ordinary course.
6.4
Expenses. Each party to this Agreement shall pay all of its legal, accounting
and other expenses incurred in connection with the Transactions.
6.5
Confidentiality.
(a) Each
Seller recognizes and acknowledges that by reason of its/his involvement with or
employment in the Company, it he has or may have had access to Trade Secrets
relating to the Company. Each Seller acknowledges that such Trade Secrets are a
valuable and unique asset and covenants that if/he will not disclose any such
Trade Secrets to any Person for any reason whatsoever, unless such information
(a) is in the public domain through no wrongful act of such Seller, (b) has been
rightfully received from a third party without restriction and without breach of
this Agreement, or (c) except as may be required by law. The confidentiality as
contemplated by this Section 6.5 applies to this transaction and the sale of
Dose Shield, Inc. and shall not be construed to extend beyond the
aforementioned.
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(b) The
terms of this Article 6.5 shall apply to each Seller and to any other
Person controlled by any Seller and any of
their respective Affiliates that it/he
controls to the same extent as if they
were parties hereto, and each such Seller shall
take commercially reasonable efforts to cause any such party or Affiliate to
adhere to the terms of this Article 6.5.
(c) In
the event of any breach or threatened breach by any party of any provision of
Article 6.5, Buyer shall be
entitled to injunctive or other equitable relief,
restraining such party from using or disclosing any Trade Secrets in
whole or in part, or from engaging in conduct that would constitute a breach of
the obligations of a party under Article 6.6. Such relief shall be in
addition to and not in lieu of any other remedies that may be available,
including an action for the recovery of Damages, all of which may be sought only
in accordance with the arbitration provisions of this Agreement.
6.6
Non-Compete.
(a)
Unless the context or subject matter otherwise requires, the following terms
shall have the following meanings:
(i)
"Restricted Business" means the business of research, development, design, and
manufacture of devices used in the automation of pharmaceutical dispensing,
including but not limited to, “Pharm-Assist”products, “Chemo-Assist” and
“Cardio-Assist” products.
(ii)
"Restricted Period" means from the date of this Agreement until three (3) years
from the Closing.
(b)
Undertakings. Each Seller hereby undertakes to Buyer that he will not, either
alone or jointly with others, whether as principal, agent, manager, equity
holder or in any other capacity, directly or indirectly through any other entity
or person, for its own benefit or that of others:
(i) At
any time during the Restricted Period engage in or carry on any Restricted
Business in competition with Buyer;
(ii) At
any time during the Restricted Period knowingly assist any competitor of the
Buyer to a material extent with the primary purpose of carrying on or developing
any Restricted Business; and
22
(iii) At
any time during the Restricted Period provide any financial assistance to any
person for the primary purpose of assisting such person to carry on or develop a
Restricted Business in competition with Buyer.
Each of
the covenants contained in this Article 6.6 is entirely separate and severable
and enforceable accordingly. The Sellers hereby agree that each of such
covenants is fair and reasonable in all circumstances. In the event that any
such restriction shall be found to be void and/or ineffective, but would be
valid and effective if some part thereof were deleted or the duration or area of
application reduced, such restriction shall apply with such modification, as may
be necessary to make it valid and effective.
Notwithstanding
the foregoing, nothing set forth in this Article 5.6 shall prohibit or in any
way limit or restrict either Seller from participating in or funding any
activity or business in which he participates as an owner, director, officer,
Seller or employee as of the date of this Agreement.
Notwithstanding
the foregoing, nothing set forth in this Article 6.6 shall prohibit Sellers from
owning not more than one percent (1%) in the aggregate of any class of capital
stock of any corporation other than Buyer, if such stock is publicly traded and
listed on any national or regional stock exchange or on the NASDAQ national
market.
Notwithstanding
the foregoing, in the event this Agreement is terminated in accordance with
Article 12.2, this Article 6.6 shall not apply and is therefore null and
void.
6.7 Xxxxxx
Employment Agreement. Sellers shall deliver at the Closing an
employment agreement, a copy of which is attached hereto as Exhibit A, by and
between the Company and Xxxx Xxxxxx, effective as of the Closing Date, which has
been executed by Xxxx Xxxxxx.
ARTICLE
VII
COVENANTS
OF BUYER.
7.1 Xxxxxx
Employment Agreement. Buyer shall deliver at the Closing an
employment agreement, a copy of which is attached hereto as Exhibit A, by and
between the Buyer and Xxxx Xxxxxx, effective as of the Closing Date, which has
been executed by an authorized officer of the Company.
7.
3 Equipment sold by NukeMed, Inc. Buyer and Company
shall honor terms and fulfill the obligations of all contracts held by NukeMed,
Inc. with customers that involve Restricted Business as defined
hereinabove.
7.4 Society
of Nuclear Medicine agreements and advertising. Buyer and Company
shall honor the terms and conditions, and fulfill all obligations of NukeMed
thereunder, of all contracts or agreements that involve the Restricted Business
as defined hereinabove.
23
7.5 Xxxx
Xxxxxx and NukeMed, Inc. (and any Affiliates) shall have a commercially
reasonable period of time to terminate or modify any agreement with the entities
with which he currently has a relationship (including but not limited to,
Tracera, LLC, PosiStar, LLC, Village Entertainment, Inc., Lumberyard Properties,
LLC, WRZ, LLC, Castle Park Investment Group, LLC and Nuview
Radiopharmaceuticals, Inc.) as may be appropriate under the circumstances in
order to properly fulfill his obligations to those entities but alleviate any
conflict arising out of the Xxxxxx Employment Agreement or this
Agreement.
7.6 Buyer
acknowledges and will allow that the $10,000 listed on the balance sheet for the
Brookville Road Property shall remain an asset of NukeMed, Inc.
7.7 Notwithstanding
anything to contrary contained herein, the Sellers or Xxxx Xxxxxx may retain
Xxxx Xxxxxxx (and/or The Xxxxxxx Law Firm) and/or Xxxx Xxxxxxx (and/or Xxxx,
Stettinius & Hollister, LLP) as legal counsel until such time as an actual
or apparent conflict of interest arises as a result of such representation, of
which the Parties are presently not aware of.
ARTICLE
VIII
MUTUAL
COVENANTS.
8.1
Fulfillment of Closing Conditions. At and prior to the Closing, Buyer shall use
commercially reasonable efforts to fulfill the conditions specified in Article
IX and Article X to the extent that the fulfillment of such conditions is within
its control. In connection with the foregoing, each such party will (a) refrain
from any actions that would cause any of its representations and warranties to
be inaccurate in any material respect as of the Closing, (b) execute and deliver
the applicable agreements and other documents referred to in Articles IV and X,
(c) comply in all material respects with all applicable Laws in connection with
its execution, delivery and performance of this Agreement and the Transactions,
(d) use commercially reasonable efforts to obtain in a timely manner all
necessary waivers, consents and approvals required under any Laws, Contracts or
otherwise, and (e) use commercially reasonable efforts to take, or cause to be
taken, all other actions and to do, or cause to be done, all other things
reasonably necessary, proper or advisable to consummate and make effective as
promptly as practicable the Transactions.
8.2
Disclosure of Certain Matters. Each Seller will give to Buyer and
Buyer will give to each of the Sellers prompt notice of any event or development
that occurs that (a) had it existed or been known on the date
hereof would have been required to
be disclosed by such party under
this Agreement, (b) would cause any of
the representations and warranties of such party contained
herein to be inaccurate or otherwise misleading, except
as contemplated by the terms hereof, or (c)
gives any such party
any reason to believe that any of
the conditions set forth in Articles IX and X will not
be satisfied prior to the Termination Date (defined
below).
8.3
Public Announcements. Sellers and Buyer shall consult with each other
before issuing any press release or making any public statement with respect to
this Agreement and the Transactions and, except as may be required by applicable
federal or state securities laws, none of such Parties nor any other parties
shall issue any such press release or make any such public statement without the
consent of each of the other parties hereto.
24
8.4
Confidentiality. If the Transactions are
not consummated, each party shall treat
all information obtained in
its investigation of any other party or any
Affiliate thereof, and not otherwise known to
them or already commonly known, as confidential and shall not use or
otherwise disclose such information to any third party and shall
return to such other party or Affiliate
all copies made by it or its
representatives of Confidential Information
provided by such other party or Affiliate.
ARTICLE
IX
CONDITIONS
PRECEDENT TO OBLIGATIONS OF THE SELLERS
The
obligations of the Sellers to consummate the Transactions are subject to the
satisfaction prior thereto of each of the following conditions:
9.1
Representations and Warranties. The representations and warranties of
Buyer contained in this Agreement shall be true and
correct in all material respects on the date hereof and (except to the extent
such representations and warranties are
expressly limited to an earlier date) shall
also be true and correct on and as of the Closing Date with the same force and
effect as if made on and as of the Closing Date.
9.2
Agreements, Conditions and Covenants. Buyer shall have performed or complied
with all agreements, conditions and covenants required by this Agreement to be
performed or complied with by it on or before the Closing.
9.3
Certificates. Sellers shall have received a certificate executed by an
executive officer of Buyer, dated the Closing Date, to the
effect that the conditions specified in Articles 9.1 and 9.2 have been
satisfied, and shall have received any other certificates reasonably requested
by Sellers' counsel.
9.4
Legality. No Law or Court Order shall have been enacted, entered,
promulgated or enforced by any court or governmental authority that is in effect
and has the effect of making the purchase and sale of the Assets illegal or
otherwise prohibiting the consummation of such purchase and sale.
9.5
Exhibits. The parties hereto expressly agree that, in the event that
all of the exhibits to this Agreement have not been finalized at the time that
this Agreement is executed, Buyer and Sellers shall use their best efforts to
negotiate in good faith the terms and conditions of such exhibits and shall
endeavor in good faith to provide any such exhibits as soon as
possible.
25
ARTICLE
X
CONDITIONS
PRECEDENT TO OBLIGATIONS OF BUYER
All
obligations of Buyer to consummate the Transactions are subject to the
satisfaction (or waiver) prior thereto of each of the following
conditions:
10.1.
Representations and Warranties. The representations and warranties of Sellers
contained in this Agreement shall be true and correct in all material respects
on the date hereof and (except to the extent such representations and warranties
are expressly limited to an earlier date) shall also be true and correct on and
as of the Closing Date, with the same force and effect as if made on and as of
the Closing Date.
10.2.
Agreements, Conditions and Covenants. Sellers shall have performed or complied
in all material respects with all agreements, conditions and covenants required
by this Agreement to be performed or complied with by them on or before the
Closing.
10.3
Certificates. Buyer shall have received a certificate executed by an
executive officer of the Company and each Seller, dated the Closing Date, to the
effect that the conditions specified in Articles 10.1 and
10.2 have been satisfied, and shall have received any other
certificates reasonably requested by Buyer's counsel.
10.4
Legality. No Law or Court Order shall have been enacted, entered,
promulgated or enforced by any court or governmental authority that is in effect
and (a) has the effect of making the purchase and sale of the
Assets illegal or
otherwise prohibiting the consummation of such
purchase and sale or (b) has a reasonable likelihood of causing a Material
Adverse Effect.
10.5
Exhibits. The parties hereto expressly agree that, in the event that
all of the exhibits to this Agreement have not been finalized at the time that
this Agreement is executed, Buyer and Sellers shall use their best efforts to
negotiate in good faith the terms and conditions of such exhibits and shall
endeavor in good faith to provide any such exhibits as soon as
possible.
ARTICLE
XI
INDEMNIFICATION
11.1 By
Sellers. From and after the Closing Date, the Sellers, jointly and severally,
shall indemnify and hold harmless Buyer and its successors and assigns, and
their respective officers, directors, employees, Sellers, agents, Affiliates and
any Person who controls any of such Persons within the meaning of the Securities
Act or the Exchange Act (each, a "Buyer Indemnified Party") from and against any
liabilities, claims, demands, judgments, losses, costs, damages or expenses
whatsoever (including reasonable attorneys', consultants' and other professional
fees and reasonable disbursements of every kind, nature and description incurred
by such Indemnified Party in connection therewith) (collectively, "Damages")
that such Buyer Indemnified Party may sustain, suffer or incur and that result
from, arise out of or relate to (a) any breach of any of the respective
representations, warranties, covenants or agreements of any Seller contained in
this Agreement or in the Closing Certificates, and (b) any Liability of any
Seller involving Taxes due and payable by, or imposed on the Company with
respect to any Seller for any and all taxable periods ending on or prior to the
Initial Closing (whether or not such Taxes have been due and payable)
(collectively, "Buyer Indemnifiable Damages").
26
11.2 By
Buyer. From and after the Closing Date, Buyer shall, or in connection
with Article 11.2(c) shall cause the Company to, indemnify and hold harmless
each Seller and its/his respective heirs, legal representatives, successors and
assigns, and (if any) their respective
officers, directors, employees,
agents, Affiliates and any person who controls such Persons with the
meaning of the Exchange Act (each a Sellers Indemnified Party and Xxxx Xxxxxx)
from and against any Damages that such Sellers Indemnified Party may sustain,
suffer or incur and that result from, arise out of
or relate to: (a)
any breach of any of the respective
representations, warranties, covenants or agreements of Buyer
contained in this Agreement; (b) the nonfulfillment of any
covenant, undertaking, agreement or
other obligation of Buyer under this Agreement or in the
Closing Certificates, and (c) Sellers' capacities as
directors and officers of
the Company in respect to any acts or omissions
occurring at or prior to the Closing Date, to
the fullest extent allowed by applicable law.
11.3
Procedure for Claims.
(a) Any
Person that desires to seek indemnification under any part of this Article X
(each, an "Indemnified Party") shall give notice (a "Claim Notice") to each
party responsible or alleged to be responsible for indemnification hereunder (an
"Indemnitor") prior to any applicable Expiration Date specified below. Such
notice shall explain with specificity the nature of the claim, the specific
Article and section of this Agreement to which the claim relates and the parties
known to be involved, and shall specify the amount of the estimated damages
relating thereto. If the matter to which a claim relates shall not have been
resolved as of the date of the Claim Notice, the Indemnified Party shall
estimate the amount of the claim in the Claim Notice, but shall also specify
therein that the claim has not yet been liquidated (an "Unliquidated Claim"). If
an Indemnified Party gives a Claim Notice for an Unliquidated Claim, the
Indemnified Party shall also give a second Claim Notice (the "Liquidated Claim
Notice") within 60 days after the matter giving rise to the claim becomes
finally resolved, and the Second Claim Notice shall specify the amount of the
claim. Each Indemnitor to which a Claim Notice is given shall respond to any
Indemnified Party that has given a Claim Notice (a "Claim Response") within 60
days (the "Response Period") after the later of (i) the date that the Claim
Notice is given or (ii) if a Claim Notice is first given with respect to an
Unliquidated Claim, the date on which the Liquidated Claim Notice is given. Any
Claim Notice or Claim Response shall be given in accordance with the notice
requirements hereunder, and any Claim Response shall specify whether or not the
Indemnitor giving the Claim Response disputes the claim described in the Claim
Notice. If any Indemnitor fails to give a Claim Response within the Response
Period, such Indemnitor shall be deemed not to dispute the claim described in
the related Claim Notice. If any Indemnitor elects not to dispute a claim
described in a Claim Notice, whether by failing to give a timely Claim Response
or otherwise, then the amount of such claim shall be conclusively deemed to be
an obligation of such Indemnitor. For the purposes of the immediately preceding
sentence, an Indemnitor's failure to give a timely Claim Response shall not be
deemed an election not to dispute a Claim Notice unless the Indemnified Party
shall have given a second Claim Notice after expiration of the Response Period
and, another 20 days after the date on which the Indemnified Party shall have
given such second Claim Notice shall have expired without the Indemnitor's
having given a Claim Response within such period.
27
(b) If
any Indemnitor shall be obligated to indemnify an Indemnified Party hereunder,
such Indemnitor shall pay to such Indemnified Party within 30 days after the
last day of the Response Period the amount to which such Indemnified Party shall
be entitled. In the event of a dispute as to the amount or manner of
indemnification under this Article X, the Indemnified Party may pursue whatever
legal remedies may be available for recovery of the Damages claimed from any
Indemnitor in accordance with the arbitration provisions of this Agreement. If
any Indemnitor fails to pay all or part of any indemnification obligation when
due, then such Indemnitor Party shall also be obligated to pay to the applicable
Indemnified Party interest on the unpaid amount for each day during which the
obligation remains unpaid at an annual rate equal to the Prime Rate. The Prime
Rate in effect on the first business day of each calendar quarter shall apply to
the amount of the unpaid obligation during such calendar
quarter.
11.4
Claims Period. Any claim for indemnification under this Article X shall be made
by giving a Claim Notice under Article 10.3 on or before the first anniversary
(Year 1) of the Final Closing (the "Expiration Date"). So long as an Indemnified
Party gives a Claim Notice for an Unliquidated Claim on or before the Expiration
Date, such Indemnified Party shall be entitled to pursue its rights of
indemnification regardless of the date on which such Indemnified Party gives the
related Liquidated Claim Notice.
11.5
Third Party Claims.
(a) If
any third party shall notify any Indemnified Party with respect to any actions,
suits or other administrative or judicial proceedings (each, an "Action") which
may give rise to a claim for indemnification against any Indemnifying Party
under this Article X, then the Indemnified Party shall promptly (and in any
event within five Business Days' after receiving notice of the Action) notify
each Indemnifying Party thereof in writing.
(b) Any
Indemnifying Party will have the right to assume and thereafter conduct the
defense of the Action with counsel of his or its
choice reasonably satisfactory to the Indemnified Party;
provided, however, that the Indemnifying Party will not consent to
the entry of any judgment or enter into any settlement with respect to the
Action without the prior written consent of the Indemnified Party
(which consent shall not be unreasonably withheld) unless the
judgment or proposed settlement involves only
the payment of money damages and does not impose an
injunction or other equitable relief upon the Indemnified Party.
(c)
Unless and until an Indemnifying Party assumes the defense of the Action, the
Indemnified Party may defend against the Action in any manner he or it
reasonably may deem appropriate.
28
(d) In no
event will the Indemnified Party consent to the entry of any judgment or enter
into any settlement with respect to any Action without the prior written consent
of each of the Indemnifying Parties (which consent shall not be unreasonably
withheld).
11.6
Reduction for Insurance. The amount which an Indemnifying Party is required to
pay to, for, or on behalf of any Indemnified Party pursuant to this
Article X shall be reduced
(including, without limitation, retroactively)
by any insurance proceeds actually recovered by
or on behalf of the Indemnified Party that reduces the related
indemnifiable loss (the "Indemnifiable Loss"). An amount required to be paid, as
so reduced, is hereinafter sometimes referred to as an "Indemnity Payment." If
an Indemnified Party shall have received, or if an Indemnifying Party shall have
paid on
its behalf, an Indemnity Payment in
respect of an Indemnifiable Loss and
shall subsequently receive, directly or
indirectly, insurance proceeds in respect of such Indemnifiable Loss,
then such Indemnified Party shall promptly pay to
the Indemnifying Party the amount of such insurance
proceeds, or, if less, the amount of the Indemnity
Payment. The parties hereto agree that the foregoing shall not affect
the subrogation rights of any insurance company making payments
hereunder.
11.7
Exclusive Remedy; Limitation of Liability. Buyer acknowledges and agrees that
its sole and exclusive remedy with respect to any and all claims relating to the
subject matter of this Agreement shall be pursuant to the indemnification
provisions set forth in this Article X. No Seller shall have any liability to
Buyer or any Buyer indemnified person for any claim arising out of the
negotiation, execution or delivery of this Agreement, or the transactions
provided for herein, whether for defense, indemnification or otherwise, except
as provided for in this Section 10. In furtherance of the foregoing, Buyer
hereby waives, to the fullest extent permitted under applicable law, any and all
rights, claims and causes of action it or the Company may have against Sellers
arising under or based upon any Law or Environmental Law, or otherwise except to
the extent specifically provided in this Article X. Notwithstanding the
foregoing, nothing in this Agreement shall limit the rights of and remedies
available to either party in the event of fraud or intentional misconduct on the
part of the other party.
ARTICLE
XII
RESCISSION;
TERMINATION
12.1
Rescission Upon Default. In the event that Buyer fails to pay the
Installment Cash Consideration on or before the Cash Performance Date, the
Sellers, upon ten (10) days’ written notice (the “Rescission Notice”), subject
to Buyer’s opportunity to cure within thirty (30) days, may elect to rescind the
transactions contained herein (the “Rescission”). The Parties agree
that the effect of the Rescission shall be: (i) all surviving obligations, other
than those set forth in Sections 8.3, 8.4, 13.1, Article X, and this Section
12.2, shall, at Sellers’ sole discretion, be terminated; (ii) the transactions
herein shall be rescinded; (iii) the Positron Shares shall be returned to
Positron to be canceled and retired on the books and records of Positron; (iv)
the Sellers shall repay the Advance Consideration and the Initial Cash
Consideration to the Buyer within ninety (90) days of the Rescission Notice
without penalty or offset; (v) the Dose Shares shall revert back to the Sellers
in the same Pro Rata Portion they held immediately prior to the Closing; and
(vi) the Seller IP and NukeMed contracts shall revert back to the
Sellers.
29
12.2
Grounds for Termination. This Agreement may be terminated at any time
before the Closing:
(a) By
mutual written consent of Sellers and Buyer;
(b) By
Sellers or Buyer if a court of competent jurisdiction or governmental,
regulatory or administrative agency or commission shall have issued a Court
Order (which Court Order the parties shall use commercially reasonable efforts
to lift) that permanently restrains, enjoins or otherwise prohibits the
Transactions, and such Court Order shall have become final and
nonappeallable;
(c) By
Buyer, if any Seller shall have breached, or failed to comply with, any of its
or his obligations under this Agreement or any representation or warranty made
by any Seller shall have been incorrect when made, and such breach, failure or
misrepresentation is not cured within 20 days after notice thereof;
or
(d) By
unanimous agreement of Sellers, if Buyer shall have breached, or failed to
comply with any of its obligations under this Agreement or any representation or
warranty made by it shall have been incorrect when made, and such breach,
failure or misrepresentation is not cured within 20 days after notice
thereof.
ARTICLE
XIII
GENERAL
MATTERS
13.1
Arbitration.
(a) All
disputes concerning this Agreement shall be determined by an arbitration
proceeding in accordance with the Commercial Arbitration Rules of the American
Arbitration Association ("AAA"), including the Optional Rules for Emergency
Relief, (except to the extent such rules and regulations are inconsistent with
the provisions of this Article), at the AAA offices located in
Texas.
(b) If
the parties agree on one arbitrator, the arbitration shall be conducted by such
arbitrator. If the parties do not so agree, the parties shall each select one
independent, qualified arbitrator. For this purpose, all parties whose interest
in the matter being arbitrated are substantially identical shall be treated as a
single party entitled to select one arbitrator. If an even number of arbitrators
is selected, such arbitrators shall select an additional
arbitrator.
(c) Each
party reserves the right to object to any individual arbitrator who is employed
by or affiliated with an organization that competes with such
party.
30
(d) The
parties shall have the right to conduct discovery as specified for up to three
months. The discovery period may be extended by agreement and/or upon
approval from the arbitrator(s). Such discovery shall include the
right to take depositions and subpoena witnesses.
(e) At
the request of any party, arbitration proceedings shall be conducted in the
utmost secrecy. In such case, all documents, testimony, and records
shall be received, heard and maintained by
the arbitrators in secrecy under seal,
available for the inspection only of
the parties and their
respective attorneys and experts who
have agreed in advance in writing to receive and maintain
all such information in confidence until such information
becomes generally known.
(f) The
arbitrators shall act by majority vote. The arbitrators shall issue a
written opinion of their findings of fact and
their conclusions of law at the request of
any party to the proceeding and at
the expense of such requesting party.
(g) The
arbitrators shall be able to decree any and all relief of an equitable nature,
including without limitation such relief as a temporary restraining order and a
preliminary or permanent injunction, and shall also be able to award damages,
with or without an accounting, and costs, except that the prevailing party shall
be entitled to its reasonable attorneys' fees. The decree or judgment of an
award rendered by the arbitrators shall be binding upon the parties and may be
entered in any court having jurisdiction thereof.
(h) Reasonable
notice of the time and place of arbitration shall be given to
all persons as required by
law. Such persons and
their authorized representatives shall have
the right
to attend and participate in all the
arbitration hearings in such manner as the law requires.
13.2
Contents of Agreement. This Agreement, together with the other
Transaction Documents, sets forth the entire understanding of the
parties with
respect to the Transactions and supersedes all prior agreements or
understandings among the parties regarding those matters.
13.3
Amendment, Parties in Interest, Assignment. This Agreement may be amended,
modified or supplemented only by a written instrument duly executed by each of
the parties hereto. If any provision of
this Agreement shall for any reason be held to be
invalid, illegal, or unenforceable in any
respect, such invalidity, illegality, or unenforceability shall not
affect any other provision hereof, and
this Agreement shall be construed as if such
invalid, illegal or unenforceable provision had never been contained
herein. This Agreement shall be binding upon and inure to the benefit of and
be enforceable by the respective heirs,
legal representatives, successors and permitted assigns of
the parties. Nothing in
this Agreement shall confer any rights upon any
Person other than Sellers and
Buyer and their respective heirs, legal representatives,
successors and permitted assigns. No party hereto shall assign this Agreement or
any right, benefit or obligation hereunder. Not withstanding the
foregoing, Sellers shall by able to assign their rights to any royalties as they
see fit.
31
13.4
Further Assurances. At and after the Closing, Sellers and
Buyer shall execute and deliver any and
all documents and take any and all other actions that may
be deemed reasonably necessary by their respective counsel
to complete the Transactions.
13.5 Interpretation. Unless the context
of this Agreement clearly
requires otherwise, (a) references to the
plural include the singular, the
singular the plural, and the part
the whole, (b) references to any
gender include both genders, (c) "or" has the inclusive meaning
frequently identified with the phrase "and/or," (d) "including" has
the inclusive meaning frequently
identified with the phrase "but not limited to," and
(e) references to "hereunder" or "herein" relate to this
Agreement. The Article and other headings contained in
this Agreement are
for reference purposes only
and shall not control or
affect the construction of
this Agreement or the interpretation thereof in
any respective. Article, Section, subsection, Schedule and Exhibit references
are to this Agreement unless otherwise specified. Each accounting
term used herein that is not specifically defined herein shall have the meaning
given to it under GAAP. Any reference to a party's being satisfied with any
particular item or to a party's determination of a particular item presumes that
such standard will not be achieved unless such party shall be satisfied or shall
have made such determination in its sole or complete discretion.
13.6
Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be binding as of the date first written above,
and all of which shall constitute one and the same instrument. Each
such copy shall be deemed an original.
13.7
Schedules. Any items listed or described on SCHEDULES shall be listed or
described under a caption that identifies the Artilces of this Agreement to
which the item relates.
13.8
Waiver. No failure of any party hereto to require, and no delay by any such
party in requiring the other to comply with any provision of this Agreement
shall constitute a waiver of the right to require such compliance. No failure of
any party hereto to exercise, and no delay by such party in exercising any right
or remedy under this Agreement shall constitute a waiver of such right or
remedy. No waiver by any party of any right or remedy under this Agreement shall
be effective unless made in writing. Any waiver by any party of any right or
remedy under this Agreement shall be limited to such specific instance and shall
not constitute a waiver of such right or remedy in the future.
13.9
Remedies. The indemnification rights under Article XI are independent of and in
addition to such rights and remedies as the parties may have at law or in equity
or otherwise (subject to Article XII hereof) for any misrepresentation, breach
of warranty or failure to fulfill any agreement or covenant hereunder on the
part of any party hereto, including the right to seek specific performance,
rescission or restitution, none of which rights or remedies shall be affected or
diminished by Article XI. Buyer acknowledges that Article XI shall be the
exclusive remedy of the Buyer for any breach of the representations and
warranties in Article III above with respect to such individuals, except for any
willful misrepresentation, willful breach of warranty or willful failure to
fulfill any agreement or covenant.
32
13.10
Notices. All notices that are required or permitted hereunder shall
be in writing and shall be sufficient if personally delivered or sent by mail,
Federal Express or other delivery service that confirms receipt of delivery. Any
notices shall be deemed given upon the earlier of the date when
received, or the third day after the date when sent by
registered or certified mail, or the day after the date
when sent by Express carrier to the address set
forth below, unless such address is changed by written
notice to the other party hereto:
If
to the Sellers:
|
||
NukeMed,
Inc.
|
||
and
|
||
Xxxxxxx
Xxxxxx
|
||
with
a required copy to:
|
||
Sellers'
Counsel
|
||
If
to the Company:
|
||
Dose
Shield Corporation
|
||
with
a required copy to:
|
||
Sellers'
Counsel
|
33
If
to the Buyer:
|
||
Dose
Shield Acquisition Company
|
||
|
||
|
||
|
||
|
||
If
to Positron:
|
||
Positron
Corporation
|
||
0000
Xxxxxxx Xxxxx Xxxxx, Xxxxx #000
|
||
Xxxxxxx,
Xxxxx 00000
|
||
000-000-0000
|
||
with
a required copy to:
|
||
Xxxxxx,
Xxxxxxx & Xxxxxx, LLP
|
||
0000
Xxxxxxxx, 00xx
Xxxxx
|
||
Xxx
Xxxx, Xxx Xxxx 00000
|
||
Attn:
Xx. Xxxxx Xxxxxxxxxxx
|
||
Facsimile:
(000) 000-0000
|
13.11 Governing
Law
This
Agreement shall be construed and interpreted in accordance with the laws of the
State of Texas without regard to its provisions concerning conflict of
laws.
(The
remainder of this page intentionally left blank.)
34
IN WITNESS WHEREOF, this Stock
Purchase Agreement has been executed by the parties hereto as of the day and
year first written above.
POSITRON
PHARMACEUTICAL COMPANY
|
|||
By:
|
|||
Name:
|
Xxxxxx Xxxxxxxx | ||
Title:
|
President | ||
POSITRON
CORPORATION
|
|||
By:
|
|||
Name:
|
Xxxxxxx X. Xxxxxx | ||
Title:
|
Chairman | ||
DOSE
SHIELD CORPORATION
|
|||
By:
|
|||
Name:
|
|||
Title:
|
|||
NUKEMED,
INC.
|
|||
By:
|
|||
Name:
|
|||
Title:
|
|||
XXXXXXX
XXXXXX
|
|||
XXXX
XXXXXX
|
35