EXHIBIT 2.12
ASSET PURCHASE AGREEMENT
AMONG
XXXXX PLASTICS CORPORATION,
CONTAINER INDUSTRIES, INC.
AND
THE SHAREHOLDERS OF
CONTAINER INDUSTRIES, INC.
JANUARY 17, 1997
A-2
TABLE OF CONTENTS
PAGE
SECTION 1. TRANSFER OF PURCHASED ASSETS, ASSUMPTION OF CERTAIN
SPECIFIED LIABILITIES AND RELATED MATTERS.. 1
1.1. Transfer of Assets 1
1.2. Assets Not Being Transferred 3
1.3. Liabilities Being Assumed 4
1.4. Liabilities Not Being Assumed 4
1.5. Instruments of Conveyance and Transfer, Etc. 6
1.6. Right of Endorsement, Etc. 6
1.7. Further Assurances, Assumed Taxes, Etc. 6
1.8. Assignment of Contracts, Rights, Etc. 7
1.9. Bulk Sales Laws 8
SECTION 2. CLOSING PAYMENTS; ESCROW; PURCHASE PRICE ADJUSTMENT;
ALLOCATION................................. 8
2.1. Purchase Price; Other Payments 8
2.2. Closing Payment 8
2.3. Debt Payments by Buyer 8
2.4. Noncompete Payments. 8
2.5. Escrow Accounts 9
2.6. Purchase Price Adjustment 9
(a) Preparation of Closing Balance Sheet and Final Working
Capital Statements......................... 9
(b) Review by the Seller 9
(c) Adjustment 11
2.7. Allocation of Purchase Price 11
2.8. Closing 11
SECTION 3. REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS 12
3.1. Title to the Shares 12
3.2. Authority; Noncontravention; Consents 12
SECTION 4. REPRESENTATIONS AND WARRANTIES OF THE SELLER AND THE
SHAREHOLDERS.............................. 13
4.1. Organization; Good Standing; Qualification and Power
13
4.2. Equity Investments 13
4.3. Capital Stock 13
4.4. Authority; Noncontravention; Consents 13
4.5. Financial Statements 14
4.6. Absence of Undisclosed Liabilities 15
4.7. Absence of Changes 15
4.8. Tax Matters 16
4.9. Title to Assets, Properties and Rights and Related
Matters................................... 17
4.10. Real Property-Owned or Leased 17
4.11. Intellectual Property 18
4.12. Agreements, No Defaults, Etc. 19
4.13. Litigation, Etc. 20
4.14. Compliance; Governmental Authorizations 21
4.15. Labor Relations; Employees 21
4.16. ERISA Compliance 22
4.17. Environmental Matters 22
4.18. Brokers 23
4.19. Related Transactions 23
4.20. Accounts and Notes Receivable 23
4.21. Accounts and Notes Payable 23
4.22. Inventories 24
4.23. Warranties of Products; Products Liability; Regulatory
Compliance................................ 24
4.24. Suppliers and Vendors 24
4.25. Customers 24
4.26. Disclosure 25
SECTION 5. REPRESENTATIONS AND WARRANTIES THE BUYER 25
5.1. Authority 25
5.2. Noncontravention; Consents 25
5.3. Brokers 26
SECTION 6. CONDUCT AND TRANSACTIONS PRIOR TO THE CLOSING;
ADDITIONAL PRE-CLOSING AGREEMENTS......... 26
6.1. Affirmative Covenants of the Seller 26
6.2. Negative Covenants of the Seller 27
6.3. Confidentiality 28
6.4. Consents 28
6.5. Efforts to Consummate 28
6.6. Notice of Prospective Breach 28
6.7. Public Announcements 28
6.8. Negotiation with Others. 29
SECTION 7. CONDITIONS 29
7.1. Conditions to Each Party's Obligations 29
(a) Approvals 29
(b) No Injunctions or Restraints 30
(c) Statutes 30
7.2. Conditions to Obligations of the Buyer 30
(a) Accuracy of Representations and Warranties 30
(b) Performance of Obligations of the Seller and the
Shareholders.............................. 30
(c) Authorization 31
(d) Opinion of the Seller's and the Shareholders' Counsel
31
(e) Consents and Approvals 31
(f) Government Consents, Authorizations, Etc. 31
(g) Corporate Resolutions. 31
(h) Absence of Material Adverse Change 31
(i) Officer's Certificate. 31
(j) Instruments of Transfer 32
(k) Proprietary Information Agreements 32
(l) Change and Use of Seller's Name 32
(m) Releases of Encumbrances 32
(n) Litigation Matters 32
(o) Due Diligence 32
(p) Employment Agreement 32
(q) Consulting Agreements. 33
(r) Xxxxxxxx Escrow Agreement 33
(s) Xxxxx Escrow Agreement 33
(t) Release 33
(u) Environmental 33
7.3. Conditions to Obligations of the Seller and the
Shareholders.............................. 33
(a) Accuracy of Representations and Warranties 33
(b) Performance of Obligations of the Buyer 33
(c) Authorization 34
(d) Government Consents, Authorizations, Etc. 34
(e) Corporate Resolutions 34
(f) Officer's Certificate 34
(g) Consideration for Noncompetition Covenants 34
(h) Payment of Debt 34
(i) Employment Agreement 34
(j) Consulting Agreements 34
(k) Escrow Agreements 35
SECTION 8. INDEMNIFICATION 35
8.1. Indemnification Generally; Etc. 35
(a) By the Seller Group in Favor of the Buyer Group 35
(b) By Each Shareholder in Favor of the Buyer Group 36
(c) By the Buyer in Favor of the Seller and the
Shareholders.............................. 36
8.2. Limitations on Indemnification 36
(a) Indemnity Basket for the Seller and the Shareholders
37
(b) Indemnity Baskets for the Buyer Group 37
8.3. Assertion of Claims 37
8.4. Notice and Defense of Third Party Claims 37
8.5. Survival of Representations and Warranties 39
8.6. No Third Party Reliance 39
8.7. Remedies Exclusive 39
SECTION 9. ADDITIONAL AGREEMENTS 40
9.1. Expenses 40
9.2. Disclosure of Information; Noncompetition 40
9.3. Payment for Noncompetition Covenants 41
9.4. Use of Name 41
9.5. Relationships with Vendors and Customers 41
SECTION 10. TERMINATION; EFFECT OF TERMINATION 42
10.1. Termination 42
10.2. Effect of Xxxxxxxxxxx 00
XXXXXXX 00. MISCELLANEOUS PROVISIONS 43
11.1. Amendment 43
11.2. Extension; Waiver 43
11.3. Entire Agreement 43
11.4. Severability 43
11.5. No Third-Party Beneficiaries; Successors and Assigns
44
11.6. Headings 44
11.7. Notices 44
11.8. Counterparts 45
11.9. Governing Law 45
11.10. Incorporation of Exhibits and Schedules 45
11.11. Construction 45
11.12. Remedies 46
11.13. Waiver of Jury Trial 46
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SCHEDULES AND EXHIBITS
Annex I - Definitions
Schedule I - Machinery, Equipment, etc.
Schedule II - Real Property Leases
Schedule III - Permits
Schedule IV - Excluded Fixed Assets
Schedule V - Retained Real Property
Schedule VI - Retained Contracts
Schedule VII - Debt Paid at Closing
Schedule VIII - Capitalization
Exhibit A - Xxxx of Sale
Exhibit B-1 - Xxxxxxxx Escrow Agreement
Exhibit B-2 - Xxxxx Escrow Agreement
Exhibit C - Form of Opinion of Seller's and Shareholders' Counsel
Exhibit D - Form of Employment Agreement for Xxxxx Xxxxxxxx
Exhibit E-1 - Form of Consulting Agreement for Xxx Xxxxxxxx
Exhibit E-2 - Form of Consulting Agreement for Xxxxxx Xxxxx
Exhibit F - Release by the Xxxxxxxx Estate
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