AMENDMENT TO ASSET PURCHASE AGREEMENT
THIS AMENDMENT TO ASSET PURCHASE AGREEMENT, dated April 26, 1996 among
Heinz Pet Products Company, a Division of Star-Xxxx Foods, Inc., a California
corporation ("Star-Xxxx"), ProMark International, Inc., an Idaho corporation
("ProMark"), Perk Foods Co., Incorporated, a Delaware corporation ("Perk")
(Star-Xxxx, ProMark and Perk are hereinafter referred to as the "Sellers"),
X.X. Xxxxx Company, a Pennsylvania corporation and the direct or indirect parent
of each of the Sellers ("Heinz"), Xxxxx Xxxx Pet Food Holdings, Inc., a Delaware
corporation ("Holdings"), and Xxxxx Xxxx Pet Food Company, Inc., a Delaware
corporation and wholly-owned subsidiary of Holdings ("Purchaser").
WITNESSETH:
WHEREAS, Sellers, Heinz, Holdings and Purchaser are parties to that
certain Asset Purchase Agreement dated April 17, 1996 (the "Purchase
Agreement"); and
WHEREAS, Sellers, Heinz, Holdings and Purchaser desire to amend the
Purchase Agreement with respect to certain provisions contained therein,
pursuant to the terms set forth herein.
NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements set forth herein, the parties hereto, intending to be
legally bound, agree as follows:
1. Defined Terms. Capitalized terms used herein not otherwise defined
herein shall have the meanings ascribed to them in the Purchase Agreement.
2. Table of Contents. The Table of Contents to the Purchase Agreement
is hereby deleted in its entirety and replaced with the Table of Contents set
forth on Attachment A hereto.
3. Section 3.5. The phrase "income and results of operations" contained
in the first sentence of Section 3.5 of the Purchase Agreement is hereby deleted
and the following term shall be inserted in lieu thereof: "contribution".
4. Section 3.23. The term "Article III" contained in the first sentence
of Section 3.23 of the Purchase Agreement is hereby deleted and the following
phrase shall be inserted in lieu thereof: "Agreement and in certificates
delivered in accordance with Section 8.1(c)(i)".
5. Section 8.9. The brackets surrounding the term "$60,700,000"
contained in Section 8.9 of the Purchase Agreement are hereby deleted.
6. Section 11.19. Section 11.19 of the Purchase Agreement is hereby
deleted in its entirety and the following new Section 11.19 shall be inserted in
lieu thereof:
"SECTION 11.19. No Offsets. Under no circumstances
whatsoever shall Purchaser, Holdings or Sellers be
entitled to offset any amounts payable pursuant to
this Agreement against any amounts payable pursuant
to, or with respect to, any claims of whatsoever
nature between Purchaser, Holdings and Sellers and
any of their respective affiliates under, any other
agreement or arrangement between Purchaser, Holdings
and Sellers or any of their respective affiliates,
including, without limitation, the Co-Pack
Agreement, the Kozy Kitten License Agreement, the
Promissory Note, or the Transition Services
Agreement and any other agreement contemplated by or
executed in connection with this Agreement.
Notwithstanding the foregoing, Purchaser, on the one
hand, and Sellers, on the other hand, shall be
entitled to set off or recoup against any amount
payable to any other party pursuant to this
Agreement any amount payable by such other party to
Purchaser or Sellers, as applicable, pursuant to
this Agreement, except with respect to the Purchase
Price adjustment, if any, pursuant to Section 2.4
which shall not be subject to any offset."
7. Schedules. The Schedules to the Purchase Agreement are hereby
modified to the extent set forth in Attachment B annexed hereto.
8. Other Provisions. Subject to the amendments set forth herein, all
other provisions of the Purchase Agreement shall remain in full force and effect
as they are currently set forth in the Purchase Agreement. All references to the
Purchase Agreement in any document, instrument or agreement described in,
referred to, annexed to, contemplated by or incorporated by reference in the
Purchase Agreement or this Amendment shall be deemed to mean the Purchase
Agreement as amended by this Amendment.
9. Counterparts. This Amendment may be executed in counterparts, each
of which shall be deemed an original, but all of which taken together shall
constitute one and the same instrument.
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IN WITNESS WHEREOF, this Amendment has been duly executed as of the
date first above written.
HEINZ PET PRODUCTS COMPANY,
X.X. XXXXX COMPANY A Division of Star-Xxxx Foods, Inc.
By: By: /s/ Xxxxxxx Xxx Xxxxxxxx
------------------------------ ------------------------------
Name: Name: Xxxxxxx Xxx Xxxxxxxx
Title: Title: Chief Cost Officer
PROMARK INTERNATIONAL, INC. PERK FOODS CO., INCORPORATED
By: By:
------------------------------ ------------------------------
Name: Name:
Title: Title:
XXXXX XXXX PET FOOD XXXXX XXXX PET FOOD
HOLDINGS, INC. COMPANY, INC.
By: /s/ X. Xxxx By: /s/ X. Xxxx
------------------------------ ------------------------------
Name: X. Xxxx Name: X. Xxxx
Title: V.P. Finance Title: V.P. Finance
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IN WITNESS WHEREOF, this Amendment has been duly executed as of the
date first above written.
HEINZ PET PRODUCTS COMPANY,
X.X. XXXXX COMPANY A Division of Star-Xxxx Foods, Inc.
By: /s/ Xxxxx X. Xxxxxxxx By:
------------------------------ ------------------------------
Name: Xxxxx X. Xxxxxxxx Name:
Title: Senior Vice President Title:
PROMARK INTERNATIONAL, INC. PERK FOODS CO., INCORPORATED
By: By:
------------------------------ ------------------------------
Name: Name:
Title: Title:
XXXXX XXXX PET FOOD XXXXX XXXX PET FOOD
HOLDINGS, INC. COMPANY, INC.
By: By:
------------------------------ ------------------------------
Name: Name:
Title: Title:
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IN WITNESS WHEREOF, this Amendment has been duly executed as of the
date first above written.
HEINZ PET PRODUCTS COMPANY,
X.X. XXXXX COMPANY A Division of Star-Xxxx Foods, Inc.
By: By: /s/ Xxxxxxx Xxx Xxxxxxxx
------------------------------ ------------------------------
Name: Name: Xxxxxxx Xxx Xxxxxxxx
Title: Title: Chief Cost Officer
PROMARK INTERNATIONAL, INC. PERK FOODS CO., INCORPORATED
By: /s/ Xxxx X. Xxxxxxx By: /s/ Xxxx Xxxxxx
------------------------------ ------------------------------
Name: Xxxx X. Xxxxxxx Name: Xxxx Xxxxxx
Title: President Title: Vice President
XXXXX XXXX PET FOOD XXXXX XXXX PET FOOD
HOLDINGS, INC. COMPANY, INC.
By: /s/ X. Xxxx By: /s/ X. Xxxx
------------------------------ ------------------------------
Name: X. Xxxx Name: X. Xxxx
Title: V.P. Finance Title: V.P. Finance
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ATTACHMENT A
TABLE OF CONTENTS
Article I - Definitions............................................ 1
Definitions............................................ 1
Article II - Sale and Purchase of Assets............................ 7
2.1 Transfer of Assets..................................... 7
2.2 Assumption of Liabilities.............................. 10
2.3 Purchase Price and Other Consideration;
Payment............................................. 13
2.4 Non-Cash Working Capital............................... 13
2.5 Allocation of the Purchase Price....................... 15
2.6 Closing................................................ 15
2.7 Nonassignable Contracts; Real Property Leases
and Permits......................................... 18
Article III - Representations and Warranties of Sellers and
Heinz............................................... 19
3.1 Incorporation; Qualification........................... 19
3.2 Authority.............................................. 19
3.3 Execution and Binding Effect........................... 20
3.4 No Contravention....................................... 20
3.5 Divisional Financial Statements........................ 21
3.6 Title to Acquired Assets;
Owned Real Property and Leased Real Property........ 21
3.7 Contracts.............................................. 24
3.8 Employee Benefit Plans................................. 24
3.9 Absence of Certain Changes............................. 25
3.10 Litigation............................................. 26
3.11 Compliance with Laws................................... 26
3.12 Intellectual Property.................................. 27
3.13 Taxes.................................................. 25
3.14 Inventory.............................................. 28
3.15 Brokers and Finders.................................... 29
3.16 Insurance.............................................. 29
3.17 Labor Matters.......................................... 29
3.18 Sufficiency of Assets.................................. 29
3.19 Accounts Receivable.................................... 29
3.20 Suppliers and Customers................................ 29
3.21 Products............................................... 30
3.22 Environmental Matters.................................. 30
3.23 No Other Representatives or Warranties................. 31
Article IV - Representations and Warranties of
Purchaser and Holdings.............................. 31
4.1 Incorporation.......................................... 31
4.2 Authority.............................................. 31
4.3 Execution and Binding Effect........................... 32
4.4 No Contravention....................................... 32
4.5 Litigation............................................. 32
4.6 Brokers and Finders.................................... 33
Article V - Covenants of the Sellers............................... 33
5.1 Access; Confidential Information....................... 33
5.2 Conduct of Business.................................... 33
5.3 Reasonable Best Efforts; Notifications................. 34
5.4 Trade Secret License; UPC.............................. 34
5.5 Preservation of Records................................ 34
5.6 Capital Projects....................................... 35
5.7 Receivables............................................ 35
Article VI - Covenants of the Purchaser and Holdings................ 35
6.1 Preservation of Records................................ 35
6.2 Reasonable Best Efforts; Notifications................. 36
6.3 Uncollected Receivables................................ 36
Article VII - Employee Matters....................................... 36
7.1 Transferred Employees.................................. 36
7.2 Employmente Benefit Transition......................... 37
7.3 COBRA.................................................. 37
7.4 Vacation............................................... 38
7.5 Qualified Plans........................................ 38
7.6 Disability and Workers' Compensation................... 38
7.7 No Third Party Beneficiaries........................... 38
7.8 Documents and Forms.................................... 39
7.9 WARN Requirements...................................... 39
Article VIII - Conditions to Purchaser's and Holdings' Obligations.... 39
8.1 Accuracy of Representations and Warranties;
Performance of Agreements; Certificates
and Opinion of Counsel.............................. 39
8.2 Consents............................................... 40
8.3 No Injunction.......................................... 40
8.4 HSR Act................................................ 40
8.5 Closing Deliveries..................................... 40
8.6 No Material Adverse Change............................. 40
8.7 Title Insurance........................................ 40
8.8 Survey and Additional Conditions Relating
to Real Property Matters............................ 41
8.9 Financing.............................................. 42
Article IX - Conditions to Sellers' Obligations..................... 42
9.1 Accuracy of Representations and Warranties;
Performance of Agreements; Certificates
and Opinion of Counsel.............................. 42
9.2 Consents............................................... 43
9.3 No Injunction.......................................... 43
9.4 Promissory Note and Intercreditor Arrangements......... 43
9.5 Closing Deliveries..................................... 43
Article X - Indemnification........................................ 43
10.1 Survival of Representations and Warranties
and Obligations..................................... 43
10.2 Indemnification by Seller.............................. 44
10.3 Indemnification by Purchaser........................... 44
10.4 Indemnification Procedures............................. 45
10.5 Limits on Indemnification.............................. 46
10.4 Adjustment of Liability................................ 48
10.7 Exclusive Remedy....................................... 46
Article XI - Miscellaneous.......................................... 47
11.1 Termination of Agreement............................... 47
11.2 Expenses............................................... 47
11.3 Waiver................................................. 47
11.4 Consents............................................... 48
11.5 Assignment; Parties in Interest........................ 48
11.6 Further Assurances..................................... 48
11.7 Entire Agreement....................................... 48
11.8 Amendment.............................................. 48
11.9 Limitations on Rights of Third Parties................. 48
11.10 Captions............................................... 48
11.11 Counterparts........................................... 48
11.12 Notices................................................ 49
11.13 Governing Law.......................................... 51
11.14 Bulk Sales Law......................................... 51
11.15 Transfer Taxes; HSR Fees and Title Insurance........... 51
11.16 Public Announcements................................... 51
11.17 Schedules.............................................. 52
11.18 Heinz Guaranty......................................... 52
11.19 No offsets............................................. 52
Article XII - Certain Environmental Costs............................ 52
