ASSUMPTION AGREEMENT
EXHIBIT 10.05
ASSUMPTION AGREEMENT
THIS ASSUMPTION AGREEMENT, dated as of April 18. 2006, (the “Assumption Agreement”) by and between Derma Sciences, Inc., a corporation organized under the laws of the Commonwealth of Pennsylvania and having its principal place of business at 000 Xxxxxxxx Xxxxxx, Xxxxx 000, Xxxxxxxxx, Xxx Xxxxxx 00000 (“Buyer”), and Western Medical, Inc., a corporation organized under the laws of the State of New Jersey and having its principal place of business at 00 Xxxxx Xxxxxx Xxxxxx, Xxxxxxx, Xxx Xxxxxx 00000 (“Seller”).
RECITALS
WHEREAS, the parties have entered into that certain Asset Purchase Agreement dated January 26, 2006 (the “Asset Purchase Agreement”),
WHEREAS, pursuant to the Asset Purchase Agreement, the Buyer has undertaken to assume, fully perform, satisfy and be liable for certain of the liabilities and obligations of the Seller as more particularly described in Schedule “A” hereof (the “Assumed Liabilities”),
NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements hereinafter set forth, the parties mutually covenant and agree as follows:
1. Assumption of Assumed Liabilities. The Buyer hereby expressly assumes and agrees to pay, perform and discharge in accordance with their terms the Assumed Liabilities.
2. Further Assurances. Each of the Seller and the Buyer agree to execute such other documents and take such other actions as may reasonably be necessary or desirable to confirm and effectuate the assumption contemplated hereby.
3. No Modification of Asset Purchase Agreement. This Assumption Agreement is delivered pursuant to the Asset Purchase Agreement, is subject in all respects to the provisions thereof and does not alter, enlarge or restrict the provisions of the Asset Purchase Agreement.
4. Controlling Law. This Assumption Agreement and all questions relating to its validity, interpretation, performance, remediation and enforcement (including, but not limited to, provisions concerning limitations of actions) shall be governed by and construed in accordance with the domestic laws of the State of New Jersey, notwithstanding any choice-of-laws doctrines of such jurisdiction or any other jurisdiction which ordinarily would cause the substantive law of another jurisdiction to apply, without the aid of any canon, custom or rule of law requiring construction against the draftsman.
5. Consent to Jurisdiction. The parties hereto hereby consent to the exclusive jurisdiction of the state courts situate in Bergen County and the federal courts situate in Newark, New Jersey with respect to any disputes, claims, controversies or other actions or proceedings arising under this Assumption Agreement. The parties hereto hereby waive any and all rights to commence any action or proceeding before any other court or judicial body or in any other venue with respect to the subject matter hereof.
IN WITNESS WHEREOF, this Assumption Agreement has been duly executed and delivered by a duly authorized officer of each of Buyer and Seller on the date first above written.
| DERMA SCIENCES, INC. |
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| By: | |||
| Xxxxxx X. Xxxxxx President and Chief Executive Officer |
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| WESTERN MEDICAL, LTD. |
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| By: | |||
| Xxxxxxxxxxx Xxxxxxx President and Chief Executive Officer |
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EXHIBIT A
Date:
KMAN
Invoice Invoice Pay Pri Original
Number Date Post Date Amount Current 0 - 30 31 - 60 61 - 90 91 - 120 Over 120
ABF ABF FREIGHT SYSTEM, INC. Terms:2% 10 Days Net 30 0.00
022879606 4/3/2006 4/14/2006 2 $774.15 0.00 774.15 0.00 0.00 0.00 0.00
086574806 4/3/2006 4/17/2006 2 $190.44 0.00 190.44 0.00 0.00 0.00 0.00
118900073 4/4/2006 4/14/2006 2 $272.56 0.00 272.56 0.00 0.00 0.00 0.00
118900074 4/5/2006 4/14/2006 2 $482.04 0.00 482.04 0.00 0.00 0.00 0.00
118900075 4/7/2006 4/17/2006 2 $437.04 0.00 437.04 0.00 0.00 0.00 0.00
118900076 4/7/2006 4/17/2006 2 $263.14 0.00 263.14 0.00 0.00 0.00 0.00
ABF Balance: 2419.37 0.00 2419.37 0.00 0.00 0.00 0.00
ALBA ALBAHEALTH Terms:2% 10 Days Net 30 0.00
50464128 3/25/2006 3/31/2006 2 $345.60 0.00 345.60 0.00 0.00 0.00 0.00
50465049 3/31/2006 4/11/2006 2 $2,103.60 0.00 2103.60 0.00 0.00 0.00 0.00
50465328 4/4/2006 4/11/2006 2 $4,197.60 0.00 4197.60 0.00 0.00 0.00 0.00
ALBA Balance: 6646.80 0.00 6646.80 0.00 0.00 0.00 0.00
AMBRAL XXXXX XXXXX, LLC Terms:2% 10 Days Net 30 0.00
2782-2 3/8/2006 4/17/2006 2 $880.00 0.00 880.00 0.00 0.00 0.00 0.00
2822 3/16/2006 4/13/2006 2 $8,809.88 0.00 8809.88 0.00 0.00 0.00 0.00
2862 3/28/2006 3/31/2006 2 $640.12 0.00 640.12 0.00 0.00 0.00 0.00
2863 3/28/2006 3/31/2006 2 $38,110.28 0.00 38110.28 0.00 0.00 0.00 0.00
2901 4/13/2006 4/17/2006 2 $46,772.20 0.00 46772.20 0.00 0.00 0.00 0.00
2902 4/13/2006 4/17/2006 2 $5,675.54 0.00 5675.54 0.00 0.00 0.00 0.00
2903 4/13/2006 4/17/2006 2 $4,320.00 0.00 4320.00 0.00 0.00 0.00 0.00
2904 4/13/2006 4/17/2006 2 $4,488.00 0.00 4488.00 0.00 0.00 0.00 0.00
2905 4/13/2006 4/17/2006 2 $86.32 0.00 86.32 0.00 0.00 0.00 0.00
AMBRAL Balance: 109782.34 0.00 109782.34 0.00 0.00 0.00 0.00
BUFFAL BUFFALO HOSPITAL SUPPLY Terms:2% 10 Days Net 30 0.00
2006 FEE 3/1/2006 3/1/2006 2 $2,700.00 0.00 0.00 2700.00 0.00 0.00 0.00
BUFFAL Balance: 2700.00 0.00 0.00 2700.00 0.00 0.00 0.00
FARMA FARMABAN,S.A. Terms:2% 10 Days Net 30 0.00
05/00286 1/11/2006 4/17/2006 N $59,686.92 * 0.00 30035.06 0.00 0.00 0.00 0.00
FARMA Balance: 30035.06 0.00 30035.06 0.00 0.00 0.00 0.00
GEMINI GEMINI TRAFFIC SALES Terms:2% 10 Days Net 30 0.00
433553 4/5/2006 4/11/2006 2 $1,528.66 0.00 1528.66 0.00 0.00 0.00 0.00
GEMINI Balance: 1528.66 0.00 1528.66 0.00 0.00 0.00 0.00
HEALTH MMD GROUP LLC Terms:2% 10 Days Net 30 0.00
533 3/30/2006 4/13/2006 2 $6,396.00 0.00 6396.00 0.00 0.00 0.00 0.00
534 3/30/2006 4/17/2006 2 $7,397.00 0.00 7397.00 0.00 0.00 0.00 0.00
535 3/29/2006 4/17/2006 2 $17,316.00 0.00 17316.00 0.00 0.00 0.00 0.00
536 3/29/2006 4/17/2006 2 $6,721.00 0.00 6721.00 0.00 0.00 0.00 0.00
537 3/29/2006 4/14/2006 2 $9,019.00 0.00 9019.00 0.00 0.00 0.00 0.00
HEALTH Balance: 46849.00 0.00 46849.00 0.00 0.00 0.00 0.00
HYGINE HYGINET CORP. OF AMERICA Terms:2% 10 Days Net 30 0.00
13243 4/3/2006 4/11/2006 2 $5,831.60 0.00 5831.60 0.00 0.00 0.00 0.00
HYGINE Balance: 5831.60 0.00 5831.60 0.00 0.00 0.00 0.00
I-MING I-MING SANITARY MATERIALS CO. LTD Terms:2% 10 Days Net 30 0.00
060301001 3/1/2006 3/2/2006 N $19,435.60 * 0.00 0.00 9717.80 0.00 0.00 0.00
I-MING Balance: 9717.80 0.00 0.00 9717.80 0.00 0.00 0.00
IMCO IMCO Terms:2% 10 Days Net 30 0.00
1ST QTR 06 4/6/2006 4/14/2006 2 $600.10 0.00 600.10 0.00 0.00 0.00 0.00
IMCO Balance: 600.10 0.00 600.10 0.00 0.00 0.00 0.00
XXXX XXXXXXX XXXX TRUCKING & RIGGING INC Terms:2% 10 Days Net 30 0.00
501695 4/11/2006 4/14/2006 2 $28,950.00 0.00 28950.00 0.00 0.00 0.00 0.00
501696 4/11/2006 4/14/2006 2 $2,875.00 0.00 2875.00 0.00 0.00 0.00 0.00
XXXX Balance: 31825.00 0.00 31825.00 0.00 0.00 0.00 0.00
XXXXX XXXXX MEDICAL CORP. Terms:2% 10 Days Net 30 0.00
TP-1948 4/13/2006 4/14/2006 2 $400.00 0.00 400.00 0.00 0.00 0.00 0.00
XXXXX Balance: 400.00 0.00 400.00 0.00 0.00 0.00 0.00
MPSI MINERAL AND PIGMENT SOLUTIONS INC. Terms:2% 10 Days Net 30 0.00
68050401 3/20/2006 3/31/2006 2 $465.96 0.00 465.96 0.00 0.00 0.00 0.00
MPSI Balance: 465.96 0.00 465.96 0.00 0.00 0.00 0.00
MUTCH XXXXXXXX INC. Terms:2% 10 Days Net 30 0.00
20060481 3/21/2006 3/31/2006 2 $2,833.82 0.00 2833.82 0.00 0.00 0.00 0.00
MUTCH Balance: 2833.82 0.00 2833.82 0.00 0.00 0.00 0.00
NJLABS NEW JERSEY LABORATORIES Terms:2% 10 Days Net 30 0.00
20383 3/20/2006 3/23/2006 2 $240.00 0.00 240.00 0.00 0.00 0.00 0.00
20384 3/20/2006 3/23/2006 2 $240.00 0.00 240.00 0.00 0.00 0.00 0.00
20385 3/20/2006 3/23/2006 2 $240.00 0.00 240.00 0.00 0.00 0.00 0.00
NJLABS Balance: 720.00 0.00 720.00 0.00 0.00 0.00 0.00
NMS NATIONAL MEDICAL ALLIANCE Terms:2% 10 Days Net 30 0.00
1ST QTR 06 4/5/2006 4/14/2006 2 $12.54 0.00 12.54 0.00 0.00 0.00 0.00
NMS Balance: 12.54 0.00 12.54 0.00 0.00 0.00 0.00
XXXX XXXX GRAPHICS Terms:2% 10 Days Net 30 0.00
5606 4/4/2006 4/11/2006 2 $19,384.72 0.00 19384.72 0.00 0.00 0.00 0.00
XXXX Balance: 19384.72 0.00 19384.72 0.00 0.00 0.00 0.00
RXTEXT RX TEXTILES Terms:2% 10 Days Net 30 0.00
12052 4/3/2006 4/11/2006 2 $4,327.03 0.00 4327.03 0.00 0.00 0.00 0.00
RXTEXT Balance: 4327.03 0.00 4327.03 0.00 0.00 0.00 0.00
TRI-FI TRI-FI KNITTING Terms:2% 10 Days Net 30 0.00
4516 3/17/2006 4/14/2006 2 $21,421.60 0.00 21421.60 0.00 0.00 0.00 0.00
4523 3/24/2006 3/31/2006 2 $24,142.57 0.00 24142.57 0.00 0.00 0.00 0.00
4524 3/31/2006 3/31/2006 2 $3,934.22 0.00 3934.22 0.00 0.00 0.00 0.00
4527 3/31/2006 4/11/2006 2 $9,382.96 0.00 9382.96 0.00 0.00 0.00 0.00
4528-30 3/31/2006 4/11/2006 2 $9,920.54 0.00 9920.54 0.00 0.00 0.00 0.00
4532 4/7/2006 4/14/2006 2 $38,253.16 0.00 38253.16 0.00 0.00 0.00 0.00
4533-34 4/7/2006 4/14/2006 2 $9,201.61 0.00 9201.61 0.00 0.00 0.00 0.00
TRI-FI Balance: 116,256.66 0.00 116256.66 0.00 0.00 0.00 0.00
UPS UNITED PARCEL SERVICE Terms:2% 10 Days Net 30 0.00
3805X7146 4/8/2006 4/17/2006 2 $11.03 0.00 11.03 0.00 0.00 0.00 0.00
WF2746146 4/8/2006 4/17/2006 2 $4,016.69 0.00 4016.69 0.00 0.00 0.00 0.00
UPS Balance: 4027.72 0.00 4027.72 0.00 0.00 0.00 0.00
WOLTMA XXXXXXXX & XXXXXXXXX, INC. Terms:2% 10 Days Net 30 0.00
672084800 4/10/2006 4/14/2006 2 $1,223.58 0.00 1223.58 0.00 0.00 0.00 0.00
WOLTMA Balance: 1223.58 0.00 1223.58 0.00 0.00 0.00 0.00
Total A/P Balance: 397587.76 0.00 385169.96 12417.80 0.00 0.00 0.00
"*" indicates that payments have been made
