Asset Purchase Agreement (2011)Full Document 

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EXECUTION COPY

 

 

ASSET PURCHASE AGREEMENT

by and among

K-V PHARMACEUTICAL COMPANY,

NESHER PHARMACEUTICALS INC.,

DRUGTECH CORPORATION

and

ZYDUS PHARMACEUTICALS (USA), INC.

and

ZYNESHER PHARMACEUTICALS (USA) LLC

dated as of June 17, 2011

 

 


TABLE OF CONTENTS

 

         Page  

ARTICLE I. DEFINITIONS

     1   

Section 1.01

  Defined Terms      1   

Section 1.02

  Construction of Certain Terms and Phrases      16   

ARTICLE II. PURCHASE AND SALE OF PURCHASED ASSETS

     16   

Section 2.01

  Purchase and Sale of Purchased Assets      16   

Section 2.02

  Assignability and Consents      17   

ARTICLE III. ASSUMPTION OF LIABILITIES

     18   

Section 3.01

  Assumption of Assumed Liabilities      18   

ARTICLE IV. PURCHASE PRICE AND PAYMENT

     18   

Section 4.01

  Purchase Price      18   

Section 4.02

  Working Capital Adjustments to the Base Purchase Price      18   

Section 4.03

  Allocation of Purchase Price      21   

Section 4.04

  Payment of Sales, Use and Other Taxes; Bulk Sales      21   

Section 4.05

  Waiver of Bulk Sales Laws      21   

ARTICLE V. CLOSING

     22   

Section 5.01

  Time and Place      22   

Section 5.02

  Deliveries at Closing      22   

ARTICLE VI. REPRESENTATIONS AND WARRANTIES OF SELLERS

     26   

Section 6.01

  Organization      26   

Section 6.02

  Authority of Sellers      26   

Section 6.03

  Consents and Approvals      26   

Section 6.04

  Non-Contravention      27   

Section 6.05

  Statement of Assets and Liabilities      28   

Section 6.06

  Absence of Certain Changes or Events      28   

Section 6.07

  Taxes      28   

Section 6.08

  Certain Contracts      29   

Section 6.09

  Title to and Condition of Assets      30   

Section 6.10

  Environmental Matter      32   

Section 6.11

  Inventory      33   

Section 6.12

  Litigation      33   

Section 6.13

  Employee Plans      33   

Section 6.14

  Labor Matters      34   

 

- i -


Section 6.15

  Compliance with Law      34   

Section 6.16

  Regulatory Matters      36   

Section 6.17

  Books and Records; Marketing Materials      36   

Section 6.18

  Brokers      37   

Section 6.19

  Accounts Payable      37   

Section 6.20

  Accounts Receivable      37   

Section 6.21

  Product Liability      37   

ARTICLE VII. REPRESENTATIONS AND WARRANTIES OF BUYER

     37   

Section 7.01

  Corporate Organization      37   

Section 7.02

  Authority of Buyer      38   

Section 7.03

  Consents and Approvals      39   

Section 7.04

  Non-Contravention      38   

Section 7.05

  Litigation      39   

Section 7.06

  Investigation      39   

Section 7.07

  Financing      39   

Section 7.08

  Solvency      40   

Section 7.09

  Brokers      40   

ARTICLE VIII. COVENANTS AND AGREEMENTS OF THE PARTIES

     40   

Section 8.01

  Operation of Business Prior to Closing      40   

Section 8.02

  Reasonable Best Efforts      41   

Section 8.03

  Cooperation      42   

Section 8.04

  Access      42   

Section 8.05

  Certain Acquisition Proposals      43   

Section 8.06

  Confidentiality; Public Announcements      43   

Section 8.07

  Transitional Services Agreement      44   

Section 8.08

  Technology and Intellectual Property License Agreement      44   

Section 8.09

  Supply Agreement      44   

Section 8.10

  Lease Agreement      44   

Section 8.11

  Corporate Names      44   

Section 8.12

  Assistance in Collecting Certain Amounts      45   

Section 8.13

  Differentiation of Products      45   

Section 8.14

  Regulatory Matters      45   

Section 8.15

  Product Returns      46   

Section 8.16

  Further Assurances      46   

Section 8.17

  Regulatory Transition by Sellers      46   

Section 8.18

  Tax Matters      47   

Section 8.19

  Obligations Concerning Employment      48   

Section 8.20

  Health and Other Employee Benefits      48   

Section 8.21

  Health Care Continuation Coverage      50   

Section 8.22

  WARN Act Liability      50   

Section 8.23

  Non-Solicitation of Employees, Customers and Suppliers      50   

Section 8.24

  Products Liability Tail Insurance      52   

Section 8.25

  Name Change      52   

 

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Section 8.26

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