Preview of our top selling Asset Purchase Agreement
RoweCom / Dawson Production Services - Busines Sale and Purchase Agreement
Exhibit 2.1
Dated September 16, 1999.
DAWSON HOLDINGS PLC
- and -
ROWECOM INC.
- and -
THE VENDORS
- and -
THE PURCHASERS
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AGREEMENT
for the sale and purchase of
the subscription business and, in Canada, the
books business of the Information Services Group
of Dawson Holdings PLC
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ASHURST MORRIS CRISP
Broadwalk House
5 Appold Street
London EC2A 2HA
Tel: 0171-638 1111
Fax: 0171-972 7990
CONTENTS
CLAUSE PAGE 1. INTERPRETATION........................................................................... 4 2. SALE AND PURCHASE........................................................................ 15 3. CONDITIONS............................................................................... 20 4. PERIOD TO COMPLETION..................................................................... 22 5. COMPLETION............................................................................... 24 6. COMPLETION ACCOUNTS...................................................................... 25 7. INDEBTEDNESS............................................................................. 29 8. WARRANTIES............................................................................... 30 9. PROTECTION OF GOODWILL................................................................... 31 10. ACTION AFTER COMPLETION AND UNDERTAKINGS OR PERMISSIONS BY DAWSON........................ 33 11. LIABILITIES OF THE BUSINESS.............................................................. 36 12. RECEIVABLES.............................................................................. 37 13. CONTRACTS................................................................................ 37 14. EMPLOYEES................................................................................ 38 15. CONFIDENTIAL INFORMATION................................................................. 43 16. PURCHASER WARRANTIES..................................................................... 44 17. PENSIONS................................................................................. 46 18. ANNOUNCEMENTS............................................................................ 46 19. COSTS AND TAXES.......................................................................... 46 20. EFFECT OF THIS AGREEMENT AND COMPLETION.................................................. 47 21. ALTERNATIVE DISPUTE RESOLUTION........................................................... 47 22. FURTHER ASSURANCES....................................................................... 49 23. ENTIRE AGREEMENT......................................................................... 50 24. VARIATIONS............................................................................... 50 25. WAIVER................................................................................... 50 26. INVALIDITY AND INCONSISTENCY............................................................. 51 27. NOTICES.................................................................................. 51 28. COUNTERPARTS............................................................................. 53 29. GOVERNING LAW AND JURISDICTION........................................................... 53 30. NO ASSIGNMENT............................................................................ 53 SCHEDULE 1 Particulars relating to the Company.................................................. 55 SCHEDULE 2 Particulars relating to Subsidiaries................................................. 56 SCHEDULE 3 The Warranties....................................................................... 62 Part A - General................................................................................ 62 SCHEDULE 3 The Warranties....................................................................... 107 Part B - Jurisdiction Specific.................................................................. 107 SCHEDULE 4 Seller's Limitations on Liability.................................................... 118 SCHEDULE 5 Action Pending Completion............................................................ 124 SCHEDULE 6 The Properties....................................................................... 127 SCHEDULE 7 Pensions............................................................................. 130 SCHEDULE 8...................................................................................... 145 Proforma Completion Accounts.................................................................... 145 SCHEDULE 9...................................................................................... 146 Accounting Policies and Procedures for the Completion Accounts and/or the First Quarter Accounts....................................................................................... 146 SCHEDULE 10..................................................................................... 150 Completion...................................................................................... 150
SCHEDULE 11..................................................................................... 156 Agreed Terms Documents.......................................................................... 156 SCHEDULE 12..................................................................................... 158 SCHEDULE 13..................................................................................... 161 Confirmation Letter............................................................................. 161 SCHEDULE 14..................................................................................... 162 Permitted Encumbrances.......................................................................... 162 SCHEDULE 15..................................................................................... 164 Registration of RoweCom Shares.................................................................. 164 SCHEDULE 16..................................................................................... 168 Assumed Liabilities............................................................................. 168 SCHEDULE 17..................................................................................... 169 Accounting Policies and Procedures for the First Quarter Accounts............................... 169 SCHEDULE 18..................................................................................... 171 Losses.......................................................................................... 171
THIS AGREEMENT is made on 1999
BETWEEN:-
(1) DAWSON HOLDINGS PLC (No. 34273) whose registered office is at 9th Floor
(South Wing), AMP House, Dingwall Road, Croydon CR0 9XA, United Kingdom
("Dawson");
(2) ROWECOM INC. whose office is at 725 Concord Avenue, Cambridge,
Massachusetts, United States of America, a Delaware Corporation
("RoweCom");
(3) THE VENDORS (as defined below); and
(4) THE PURCHASERS (as defined below),
(together the "parties").
THE PARTIES AGREE AS FOLLOWS:-
1. INTERPRETATION
1.1 In this agreement the following words and expressions and abbreviations
have the following meanings, unless the context otherwise requires:-
"Accounts Date" means 30 September 1998;
"Advance Publisher Payment" means any advance payments made by any member
of the Dawson Group or any member of the Group prior to Completion to
publishers;
"Agreed Rate" means the base rate from time to time of National
Westminster Bank Plc;
"Announcement Date" means 16 September 1999;
"Assets" means the Books and Records, Business Information, the benefit
(subject to the burden in respect of obligations to be performed and
arising after Completion) of the Contracts, Fixed Plant, Goodwill,
Intellectual Property, Loose Plant, Properties, Receivables and Stock
together with all other assets and rights and the benefit of any claims
relating to the Asset Businesses at Completion, other than the Excluded
Assets;
"Asset Businesses" means together the Canadian Business, the French
Business, the Spanish Business and the UK Business;
"Asset Vendors" means those corporate entities (other than the Share
Vendor) whose names are set out in schedule 12;
"associated company" has the meaning given to it in sections 416 et seq.
TA;
-4-
"Assumed Employees" means those employees of the Asset Businesses whose
names are listed in the document in the agreed terms headed "Assumed
Employees" together with those persons employed by the Dawson Group in the
Asset Businesses between the date hereof and Completion with the consent of
RoweCom less those who resign or are dismissed or whose contract of
employment expired between the date hereof and Completion and "Assumed
Employee" means any of them;
"Assumed Liabilities" means the obligations of the Group in relation to the
trade creditors of the Asset Businesses as included in the Completion
Accounts or under the Contracts (but excluding the Excluded Liabilities) as
at Completion and the liabilities specified in schedule 16;
"Books Business" means the books business of the Information Services Group
of Dawson and the Dawson Group wheresoever carried on and whether carried
on separately or together;
"Books and Records" means all books and records other than those required
by law to be retained by any of the Vendors and including customer lists,
publisher information, books of account, employees and financial and tax
records, and all other records to the extent they relate to the Business as
at Completion on whatsoever medium they are stored;
"Business" means the subscription business of the Information Services
Group of Dawson and the Dawson Group wheresoever carried on and whether
carried on separately or together;
"Business Confidential Information" means all information relating to any
Group Company or the Business, including its operations, trade secrets or
financial or other information (including future plans and targets of any
Group Company or the Business) which is not in the public domain;
"Business Day" means a day (excluding Saturdays) on which banks generally
are open in London for the transaction of normal banking business;
"Business Information" means all information, know-how and documentation
(and on whatsoever medium they are stored) relating to the Business and
Assets as at Completion including all correspondence, promotional material,
lists of customers and suppliers, technical or computer hardware or
software manuals;
"Canadian Business" means that part of the Business and the Books Business
operating in Canada;
"Canadian Employees" means those Assumed Employees of the Canadian
Business;
"Canadian Purchaser" means the Corporate entity(ies) nominated by RoweCom
for the purpose of acquiring the Canadian Business;
"Canadian Real Property" means the real property located at 1540 North
Routledge Park, London, Ontario;