Asset Purchase Agreement

Exhibit 10.7


ASSET PURCHASE AGREEMENT


BY AND BETWEEN


ALLTRISTA PLASTICS CORPORATION,


TRIENDA CORPORATION,


QUOIN CORPORATION,


ALLTRISTA CORPORATION


AND


WILBERT, INC.


OCTOBER 15, 2001


TABLE OF CONTENTS
-----------------


ARTICLE I DEFINITIONS ............................................................ 1


Section 1.1 Defined Terms ...................................................... 1
Section 1.2 Index of Other Defined Terms ....................................... 5


ARTICLE II TRANSFER OF ASSETS ..................................................... 6


Section 2.1 Purchase and Sale of Assets ........................................ 6
Section 2.2 Excluded Assets .................................................... 8
Section 2.3 Instruments of Transfer and Assignment ............................. 8
Section 2.4 Consents to Assignment ............................................. 8
Section 2.5 Subsequent Documentation ........................................... 8
Section 2.6 Closing ............................................................ 8


ARTICLE III PURCHASE PRICE ......................................................... 8


Section 3.1 Consideration, Payment ............................................. 8
Section 3.2 Allocation of Consideration ........................................ 9
Section 3.3 Deposit ............................................................ 9


ARTICLE IV ASSUMPTION OF LIABILITIES .............................................. 9


ARTICLE V REPRESENTATIONS AND WARRANTIES OF SELLERS, HOLDINGS AND ALLTRISTA ...... 10


Section 5.1 Disclosure Schedule ................................................ 10
Section 5.2 Organization; Power ................................................ 10
Section 5.3 Articles of Incorporation and Bylaws ............................... 10
Section 5.4 Authorization of Agreement ......................................... 10
Section 5.5 No Conflicts ....................................................... 11
Section 5.6 Consents and Approvals ............................................. 11
Section 5.7 Financial Information .............................................. 11
Section 5.8 No Undisclosed Liabilities or Claims ............................... 11
Section 5.9 Litigation ......................................................... 12
Section 5.10 Taxes .............................................................. 12
Section 5.11 Accounts Receivable and Accounts Payable ........................... 13
Section 5.12 Inventory .......................................................... 13
Section 5.13 Absence of Certain Changes or Events ............................... 13
Section 5.14 Contracts and Commitments .......................................... 14
Section 5.15 Tooling and Dies ................................................... 15
Section 5.16 Assumed Liabilities ................................................ 15
Section 5.17 OSHA, Environmental ................................................ 15
Section 5.18 Customers and Vendors .............................................. 16
Section 5.19 Books and Records .................................................. 16
Section 5.20 Employment Matters ................................................. 16
Section 5.21 Employee Benefit Plans ............................................. 17
Section 5.22 Employees .......................................................... 18


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Section 5.23 Finder ............................................................. 19
Section 5.24 Sufficiency of Assets .............................................. 19
Section 5.25 Governmental Authorizations ........................................ 19
Section 5.26 Compliance with Applicable Laws .................................... 19
Section 5.27 Title to Assets, Absence of Liens and Encumbrances ................. 20
Section 5.28 Intellectual Property .............................................. 20
Section 5.29 Real Property ...................................................... 21
Section 5.30 Working Capital .................................................... 22
Section 5.31 Hardware and Software .............................................. 22


ARTICLE VI REPRESENTATIONS AND WARRANTIES OF BUYER ................................ 22


Section 6.1 Organization ....................................................... 22
Section 6.2 Authorization of Agreement ......................................... 22
Section 6.3 Approvals .......................................................... 22
Section 6.4 Finder ............................................................. 23
Section 6.5 No Conflicts ....................................................... 23


ARTICLE VII COVENANTS OF THE PARTIES ............................................... 23


Section 7.1 Operation Of Business Prior To Closing ............................. 23
Section 7.2 Approvals and Consents ............................................. 24
Section 7.3 Payment of Liabilities, Bulk Sales ................................. 24
Section 7.4 Access Prior to Closing; Environmental Investigation ............... 24
Section 7.5 Sellers' Employees, Retirement Benefits ............................ 25
Section 7.6 Access After the Closing ........................................... 26
Section 7.7 Taxes .............................................................. 26
Section 7.8 Survey and Title Commitments ....................................... 27
Section 7.9 Title to Intellectual Property ..................................... 28
Section 7.10 No Solicitation .................................................... 29
Section 7.11 Confidentiality .................................................... 29
Section 7.12 Covenant Not to Compete ............................................ 30
Section 7.13 Notification ....................................................... 31
Section 7.14 Intellectual Property Undertakings ................................. 32


ARTICLE VIII CONDITIONS TO CLOSING .................................................. 32


Section 8.1 Buyer's Conditions to Closing ...................................... 32
Section 8.2 Sellers', Holdings' and Alltrista's Conditions to Closing .......... 33


ARTICLE IX DISPUTE RESOLUTION ..................................................... 34


Section 9.1 Initial Meeting .................................................... 34
Section 9.2 Mediation .......................................................... 35
Section 9.3 Binding Arbitration ................................................ 35
Section 9.4 Expeditious Proceedings ............................................ 35
Section 9.5 Attorneys' Fees .................................................... 35
Section 9.6 Enforcement of Awards .............................................. 35
Section 9.7 Equitable Relief ................................................... 35


ARTICLE X INDEMNIFICATION ............................................................ 36


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Section 10.1 Indemnification by Sellers, Holdings and Alltrista ..................... 36
Section 10.2 Indemnification by Buyer ............................................... 37
Section 10.3 Limits ................................................................. 37
Section 10.4 Procedure .............................................................. 38
Section 10.5 Insurance and Taxes .................................................... 38
Section 10.6 Exclusive Remedy ....................................................... 38
Section 10.7 Indemnification in Case of Strict Liability or Indemnitee Negligence.... 39


ARTICLE XI TERMINATION ................................................................ 39


Section 11.1 Termination ............................................................ 39
Section 11.2 Effect of Termination .................................................. 40
Section 11.3 Risk of Loss ........................................................... 40


ARTICLE XII GENERAL .................................................................... 40


Section 12.1 WARN Act ............................................................... 40
Section 12.2 Expenses ............................................................... 40
Section 12.3 Survival of Representations and Warranties ............................. 40
Section 12.4 Waivers ................................................................ 41
Section 12.5 Binding Effect; Benefits; Assignment ................................... 41
Section 12.6 Notices ................................................................ 41
Section 12.7 Entire Agreement ....................................................... 42
Section 12.8 Headings ............................................................... 42
Section 12.9 Governing Law .......................................................... 42
Section 12.10 Amendments ............................................................. 42
Section 12.11 Severability ........................................................... 42
Section 12.12 Press Releases ......................................................... 42
Section 12.13 Counterparts ........................................................... 43
Section 12.14 Interpretation ......................................................... 43


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SCHEDULES
---------


Schedule 1.1(a) - Working Capital Schedule 1.1(b) - Permitted Encumbrances Schedule 1.1(c) - Permitted Liens Schedule 1.1(d) - Real Property Schedule 2.1 - Assets Schedule 2.1(d) - Excluded Equipment and Machinery Schedule 2.1(1) - Intellectual Property Schedule 2.2 - Excluded Assets Schedule 4 - Assumed Liabilities Schedule 5.1 - Disclosure Schedule
Section 5.5 - Conflicts
Section 5.6 - Consents and Approvals
Section 5.7 - Financial Information
Section 5.8 - Liabilities or Obligations
Section 5.9 - Litigation
Section 5.10 - Taxes
Section 5.11 - Accounts Receivable and Accounts Payable
Section 5.13 - Absence of Certain Changes or Events
Section 5.14 - Contracts
Section 5.15 - Owned Tools and Dies
Section 5.17 - OSHA, Environmental
Section 5.18 - Customers and Vendors
Section 5.20 - Employment Matters
Section 5.21 - Employee Benefit Plans
Section 5.22 - Employees
Section 5.24 - Sufficiency of Assets
Section 5.25 - Governmental Authorizations
Section 5.26 - Compliance with Applicable Laws
Section 5.28 - Intellectual Property Agreements
Section 5.29 - Real Property Schedule 7.12 - List of Parts Schedule 8.1(l) - Customers Meeting with Buyer


EXHIBITS
--------


3.1(a) - Form of Promissory Note 3.1(b) - Form of Assumption Agreement 5.7(a) - Financial Information 5.22(b) - Form of Proprietary Agreements 7.14 - Intellectual Property Undertakings 8.1(j) - Form of Seller Opinion Letter 8.2(g) - Form of Buyer Opinion Letter


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ASSET PURCHASE AGREEMENT


This ASSET PURCHASE AGREEMENT (the "Agreement"), dated as of October 15,
--------- 2001, is entered into by and among ALLTRISTA PLASTICS CORPORATION, an Indiana corporation, TRIENDA CORPORATION, an Indiana corporation (together with Alltrista Plastics Corporation "Sellers" and individually "Seller"), QUOIN
------- ------ CORPORATION, a Delaware corporation ("Holdings"), ALLTRISTA CORPORATION, an
-------- Indiana corporation ("Alltrista") and WILBERT, INC., an Illinois corporation
--------- (the "Buyer").
-----


RECITALS:


WHEREAS, utilizing thermoforming and sheet extrusion processes, Sellers are engaged in the business of manufacturing heavy gauge plastic products and parts for original equipment manufacturers in a variety of industries, including heavy transportation, agriculture, portable restrooms, appliance, furniture and material handling at the locations set forth on Schedule 1.1(d) (as further
--------------- defined below, the "Business");
--------


WHEREAS, Buyer is acquiring certain assets and assuming certain liabilities, the Buyer and Sellers, Holdings and Alltrista intend and agree that no tax attributes will be transferred to the Buyer under Internal Revenue Code Section 381 or any other comparable provision under federal, state or local law. Sellers, Holdings and Alltrista are retaining all tax attributes including, but not limited to, net operating loss carryovers, Section 1231 carryovers, capital loss carryovers, credits carryovers and tax payment deposits;


WHEREAS, Sellers, Holdings and Alltrista desire to sell to Buyer the assets used in the Business pursuant to the terms and conditions of this Agreement;


WHEREAS, Alltrista owns certain rights to intellectual property used in the Business and desires to sell to Buyer such rights pursuant to the terms and conditions of this Agreement;


WHEREAS, Holdings, as the sole shareholder of Sellers, has approved the sale of substantially all of the assets of Sellers to Buyer; and


WHEREAS, Buyer desires to purchase from Sellers, Holdings and Alltrista such assets and properties used in the Business pursuant to the terms and conditions of this Agreement.


AGREEMENT:


NOW, THEREFORE, in consideration of the premises and mutual agreements hereinafter set forth, the parties hereto agree as follows:


ARTICLE I
DEFINITIONS


Section 1.1 Defined Terms. As used herein, the following terms have the
------------- following meanings:


"Accounts Receivable" means accounts receivable of the Business in existence on the Closing Date other than those accounts receivable related to Sellers' business located at Ft. Smith, Arkansas.


"Business" means the business defined in the first recital of this Agreement but specifically excluding any of the Assets or operations of Sellers located in Ft. Smith, Arkansas except to the extent such Assets are also used outside of Ft. Smith, Arkansas.


"CERCLA" means the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, at 42 U.S.C. Sections 9601, et seq.


"Closing Approvals" means those approvals and consents to be obtained prior to Closing, all of which are designated on Section 5.6 of the Disclosure
----------- Schedule as exceptions to the representations and warranties of Sellers, Holdings and Alltrista in Section 5.6 hereof.
-----------


"Closing Working Capital" means an amount equal to Working Capital calculated by Buyer as of the Closing Date in accordance with the procedures set forth on Schedule 1.1(a).
---------------


"Confidential Information" means non-public information that is proprietary to, about or concerning the Business and/or the Assets, including information relating to customer lists, account lists, price lists, product designs, marketing plans or proposals, customer information, accounting, financing, merchandising, know how, trademarks, trade names, trade practices and trade secrets.


"Effective Time" means 11:59 P.M., Central Standard Time, on the Closing Date.


"Environmental Laws" means any applicable laws (including duties imposed by common law), rules, regulations, orders, ordinances, judgments and decrees of all governmental authorities relating to the environment, including but not limited to CERCLA, the Emergency Planning and Community Right-to-Know Act of 1986, as amended (42 U.S.C.(S) 11001 et seq.), the Hazardous Materials Transportation Act, as amended (49 U.S.C. Section 1801, et seq.), the Resource Conservation and Recovery Act, as amended (42 U.S.C. Sections 6901, et seq.), the Federal Water Pollution Control Act, as amended (33 U.S.C. Sections 1251, et seq.), the Clean Air Act, as amended (42 U.S.C. Sections 7401, et seq.), the Toxic Substances Control Act, as amended (15 U.S.C. Sections 2601, et seq.), the Clean Water Act, as amended (33 U.S.C. Sections 1251, et seq.), OSHA and similar state and local laws and any regulations issued in connection with the foregoing.


"Excluded Assets" means any assets listed on Schedule 2.2, including,
------------ without limitation, any assets or operations of Sellers located in Ft. Smith, Arkansas or any of Sellers' business directly related thereto except to the extent such assets located in Ft. Smith, Arkansas are also used in the Business.


"Excluded Records" means any tax analysis and work papers and core corporate records.


"Force Majeure" means that a party is delayed or prevented from fulfilling the terms of this Agreement by wars, acts of bio-terrorism, national emergency, floods, fires or acts of God.


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"Hazardous Substances" means any substance designated as a hazardous substance, hazardous material or hazardous waste by any Environmental Law, including, but not necessarily limited to, solvents, pollutants, chemicals, flammables, contaminants, gasoline, petroleum products, crude oil, explosives, radioactive materials, hazardous materials or toxic materials, substances, or wastes, or polychlorinated biphenyls.


"Initial Working Capital" means an amount equal to Working Capital calculated as of September 30, 2001 as set forth on Schedule 1.1(a).
--------------


"Intellectual Property" means the intellectual property rights related to the Business, including: trademarks, service marks, brand names, certification marks, trade dress, assumed names, trade names and other indications of origin (both registered and unregistered), the goodwill associated with the foregoing and registrations in any jurisdiction of, and applications in any jurisdiction to register, the foregoing, including any extension, modification or renewal of any such registration or application; inventions, discoveries and ideas, whether patentable or not in any jurisdiction; patents, applications for patents (including, without limitation, divisions, continuations, continuations in-part and renewal applications), and any renewals, extensions or reissues thereof, in any jurisdiction; non-public information, trade secrets and confidential information and rights in any jurisdiction to limit the use or disclosure thereof by any Person; writings and other works, whether copyrightable or not in any jurisdiction; registrations or applications for registration of copyrights in any jurisdiction, and any renewals or extensions thereof; any similar intellectual property or proprietary rights, manufacturing know-how and technology, proprietary processes, methodology and methods of operation, floor designs, laboratory notes and books, discrete disclosures, technical data, product information, distribution methods, supplier and customer lists, manufacturing techniques and laboratory results, computer programs, catalyst and catalytic know-how and technology, distribution know-how and methods; and any claims or causes of action available for the benefit of Sellers, Holdings or Alltrista arising out of or related to any infringement or misappropriation of any of the foregoing.


"Inventory" means all inventory, work in progress, raw materials, finished products, supplies, packaging and shipping containers and materials of Sellers (on-site, off-site and consigned).


(a) "Knowledge" means the actual knowledge of Martin E. Franklin, Ian Ashken, Angela K. Knowlton, Kyle DeJaeger, Jim Mastrangelo or Bob Shimmel, agents of Sellers, Holdings and Alltrista.


"OSHA" means the Occupational Safety and Health Act, 29 U.S.C.ss.651 et seq., as amended.


"Permitted Encumbrances" means any encumbrance set forth on Schedule
-------- 1.1(b) that is not disapproved pursuant to Section 7.8(c). - ------ --------------


"Permitted Liens" means the liens set forth on Schedule 1.1(c), liens
--------------- for taxes or governmental assessments, charges or claims the payment of which is not yet due, statutory liens of landlords and liens of carriers, warehousemen, mechanics, materialmen and other similar persons and other liens imposed by applicable law incurred in the ordinary course of business for


3


sums not yet delinquent or immaterial in amount and being contested in good faith, and liens constituting or securing executory obligations under any lease assumed by Buyer. Permitted Liens shall also include Permitted Encumbrances.


"Person" means any individual, corporation, partnership, joint venture, association, limited liability company, joint stock company, trust, or unincorporated association, or any governmental agency, department, commission, board, bureau or instrumentality thereof.


"Post-Closing Tax Period" means any tax period (or portion thereof) ending after the Closing Date.


"Pre-Closing Tax Period" means any tax period (or portion thereof) ending on or before the close of business on the Closing Date.


"Real Property" means the real property owned or leased by Sellers, Holdings and/or Alltrista and related to the Business which is located at the addresses set forth on Schedule 1.1(d) hereto.
---------------


"Release" means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaking, dumping, or disposing into the environment any Hazardous Substance.


"Shared Savings Obligations" means all payments remaining to be made by Sellers, Holdings or Alltrista at the Closing Date under (a) four (4) certain energy services agreements with Wisconsin Power and Light Company dated November 13, 1996, November 13, 1996, December 10, 1997 and December 20, 1997 and (b) a performance contract with Alliant Energy-Interstate Power dated December 21, 1999 unless any such payments or obligations are accrued on the September 30 Balance Sheet.


"Taxes" means all federal, state, local, or foreign taxes (including excise taxes, occupancy taxes, employment taxes, unemployment taxes, ad valorem taxes, custom duties, transfer taxes, and fees), levies, imposts, fees, impositions, assessments, or other governmental charges of any nature imposed upon a Person including all taxes or governmental charges imposed upon any of the personal properties, real properties, tangible or intangible assets, income, receipts, payrolls, transactions, stock transfers, capital stock, net worth or franchises of a Person (including all sales, use, withholding or other taxes which a Person is required to collect and/or pay over to any government), and all related additions to tax, penalties or interest thereon.


"Tax Returns" means any return, report, information return, or other document (including any related or supporting information) filed or required to be filed with any governmental agency, department, commission, board, bureau, or instrumentality in connection with the determination, assessment, collection, or administration of any Taxes.


"Working Capital" means the current assets, as defined by GAAP, that are among the Assets of the Business, less the current liabilities, as defined by GAAP, that are among the Assumed Liabilities, calculated in accordance with GAAP, consistent with past practice and in the ordinary course of business, which is the same basis for calculation of the Initial Working Capital set forth on Schedule 1.1(a).
---------------


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Section 1.2 Index of Other Defined Terms. In addition to terms defined
---------------------------- above, the following terms shall have the respective meanings given to them in the Sections set forth below:


Defined Term Section
------------ -------


Alltrista Preamble
Agreement Preamble
Assets 2.1
Assumed Liabilities 4
Basket 10.3(a)
Benefit Plans 5.21(b)
Bulk Sales Law 7.3
Business Recitals, 1.1
Business Employees 5.20(a)
Buyer Preamble
Claims 10.1
Closing 2.6
Closing Date 2.6
COBRA 5.21(d)
Contracts 5.14
Code 3.2
Customers 5.18
Disapproved Matters 7.8(c)
Disclose or Disclosure 7.11(a)
Disclosure Schedule 5.1
DOL 5.22(e)
Drop Dead Date 11.1(e)
ERISA 5.21(a)
Excluded Assets 2.2
Exception Documents 7.8(b)
Financial Informa ...