Exhibit 2.2
EXECUTION COPY
ASSET PURCHASE AGREEMENT
by and among
R-VISION HOLDINGS LLC,
as Buyer
MONACO COACH CORPORATION,
as Parent
A.J.P. R.V., INC.,
as Seller
and
WILLIAM L. WARRICK,
as Sellers Representative
Dated as of November 18, 2005
TABLE OF CONTENTS
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Payment of Purchase Price; Instruments of Conveyance and Transfer |
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ARTICLE XI AMENDMENT TO PURCHASE AGREEMENT; SELLERS REPRESENTATIVE AND MISCELLANEOUS |
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ASSET PURCHASE AGREEMENT
This Asset Purchase Agreement is entered into as of November 18, 2005 (this Agreement), by and among A.J.P. R.V., Inc., an Indiana corporation (Seller), Monaco Coach Corporation, a Delaware corporation (Parent), R-Vision Holdings LLC, a Delaware limited liability company and wholly-owned subsidiary of Parent (Buyer) and William L. Warrick, as representative (the Sellers Representative) of: (a) William L. Warrick, Arlen J. Paul, Dennis Bailey, William Devos, Ruth A. Hollingsworth, Shannon E. Warrick, Bradford J. Warrick, William Lewis Warrick, Jodie D. Warrick, Helen L. Krizman, Warrick LP, William L. Warrick as Trustee of the William Warrick 1998 Irrevocable Trust for the Benefit of Shannon Elizabeth Warrick, William L. Warrick as Trustee of the William Warrick 1998 Irrevocable Trust for the Benefit of William Lewis Warrick, William L. Warrick as Trustee of the William Warrick 1998 Irrevocable Trust for the Benefit of Bradford James Warrick, and William L. Warrick as Trustee of the William Warrick 1998 Irrevocable Trust for the Benefit of Jodie Dawn Warrick (collectively, the SUPA Sellers); and (b) Seller, R-Vision, Inc., an Indiana corporation (R-Vision), R-Vision Motorized LLC, an Indiana limited liability company (R-Vision Motorized), Roadmaster LLC, an Indiana limited liability company (Roadmaster) and Bison Manufacturing, LLC, an Indiana limited liability company (Bison) (Seller, R-Vision, R-Vision Motorized, Roadmaster and Bison are collectively referred to as the R-Vision Group). Capitalized terms used but not otherwise defined herein, shall have the meanings given to them in the Purchase Agreement (as defined below).
RECITALS
A. The R-Vision Group, the SUPA Sellers, Parent, Buyer and the Sellers Representative, entered into that certain Stock and Unit Purchase Agreement dated as of November 9, 2005 (the Purchase Agreement).
B. In connection with the Purchase Agreement, Seller, Parent, Buyer and the Sellers Representative entered into an addendum to the Purchase Agreement, pursuant to which Buyer was granted an option to purchase the assets of Seller instead of all of the outstanding stock thereof (the Option), and Buyer exercised the Option on November 16, 2005.
C. Section 16.3 of the Purchase Agreement provides that it may be amended with the written consent of Purchaser and the Sellers Representative and the parties hereto desire to amend the Purchase Agreement in connection with the Option as set forth herein.
D. Seller desires to sell, transfer and assign to Buyer, or Buyers designees, and Buyer desires to purchase from Seller, the Purchased Assets (as defined below), and Buyer is willing to assume, the Assumed Liabilities (as defined below), in each case as more fully described and upon the terms and subject to the conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
As used in this Agreement, the following terms have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined).
1.1 Agreement has the meaning set forth in the preamble.
1.2 AJP Losses has the meaning set forth in Section 9.1.
1.3 Allocation has the meaning set forth in Section 7.2.
1.4 Ancillary Agreements means the Assignment and Assumption Agreement, the Bill of Sale, the Deeds and the Lease Assignments.
1.5 Assignment and Assumption Agreement means an assignment and assumption agreement in substantially the form of Exhibit A hereto.
1.6 Assumed Liabilities has the meaning set forth in Section 2.3.
1.7 Bill of Sale means the bill of sale in substantially the form of Exhibit B hereto.
1.8 Bison has the meaning set forth in the Recitals.
1.9 Books and Records means the business records, financial books and records, sales order files, purchase order files, engineering order files, warranty and repair files, supplier lists, customer lists, dealer, representative and distributor lists, tax records and related work papers (other than tax records and related work papers relating to income taxes), budgets, correspondence, marketing material, studies, surveys, analyses, strategies, plans, forms, designs, diagrams, drawings, specifications, technical data, production and quality control records and formulations, relating to the Business, the Owned Real Estate or Seller (other than with respect to the Retained Real Property).
1.10 Business means (a) the employees of Seller, if any, and (b) the business, services and operations of Seller, as conducted as of the date of the Purchase Agreement and as contemplated to be conducted, other than with respect to the Retained Real Property.
1.11 Business Governmental Authorizations has the meaning set forth in Section 2.1(d).
1.12 Business Material Adverse Effect means any event, circumstance, change or effect that, individually or in the aggregate with all other events, circumstances, changes or effects, is or could reasonably be expected to be materially adverse to: (a) the business, assets, condition
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(financial or otherwise), operations, results of operations, prospects or workforce of Seller (other than with respect to the Retained Real Property); (b) the Business or the ability of Buyer to operate the Business after the Closing Date as contemplated pursuant to the Transactions; or (c) the ability of Seller to perform its obligations under this Agreement and the Ancillary Agreements or to consummate the Transactions.
1.13 Buyer has the meaning set forth in the preamble.
1.14 Closing has the meaning set forth in Section 3.1.
1.15 Closing Date has the meaning set forth in Section 3.1.
1.16 Contracts means all contracts, agreements, subcontracts, indentures, notes, bonds, loans, instruments, leases, mortgages, franchises, licenses, purchase orders, sale orders, proposals, bids, understandings or commitments, by which any of the Purchased Assets or the Business may be bound or affected, or by which Seller may be bound in connection with the Purchased Assets or the Business.
1.17 Deeds means the corporate warranty deeds conveying the Owned Real Estate to Buyers designees, in form and substance reasonably acceptable to Buyer.
1.18 Environmental Claim means any notice or claim alleging or asserting Liability for investigatory costs, cleanup costs, Governmental Entity response costs, damages to natural resources or other property, personal injuries, fines, expenses or penalties arising out of, based on or resulting from (a) the presence or Release into the environment, of any Hazardous Material, or (b) circumstances forming the basis of any violation, or alleged violation, of, or any Liability under, any Environmental Law.
1.19 Excluded Assets has the meaning set forth in Section 2.2.
1.20 Governmental Authorization means any consent, approval, license, registration, security clearance, authorization, certificate or permit issued, granted, given or otherwise made available by or under the authority of any Governmental Entity or pursuant to any Law, including, where relevant, any Taxing Authority.
1.21 Governmental Entity means any court, tribunal, arbitrator or any government or quasi-governmental entity or municipality or political or other subdivision thereof, whether federal, state, city, county, local, provincial, foreign or multinational, or any agency, department, board, authority, bureau, branch, commission, official or instrumentality of any of the foregoing.
1.22 Indemnified Person means any Person claiming indemnification under Article IX.
1.23 Indemnifying Person means any Person(s) against whom a claim for indemnification is being asserted pursuant to the provisions of Article IX.
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1.24 Law means any law, statute, rule, regulation, ordinance and other pronouncement having the effect of law of the United States of America, any foreign country or any domestic or foreign state, or of any Governmental Entity.
1.25 Lease Assignments means those Bills of Sale and Assignments of Leases and Intangibles with respect to the Owned Real Estate conveying the leases and related property to Buyers designees, in form and substance reasonably acceptable to Buyer.
1.26 Liability means any direct or indirect liability, indebtedness, guaranty, claim, loss, damage, deficiency, assessment, obligation or responsibility, whether fixed or unfixed, choate or inchoate, liquidated or unliquidated, secured or unsecured, accrued, absolute, known or unknown, contingent or otherwise.
1.27 Lien means, with respect to any of the Purchased Assets, any mortgage, lien, pledge, hypothecation, charge, preference, security interest, attachment, claim, contractual restriction, including transfer restrictions, put, call, right of first refusal, easement, servitude, right of way, option, warrant, conditional sale or installment contract or encumbrance of any kind and any financing lease involving substantially the same effect.
1.28 Option has the meaning set forth in the Recitals.
1.29 Other Real Property means any Real Property formerly (but not presently) owned, leased or otherwise occupied by Seller, including as arising out of any business conducted thereon.
1.30 Owned Real Estate means the Real Property described and identified as owned by Seller on Schedule 4.8 of the Purchase Agreement under subsection 1.a (i) (iii).
1.31 Permitted Lien means (a) any Lien for Taxes not yet due or payable, (b) any statutory Lien arising in the ordinary course of business by operation of Law if a reserve shall have been made therefor on the financial statements of the R-Vision Group or (c) any Permitted Encumbrances; provided, however, that the underlying obligations of all Permitted Liens shall be Retained Liabilities for all purposes hereunder.
1.32 Person means any individual, corporation, partnership, limited liability company, firm, joint venture, association, company, trust, unincorporated organization, Governmental Entity or other entity.
1.33 Proceeding means any action, suit, claim, complaint, investigation, litigation, audit, proceeding or arbitration by or before any Person.
1.34 Property means all assets except for Real Property: (a) used in or associated with the Business, (b) located at the Owned Real Estate or (c) owned by Seller, including (i) all tangible assets, including inventory, furniture, fixtures, equipment (including motor vehicles), computer hardware, office equipment and apparatuses, tools, machinery and supplies and other tangible property of every kind (wherever located and whether or not carried on the R-Vision Groups books
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and records), together with any express or implied warranty by the manufacturers, sellers or lessors of any item or component part thereof and all maintenance records and other documents relating thereto; and (ii) all intangible property and assets and intellectual property rights.
1.35 Purchase Agreement has the meaning set forth in the Recitals.
1.36 Purchase Price has the meaning set forth in Article IV.
1.37 Purchased Assets has the meaning set forth in Section 2.1.
1.38 R-Vision has the meaning set forth in the Recitals.
1.39 R-Vision Group has the meaning set forth in the Recitals.
1.40 R-Vision Motorized has the meaning set forth in the Recitals.
1.41 Real Property means real property together with all easements, licenses, interests and all of the rights arising out of the ownership thereof or appurtenant thereto and together with all buildings, structures, facilities, fixtures and other improvements thereon.
1.42 Retained Liabilities has the meaning set forth in Section 2.4.
1.43 Retained Real Property means the office building primarily utilized by the Warrick Corporation located at 1628 Beardsley Avenue.
1.44 Roadmaster has the meaning set forth in the Recitals.
1.45 Seller has the meaning set forth in the preamble.
1.46 Sellers Representative has the meaning set forth in the preamble.
1.47 SUPA Sellers has the meaning set forth in the preamble.
1.48 Transaction Documents means (a) this Agreement, (b) the Ancillary Agreements, (c) the Purchase Agreement and (d) all other agreements, certificates and instruments to be executed or delivered by any of the parties hereto or their respective affiliates at or prior to the Closing pursuant to this Agreement or any of the Ancillary Agreements.
1.49 Transactions means the transactions contemplated by the Purchase Agreement, as amended by this Agreement, and the transactions contemplated hereby.
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2.1 Sale and Transfer of Assets. Upon the terms and subject to the conditions set forth in this Agreement, at the Closing, Seller shall sell, transfer, assign, convey and deliver to Buyer, free and clear of all Liens other than Permitted Liens, and Buyer shall purchase, acquire and accept from Seller all right, title and interest in and to the following (subject to Section 2.2, the Purchased Assets):
2.2 Excluded Assets. Notwithstanding anything to the contrary contained in Section 2.1 or elsewhere, the assets of Seller that are not Purchased Assets (collectively, the Excluded Assets) are not part of the sale and purchase contemplated hereunder and shall remain the property of Seller after the Closing. The Excluded Assets include:
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2.3 Assumed Liabilities. Subject to the terms and conditions set forth in this Agreement, at the Closing, Seller shall assign to Buyer, and Buyer shall assume and thereafter pay, perform and discharge when due, only the Liabilities of Seller arising from the Purchased Assets that accrue and relate solely to the period following the Closing; provided, however, that Buyer does not assume any Liability that arises from (i) defaults thereunder or breaches thereof prior to the Closing or (ii) events or conditions occurring prior to the Closing, which, after notice or lapse of time or both, would constitute a default or breach, in each case whether a claim for such default or breach is made prior to, on or following the Closing (the Assumed Liabilities).
2.4 Liabilities Not Assumed. Notwithstanding to the contrary contained in Section 2.3 or elsewhere, Seller and Buyer hereby expressly acknowledge and agree that the Assumed Liabilities shall not include, Seller shall not assign to Buyer pursuant to this Agreement, and Buyer shall not accept or assume or be obligated to pay, perform or otherwise discharge pursuant to this Agreement, any Liability other than the Assumed Liabilities (collectively, the Retained Liabilities). For the avoidance of doubt, the term Retained Liabilities means any and all Liabilities that do not constitute Assumed Liabilities, whether or not any such Liability is related to or used in the Business, and whether or not any such Liability has a value for accounting purposes or is carried or reflected on, or specifically referred to in, the R-Vision Groups financial statements. Seller shall remain responsible for the Retained Liabilities, which shall be paid, performed and discharged by Seller. Without limiting the foregoing, the Retained Liabilities include:
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3.1 Closing. The closing hereunder (the Closing) shall take place simultaneously with the Closing of the transactions contemplated by the Purchase Agreement (the Closing Date).
3.2 Payment of Purchase Price; Instruments of Conveyance and Transfer.
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The purchase price for the Purchased Assets (the Purchase Price) is the assumption of the Assumed Liabilities and $9,000,000 (Nine Million Dollars) in cash, less the amount of any income (including rental income) received by Seller in connection with the Owned Real Estate and with respect to any period of time following the Closing Date. The Purchase Price is subject to adjustment and set-off as provided herein. The amount of the Purchase Price that is payable in cash shall be paid by wire transfer to an account or accounts designated by Sellers Representative in writing at least one day before the Closing Date.
5.2 Business and Assets of Seller. The Owned Real Estate and the Property located thereat are the only assets (other than the Retained Real Property) owned by Seller or used in the Business. The Purchased Assets constitute all of the assets that Buyer would obtain if it purchased all of the outstanding capital stock of Seller pursuant to the Purchase Agreement.
The representations and warranties of Buyer, as applicable to the Transactions, are as set forth in the Purchase Agreement and deemed made herein as of the date of the Purchase Agreement. For the avoidance of doubt, any reference to this Agreement contained in Article 5 of the Purchase Agreement shall be deemed to include and refer to this Agreement with respect to the Transactions.
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8.1 Conditions Precedent to the Obligations of Buyer. The obligations of Buyer to purchase and pay for the Purchased Assets and assume the Assumed Liabilities are subject to the fulfillment on or prior to the Closing of the following conditions, any one or more of which may be waived by Buyer:
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8.2 Conditions Precedent to the Obligations of Seller. The obligations of Seller to sell and deliver the Purchased Assets to Buyer are subject to the fulfillment on or prior to the Closing of the following conditions, any one or more of which may be waived by Seller:
9.1 Indemnification by Seller. Seller and the SUPA Sellers, jointly and severally (each an Indemnifying Party), shall indemnify and hold Buyer and each of its affiliates and its and their
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respective shareholders, subsidiaries, affiliates, officers and directors, employees and agents and their respective successors and assigns (each an Indemnified Party) harmless from, against, for and in respect of (subject to this Article IX) any and all Losses suffered, sustained, incurred or required to be paid by any Indemnified Party arising out of or relating to (a) the Excluded Assets, (b) the Other Real Property (collectively, (a) and (b), AJP Losses), or (c) the untruth, inaccuracy or breach of any representation, warranty, agreement or covenant of the R-Vision Group or the SUPA Sellers contained in this Agreement. AJP Losses shall not be subject to the Basket or Cap; provided, however, that (a) Buyer may retain the amount of such Losses from the Environmental Holdback, subject to the applicable provisions contained in the Purchase Agreement, (b) an Indemnified Party must first seek recovery from Seller for AJP Losses (if not otherwise retained from the Environmental Holdback) and (c) an Indemnified Party may only seek recovery for AJP Losses from the SUPA Sellers in the event that Buyer determines in its reasonable good faith judgment, after consultation with counsel, that it is unlikely to recover the amount of such Losses in a reasonably timely manner from Seller.
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IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have duly executed this Agreement on the date first above written.
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A.J.P. R.V., INC., as Seller |
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By: |
/s/ ARLEN J. PAUL |
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Name: Arlen J. Paul |
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Title: President |
Signature Page to Asset Purchase Agreement
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have duly executed this Agreement on the date first above written.
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/s/ WILLIAM L. WARRICK |
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William L. Warrick, as Sellers Representative |
Signature Page to Asset Purchase Agreement
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have duly executed this Agreement on the date first above written.
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R-VISION HOLDINGS LLC, as Buyer |
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By: |
/s/ JOHN W. NEPUTE |
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Name: John W. Nepute |
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Title: President |
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MONACO COACH CORPORATION, as Parent |
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By: |
/s/ KAY L. TOOLSON |
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Name: Kay L. Toolson |
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Title: Chief Executive Officer |
Signature Page to Asset Purchase Agreement
LIST OF EXHIBITS*
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Exhibit A |
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Form of Assignment and Assumption Agreement |
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Exhibit B |
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Form of Bill of Sale |
LIST OF SCHEDULES*
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Schedule 2.2(a) |
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Excluded Assets |
* Omitted pursuant to Item 601 of Regulation S-K. Monaco Coach Corporation agrees to supplementally furnish a copy of any omitted schedule or exhibit to the Securities and Exchange Commission upon request.