-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UzxRkEWc7pMhU4W3W6m4psVGKdbuthIPHhlOtCJpx5Krj0zuphSgdjKm1wGhjdFf DIygH4XX6lqqopEFlgrlOA== 0000950164-04-000049.txt : 20040416 0000950164-04-000049.hdr.sgml : 20040416 20040416162103 ACCESSION NUMBER: 0000950164-04-000049 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040416 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040416 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COX TECHNOLOGIES INC CENTRAL INDEX KEY: 0000065031 STANDARD INDUSTRIAL CLASSIFICATION: MEASURING & CONTROLLING DEVICES, NEC [3829] IRS NUMBER: 860220617 STATE OF INCORPORATION: NC FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-08006 FILM NUMBER: 04738533 BUSINESS ADDRESS: STREET 1: 69 MCADENVILLE ROAD STREET 2: . CITY: BELMONT STATE: NC ZIP: 28012 BUSINESS PHONE: 7048258146 MAIL ADDRESS: STREET 1: 69 MCADENVILLE ROAD STREET 2: . CITY: BELMONT STATE: NC ZIP: 28012 FORMER COMPANY: FORMER CONFORMED NAME: ENERGY RESERVE INC DATE OF NAME CHANGE: 19950907 8-K 1 cox40339-8k.txt FORM 8-K - -------------------------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 April 16, 2004 Date of Report (date of earliest event reported) -------- Cox Technologies, Inc. (Exact name of Registrant as specified in its charter) North Carolina 0-08006 86-0220617 (State or other jurisdiction (Commission File Number) (I.R.S. Employer of Incorporation or organization) Identification No.) 69 Mcadenville Road Belmont, North Carolina 28012 (Address, including zip code, of principal executive offices) (704) 825-8146 (Registrant's telephone number, including area code) - -------------------------------------------------------------------------------- Item 2. Acquisition or Disposition of Assets. Effective April 16, 2004, Cox Technologies, Inc. (the "Company"), a North Carolina corporation and Sensitech Inc. ("Sensitech"), a Delaware corporation, completed Sensitech's acquisition of substantially all of the assets of the Company (the "Asset Sale") pursuant to the terms of an Asset Purchase Agreement (the "Asset Purchase Agreement"), dated December 12, 2003, as amended January 29, 2004 among the Company, Sensitech and Cox Acquisition Corp., a wholly-owned subsidiary of Sensitech formed for purposes of consummating the Asset Sale. The aggregate consideration received by the Company at the closing was comprised of $10,595,589 in cash. In addition, Sensitech assumed $233,569 of the Company's payables and assumed other liabilities. At closing, Sensitech retained a $250,000 holdback amount in the Asset Sale. The final consideration is subject to adjustment based upon finalization of the Company's balance sheet as of the closing date. Under the terms of the Asset Purchase Agreement, the Company retained certain assets and liabilities in connection with the transaction, including cash, certain production equipment, office equipment, machines, tools, fixtures, furniture and certain retained liabilities. Following the closing of the Asset Sale, certain of the Company's employees, including David Caskey, President of the Cox Recorder Division, have terminated their employment with the Company and become employees of Sensitech. In connection with the Asset Sale, the Company and Sensitech entered into a Manufacturing Services Agreement under which the Company will continue to manufacture products under the Company's current specifications for a period from April 16, 2004 through June 1, 2004, unless Sensitech terminates the Manufacturing Services Agreement prior to June 1, 2004 or unless the Company agrees to extend the term of the Manufacturing Services Agreement. The parties completed the Asset Sale following a special meeting of the Company's shareholders on April 15, 2004, whereby the holders of a majority of the Company's common stock approved the Asset Sale and the subsequent liquidation and dissolution of the Company pursuant to the Plan of Complete Liquidation and Dissolution (the "Plan"). The Plan provides for the orderly liquidation of the Company's remaining assets following the closing of the Asset Sale, the winding-up of the Company's business affairs, distribution of its assets and the dissolution of the Company. - -------------------------------------------------------------------------------- Item 7. Financial Statements and Exhibits. (b) Pro Forma Financial Information. The pro forma financial information will be furnished on or before June 29, 2004, upon the finalization of the balance sheet as of the closing of the Asset Sale to Sensitech. (c) Exhibits. 2.1 Asset Purchase Agreement dated December 12, 2003, as amended January 29, 2004 Among Sensitech Inc., Cox Acquisition Corp. and Cox Technologies, Inc. filed as Annex C to the Definitive Proxy filed with the SEC on March 10, 2004 and incorporated herein by reference. 2.2 Plan of Complete Liquidation and Dissolution of Cox Technologies, Inc. filed as Annex D to the Definitive Proxy filed with the SEC on March 10, 2004 and incorporated herein by reference. 5.1 Manufacturing Services Agreement by and between Cox Technologies, Inc. and Sensitech Inc. dated April 16, 2004. 99.1 Press release of Cox Technologies, Inc., dated April 16, 2004. This Current Report on Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended. The forward-looking statements contained herein involve risks and uncertainties, including those relating to the liquidation, dissolution and wind-up of the Company. For more information about the Company and risks arising when investing in or holding shares of the Company, investors are directed to the Company's most recent filings with the Securities and Exchange Commission. - -------------------------------------------------------------------------------- SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. COX TECHNOLOGIES, INC. a North Carolina corporation Dated: April 16, 2004 By: /s/ Brian D. Fletcher ---------------------------- Co-Chief Executive Officer EX-5 3 cox40339ex5-1.txt EXHIBIT 5.1 Exhibit 5.1 MANUFACTURING SERVICES AGREEMENT THIS MANUFACTURING SERVICES AGREEMENT ("Agreement") is made and entered into as of this 16 day of April, 2004 by and between Cox Technologies, Inc., a North Carolina Corporation ("Cox") and Sensitech Inc, a Delaware Corporation ("Sensitech") in connection with that certain Asset Purchase Agreement, dated as of December 12, 2003, by and between Cox, Sensitech and Cox Acquisition Corp. (the "Buyer"), pursuant to which Sensitech and the Buyer are purchasing the Purchased Products and the Purchased Inventory (the "Transaction"). Cox and Sensitech may be referred to herein individually as a "party" and collectively as the "parties." Capitalized terms not defined herein shall have the meanings set forth in the Asset Purchase Agreement. NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: STRUCTURE OF RELATIONSHIP. Services Provided. Subject to the terms and conditions of this Agreement, Cox will provide manufacturing per existing specifications for Purchased Products, testing, Materials (as hereinafter defined) procurement, reconditioning, programming, storage and packaging services to Sensitech in connection with the Purchased Inventory (the "Services"), and in accordance with one or more Orders (as defined in Section 2.1 below). The Services will be performed in substantially the same manner, including quality and volume, as Cox performed such services prior to the Effective Date. Storage. Unless otherwise requested by Sensitech, Cox shall store the Purchased Inventory and Materials (as hereinafter defined), in suitable condition at Cox's facilities, during the term of this Agreement (but no later than June 1, 2004), at no cost to Sensitech. For purposes of this Agreement, "Materials" mean raw materials and parts for a Purchased Product. ORDER, DELIVERY AND ACCEPTANCE. Orders. Sensitech may order Purchased Products from time to time by submitting to Cox an order indicating the quantity and type of Purchased Products Sensitech desires Cox to manufacture ("Order"). Cox will use its best efforts to fulfill each Order placed by Sensitech during the term of this Agreement, including without limitation: Having Kurt Reid personally serve in an oversight role throughout the term of this Agreement, and enlisting the support and expertise of James Cox and David Caskey (with Sensitech's permission after the Closing) as necessary; Bringing to Sensitech's attention immediately any occurrences, beginning with the date of the Asset Purchase Agreement, of employee resignation, critical Materials shortages or other changes that could impact Cox's ability to fulfill Sensitech Orders; Offering all production employees of Cox a minimum of two weeks incentive pay to continue their employment with Cox until their respective termination dates; Offering additional cash or stock incentives as necessary to retain Cox's current Vice President of Manufacturing and manufacturing supervisors; Aggressively hiring for lost employees, including recruiting former Cox employees and, if necessary, Cox's former manufacturing supervisor; Paying overtime to fulfill Sensitech orders; and Weekly reporting of inventory and order status to Sensitech's Vice President of Operations and Chief Operating Officer. Orderly Production. Sensitech agrees to place its last order no later than 90 days after the Closing Date (unless an extension is mutually agreeable by both sides) so that Cox may plan an orderly phase-out of its operations. Sensitech agrees to use its best efforts to place Orders with sufficient quantities and lead times to permit a relatively even production (measured by units) of Purchased Products so that Cox may plan its production runs and needs for production workers accordingly and consistent with its past practices; provided, that Cox shall not be obligated to fulfill Orders for newly manufactured graphic recorder units in excess of 6,000 units per calendar week. In the event that there are days in which there are no unfilled Orders from Sensitech (an "Order Gap") for graphic recorders, Sensitech will pay Cox $3,000 (an "Order Gap Fee") for each business day in which there was an Order Gap. However, Cox must advise Sensitech three days in advance of when Cox estimates that Cox will have all orders filled. No Order Gap Fee will be due for any day that Cox did not provide such three-day notice. Fulfillment. Upon its acceptance of an Order, Cox will manufacture, test, label and package the Purchased Products specified therein in accordance with the applicable Order and the past practices of Cox and ship the Order according to Sensitech's instructions. Sensitech Responsibilities. Sensitech will take delivery of and pay for all Purchased Products, including shipping, set forth in any Order that has been accepted by Cox, upon acceptance of such Purchased Products by Sensitech, or 15 days after shipment, if later. Delivery. Delivery of Purchased Products will be F.O.B. Cox's facilities in Belmont, North Carolina, Upland, California or other domestic locations where Purchased Products are located, no later than the delivery times set forth in the applicable Order; provided, that at the option of Sensitech, delivery will be made directly to the third parties indicated in the applicable Order. Cox will pack finished Purchased Products for shipment in Cox's standard shipping cartons, or such other cartons requested by Sensitech, marked for shipment as specified in the Order. Cox will comply with Sensitech's reasonable instructions with respect to the selection of carriers and procurement of insurance for the Purchased Products in transit and will use commercially reasonable shipment procedures. For the term of this Agreement, Cox will continue its current insurance coverages with respect to loss of any production equipment necessary to perform under this Agreement, naming Sensitech as an additional loss payee. Acceptance Testing. Products will be subject to interim and final acceptance testing following procedures no less stringent than are now carried out by Cox. Failure of Cox to perform hereunder. If Cox cannot or does not agree to meet or continue to perform the manufacturing requirements reasonably required under an Order to produce a specific Purchased Product, and Cox does not cure such breach within ten (10) days from Sensitech's written notice, then Sensitech shall have the right to procure manufacturing services from a third party for the Purchased Products in question. If such breach is not cured within the cure period, Sensitech shall further have the right to take possession of any or all of the Purchased Products, Purchased Inventory or Materials then in the possession of Cox. All costs associated with such taking of possession, including without limitation costs of shipping such Purchased Products, Purchased Inventory or Materials to another location, shall be borne by Cox during the first 30 days from the Closing Date, and by Sensitech thereafter, provided that all other material terms of this Agreement are complied with. If Sensitech procures manufacturing from a third party pursuant to this Section 2.7, to the best of Cox's ability given the knowledge and experience of the existing Cox employees at that time, Cox shall (i) provide Sensitech and such third party with all necessary information and reasonable cooperation in order for the third party to be able to properly manufacture and supply the relevant Purchased Product; and (ii) if Cox has failed to accept or to complete its manufacturing services with respect to an Order placed within the first 30 days following the Closing Date, reimburse Sensitech for any incremental costs of such manufacture and supply of the relevant Purchased Product by the third party. Any required reimbursement pursuant to this clause (ii) or payment pursuant to Subsection 2.7(a) shall not exceed $25,000 and shall, to the extent that there is any remaining amount otherwise payable pursuant to Section 2.03(b) of the Asset Purchase Agreement, be offset against such remaining amount; otherwise, such required reimbursement shall be remitted to Sensitech by Cox within thirty (30) days from the date of notice from Sensitech regarding such incremental costs. ORDER MANAGEMENT. For each Order, each party will designate in writing one (1) qualified person on its staff to serve as its manager and liaison to represent it in connection with the activities under that Order. MATERIALS MANAGEMENT. Upon receipt of an Order, Cox will use Purchased Inventory and Materials currently in Cox's possession to complete the Order. If such Purchased Inventory and Materials are insufficient, Cox will, with Sensitech's prior written consent, purchase additional Materials for Sensitech's account in accordance with Cox's standard purchasing practices in effect before the acquisition, of the same grade and quality as Cox had been procuring prior to the Transaction, and in accordance with such other procurement guidelines and customer requirements as may be set forth in the applicable Order. Cox shall use reasonable efforts to find competitive prices for all Materials and will cooperate with Sensitech in the event that Sensitech desires Cox to use Sensitech's preferred sources. Except as otherwise provided in this Agreement, Sensitech bears the cost and risk of loss in carrying inventory of Materials. Title to Materials in inventory will remain with Sensitech. Cox shall furnish to Sensitech monthly written reports of usage and month-end levels of Purchased Products, Purchased Inventory and Materials in the possession of Cox. Sensitech shall be permitted at reasonable times during the term of this Agreement to take physical inventories of Purchased Products, Purchased Inventory and Materials then in the possession of Cox. REPAIRS; REFURBISHMENT. Unless otherwise specified in the applicable Order, Cox will, during the term of this Agreement, make its standard factory repair or product refurbishment services available to Sensitech with respect to Purchased Products manufactured by Cox, at Cox's then-current fees and terms, a copy of which will be available to Sensitech upon request. Sensitech will bear round-trip shipping expense and risk of loss during transit of all Purchased Products delivered to Cox for repair or refurbishment. Notwithstanding the foregoing, Cox shall be responsible for all costs needed for repairs covered by warranty hereunder subject to and in accordance with Section 9.2. PRICE AND PAYMENT. Pricing. For all Purchased Products manufactured by Cox during the term of this Agreement, the parties agree to the pricing set forth in Exhibit A. Payment Terms. The purchase price for Purchased Products will be invoiced upon shipment and is due fifteen (15) days thereafter. All payments will be made in U.S. dollars. Sensitech will be responsible for paying any applicable sales tax, excise tax or value-added tax on the purchase of Purchased Products or the provision of Services hereunder except as such taxes relate to the income of Cox. Expenses. Except as expressly provided in this Agreement or in an Order, each party will bear its own costs and expenses in performing its obligations or exercising its rights hereunder. WARRANTIES. Product Warranty. Cox warrants solely to and for the benefit of Sensitech that it will perform the Services in a manner consistent with its past practices and to ensure that each finished Purchased Product will be free from defects in materials and workmanship and will be built in accordance with its applicable Order. Sensitech's exclusive remedy for breach of this warranty is to notify Cox of the breach in writing within ninety (90 days) after delivery to Sensitech, whereupon Cox, as its sole obligation and liability, will either repair or replace the nonconforming Purchased Product or, at Sensitech's election for Purchased Products shipped within 30 days following the Closing Date, or Cox's election for Purchased Products shipped after 30 days following the Closing Date, refund to Sensitech the price paid for the nonconforming Purchased Product. This warranty does not apply to Purchased Products that have been subject to misuse, unauthorized modification, neglect, improper testing or installation, attempts to repair or accident, flood, fire, radiation or other hazard. DISCLAIMER. EXCEPT FOR THE WARRANTY PROVIDED IN SECTION 7.1, THE PURCHASED PRODUCTS AND SERVICES ARE PROVIDED "AS-IS" WITHOUT WARRANTY OF ANY KIND AND, TO THE MAXIMUM EXTENT ALLOWED BY APPLICABLE LAW, COX DISCLAIMS ALL OTHER WARRANTIES OF ANY KIND, INCLUDING, BUT NOT LIMITED TO, WARRANTIES ARISING UNDER STATUTE, IMPLIED WARRANTIES OF MERCHANTABILITY, TITLE, NONINFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE OR ANY IMPLIED WARRANTIES ARISING FROM USAGE OF TRADE, COURSE OF DEALING OR COURSE OF PERFORMANCE. LIMITATION OF LIABILITY. IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS OR LOSS OF GOODWILL), WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), OR ANY OTHER LEGAL THEORY, ARISING OUT OF OR RELATED TO THIS AGREEMENT. COX'S TOTAL LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), OR ANY OTHER LEGAL THEORY, WILL NOT EXCEED THE PRICE PAID BY SENSITECH FOR THE PURCHASED PRODUCTS WITH RESPECT TO WHICH LIABILITY HAS ARISEN. SENSITECH'S TOTAL LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), OR ANY OTHER LEGAL THEORY, WILL NOT EXCEED THE AMOUNTS EXPRESSLY PAYABLE BY SENSITECH UNDER THIS AGREEMENT OR THE APPLICABLE ORDER FOR THE PURCHASED PRODUCTS WITH RESPECT TO WHICH LIABILITY HAS ARISEN. THE EXISTENCE OF MORE THAN ONE CLAIM WILL NOT ENLARGE THIS LIMIT. THE LIMITATIONS OF LIABILITY AND DAMAGES IN THIS SECTION 8 WILL NOT APPLY TO CLAIMS BY EITHER PARTY FOR MISAPPROPRIATION BY THE OTHER OF ITS CONFIDENTIAL INFORMATION OR INFRINGEMENT BY THE OTHER OF ITS INTELLECTUAL PROPERTY. TERM AND TERMINATION. Term. This Agreement will commence upon the Effective Time and will remain in effect through and including June 1, 2004 unless earlier terminated by Sensitech pursuant to this Section 9.1, or unless such term is changed by mutual agreement. At anytime Sensitech may terminate this agreement prior to June 1, 2004 by providing Cox a notice (the "Termination Notice") of at least three business days (the "Notice Period") of such termination. Cox will not be required to provide the Services after the later of the end of the Notice Period, or when Cox has filled all Orders placed prior to the Termination Notice. Relationship of Parties. The parties hereto expressly understand and agree the parties are acting hereunder as independent contractors and neither party will be partner, joint venturer, fiduciary or agent of the other. Under no circumstances will the personnel of one party be deemed employees of the other party for any purpose. Neither party has the power or authority as agent, employee or in any other capacity to represent, act for, bind or otherwise create or assume any obligation on behalf of the other party for any purpose whatsoever. There are no third party beneficiaries under this Agreement. Assignment. Neither party hereto may assign this Agreement without the prior written consent of the other party, except that Sensitech may assign this Agreement to the Buyer. Export Control. Regardless of any disclosure made to Cox of an ultimate destination of the Purchased Products, Sensitech acknowledges that all such materials are being released or transferred to Sensitech in or from the United States and may be subject to U.S. export control laws and regulations. If Sensitech requests Cox to ship Purchased Products outside of the United States, Sensitech will, upon request, provide Cox with documentation and certification establishing that all required permits and licenses have been obtained and that the proposed shipment is fully compliant with all applicable laws and regulations. [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to enter into this Agreement as of the Effective Time. COX: COX TECHNOLOGIES, INC. BY: /s/ Kurt C. Reid --------------------------------- Kurt C. Reid Co-Chief Executive Officer BY: /s/ Brian D. Fletcher --------------------------------- Brian D. Fletcher Co-Chief Executive Officer SENSITECH: SENSITECH INC. BY: /s/ Eric B. Schultz --------------------------------- Eric B. Schultz Chairman of the Board and Chief Executive Officer EX-99 4 cox40339ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 [SENSITECH LOGO GRAPHIC OMITTED] [COX TECHNOLOGIES LOGO GRAPHIC OMITTED] For more information, contact: Becky DeWitt, 978-720-2508 bdewitt@sensitech.com FOR IMMEDIATE RELEASE Sensitech Inc. acquires Cox Technologies Inc. Beverly, Massachusetts, April 16, 2004 - Today Sensitech Inc., headquartered in Beverly, Massachusetts, announced the acquisition of substantially all of the assets of Cox Technologies Inc. in Belmont, North Carolina. Cox Technologies provides temperature and humidity monitoring products and services worldwide. Cox has agreed to continue manufacturing products for Sensitech during a transition period to end no later than June 1, 2004, although the Cox products will be available beyond the June timeframe. Dr. Jim Cox, Founder, Chairman of the Board, and Chief Technology Officer, will serve on a consulting basis for two years. Other key personnel from Cox will work for Sensitech as well. "The cold chain monitoring market is expanding rapidly," states Eric Schultz, Chairman and CEO of Sensitech. "New technologies and new players require us to continuously invest in R & D and to maintain a competitive edge. The acquisition of Cox enables Sensitech to expand into key industrial markets as well as to broaden our current customer base. The consolidation of both organizations' expertise solidifies a stronger presence in this marketplace." Sensitech offers best-in-class temperature monitoring products and services with cutting edge information management and sensor technologies. The company is investing in RF and RFID and will bring complete cold chain management solutions to all Cox customers. This is the second acquisition Sensitech has made in the cold chain management space, its first being Ryan Instruments in 2000. "This purchase is beneficial to our customers," states Kurt Reid, Co-CEO of Cox Technologies, "who will receive the same level of high service and quality products with additional knowledge and expertise in the management of their cold chain. We expect the transition for our customers to be seamless." "We will work closely and diligently with every Cox customer to ensure their current and future needs are met," says Steve DiRubio, Vice President and General Manager of Sensitech. "We will introduce a new level of analysis and insight to interpret information and to develop and implement improvement strategies for their cold chain." About Sensitech Sensitech is the world's leading provider of cold-chain information and analysis that enables its customers to protect the freshness, viability and integrity of their temperature-sensitive products. Sensitech is a privately held company financed by experienced venture firms including Ascent Venture Management, Citizens Capital, GE Equity, Landmark Partners, and Prism Venture Partners. Sensitech has offices in Beverly, Massachusetts, Redmond, Washington, and Fresno, California, with service and distribution offices around the world. For more information call 800-843-8367 or visit us at www.sensitech.com. -----END PRIVACY-ENHANCED MESSAGE-----