Material Contracts. (a) Except for this Agreement, Section 4.17(a) of the Company Disclosure Letter contains a complete and correct list, as of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”): (i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area; (ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract; (iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000; (iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually; (v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000; (vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes; (vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time); (viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries; (ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum; (x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets; (xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time); (xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole; (xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries; (xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder; (xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member; (xvi) each Contract with a Material Supplier; and (xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC). (b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 3 contracts
Sources: Merger Agreement (Dick's Sporting Goods, Inc.), Agreement and Plan of Merger (Foot Locker, Inc.), Merger Agreement (Dick's Sporting Goods, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.17(a) of the Company Disclosure Letter contains a complete lists all contracts, agreements, commitments, arrangements, leases (including with respect to personal property) and correct list, as of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or other instruments to which the Company or any Company Subsidiary of its Subsidiaries is a party or to by which the Company, any of its Subsidiaries or any of their respective properties or assets is subject, bound (other than any Company Benefit Plans (all Contracts Plans) as of the type described in date of this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):Agreement that:
(i) each Contract are or would be required to be filed by the Company as a “material contract” pursuant to Item 601(b)(10) of Regulation S-K under the Securities Act or disclosed by the Company on a Current Report on Form 8-K;
(other than Company Leasesii) contain non-compete covenants that limits restrict in any material respect the freedom operations of the Company, any Company Subsidiary or any of their respective affiliates its Subsidiaries (including Parent and its affiliates after or which, immediately following the Effective Time) to compete or engage in any line consummation of business or geographic region or with any Person or sellthe Merger, supply or distribute any product or service or that otherwise has the effect of restricting would restrict in any material respect the Company, operations of the Company Subsidiaries Surviving Corporation or affiliates (including Parent and any of its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar ContractAffiliates);
(iii) with respect to a joint venture, partnership, limited liability or other similar agreement or arrangement, relate to the formation, creation, operation, management or control of any partnership or joint venture that is material to the business of the Company and its Subsidiaries, taken as a whole;
(iv) relate to (A) indebtedness for borrowed money or the deferred purchase price of property and having an outstanding principal amount in excess of $20,000,000 as of December 31, 2006 or (B) conditional sale arrangements, the sale, securitization or servicing of loans or loan portfolios, in each case in connection with which the aggregate actual or contingent obligations of the Company and its Subsidiaries under such contract are greater than $20,000,000;
(v) were entered into after September 30, 2006 or not yet consummated, and involve the acquisition from another Person or divestiture Contract disposition to another Person, directly or indirectly (by merger or otherwise), of assets or capital stock or other equity interests of another Person for aggregate consideration under such contract in excess of $20,000,000 (other than acquisitions or dispositions of assets in the ordinary course of business, including acquisitions and dispositions of inventory);
(vi) relate to an acquisition, divestiture, merger or similar transaction that contains representations, covenants, indemnities or other obligations (including indemnification, “earnoutearn-out” or other contingent payment obligations) ), that are still in effect and, individually or in the aggregate, would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,00020,000,000;
(ivvii) each Contract that provides for the Company contain material restrictions with respect to payment of dividends or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any distributions in respect of the Material Suppliers) that involves annual payments capital stock or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets other equity interests of the Company or any Company Subsidiary (excluding of its Subsidiaries outside the ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000business;
(viii) other than in the ordinary course of business and an acquisition permitted under clause (vi) above, obligate the Company to make any settlement capital commitment or similar Contract with a Governmental Entity, other than those relating expenditure (including pursuant to Taxesany joint venture);
(viiix) relate to any guarantee or assumption of other obligations or reimbursement of any maker of a letter of credit, except as has not been, for joint venture agreements and would not reasonably be expected to be, individually or other agreements entered into in the aggregate, ordinary course of business consistent with past practice;
(x) relate to the purchase or sale of material real property; or
(xi) are license agreements that are material to the business of the Company and the Company its Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any of its Subsidiaries is a party and licenses in Company Subsidiary has paid Intellectual Property Rights or received payments in excess of $2,000,000 in licenses out Company Intellectual Property owned by the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereofCompany, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract license agreements for software that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability is generally commercially available. Each contract of the Company, any Company Subsidiary or any of its affiliates type described in clauses (including Parent or any of its affiliates after the Effective Timei) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
through (xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect is referred to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken herein as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute “Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)Contract.”
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) each Material Contract is a valid, valid and binding and enforceable obligation of on the Company or the Company Subsidiary which that is a party thereto and, to the knowledge of the Company’s Knowledge, of each other party thereto, thereto and is in full force and effect, subject and (ii) the Company and its Subsidiaries have performed and complied with all obligations required to be performed or complied with by them under each Material Contract. There is no default under any Material Contract by the Company or any of its Subsidiaries or, to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as knowledge of the date hereof Company, by any other party, and without no event has occurred that with the lapse of time or the giving of notice or both would constitute a default thereunder by the Company or any material breachof its Subsidiaries, or to the knowledge of the Company, by any other party, except which has not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
Appears in 3 contracts
Sources: Merger Agreement (American Real Estate Partners L P), Merger Agreement (Lear Corp), Merger Agreement (Lear Corp)
Material Contracts. (a) Except for this Agreement, Section 4.17(a5.14(a) of the Company Disclosure Letter Schedule contains a complete and correct list, list as of the date hereof, of this Agreement of each Contract described in this Section 4.17(a) under which of the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or following Contracts to which the Company or any Company Subsidiary of its Subsidiaries is a party or to which any of bind or affect their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):assets:
(i) each Contract (other than between the Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates its Subsidiaries and any of the fifty (including Parent 50) largest direct end user licensees or other customers of the Company and its affiliates after Subsidiaries (determined on the Effective Time) to compete or engage in any line basis of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, aggregate revenues recognized by the Company Subsidiaries or affiliates (including Parent and its affiliates after Subsidiaries over the Effective Timethree (3) from the developmentconsecutive fiscal quarter periods ended March 31, marketing or distribution of products and services, in each case, in any geographic area2014) (“Major Customers”);
(ii) any material partnershipexcept for the Contracts disclosed in clause (i) above, strategic allianceeach Contract that involves performance of services or delivery of goods, joint ventureproducts or developmental, collaboration consulting or limited liability company agreement (other than any such agreement solely between or among services commitments by the Company and or any of its wholly owned Subsidiaries, providing for either (A) recurring annual payments to the Company or similar Contractany of its Subsidiaries after the date hereof of $2,500,000 or more or (B) aggregate payments to the Company or any of its Subsidiaries after the date hereof of $5,000,000 or more;
(iii) each acquisition Contract between the Company or divestiture Contract that contains representations, covenants, indemnities any of its Subsidiaries and any of (a) licensors of Intellectual Property to the Company or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making any of its Subsidiaries providing for aggregate payments by the Company or any Company Subsidiary of future payments in excess its Subsidiaries of $1,000,0001,000,000 or more (determined on the basis of aggregate payments made by the Company and its Subsidiaries in the 2014 fiscal year to date (as of the date of this Agreement)), and (b) the fourteen (14) largest suppliers (other than licensors), including any supplier of goods, manufacturing, outsourcing or development services, to the Company or any of its Subsidiaries (determined on the basis of aggregate payments made by the Company and its Subsidiaries in the 2014 fiscal year to date (as of the date of this Agreement)) (collectively, “Major Suppliers”);
(iv) each Contract that provides for between the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including its Subsidiaries and any of the Material Supplierstwenty-five (25) that involves annual payments largest distributors or consideration in excess resellers (including OEMs and value-added resellers) of $2,000,000any of the Company Products or services provided by the Company or any of its Subsidiaries (determined on the basis of aggregate sales of Company Products made through such distributors or resellers over the four (4) consecutive fiscal quarter period ended March 31, or that contains any minimum purchase commitments in excess of $2,000,000 annually2014;
(v) each Contract that gives contains any Person the right to acquire any assets of provisions restricting the Company or any Company Subsidiary of its Affiliates or their successors from (excluding ordinary course commitments A) competing or engaging in any activity or line of business or with any Person or in any area or pursuant to purchase goods which any benefit or products) right is required to be given or lost as a result of so competing or engaging, or which would have any such effect after the date hereof with consideration Closing Date or (B) hiring or soliciting for hire the employees or contractors of more than $1,000,000any Third Party;
(vi) each Contract that (A) grants any settlement exclusive rights to any Third Party, including any exclusive license or supply or distribution agreement or other exclusive rights, (B) grants any rights of first refusal, rights of first negotiation or similar Contract rights with a Governmental Entityrespect to any product, service or Company IP, (C) contains any provision that requires the purchase of all or any portion of the Company’s or any of its Subsidiaries’ requirements from any Third Party, or any other than those relating to Taxessimilar provision, or (D) grants “most favored nation” or similar rights;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material each lease of real property with respect to the Company and the Company Subsidiarieslocations disclosed in Part I, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct Item 2 of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and Company’s annual report on Form 10-K for its affiliates after the Effective Time)fiscal year ended June 30, 2013;
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary of its Subsidiaries has paid agreed or received payments is required to provide any Third Party with rights in excess of $2,000,000 in the fiscal year ended February 1, 2025or access to source code (including on a contingent basis), or is obligated to pay or entitled provide for source code to receive payments be put in excess of $2,000,000 in the twelve (12) month period following the date hereofescrow, other than Contracts solely between the with respect to discontinued products that do not share source code with any current Company and a wholly owned Company Subsidiary or solely between wholly owned Company SubsidiariesProduct;
(ix) any each Contract that obligates pursuant to which the Company or any Company Subsidiary of its Subsidiaries has been granted any license to make any capital investment or capital expenditure outside Intellectual Property, other than nonexclusive licenses granted in the ordinary course of business of the Company and in excess of $1,000,000 per annumits Subsidiaries consistent with past practice;
(x) except where the exercise of any such right or imposition of such limitation has not beeneach Contract pursuant to which, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability Knowledge of the Company, any the Company Subsidiary or any of its affiliates Subsidiaries has granted any exclusive license to any Company IP which has an exclusivity period of six (including Parent 6) months or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assetslonger;
(xi) each Contract that contains relating to Indebtedness (in any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in ), except any such Contract with an aggregate outstanding principal amount in excess of not exceeding $1,000,000 other and which may be prepaid on not more than Contracts solely between thirty (30) days’ notice without the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiariespayment of any penalty;
(xivxii) each Contract pursuant to which the Company or any of its Subsidiaries is a party that creates or grants a material Lien (including Liens upon properties acquired under conditional sales, capital leases or other title retention or security devices), other than Permitted Liens;
(xiii) each Contract under which the Company Subsidiary grants or receives any licenseof its Subsidiaries has, optiondirectly or indirectly, waivermade any loan, covenant capital contribution to, or other investment in, any Person (other than the Company or any of its Subsidiaries and other than (A) extensions of credit in the ordinary course of business consistent with past practice and (B) investments in marketable securities in the ordinary course of business);
(xiv) each Contract under which the Company or any of its Subsidiaries has any obligations which have not been satisfied or performed (other than confidentiality obligations) relating to assert the acquisition or disposition of all or any portion of any business (whether by merger, sale of stock, sale of assets or otherwise) for consideration in excess of $1,000,000;
(xv) any Contract (A) (1) between the Company or any of its Subsidiaries and any Governmental Authority, or (2) between the Company or any of its Subsidiaries, as a subcontractor, and any prime contractor to any Governmental Authority, in each case of (1) and (2) and providing for either aggregate payments to the Company or any of its Subsidiaries after the date hereof of $1,000,000 or more, or (B) financed by any Governmental Authority and subject to the rules and regulations of any Governmental Authority concerning procurement;
(xvi) each partnership, joint venture or other similar right with respect Contract or arrangement material to the Company and its Subsidiaries, taken as a whole (but excluding reseller, referral and other commercial arrangements that do not involve the sharing of profits or losses or shared controlled of property);
(xvii) each Contract for the development for the benefit of the Company or any of its Subsidiaries by any party other than the Company or its Subsidiaries, of Software or Intellectual Property that is material to the businesses of the Company and the Company its Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence ;
(xviii) each employee collective bargaining agreement or similar arrangementother Contract with any labor union, and each employment Contract (other than for employment at-will or similar arrangements) that is not terminable by the Company without notice and without cost to the Company;
(xix) each Contract: (A) non-exclusive licenses granted entered into in connection with the settlement or other resolution of any Proceeding that has any continuing material obligations, liabilities or restrictions with respect to the Company or Company Subsidiaries for generally available Software any of its Subsidiaries, or information technology services on substantially standardized terms, and (B) Contracts entered into in the last three (3) years in connection with the settlement or other resolution of any Proceeding that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights involved payment by or to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiaryof its Subsidiaries of more than $1,000,000;
(xx) each Contract providing for indemnification of any Person (A) with respect to material liabilities relating to any current or former business of the Company, on the one handany of its Subsidiaries or any predecessor Person, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) indemnification obligations of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract its Subsidiaries pursuant to which the provisions of a Contract entered into by the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner of its Subsidiaries in the ordinary course of business consistent with past practice or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, have a Company Material Adverse Effect. To , or (B) with respect to claims involving infringement or misappropriation of any Intellectual Property rights of any Third Party, which Contract is material and does not provide the Company or its Subsidiaries with the right to (1) assume control of the defense and settlement of any such claim, (2) require the indemnified Person to implement a non-infringing substitute provided by the Company or its Subsidiaries for any Company Product that is the subject of any such claim and (3) terminate the indemnified Person’s right to use any Company Product that is the subject of any such claim if the Company or its Subsidiaries is unable to provide a non-infringing substitute or otherwise ▇▇▇▇▇ the infringement or alleged infringement;
(xxi) each Contract containing (A) any provisions having the effect of providing that the Offer or the consummation of the Merger or the other transactions contemplated by this Agreement or compliance by the Company with the provisions of this Agreement will conflict with, result in any violation or breach of, or constitute a default (with or without notice or lapse of time or both) under, such Contract (if such Contract is material to the Company and its Subsidiaries, taken as a whole), or give rise under such Contract to any right of, or result in, a termination, right of first refusal, amendment, revocation, cancellation or acceleration, or a loss of a benefit or the creation of any Lien upon any of the properties or assets of the Company’s Knowledge, as Parent or any of the date hereoftheir respective Affiliates, no other party or to any Material Contract is in breach of increased, guaranteed, accelerated or default under the terms additional rights or entitlements of any Material Contract where Person, except to the extent that such breach termination, amendment, conflict, violation, breach, default, revocation, cancellation, acceleration, loss of benefit, creation of lien, any increased, guaranteed, accelerated or default has had additional rights or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except entitlement as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, provided that in determining whether a Company Material Adverse Effect would result, any adverse effect otherwise excluded by clause (A) of the definition of Company Material Adverse Effect shall be taken into account, or (B) any standstill or similar provision purporting to limit the authority of any party to such agreement to acquire any Equity Interest in the Company or any other Person;
(xxii) each Contract or plan, including any stock option or equity plan, that may or will increase, or accelerate the vesting of, the benefits to any Person by the occurrence of any of the transactions contemplated by this Agreement, or the value of any of the benefits which will be calculated on the basis of any of the transactions contemplated by this Agreement; or
(xxiii) except for the Contracts disclosed above, each Contract required to be filed by the Company pursuant to Item 601 of Regulation S-K under the Securities Act, or that is otherwise material to the Company and its Subsidiaries, taken as whole; or
(b) Each Contract disclosed (or required to be disclosed) in Section 5.14(a) of the Company Disclosure Schedule, required to be delivered or made available pursuant to Section 5.14(c) or which would have been required to be so disclosed if it had existed on the date of this Agreement (each, a “Material Contract Contract”) (unless it has terminated or expired (in each case according to its terms)) is in full force and effect and is a validlegal, valid and binding and enforceable obligation agreement of the Company or its Subsidiary, as the Company Subsidiary which is party thereto case may be, and, to the Knowledge of the Company’s Knowledge, of each other party thereto, and is in full force and effectenforceable against the Company or such Subsidiary, subject as the case may be, and, to the Enforceability Limitations and any expiration thereof Knowledge of the Company, against the other party or parties thereto, in each case, in accordance with its terms existing except as such enforceability may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity. Neither the Company nor any of its Subsidiaries has received any written notice to terminate, in whole or part, materially amend or not renew any executory obligation of a counterparty to a Material Contract that has not terminated or expired (in each case according to its terms) prior to the date of this Agreement (nor, to the Knowledge of the Company, has there been any occurrence that a reasonable person would consider an indication that any such notice of termination will be served on or after the date hereof and without of this Agreement on the Company or any Subsidiary of the Company by any counterparty to a Material Contract). None of the Company, any of its Subsidiaries or, to the Knowledge of the Company, any other party thereto is in default or breach in any material breachrespect under the terms of any Material Contract, and, to the Knowledge of the Company, no event or circumstance has occurred that, with notice or lapse of time or both, would constitute any event of default thereunder.
(c) Complete, correct and unredacted copies of each Material Contract, as amended and supplemented, have been delivered by the Company to Parent, or otherwise made available as an exhibit to the Company SEC Documents, by the Company to Parent.
Appears in 3 contracts
Sources: Merger Agreement (Micros Systems Inc), Merger Agreement (Oracle Corp), Merger Agreement (Oracle Corp)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement, Section 4.17(aAgreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) of the for Company Disclosure Letter contains a complete and correct listEmployee Plans, as of the date hereof, of each Contract described in this Section 4.17(a) under which neither the Company or nor any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which of the Company or any Company Subsidiary is a party to or to which is bound by any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):Contract:
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SECExchange Act);
(ii) that is with the 25 largest customers of the Company and its Subsidiaries by revenue during the 9 months ended September 30, 2024 (as defined in the Company’s Press Release issued November 4, 2024 which is filed with the Company SEC Documents) (excluding any nondisclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the 10 largest vendors of the Company and its Subsidiaries during the 12 months ended September 30, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) relating to the disposition or acquisition of any business, equity, real property or all or substantially all of the assets of any Person for aggregate consideration in excess of by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(v) containing (A) a covenant or other provision limiting the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area (other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business), (B) “most favored nation” or “exclusivity” provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that would be material to the Company and its Subsidiaries, taken as a whole;
(vi) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company (including any hedging, swap, derivative or other similar Contract), or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(vii) that is a license (or a sublicense, covenant, consent or other right in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to any Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary of the Company received licensing revenues for the 12 months ended December 31, 2023 or the 2024 calendar year in excess of $550,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries, taken as a whole;
(viii) that is a license (or a sublicense, covenant, consent or other right in or to use Intellectual Property) of Intellectual Property granted to the Company or any Subsidiary of the Company by any third Person (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary of the Company made payments during the 12 months ended December 31, 2023 or the 2024 calendar year in excess of $550,000, and/or (C) that is otherwise material to the Company and its Subsidiaries, taken as a whole (each such Contract that is scheduled or required to be scheduled against (A) – (C) above, an “Inbound IP License”);
(ix) that (A) provides for any invention, creation, conception or other development of any material Intellectual Property (1) by the Company or any of its Subsidiaries for any other Person, (2) by the Company or any of its Subsidiaries jointly with any other Person or (3) for the Company or any of its Subsidiaries by any other Person (excluding any Invention Assignment Agreements) or (B) provides for the assignment or other transfer of any ownership interest in any material Intellectual Property (1) to the Company or any of its Subsidiaries by any other Person (excluding any Invention Assignment Agreements) or (2) by the Company or any of its Subsidiaries to any other Person;
(x) that is a collective bargaining agreement or other similar Contract with any labor union, labor organization, works council or other similar employee representative (“Labor Agreement”);
(xi) that is a settlement, conciliation or similar agreement with any Governmental Authority pursuant to which the Company will have a material outstanding obligation following the execution of this Agreement;
(xii) any stockholders’ agreement, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any if its Subsidiaries or relating to the disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xiii) is with an affiliate or other than those agreements and arrangements described in Person that would be required to be disclosed under Item 601(b)(10)(iii) 404 of Regulation S-K of promulgated under the SEC)Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) True and complete copies Each Contract of each the type described above in Section 4.14(a) is referred to herein as a “Material Contract in effect Contract.” Except for Material Contracts that have expired or terminated by their terms, as of the date hereof have been made available to Parent hereof, all of the Material Contracts are (A) valid and binding on the Company or publicly filed with the SEC prior applicable Subsidiary of the Company, as the case may be, and, to the date hereof. Neither Knowledge of the Company nor any Company Subsidiary is Company, each other party thereto, and (B) in breach of or default under the terms of any Material Contractfull force and effect, except (i) as has not had may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not reasonably be expected to havenot, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. To Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company’s Knowledge, as none of the date hereofother parties thereto have, (x) violated any provision of, or committed or failed to perform any act under, and no other party to any Material Contract is in event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under under, the terms provisions of any Material Contract where such breach Contract, except in each case for those violations, acts (or default has had or would reasonably be expected failures to haveact) and defaults which, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, have a Company Material Adverse EffectEffect or (y) the intention to renegotiate, each terminate or claim a material breach under any Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breachContract.
Appears in 3 contracts
Sources: Agreement and Plan of Merger (Clearwater Analytics Holdings, Inc.), Agreement and Plan of Merger (Enfusion, Inc.), Agreement and Plan of Merger (Enfusion, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) of the Company Disclosure Letter contains a complete and correct listas disclosed in Schedule 3.11, as of the date hereof, neither ASFC nor any of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary its Subsidiaries is a party to or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):bound by:
(i) each Contract any lease of real property where any of ASFC or its Subsidiaries are tenants (other than Company LeasesA) that limits in any material respect the freedom providing for annual base rentals of the Company$1,000,000 or more, any Company Subsidiary (B) expiring after December 31, 2002 or (C) where ASFC or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage Affiliates holds an equity interest in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areasuch real property;
(ii) any material partnershipagreement for the purchase of materials, strategic alliancesupplies, joint venturegoods, collaboration services, equipment or limited liability company agreement other assets, including any license for Software, that provides for either (other than A) annual payments by ASFC or any such agreement solely between Subsidiary of ASFC of $1,000,000 or among the Company and its wholly owned Subsidiariesmore or (B) aggregate required payments by ASFC or similar Contractany Subsidiary of ASFC of $5,000,000 or more;
(iii) each acquisition or divestiture Contract that contains representationsany limited partnership, covenants, indemnities joint venture or other obligations (including “earnout” unincorporated business organization or other contingent payment obligations) that would reasonably be expected to result similar arrangement or agreement in the receipt or making by the Company which ASFC or any Company Subsidiary of future payments in excess of $1,000,000ASFC serves as a general partner or otherwise has unlimited liability;
(iv) each Contract that provides for any agreement relating to the Company acquisition or disposition of any Company Subsidiary to obtain a servicebusiness (whether by merger, licensesale of stock, product, product line, operations sale of assets or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annuallyotherwise);
(v) each Contract that gives any Person agreement relating to indebtedness for borrowed money or any guarantee or similar agreement or arrangement relating thereto, other than (A) any guarantees issued in the right to acquire any assets ordinary course of the Company surety business of ASFC and its Subsidiaries consistent with past practice and (B) any such agreement with, or any Company Subsidiary (excluding ordinary course commitments to purchase goods relating to, an aggregate outstanding principal amount or products) after the date hereof with consideration of more than guaranteed obligation not exceeding $1,000,00010,000,000;
(vi) any settlement license, franchise or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, agreement material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent ASFC and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiiivii) each Contract evidencing any agency, dealer, sales representative, marketing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is agreement material to the businesses of the Company ASFC and the Company its Subsidiaries, taken as a whole, ;
(viii) any agreement that restricts or agrees to limit its use prohibits ASFC or exploitation any Subsidiary of ASFC from competing with any material Company IP Person in any material respectline of business or from competing in, including pursuant engaging in or entering into any line of business in any area and which would so restrict or prohibit ASFC or any Subsidiary of ASFC after the Closing Date;
(ix) any reinsurance treaty or any facultative reinsurance contract (in each case applicable to any settlement agreement, coexistence agreement or similar arrangementinsurance in force), other than (A) non-exclusive licenses granted to any such treaty or contract entered into in the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 ordinary course of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunderbusiness consistent with past practice;
(xvx) each Contract between the Company any material agreement containing "change in control" or similar provisions relating to change in control of ASFC or any Company Subsidiaryof its Subsidiaries;
(xi) any "stop loss" agreements, on other than those entered into in the one hand, and ordinary course of business consistent with past practice;
(xii) any officer, director or affiliate agreements (other than insurance policies or other similar agreements issued by any Subsidiary of ASFC in the ordinary course of its business) material to ASFC and its Subsidiaries taken as a wholly owned Company Subsidiary) of the Company whole pursuant to which ASFC or any Company Subsidiary, Subsidiary of ASFC is obligated to indemnify any beneficial owner, directly or indirectly, of more than five percent other Person; or
(5%xiii) of the shares of Company Common Stock any agreement with ASFC or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)its Affiliates.
(b) True and complete copies of each Material Contract in effect as of the date hereof have been ASFC has heretofore furnished or made available to Parent Buyer complete and correct copies of the contracts, agreements and instruments listed on Schedule 3.11, each as amended or publicly filed with the SEC prior modified to the date hereof. Neither , including any waivers with respect thereto (the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect"Significant Agreements"). Except as has specifically disclosed on Schedule 3.11, and except to the extent not had material to ASFC and would not reasonably be expected to have, individually or in the aggregate, its Subsidiaries taken as a Company Material Adverse Effect, whole: (i) each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and Significant Agreements is in full force and effect, subject to the Enforceability Limitations effect and any expiration thereof enforceable in accordance with its terms existing as terms, subject to (A) bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium and other similar laws now or hereafter in effect relating to or affecting creditors' rights generally and the rights of creditors of insurance companies generally and (B) general principles of equity (regardless of whether considered in a proceeding at law or in equity); (ii) neither ASFC nor any of its Subsidiaries has received any notice (written or oral) of cancellation or termination of, or any expression or indication of an intention or desire to cancel or terminate, any of the date hereof Significant Agreements; (iii) no Significant Agreement is the subject of, or, to the Knowledge of ASFC, has been threatened to be made the subject of, any arbitration, suit or other legal proceeding; and without (iv) there exists no material event of default or occurrence, condition or act on the part of ASFC or any Subsidiary of ASFC which constitutes or would constitute (with notice or lapse of time or both) a material breachbreach of or material default under any of the Significant Agreements.
Appears in 3 contracts
Sources: Merger Agreement (American States Financial Corp), Merger Agreement (Safeco Corp), Merger Agreement (Lincoln National Corp)
Material Contracts. (a) Except for this Agreementcontracts (including all amendments and modifications thereto) filed as exhibits to the Company SEC Documents, Section 4.17(aSchedule 3.18(a) of the Company Disclosure Letter contains Schedules, sets forth a complete and correct list, accurate list as of the date hereof, of each Contract described in this Section 4.17(aAgreement of:
(i) any contract that is required to be filed as an exhibit to a report or filing under which the Securities Act or the Exchange Act;
(ii) any contract that involves annual payments or consideration from the Company or any of its subsidiaries of more than $1,000,000 during any twelve (12) month period and is not terminable by the Company Subsidiary has or its subsidiary on 90 (or fewer) days’ notice without penalty;
(iii) any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which contract that contains any covenant restricting the ability of the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries subsidiaries or affiliates (including Parent and its affiliates after the Effective TimeMerger Closing) from the developmentto: (x) conduct or compete in any material line of business, marketing (y) compete with any person or distribution of products and services, in each case, (z) operate in any geographic area;
(iiiv) any material contract granting to any person (other than the Company or any of its subsidiaries) “most favored nation” pricing provisions;
(v) any contract that provides for “exclusivity,” rights of first refusal, rights of first negotiation or any similar requirement in favor of any person (other than the Company or any of its subsidiaries);
(vi) any contract relating to any joint venture, partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among similar agreements to which the Company and or any of its wholly owned Subsidiaries) or similar Contractsubsidiaries is a party;
(iiivii) each acquisition or divestiture Contract that contains representationsany loan agreement, covenantscredit agreement, indemnities note, debenture, bond, mortgage, guarantee, indenture or other obligations contract (including collectively, “earnout” debt obligations”) pursuant to which any indebtedness of the Company or other contingent payment obligations) that would reasonably any of its subsidiaries in excess of $1,000,000 is outstanding or may be expected to result in the receipt incurred and all guarantees of or making by the Company or any of its subsidiaries of debt obligations of any other person, including the respective aggregate principal amounts outstanding as of the date of this Agreement;
(viii) any contract with or with respect to a labor union, guild or other employee representative (including any collective bargaining agreement or works council agreement);
(ix) any contract that requires a consent to or otherwise contains a provision relating to a change of control, or that would or could reasonably be expected to prevent, delay or impair the consummation of the transactions contemplated herein, including the Merger;
(x) any contract requiring or otherwise relating to any future capital expenditures by the Company Subsidiary or any of future its subsidiaries in excess of $1,000,000 in the aggregate;
(xi) any contract providing for indemnification by the Company or any its subsidiaries of any officer, director or employee of the Company or any of its subsidiaries; and
(xii) any contract relating to any acquisition (by merger, consolidation, acquisition of all or substantially all of the assets or otherwise) from any person or divestiture or disposition by the Company or any of its subsidiaries to any person of material properties, assets, capital stock or other equity interests, in each case, involving payments in excess of $1,000,000;
(iv) ; in each Contract that provides case for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except such contracts as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid of its subsidiaries is a party or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or by which any of its affiliates (including Parent or them is bound. Each such contract described in any of its affiliates after the Effective Timeclauses (i) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
through (xii) of this Section 3.18(a) (and each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to entered into after the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) date of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property this Agreement that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise would have been described in any other subsection of clauses (i) through (xii) of this Section 4.17(a3.18(a) that would constitute if such contract existed on the date of this Agreement) is referred to herein as a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)Material Contract”.
(b) True Prior to the date of this Agreement, the Company has provided complete and complete accurate copies of each all Company Material Contract Contracts (including all amendments, modifications, supplements, exhibits, schedules, annexes or other documents modifying or supplementing the terms thereof) in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. of this Agreement.
(c) Neither the Company nor any subsidiary of the Company Subsidiary is in material breach of or material default under the terms or conditions of any Company Material Contract and no event or condition has occurred that constitutes, or, after notice or lapse of time or both, would constitute, a material default on the part of the Company or any of its subsidiaries or, to the knowledge of the Company, any other party thereto under any such Company Material Contract, except as nor has not had and would not reasonably be expected to havethe Company or any of its subsidiaries received any notice of any such material default, individually event or in the aggregate, a Company Material Adverse Effectcondition. To the Company’s Knowledge, as knowledge of the date hereofCompany, no other party to any Company Material Contract is in material breach of or material default under the terms or conditions of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse EffectContract. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Each Company Material Adverse Effect, each Material Contract is a valid, valid and binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the knowledge of the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof enforceable in accordance with its terms existing as in all material respects, except that (i) such enforcement may be subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws, now or hereafter in effect, relating to creditors’ rights generally and (ii) equitable remedies of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the date hereof and without court before which any material breachproceeding therefor may be brought.
Appears in 3 contracts
Sources: Merger Agreement, Agreement and Plan of Merger (Norcraft Companies, Inc.), Merger Agreement (Fortune Brands Home & Security, Inc.)
Material Contracts. (a) Except for As of the date of this Agreement, Section 4.17(aSchedule 4.11(a) of the Company Seller’s Disclosure Letter contains a complete and correct list, as Schedules lists each of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all following Contracts of the type described in this Section 4.17(a)Companies and the Transferred Subsidiaries (collectively, whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Any Contract (other than Company Leases) that limits relating to any Indebtedness for borrowed money in any material respect the freedom excess of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area$7,500,000;
(ii) Any written employment, severance, termination, employee-like consulting or retirement Contract for any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement Employee providing for annual compensation in excess of $375,000 (other than any such agreement solely between or among the Company and its wholly owned Subsidiariesexcluding discretionary bonuses) or similar Contractwith respect to the employment of, severance, retention or payment to, any of its directors and executive officers;
(iii) each Any Contract entered into within the last three years relating to the acquisition or divestiture disposition of any business or assets (whether by merger, sale of stock, sale of assets or otherwise) contemplating an exchange of value in excess of $3,750,000;
(iv) Any Contract that contains representationslimits or purports to limit the manner in which, covenants, indemnities the duration for which or the localities in which its business is or could be conducted or the types of business that it conducts or may conduct other obligations than pursuant to engagement letters entered into in the ordinary course of business;
(including v) Any material Contract pursuant to which (1) the Companies or the Transferred Subsidiaries grant a license to Intellectual Property owned by the Companies or their respective Subsidiaries to a third party or (2) the Companies or the Transferred Subsidiaries license Intellectual Property from a third party (other than licenses for commercial “earnoutoff-the-shelf” or “shrink-wrap” software);
(vi) Any Contract relating to the settlement of any Action within the past three years with any Governmental Authority (regardless of amount);
(vii) Any Contract containing a covenant not to compete;
(viii) Any Contract with any Affiliate of Seller (other contingent payment obligationsthan the Companies or the Transferred Subsidiaries) that would reasonably be expected to result in the receipt involving any amount or making by the Company or any Company Subsidiary of future payments obligation in excess of $1,000,000;
(ivix) each Any Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any so-called take-or-pay or keepwell agreements) under which (A) any person has directly or indirectly guaranteed indebtedness, liabilities or obligations of any Company or a Transferred Subsidiary or (B) any Company or a Transferred Subsidiary has directly or indirectly guaranteed indebtedness, liabilities or obligations of any person, (in each case other than endorsements for the Material Suppliers) that involves annual payments or consideration purpose of collection in the ordinary course of business), in any such case which, individually, is in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum500,000;
(x) except where the exercise Any Contract under which any Company or Transferred Subsidiary has, directly or indirectly, made any advance, loan or extension of credit to any person, in any such right or imposition case which, individually, is in excess of $3,750,000 other than any such limitation has not been, and would not reasonably be expected to be, individually or Contract entered into in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right ordinary course of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assetsbusiness;
(xi) each Any Contract that contains providing for indemnification of any exclusivity rights or “most favored nations” provisions, in each case, that are material in any person with respect to the material liabilities relating to any current or former business of any Company or its affiliates (including Parent or its affiliates after the Effective Time)Transferred Subsidiary;
(xii) each Any Contract governing for any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;joint venture; and
(xiii) each Any Contract evidencing or relating other than as set forth above to outstanding Indebtedness (or commitments in respect thereof) of the which any Company or any Company Transferred Subsidiary (whether incurred, assumed, guaranteed is a party or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company it or any Company Subsidiary grants of its assets or receives any license, option, waiver, covenant not to assert businesses is bound or similar right with respect to Intellectual Property subject that is material to its business or the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation operation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)its assets.
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 3 contracts
Sources: Stock Purchase Agreement, Stock Purchase Agreement (Raymond James Financial Inc), Stock Purchase Agreement (Regions Financial Corp)
Material Contracts. (ai) Except for this Agreement, Section 4.17(aSellers have provided to Buyer true and correct copies of the following agreements (each a “Material Contract”) to which each of the Company Disclosure Letter contains and its Subsidiaries is a complete and correct list, as party:
(A) any agreement for the purchase or sale of products or for the date hereof, furnishing or receipt of services (1) which involves more than the sum of $10,000 or (2) in which each Contract described in this Section 4.17(a) under which of the Company or its Subsidiaries has granted “most favored nation” pricing provisions or marketing or distribution rights relating to any Company Subsidiary services, products or territory or has agreed to purchase a minimum quantity of goods or services or has agreed to purchase goods or services exclusively from a certain party;
(B) any current agreement concerning the establishment or future rightsoperation of a partnership, responsibilities, obligations joint venture or liabilities limited liability company;
(in C) any agreement under which each case, whether contingent or otherwise) or to which of the Company or its Subsidiaries has created, incurred, assumed or guaranteed (or may create, incur, assume or guarantee) indebtedness (including capitalized lease obligations) or under which it has imposed (or may impose) any Encumbrance on any of its assets, tangible or intangible (excluding indebtedness and Encumbrances being paid off, terminated or otherwise satisfied in connection with the Closing);
(D) any agreement for the disposition of any significant portion of the assets or business of each of the Company Subsidiary or its Subsidiaries (other than sales of products in the Ordinary Course of Business) or any agreement for the acquisition of the assets or business of any other entity (other than purchases of inventory or components in the Ordinary Course of Business);
(E) any agreement concerning confidentiality or non-solicitation;
(F) any employment agreement, consulting agreement, severance agreement (or agreement that includes provisions for the payment of severance) or retention agreement;
(G) any agreement involving any current director, manager, officer, shareholder or member of each of the Company or its Subsidiaries;
(H) any lease or agreement under which each of the Company or its Subsidiaries is the lessee of, or holds or operates, any personal property owned by any other party, for which the annual rental exceeds $15,000;
(I) any agreement that prohibits each of the Company or its Subsidiaries from freely engaging in business anywhere in the world;
(J) any distributor, sales representative, franchise or similar agreement to which each of the Company or its Subsidiaries is a party or to by which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 each of the Company Disclosure Letter, being referred to herein as “Material Contracts”):or its Subsidiaries is bound; and
(iK) each Contract any other agreement (other or group of related agreements) either (A) involving more than Company Leases$50,000 or (B) that limits not entered into in any material respect the freedom Ordinary Course of the Company, any Company Subsidiary or any of their respective affiliates (including Parent Business and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;involving more than $10,000.
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets Each of the Company or any Company Subsidiary (excluding ordinary course commitments its Subsidiaries has made available to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with Buyer a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, complete and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies accurate copy of each Material Contract in effect (as of the date hereof have been made available amended to Parent or publicly filed with the SEC prior date). With respect to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any each Material Contract, except as has not had and would not reasonably be expected subject to haveapplicable bankruptcy, individually insolvency, reorganization, moratorium or in other laws affecting generally the aggregate, a Company Material Adverse Effect. To enforcement of creditors’ rights and subject to general principles of equity: (i) the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to havelegal, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation and in full force and effect against each of the Company or the Company Subsidiary which is party thereto andits Subsidiaries, to the Company’s KnowledgeKnowledge of any Seller or each of the Company or its Subsidiaries, of against each other party theretothereto; and (ii) the Material Contract will continue to be legal, valid, binding and is enforceable and in full force and effect, subject to effect against each of the Enforceability Limitations Company or its Subsidiaries and any expiration thereof against each other party thereto immediately following the Closing in accordance with its the terms existing thereof as in effect immediately prior to the Closing. Neither each of the date hereof Company or its Subsidiaries nor, to the Knowledge of any Seller or each of the Company or its Subsidiaries, any other party, is in breach or violation of, or default under, any such Material Contract, and without no event has occurred, is pending or, to the Knowledge of any material breachSeller or each of the Company or its Subsidiaries, is threatened, which, after the giving of notice, with lapse of time, or otherwise, would constitute a breach or default by each of the Company or its Subsidiaries or any other party under such Material Contract.
(iii) Each of the Company or its Subsidiaries is not party to any oral contract, agreement or other arrangement that, if reduced to written form, would be required to provide under the terms of Section 3(y).
Appears in 3 contracts
Sources: Share Purchase Agreement (Meiwu Technology Co LTD), Share Purchase Agreement (Meiwu Technology Co LTD), Share Purchase Agreement (Meiwu Technology Co LTD)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.16(a) of the Company Seller Disclosure Letter contains a complete and correct list, lists each Contract in the following categories that is in force as of the date hereof, of each hereof and which either constitutes a Transferred Contract described in this Section 4.17(a) under or is a Contract to which the Company Seller or any Company Subsidiary has of its Affiliates (including any current Acquired Company) is a party or future rightsby which any of their assets are bound and, responsibilitiesin the case of Seller and any of its Affiliates other than the Acquired Companies, obligations or liabilities that relates to the FSS Business (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans Covered Insurance Policies) (all such Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each any Contract involving aggregate payments by Seller or its Affiliates with respect to the FSS Business to any Person (other than Company Leasesan Insurance Producer) that limits in any material excess of $[Redacted] during the consecutive twelve (12)-month period ended December 31, 2020, or the delivery by Seller or its Affiliates with respect to the freedom FSS Business of goods or services with a fair market value in excess of $[Redacted] during the Companyconsecutive twelve (12)-month period ended December 31, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area2020;
(ii) any material Intercompany Agreement involving aggregate payments by Seller or its Affiliates (other than any Acquired Company) on the one hand, or any Acquired Company, on the other hand, in excess of $[Redacted] during the consecutive twelve (12)-month period ended December 31, 2020;
(iii) any Contract that is a mortgage, indenture, loan or credit agreement, security agreement or other agreement or instrument relating to the borrowing of money or extension of credit or the direct or indirect guarantee of any obligation for borrowed money of any Person or any other Liability in respect of indebtedness for borrowed money of any Person, in each case, involving Liabilities with respect to any Acquired Company or the FSS Business in excess of $[Redacted];
(iv) any Contract concerning the establishment or operation of a partnership, strategic alliance, joint venture, collaboration or limited liability company or other similar agreement (other than or arrangement in respect of the business of any such agreement solely between Acquired Company or among the Company and its wholly owned Subsidiaries) or similar ContractFSS Business;
(iiiv) each acquisition or divestiture any Contract that contains representationslimits, covenantsor purports to limit, indemnities the ability of Seller or other obligations its applicable Affiliates (including “earnout” or, after consummation of the transactions contemplated hereby, Buyer or other contingent payment obligationsany of its Affiliates) to engage in any business with any Person or to compete in any line of business or with any Person or in any geographic area or during any period of time, to solicit customers in a way that would reasonably be expected to result in the receipt or making by the be material to any Acquired Company or the FSS Business or to manufacture, market, sell or administer any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product linein each case, operations or line except for Contracts that limit the ability of business from any Person (including any of an Acquired Company to solicit the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000employment of, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000hire individuals employed by, other Persons;
(vi) any settlement Contract that obligates Seller or similar Contract with its Affiliates to purchase or otherwise obtain any product or service exclusively from a Governmental Entity, other than those relating single party or sell any product or service exclusively to Taxesa single party;
(vii) except as has not beenany Contract creating or granting any Encumbrance (other than Permitted Encumbrances) on any assets, and would not reasonably be expected to be, individually properties or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct rights of the an Acquired Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time)on a Purchased Asset;
(viii) each any Contract that provides for the license to a Third Party of any material Business IP, or for the license to Seller or one of its Affiliates (primarily for the benefit of the FSS Business) of any material Intellectual Property (other than Company Leases“shrink wrap” or “click through” licenses or licenses of generally-available “off the shelf” computer software or databases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to under which the Company Seller or any Company Subsidiary has paid or received of its Affiliates made payments with respect to the FSS Business in an amount in excess of $2,000,000 in [Redacted] during the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the consecutive twelve (12) month 12)-month period following the date hereofended December 31, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries2020;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to under which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company any Person has directly or Company Subsidiaries for generally available Software indirectly guaranteed any Liabilities or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 obligations of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.Acquired Companies or
Appears in 3 contracts
Sources: Master Transaction Agreement, Master Transaction Agreement, Master Transaction Agreement
Material Contracts. (a) Except for this Agreement, Section 4.17(a) Schedule 4.11 lists all of the following Contracts to which the Company Disclosure Letter contains is a complete and correct list, party as of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”)::
(i) each any Contract related to Indebtedness;
(ii) any joint venture, partnership or other than Company Leases) that limits in any material respect the freedom arrangement involving a sharing of profits involving the Company, other than the LLC Agreement;
(iii) any Contract for the acquisition, sale or lease of properties or assets with a value in excess of $1 million other than sales of properties or inventories in the Ordinary Course of Business;
(iv) any Contract (A) restricting any right of the Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete with any Person or engage in any line of business or geographic region area or with during any Person period of time or sell, supply or distribute (B) restricting any product or service or that otherwise has the effect right of restricting in any material respect the Company, the Company Subsidiaries to sell to or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business purchase from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000Person, or that contains any minimum purchase commitments in excess of $2,000,000 annuallygrants the other Person “most favored nation” status or exclusivity, other than the Legacy Affiliate Agreements;
(v) each any Contract that gives or group of related Contracts for capital expenditures in excess of $1 million for any Person the right to acquire any assets single project or related series of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000projects;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxesany customer or advertiser under which the Company received revenues in excess of $1 million during the last year;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to any services Contract involving payments by the Company and in excess of $1 million during the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time)last year;
(viii) each any Contract (other than Company Leases) not otherwise described which evidences a “trade” or “barter” transaction in any other subsection of this Section 4.17(a) pursuant to which the Company would receive goods or any Company Subsidiary has paid services from the customer or received payments vendor in excess of $2,000,000 in the fiscal year ended February 1, 2025, exchange for furnishing goods or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following services after the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiariesof this Agreement;
(ix) any Contract that obligates providing for material indemnification rights or obligations to or from any Person (excluding indemnities contained in agreements for the Company purchase, sale or any Company Subsidiary to make any capital investment license of products or capital expenditure outside services entered into in the ordinary course Ordinary Course of business and in excess of $1,000,000 per annumBusiness), other than the LLC Agreement;
(x) except where other than the exercise Legacy Affiliate Agreement and the LLC Agreement, any Contract with any Seller or any Affiliate of any such right Seller or imposition of such limitation has not been, and would not reasonably be expected to be, individually any director or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability officer of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to all Legacy Affiliation Agreements (other than Legacy Affiliation Agreements between the Company and Purchaser or any of its affiliates (including Parent Newspaper Affiliates) and similar affiliation Contracts for the sale of the Company’s products and services with any Person that is not an Affiliate of Purchaser or its affiliates after the Effective Time)any Seller;
(xii) each any Contract governing with any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a wholeGovernmental Entity;
(xiii) each any Contract evidencing with employees of or relating consultants to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount that involves a commitment for annual consideration with a value in excess of $1,000,000 other than Contracts solely between 250,000 that cannot be terminated by the Company and a wholly owned Company Subsidiary without liability upon prior notice of 30 days or between wholly owned Company Subsidiariesless;
(xiv) each any other Contract pursuant to which that involves annual commitments in excess of $1 million that cannot be terminated by the Company without penalty upon prior notice of 30 days or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)less.
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as As of the date hereof, no other party each of the Leases and Contracts listed or required to any be listed on Schedules 4.11, 4.12, 4.13(e)(1) or 4.13(e)(2) (collectively, the “Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, Contracts”) constitutes a Company Material Adverse Effect. Except as has not had valid and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company (except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, similar Laws affecting creditors’ rights generally and by general principles of each other party theretoequity (regardless of whether considered in a proceeding in equity or at Law)), and is in full force and effect, subject except where the failure to be in full force and effect would not, individually or in the aggregate, reasonably be expected to be material to the Enforceability Limitations and any expiration thereof in accordance with its terms existing Business or the Company. To the Knowledge of the Company, as of the date hereof hereof, no event has occurred and without no condition or state of facts exists which, with the passage of time or the giving of notice or both, would constitute any default or breach by the Company or any other party thereto, except for such breaches, defaults, events or conditions that would not, individually or in the aggregate, reasonably be expected to be material breachto the Business or the Company. Complete and correct copies of each of the Material Contracts have heretofore been delivered to Purchaser.
(c) There are no outstanding powers of attorney executed on behalf of the Company.
(d) Schedule 4.11(d) sets forth (i) a list of each Seller’s 20 largest advertising customers with respect to the Business and (ii) all “major accounts” or “national accounts” of ▇▇▇▇.▇▇▇ as provided under the Legacy Affiliate Agreements, in each case as of the date hereof.
Appears in 3 contracts
Sources: Unit Purchase Agreement (Graham Holdings Co), Unit Purchase Agreement (A. H. Belo Corp), Unit Purchase Agreement (Gannett Co Inc /De/)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.15(a) of the Company Disclosure Letter contains a complete and correct list, as Schedule lists each of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts following contracts and agreements of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, Pershing Companies (such contracts and agreements being referred to herein as “"Material Contracts”"):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom all contracts and agreements relating to Indebtedness of the Company, Pershing Companies to a third party that individually are in excess of $2,000,000;
(ii) all contracts and agreements with any Company Subsidiary or Governmental Authority to which any of their respective affiliates the Pershing Companies is a party;
(including Parent iii) all contracts and its affiliates after agreements that limit or purport to limit the Effective Time) ability of any of the Pershing Companies to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) area or during any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary period of future payments in excess of $1,000,000time;
(iv) each Contract that provides for the Company all contracts and agreements between or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including among any of the Material Suppliers) that involves annual payments Pershing Companies and the Seller or consideration in excess any Affiliate of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annuallythe Seller;
(v) each Contract that gives all contracts and agreements, other than option and margin agreements entered into in the ordinary course of business, to which any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after Pershing Companies is a party requiring the payment of money in excess of $1,000,000 during the 12 month period ending on the date hereof or that would, on an annualized basis, have required such payment during such period; provided, however, that with consideration respect to those contracts and agreements the terms of more than $1,000,000which prohibit the Seller from disclosing their contents, the Seller shall only provide the Purchaser with a list of such contracts and agreements;
(vi) any settlement or similar Contract with a Governmental Entityall Company IP Licenses, other than those relating to Taxesshrink-wrap or click-through licenses of computer software, contemplating an exchange of value in excess of $1,000,000 during the 12 month period ending on the date hereof;
(vii) except as has not beenall contracts and agreements granting an Encumbrance, and would not reasonably be expected to beother than Permitted Encumbrances, individually upon any property or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, asset of any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time)Pershing Company;
(viii) each Contract (other than all contracts and agreements obligating any Pershing Company Leases) not otherwise described in to pay to any other subsection Person any money as a result of the execution and delivery of this Section 4.17(a) pursuant to which Agreement or the Company or any Company Subsidiary has paid or received payments in excess consummation of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiariestransactions contemplated herein;
(ix) all contracts and agreements providing for the acquisition or disposition after the date of this Agreement of any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course Assets contemplating an exchange of business and value in excess of $1,000,000 per annum500,000;
(x) except where the exercise all contracts and agreements providing for a power of attorney on behalf of any such right or imposition Pershing Company other than qualified service representative agreements, stock powers of such limitation has not been, attorney and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;similar agreements; and
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company all leases and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments subleases in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)Leased Real Property.
(b) True Each Material Contract: (i) is valid and complete copies of binding on each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract Pershing Companies which is a validparty thereto, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledgeknowledge of the Seller, of each other party the counterparties thereto, and is in full force and effecteffect and (ii) upon consummation of the transactions contemplated by this Agreement, subject except to the Enforceability Limitations and extent that any expiration thereof consents set forth in accordance with its terms existing as Section 3.08 of the date hereof Disclosure Schedule are not obtained, shall continue in full force and effect without penalty or other adverse consequence. None of the Pershing Companies is in breach of, or default under, any Material Contract, except where such breach or default would not, individually or in the aggregate, have a Material Adverse Effect, and to the knowledge of Seller, none of the other parties thereto is in material default or material breach.
Appears in 3 contracts
Sources: Transaction Agreement, Transaction Agreement (Credit Suisse Group), Transaction Agreement (Credit Suisse First Boston Usa Inc)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) 5.14 of the Company Disclosure Letter contains a complete and correct list, as Schedule lists each of the date hereoffollowing Contracts, of each Contract described in this Section 4.17(a) under whether written or oral, to which the Company or any of its Subsidiaries is a party or by which it is bound as of the date of this Agreement (each such Contract listed or required to be so listed, a “Company Subsidiary has Material Contract”):
(i) any current Contract or series of related Contracts for the purchase, receipt, lease or use of materials, supplies, goods, services, equipment or other assets involving future rightspayments by or to the Company or any of its Subsidiaries of more than $200,000 in the aggregate (other than Contracts involving payments to the Company entered into in the ordinary course of business, responsibilitiesincluding investment banking contracts);
(ii) any material sales agency, obligations sales representation, distributorship or liabilities franchise agreement;
(iii) any Contract or series of related Contracts involving payments by or to the Company or any of its Subsidiaries of more than $50,000 in the aggregate that requires consent of or notice to a third party in the event of or with respect to the Merger in order to avoid a breach or termination of, a loss of benefit under, or triggering a price adjustment, right of renegotiation or other remedy under, any such agreement, in each case that would reasonably be expected to have a Material Adverse Effect on the Company;
(iv) promissory notes, loans, agreements, indentures, evidences of indebtedness or other instruments providing for or relating to the lending of money, whether as borrower, lender or guarantor, in amounts greater than $25,000 in the aggregate;
(v) any Contract restricting the payment of dividends or the repurchase of stock or other equity;
(vi) any collective bargaining agreements;
(vii) any material joint venture, profit sharing, partnership agreements or other similar agreements;
(viii) any Contracts or series of related Contracts relating to the acquisition or disposition of a material amount of assets outside the ordinary course of business (in each case, whether contingent by merger, sale of stock, sale of assets or otherwise);
(ix) all leases or to which subleases for real or personal property involving annual expense in excess of $1,000 and not cancelable by the Company (without premium or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):penalty) within six months;
(ix) each any Contract that (other than Company LeasesA) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) Subsidiaries to engage or compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect area or which would so limit the Companyfreedom of Parent, the Company or any of their respective Affiliates after the Effective Time or (B) contains any material exclusivity, “most favored nation”, rights of first refusal, rights of first negotiation or similar obligations or restrictions that are binding on the Company or any of its Subsidiaries or affiliates (including that would be binding on Parent and or its affiliates Affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(iixi) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making agreements by the Company or any Company Subsidiary of future payments in excess its Subsidiaries not to acquire assets or securities of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person third party (including any of the Material Suppliersstandstill agreements) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right agreements by a third party not to acquire any assets or securities of the Company or any Company Subsidiary of its Subsidiaries (excluding including standstill agreements), in each case entered into outside the ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000business;
(vixii) any settlement material Contract providing for the indemnification by the Company or similar Contract with a Governmental Entityany of its Subsidiaries of any Person or under which the Company or any of its Subsidiaries has guaranteed any liabilities or obligations of any other Person, other than those relating to Taxesin each case entered into outside the ordinary course of business;
(viixiii) except as has not been, and would not reasonably be expected to be, individually any material Contracts with any (A) officer or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct director of the Company or any Company Subsidiary of its Subsidiaries (or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or employee who is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability one of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “twenty most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses highly compensated employees of the Company and its Subsidiaries) for the Company Subsidiariestwelve-month periods ended November 30, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, 2009 and 2010; (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 record or beneficial owner of five percent or more of the Company Disclosure Letter and in which the grants voting securities of rights to use Intellectual Property are incidental to performance thereunder;
Company; or (xvC) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiaryas such term is defined in Rule 12b-2 promulgated under the ▇▇▇▇ ▇▇▇) or “associates” (or members of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members ”) (as such terms are respectively defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including ▇▇▇▇ ▇▇▇) of any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, director or beneficial owner or family member;
(xvi) each Contract with a Material Supplierowner; and
(xviixiv) any other Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in required to be filed by the Company pursuant to Item 601(b)(10601(a)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC The Company has prior to the date hereof. Neither of this Agreement delivered or Made Available to Parent complete and accurate copies of each Company Material Contract listed, or required to be listed, in Section 5.14 of the Company nor any Disclosure Schedule (including all amendments, modifications, extensions and renewals thereto and waivers thereunder). All of the Company Subsidiary is Material Contracts are valid and binding obligations of the Company and its Subsidiaries, and to the Knowledge of the Company are binding obligations of the other parties thereto, and are in breach full force and effect (except those which are cancelled, rescinded or terminated after the date of or default under the terms of any Material Contractthis Agreement in accordance with their terms), except as where the failure to be valid and binding and in full force and effect has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To Effect on the Company’s Knowledge, as and no written notice to terminate and no written notice of the date hereofan intent to terminate, no other party to in whole or part, any Material Contract has been received by the Company or any of its Subsidiaries. Neither the Company nor any of its Subsidiaries nor, to the Knowledge of the Company, any other party thereto is in default or breach of or default under the terms of any Company Material Contract where except for such instances of default or breach or default has had or that would not be reasonably be expected likely to have, individually or result in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to Effect on the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 3 contracts
Sources: Agreement and Plan of Merger (Hudson Holding Corp), Merger Agreement (Hudson Holding Corp), Merger Agreement (Rodman & Renshaw Capital Group, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a4.21(a) of the Company Disclosure Letter contains a complete and correct listsets forth, as of the date hereofof this Agreement, a correct and complete list of each Contract described in this Section 4.17(a) under which of the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or following types of Contracts to which the Company or any Company Subsidiary of its Subsidiaries is a party or to by which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):bound:
(i) each Contract that (other than Company LeasesA) that limits or restricts in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage Subsidiaries from competing in any line of business or with any Person in any geographic region or with any Person (B) contains exclusivity obligations or sellrestrictions binding on, supply or distribute any product or service or that otherwise has the effect of restricting in any and material respect the Companyto, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the developmentSubsidiaries, marketing or distribution of products and services, in each case, in any geographic areataken as a whole;
(ii) any each Contract that is a joint venture or partnership agreement that is material partnershipto the Company and its Subsidiaries, strategic alliancetaken as a whole;
(iii) each Contract that is a loan, joint ventureguarantee of indebtedness or credit agreement, collaboration note, bond, mortgage, indenture or limited liability company agreement other binding commitment (other than any such agreement solely letters of credit and those between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected relating to result indebtedness for borrowed money in the receipt or making by the Company or any Company Subsidiary of future payments an amount in excess of $1,000,000;
(iv) each Contract that provides for with respect to an interest, rate, currency or other swap or derivative transaction (other than those between the Company or any Company Subsidiary to obtain and its Subsidiaries) with a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration fair value in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually1,000,000;
(v) each Contract that gives is an acquisition agreement or a divestiture agreement pursuant to which (A) the Company reasonably expects that it is required to pay total consideration (including assumption of debt) after the date of this Agreement to be in excess of $1,000,000 or (B) any other Person has the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) of its Subsidiaries after the date hereof of this Agreement with consideration a fair market value or purchase price of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisionsexcluding, in each case, (x) acquisitions or dispositions of supplies, inventory or products in connection with the conduct of the Company’s and its Subsidiaries’ business or (y) of supplies, inventory, products, equipment, properties or other assets that are material obsolete, worn out, surplus or no longer used or useful in any respect to the conduct of business of the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xivvi) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert of its Subsidiaries has continuing “earn-out” or similar right with respect to Intellectual Property obligations that is material to could result in payments in excess of $1,000,000 in the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunderaggregate;
(xvvii) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of under the Securities Act), whether or not filed by the Company with the SEC;
(viii) any Contract governing a Related Party Transaction (as defined below);
(ix) any registration rights agreements with respect to securities of the Company;
(x) any employment or consulting Contract (in each case with respect to which the Company has continuing obligations as of the date hereof) with any current (A) executive officer of the Company, (B) member of the Company Board, or (C) Company Employee providing for an annual base salary in excess of $250,000; and
(xi) any other than those agreements Contract or series of related Contracts under which it would reasonably be expected that the Company and arrangements its Subsidiaries would receive annual payments of $7,000,000 or more (each, a “Revenue Contract”) or make annual payments of $5,000,000 or more, in each case, during any twelve (12) month period or the remaining period of such Contract, if shorter. Each Contract of the type described in Item 601(b)(10)(iiiclauses (i) of Regulation S-K of the SEC)through (xi) is referred to herein as a “Company Material Contract”.
(b) True and complete copies of each Except for any Company Material Contract that has terminated or expired in effect as of the date hereof have been made available to Parent or publicly filed accordance with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the its terms of any Material Contract, and except as has not had and would not reasonably be expected to havehad, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Company Material Contract is a valid, valid and binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto in full force and effect and, to the Knowledge of the Company’s Knowledge, of each enforceable against the other party thereto, and is or parties thereto in full force and effectaccordance with its terms, subject to the Enforceability Limitations Exceptions. Except for breaches, violations or defaults which have not had, and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, neither the Company nor any of its Subsidiaries, nor to the Knowledge of the Company any other party to a Company Material Contract, is in violation of or in default under any provision of such Company Material Contract. True and complete copies of the Company Material Contracts and any expiration thereof in accordance with its terms existing as of material amendments thereto have been made available to Parent prior to the date hereof and without any material breachof this Agreement.
Appears in 3 contracts
Sources: Merger Agreement, Merger Agreement (Meredith Corp), Merger Agreement (Time Inc.)
Material Contracts. (a) Except for this Agreement, All Contracts required to be filed as exhibits to the Monsoon SEC Documents have been so filed in a timely manner. Section 4.17(a5.17(a) of the Company Monsoon Disclosure Letter contains sets forth a true and complete and correct list, as of the date hereof, of each Contract described in this Section 4.17(a) under of the following Contracts to which the Company Monsoon or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Monsoon Subsidiary is a party or to by which Monsoon or any Monsoon Subsidiary or any of their respective properties or assets is subjectbound (including any amendments, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”supplements and modifications thereto):
(i) any non-competition agreement, non-solicitation agreement, exclusive distribution, franchise or licensing agreement or other Contract that includes any provision which materially limits Monsoon or any Monsoon Subsidiary from engaging in any activity or conducting business with any Person or in any geographic area or from soliciting employees or personnel of any Person;
(ii) any Contract that relates to the formation, creation, governance or control of any partnership, joint venture or similar arrangement, or any collaboration, cooperation or partnering Contract, in each case that is material to the Monsoon Business and for which the closing of the relevant transaction has not occurred;
(iii) any Contract that relates to the acquisition or disposition of any business, whether by merger, sale of stock, sale of assets or otherwise, in each case for which the closing of the relevant transaction has not occurred;
(iv) any Contract with any Related Person of Monsoon or any Monsoon Subsidiary (other than Company Leasesthe agreements covered by clause (i) that limits in and any Monsoon Benefit Plan);
(v) any material respect Contract pursuant to which any Third Party Approval is required pursuant to a “change of control” or similar clause;
(vi) any Contract entered into other than on commercial arm’s length terms;
(vii) any currency exchange, interest rate exchange, commodity exchange or similar Contract;
(viii) any Contract entered into by Monsoon or any Monsoon Subsidiary in connection with the freedom settlement or other resolution of the Company, any Company material Action imposing operational restrictions or conduct requirements on Monsoon or any Monsoon Subsidiary or any of their respective affiliates Affiliates (including Parent and its affiliates the Indigo Group Companies after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective TimeClosing Date);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside (other than Contracts entered into in the ordinary course of business and consistent with past practice) which provides for aggregate future sums due from Monsoon or any Monsoon Subsidiary or an aggregate future liability (contingent or otherwise) to any Person (in each case other than Monsoon or any Monsoon Subsidiary) in excess of $1,000,000 per annum;1,000,000; or
(x) except where the exercise of any such right other Contract other than as set forth above to which Monsoon or imposition of such limitation has not been, and would not reasonably be expected to be, individually any Monsoon Subsidiary is a party or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary by which it or any of its affiliates (including Parent assets or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge businesses is bound or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property subject that is material to the businesses of Monsoon Business or the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any operation of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)assets.
(b) (i) All Contracts set forth or required to be set forth in Section 5.17(a) of the Monsoon Disclosure Letter or filed or required to be filed as exhibits to the Monsoon SEC Documents (the “Monsoon Material Contracts”) are valid, binding and in full force and effect and are enforceable by Monsoon or its applicable Subsidiary in accordance with their terms (except insofar as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally, or by principles governing the availability of equitable remedies), (ii) Monsoon or its applicable Subsidiary has performed all material obligations required to be performed by it under the Monsoon Material Contracts, and it is not (with or without notice or lapse of time, or both) in material breach or material default thereunder and, to the knowledge of Monsoon, no other party to any Monsoon Material Contract is (with or without notice or lapse of time, or both) in breach or default thereunder, (iii) since January 1, 2014, neither Monsoon nor any of its Subsidiaries has received written notice of any actual, alleged, possible or potential material violation of, or material failure to comply with, any term or requirement of any Monsoon Material Contract, and (iv) neither Monsoon nor any of its Subsidiaries has received any written notice of the intention of any party to cancel, terminate, change the scope of rights under or fail to renew any Monsoon Material Contract. True and complete copies of each written Monsoon Material Contract Contract, and a summary of each oral Monsoon Material Contract, listed in effect as Section 5.17(a) of the date hereof Monsoon Disclosure Letter (including all written modifications and amendments thereto and waivers thereunder) have been made available to Indigo Parent.
(c) Upon Closing, save as disclosed in Section 5.17(c) of the Monsoon Disclosure Letter, no Contract to which Monsoon or any Monsoon Subsidiary is a party will be in effect which purports to legally bind, or impose any duty, obligation or other Liability of any kind (except for any confidentiality obligations that may arise as a result of Monsoon or any Monsoon Subsidiary sharing any information with Indigo Parent or publicly filed with the SEC prior any of its Affiliates that is subject to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contracta confidentiality agreement with a third party) on, except as has not had and would not reasonably be expected either expressly or through a reference to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as affiliates of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company Monsoon or the Company Monsoon Subsidiary which that is party thereto and(or words of similar import), to the Company’s Knowledge, of each Indigo Parent or any Affiliate thereof (other party thereto, and is in full force and effect, subject to the Enforceability Limitations and than Monsoon or any expiration thereof in accordance with its terms existing as of the date hereof and without any material breachMonsoon Subsidiary).
Appears in 3 contracts
Sources: Transaction Agreement, Transaction Agreement (Naspers LTD), Transaction Agreement (MakeMyTrip LTD)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) 3.20 of the Company Disclosure Letter contains a an accurate and complete and correct list, as of the date hereofof this Agreement, of each Contract described below in this Section 4.17(a3.20(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans in each case as of the date of this Agreement (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, 3.20(a) being referred to herein as the “Material Contracts”):
(i) each Contract that (other than Company LeasesA) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business business, therapeutic area or geographic region region, or with any Person or sell(B) containing “most favored nation” provisions, supply any exclusive dealing arrangement or distribute any product arrangement that grants any right of first refusal, first offer, first negotiation or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areasimilar preferential right;
(ii) any material partnership, joint venture, strategic alliance, joint venturecollaboration, collaboration co-promotion or limited liability company agreement (other than any such agreement solely between or among research and development project Contract which is material to the Company and its wholly owned the Company Subsidiaries) or similar Contract;
(iii) each Contract that (A) (1) involved the expenditure by the Company and/or any Company Subsidiary of more than (x) $500,000 for the one-year period ended March 31, 2015 or (y) $1,000,000 in the aggregate or (2) is reasonably expected to involve future expenditures by the Company and/or any Company Subsidiary of more than (x) $500,000 in the one-year period following the date hereof or (y) $1,000,000 in the aggregate, and (B) cannot be terminated by the Company or such Company Subsidiary on less than sixty (60) days’ notice without material payment or penalty;
(iv) each acquisition or divestiture Contract or material licensing agreement that contains representations, covenants, indemnities or other obligations (including “earnoutearn-out” or other contingent payment obligations) that (A) involved the receipt or making of payments of more than (1) $500,000 for the one-year period ended March 31, 2015 or (2) $1,000,000 in the aggregate or (B) would reasonably be expected to result in the receipt or making of future payments by the Company or and/or any Company Subsidiary of future payments in excess of (1) $1,000,000;
500,000 in the one-year period following the date hereof or (iv2) each Contract that provides for $1,000,000 in the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annuallyaggregate;
(v) each Contract that gives any Person the right relating to acquire any assets outstanding Indebtedness of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company Subsidiaries for borrowed money or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary financial guaranty thereof (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 500,000 other than (A) Contracts solely between among the Company and a any wholly owned Company Subsidiary and (B) financial guarantees entered into in the ordinary course of business consistent with past practice not exceeding $500,000, individually or between wholly owned Company Subsidiariesin the aggregate;
(xivvi) each any Contract with a Related Party, except any employment or similar agreements or confidentiality agreements, invention assignment agreements and non-competition agreements in favor of the Company or indemnification agreements with director and officers, Company Benefit Plans or Contracts in connection therewith;
(vii) any Contract (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms or licenses contained in service Contracts related to pre-clinical or clinical development of any medicine to the extent the licenses contained therein are incidental to such Contract, immaterial, non-exclusive and granted in the ordinary course of business) to which the Company or any Company Subsidiary is a party or otherwise bound and pursuant to which the Company or any Company Subsidiary grants or receives (A) is granted any license, option, waiver, option or other right or immunity (including a covenant not to assert be sued or similar right to enforce or prosecute any patents) with respect to any Intellectual Property that Right of a third party or (B) has granted to a third party any license, option or other right or immunity (including a covenant not to be sued or right to enforce or prosecute any patents) with respect to any Intellectual Property Right, and, in the case of both (A) and (B), which Contract is material to the businesses Company and the Company Subsidiaries, taken as a whole;
(viii) any stockholders, investors rights, registration rights or similar agreement or arrangement;
(ix) any Contract (A) with sole-source or single-source suppliers of material tangible products or services, and which Contract is material to the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in pursuant to which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any of the Company Subsidiary, on the one handSubsidiaries has agreed to purchase a minimum quantity of goods relating to any product or product candidate or has agreed to purchase goods relating to any product or product candidate exclusively from a certain party, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of which Contract is reasonably expected to involve future expenditures by the Company or any of the Company Subsidiary, any beneficial owner, directly or indirectly, Subsidiaries of more than five percent $500,000 in the one-year period following the date hereof;
(5%x) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation continuing obligations or interests involving (A) “milestone” or other similar contingent payments, including upon the achievement of regulatory or commercial milestones, or (B) payment of royalties or other amounts calculated based upon any revenues or income of the Company or any Company Subsidiary, in each case that cannot be terminated by the Company or such Company Subsidiary without penalty without more than sixty (60) days’ notice without material payment or penalty;
(xi) any Contract that relates to indemnify such any swap, forward, futures, or other similar derivative transaction with a notional value in excess of $100,000;
(xii) each Contract (A) relating to the employment of, or the performance of services by, any director, officer of the Company subject to the reporting requirements of Section 16(a) of the Exchange Act with respect to the Company or employee which obligate or may in the future obligate the Company or the Company Subsidiary to make any severance, termination or similar payment to any current or former employee, or pursuant to which the Company or the Company Subsidiary may be obligated to make any bonus or similar payment to any current or former employee or director upon the consummation of the Transactions or (B) that provides for indemnification of any current or former officer, directordirector or employee;
(xiii) any Contract involving the settlement of any claim, affiliateaction or proceeding or threatened claim, beneficial owner action or family memberproceeding (or series of related, claims actions or proceedings) (A) which (x) since January 1, 2014, will involve payments after the date hereof, or involved payments, in excess of $500,000 or (y) will impose monitoring or reporting obligations to any other Person outside the ordinary course of business or material restrictions on the Company or any Company Subsidiary or (B) with respect to which material conditions precedent to the settlement have not been satisfied;
(xiv) each material lease, sublease and other agreement under which the Company or any of the Company Subsidiaries uses or occupies or has the right to use or occupy any the Company Leased Real Property;
(xv) any Contract relating to any loan or other extension of credit made by the Company or any of the Company Subsidiaries;
(xvi) each any Contract with a Material Supplierany Governmental Entity; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a3.20(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)Company.
(b) True The Company has provided to Parent prior to the date of this Agreement, an accurate and complete copies copy of each Material Contract as in effect as on the date of this Agreement. Each of the date hereof have been made available to Parent or publicly filed Material Contracts is valid, binding and in full force and effect and is enforceable in accordance with its terms by the SEC prior Company and any Company Subsidiary party thereto, subject to the date hereofBankruptcy and Equity Exception. Neither the Company nor any Company Subsidiary is in breach of or material default under the terms of any Material Contract, except as has not had and nor, to the knowledge of the Company, does any condition exist that, with notice or lapse of time or both, would not reasonably be expected to have, individually constitute a material default thereunder by the Company or in the aggregate, a any of Company Material Adverse EffectSubsidiary party thereto. To the Company’s Knowledge, as knowledge of the date hereofCompany, no other party to any Material Contract is in breach material default thereunder, nor does any condition exist that, with notice or lapse of time or both, would constitute a material default thereunder of such other party. Neither the Company nor any Company Subsidiary has received any notice of termination or cancellation under the terms of any Material Contract where such or received any notice of breach or default has had or would reasonably be expected to havein any material respect under any Material Contract, individually or in the aggregate, a Company Material Adverse Effect. Except as which breach has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breachbeen cured.
Appears in 3 contracts
Sources: Agreement and Plan of Merger (Allergan PLC), Merger Agreement (Kythera Biopharmaceuticals Inc), Merger Agreement (Allergan PLC)
Material Contracts. (a) Except for this Agreement, Section 4.17(a4.10(a) of the Company Seller Disclosure Letter contains sets forth a complete true and correct list, as of the date hereofEffective Date, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities following Business Contracts (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Leases and such Contracts set forth in Sections 4.9(c), 4.9(d), 4.15(a) and 4.16(a) of the type described in this Section 4.17(aSeller Disclosure Letter), whether or not set forth on Section 4.17 copies of the Company Disclosure Letter, being referred which have been made available to herein as “Material Contracts”):Purchaser:
(i) each Contract Contracts for the purchase or sale of assets, products or services (other than Company Leases) that limits in any material respect Contracts for the freedom purchase or sale of the Company, any Company Subsidiary or any of their respective affiliates inventory (including Parent and its affiliates after any finished goods, raw materials, components or work-in-progress) or obsolete equipment in the Effective Time) to compete or engage in any line ordinary course of business or geographic region or consistent with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and servicespast practice), in each case, in case requiring annual payments by any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments party thereto in excess of $1,000,000;
(ivii) each Contract that provides Contracts for the Company purchase or sale of any Company Subsidiary to obtain a service, license, product, product line, operations business or line of business from that have continuing indemnity or other material obligations of the Business;
(iii) Contracts which grant to any Person other than a Purchased Company the exclusive right to market, distribute or resell any Business product, or to exclusively represent a Purchased Company or an Asset Seller with respect to any such product, or act as exclusive agent for a Purchased Company or an Asset Seller in connection with the marketing, distribution or sale of any Business product;
(including any iv) Contracts for the lease of the Material Suppliers) that involves Equipment requiring annual payments by a Purchased Company or consideration Asset Seller in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually1,000,000;
(v) each Contract that gives Contracts with any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000Material Relationships;
(vi) any settlement or similar Contract with a Governmental Entity, Contracts granting an Encumbrance (other than those relating to Taxesa Permitted Encumbrance) on any Purchased Equity Interest or material Business Asset;
(vii) Contracts which limit or purport to limit a Purchased Company or an Asset Seller, or which following the Closing would limit or purport to limit Purchaser or any of its Affiliates, in each case, from engaging in any line of business or competing with any Person or in any geographic area or during any period of time;
(viii) Contracts requiring any Purchased Company or any Asset Seller to purchase all or a specified portion of the requirements of the Business, other than Contracts that are immaterial in amount and nature to the Business;
(ix) Contracts pursuant to which any Purchased Company has incurred any material indebtedness for borrowed money or issued any guarantee of any Liability of any other Person;
(x) consulting or independent contractor Contracts requiring annual payments by a Purchased Company or Asset Seller in excess of $100,000;
(xi) sales commission agreements and similar Contracts providing for payments to any Person based on sales, purchases, or profits, other than direct payments for goods, under which a Purchased Company or Asset Seller made payments exceeding $500,000 in the aggregate during the 12-month period ending June 30, 2016;
(xii) joint venture, partnership or other Contracts involving a sharing of profits, losses, costs or Liabilities of the Business with any other Person;
(xiii) Contracts for capital expenditures, other than (A) capital expenditures reflected in the capital expenditures budget of the Business previously made available to Purchaser or (B) which involves or is reasonably likely to involve aggregate expenditures of not more than $2,000,000; and
(xiv) Contracts with any director, officer or employee (in each case, other than (A) employment agreements covered in Section 4.10(a)(x), (B) payments of compensation for employment to employees in the ordinary course of business and (C) participation in Employee Benefit Plans by employees).
(b) Each Contract set forth in, or required to be set forth in, or if entered into prior to the Effective Date, would be required to be set forth in, Section 4.10(a) of the Seller Disclosure Letter (each, a “Material Contract”) is a legal, valid and binding obligation of a Purchased Company or an Asset Seller and, to the Knowledge of Parent, each other party thereto, enforceable in accordance with its terms, except to the extent that its enforceability may be subject to applicable bankruptcy, insolvency, reorganization, moratorium, receivership and similar laws affecting the enforcement of creditors’ rights generally and to general equitable principles. No Purchased Company or Asset Seller is in breach or default of, or has received any written notice of any breach, default or event that, with notice or lapse of time, or both, would constitute a default by a Purchased Company or Asset Seller under any Material Contract, except as has not been, and would not reasonably be expected to beexpected, individually or in the aggregate, to result in a material to Liability of the Company Purchased Companies and the Company SubsidiariesAsset Sellers, taken as a whole, any settlement or similar Contract restricting in any respect otherwise materially interfere with the operations or conduct of the Company Business, taken as a whole, in substantially the manner currently conducted. To the Knowledge of Parent, no other party to a Material Contract is in breach or any Company Subsidiary or any default of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1such Material Contract, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of for any such right breaches or imposition of such limitation has not been, and defaults that would not reasonably be expected to beexpected, individually or in the aggregate, to result in a material Liability owed to the Company Purchased Companies and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company SubsidiariesAsset Sellers, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to otherwise materially interfere with the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 conduct of the Company Disclosure Letter and Business, taken as a whole, in which substantially the grants of rights to use Intellectual Property are incidental to performance thereunder;manner currently conducted.
(xvc) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company SubsidiarySection 4.10(c) of the Company or any Company SubsidiarySeller Disclosure Letter sets forth a true and correct list, any beneficial owner, directly or indirectlyas of the Effective Date, of more than five percent (5%each Shared Contract that is material to the Business in any respect. Each Shared Contract set forth in, or required to be set forth in, or if entered into prior to the Effective Date, would be required to be set forth in, Section 4.10(c) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act)Seller Disclosure Letter is, on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregateBusiness, a Company Material Adverse Effect. To the Company’s Knowledgelegal, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had valid and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the a Purchased Company or the Company Subsidiary which is party thereto an Asset Seller and, to the Company’s KnowledgeKnowledge of Parent, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof enforceable in accordance with its terms existing as terms, except to the extent that its enforceability may be subject to applicable bankruptcy, insolvency, reorganization, moratorium, receivership and similar laws affecting the enforcement of the date hereof creditors’ rights generally and without any material breachto general equitable principles.
Appears in 3 contracts
Sources: Stock and Asset Purchase Agreement, Stock and Asset Purchase Agreement (Stanley Black & Decker, Inc.), Stock and Asset Purchase Agreement (Newell Brands Inc)
Material Contracts. (a) Except for this AgreementSchedule 3.14 sets forth a true, Section 4.17(a) correct and complete list of the Company Disclosure Letter contains a complete and correct listall existing or pending contracts, as of the date hereofcommitments, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rightslicenses, responsibilitiesagreements, obligations or liabilities (in each casearrangements, whether contingent oral or otherwise) written, formal or informal, to which the Company any Borrower Party or any Company Subsidiary of its Subsidiaries is a party (or intend to become a party) or to which any of their respective its assets or properties is bound (or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”may become bound):
(i) each Contract (other than Company Leases) that limits in under which any material respect the freedom of the Company, any Company Subsidiary Borrower Party or any of their respective affiliates its Subsidiaries is indemnified for or against any liability in excess of $250,000 or under which any Borrower Party or any of its Subsidiaries is or could be obligated to indemnify any Person in excess of $100,000;
(ii) under which any Borrower Party or any of its Subsidiaries leases personal property from or to third parties;
(iii) for the purchase or sale of products or other personal property or for the furnishing or receipt of services by any Borrower Party or any of its Subsidiaries (A) which calls for performance over a period of more than one (1) year and involves payments of more than $100,000 in the aggregate or (B) in which any Borrower Party or any of its Subsidiaries has agreed to purchase a minimum quantity of goods or services in excess of $200,000 in value or has agreed to purchase goods or services exclusively from any Person (provided, however, that it is agreed that the Borrower shall not be required to list on Schedule 3.14 any poultry purchase contracts entered into in the ordinary course of business, provided that such contracts will be deemed to be Material Contracts);
(iv) (A) granting representation, marketing or distribution rights, other than food brokers’ agreements entered into in the ordinary course of business, or (B) relating to Intellectual Property;
(v) regarding the financing of its business or any part of its business or operations;
(vi) establishing any partnership, any joint venture or any strategic alliance;
(vii) under which any Borrower Party or any of its Subsidiaries has created, incurred, assumed or guaranteed (or may create, incur, assume or guarantee) Indebtedness (including Parent and its affiliates after Capital Lease Obligations);
(viii) concerning any confidentiality obligations entered into outside of the Effective Time) to compete ordinary course of business or engage any covenants or agreements restricting it from carrying on any business or from competing in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areaPerson;
(iiix) with officers, directors, employees, consultants or independent contractors of any material partnership, strategic alliance, joint venture, collaboration Borrower Party or limited liability company agreement (other than any such agreement solely between or among the Company and of its wholly owned Subsidiaries) or similar Contract;
(iiix) each acquisition resulting in the creation or divestiture Contract that contains representations, covenants, indemnities or other obligations incurrence of any Lien (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000precautionary lease filings);
(ivxi) each Contract that provides for the Company involving any Affiliates of any Borrower Party or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annuallyits Subsidiaries;
(vxii) each Contract that gives under which the consequences of a default or termination could have a Material Adverse Effect on any Person the right to acquire any assets of the Company Borrower Party or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entityits Subsidiaries, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, whether individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, ;
(xiii) under which any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary Borrower Party or any of their respective affiliates its Subsidiaries will (including Parent and its affiliates after the Effective Time);
A) receive aggregate payments from customers, (viiiB) each Contract make aggregate payments to vendors or other suppliers or (other than Company LeasesC) not otherwise described in make or receive aggregate payments to or from any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments Persons, in each case in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries500,000 per annum;
(ixxiv) any Contract that obligates collective bargaining agreement entered into by, or binding upon, the Company Borrower or any Company Subsidiary to make any capital investment or capital expenditure outside of its Affiliates; and
(xv) not entered into in the ordinary course of business and described in excess response to any of $1,000,000 per annum;the foregoing clauses. All of the types of contracts, commitments, licenses, agreements, obligations or arrangements described in clauses (i) through (xv) above, together with the real property leases and other interests described in Section 3.25, whether entered into prior to, on or after the Effective Date, are collectively referred to herein as the “Material Contracts.” At the request of the Lender, the Borrower shall deliver to the Lender a true, correct and complete copy of each of the written Material Contracts, and a written summary of each of the oral Material Contracts, including all amendments, supplements or other modifications thereto.
(xb) except where Each Material Contract existing as of the exercise date hereof is (i) a legal, valid and binding obligation of the Borrower Party or any such right or imposition Subsidiary that is a party thereto, enforceable against it in accordance with its terms (assuming the enforceability of such limitation has not beenMaterial Contract against the other parties thereto), and would not reasonably be expected to be, individually or in the aggregate, material (ii) to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability best knowledge of the CompanyBorrower Parties, a legal, valid and binding obligation of the other parties thereto, enforceable against such other parties in accordance with its terms (assuming the enforceability of such Material Contract against any Company Subsidiary Borrower Party or any of its affiliates Subsidiaries party thereto) and (including Parent iii) in full force and effect on the date hereof. Any Borrower Party or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officerand, director or affiliate (other than a wholly owned Company Subsidiary) to the best knowledge of the Company or any Company SubsidiaryBorrower Parties, any beneficial owner, directly or indirectly, of more than five percent (5%) of all other parties to the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act)existing Material Contracts, on the other hand, including are in substantial compliance with the terms thereof, and no default or event of default by any Contract pursuant to which the Company Borrower Party or any Company Subsidiary has an obligation of its Subsidiaries, as the case may be, or, to indemnify such officerthe best knowledge of the Borrower Parties, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)party thereto exists thereunder.
(bc) True and complete copies No Borrower Party or any of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary its Subsidiaries is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is contract, commitment, license, agreement, obligation or arrangement that restricts it from carrying on its business or any part thereof, or from competing in breach any line of business or default under the terms of with any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breachPerson.
Appears in 2 contracts
Sources: Loan and Security Agreement (Overhill Farms Inc), Loan and Security Agreement (Levine Leichtman Capital Partners Ii Lp)
Material Contracts. (a) Except for this Agreement, Section 4.17(a4.18(a) of the Company Disclosure Letter contains Schedule sets forth a true and complete and correct list, as of the date hereofof this Agreement, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or following Contracts to which the Company or any Company Subsidiary of its Subsidiaries is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or its Subsidiaries is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;bound:
(ixi) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect or any Contract that is of the type that would be required to the Company (other than those agreements and arrangements described in be disclosed under Item 601(b)(10)(iii404(a) of Regulation S-K promulgated under the Exchange Act;
(ii) any Contract that (A) imposes any restriction on the right or ability of the SECCompany, any of its Subsidiaries or any Affiliate of any of them to compete with any other person in any line of business or geographic region (or that following the Effective Time will restrict the ability of Parent or its Affiliates to engage in any line of business or compete in any geographic area) or (B) obligates the Company or its Subsidiaries (or following the Effective Time, Parent or its Subsidiaries) to conduct business with any third party on a preferential or exclusive basis or which contains “most favored nation” rights or similar rights;
(iii) any collective bargaining agreement, labor union contract or trade union agreement (each, a “Collective Bargaining Agreement”) or other works council agreement;
(iv) any agreement relating to Indebtedness of the Company or any of its Subsidiaries having an outstanding principal amount in excess of $10,000,000;
(v) any Contract that provides for the acquisition or disposition of any assets (other than obligations set forth in the capital expenditure budget set forth on Section 6.1(h) of the Company Disclosure Schedule and acquisitions or dispositions of inventory in the ordinary course of business) or business (whether by merger, sale of stock, sale of assets or otherwise) and that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) outstanding as of the date of this Agreement that are material to the Company or any of its Subsidiaries;
(vi) any joint venture, partnership, limited liability company or strategic alliance agreement or other similar Contract with a third party;
(vii) any Contract that obligates the Company or any of its Subsidiaries to make any loans, advances or capital contributions to, or investments in, any person;
(viii) any Contract (A) granting the Company or one of its Subsidiaries any right to use any material Intellectual Property (other than licenses in respect of commercially available software) or (B) permitting any third person to use, enforce or register any material Intellectual Property, including any material license agreements (other than customary non-exclusive licensing provisions included in customer, supplier, and co-packing agreements), coexistence agreements and covenants not to ▇▇▇;
(ix) any Contract that is expected to result in the payment or receipt of more than $30,000,000 by the Company and its Subsidiaries in 2016;
(x) any Contract relating to the supply of any item used by the Company or a Subsidiary of the Company that is a sole source of supply of any raw material, component or service that is material to the Company and its Subsidiaries, taken as a whole; and
(xi) any Contract with any Top Supplier or Top Customer, other than, in the case of each Top Supplier and each Top Customers identified in Section 4.18(a)(xi)(A) of the Company Disclosure Schedule, Contracts that, in the aggregate, do not represent purchases or sales, respectively, constituting a majority of purchases from such Top Supplier or sales to such Top Customer. All contracts of the types referred to in clauses (i) through (xi) above, are referred to herein as “Company Material Contracts.” The Company has made available to Parent prior to the date of this Agreement a complete and correct copy of each Company Material Contract as in effect on the date of this Agreement.
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Subsidiary of the Company Subsidiary is in breach of or default under the terms of any Company Material Contract and, to the knowledge of the Company, no other party to any Company Material Contract is in breach of or default under the terms of any Company Material Contract, in any material respect. No event has occurred or not occurred through the Company’s or any of its Subsidiaries’ action or inaction or, to the knowledge of the Company, through the action or inaction of any third party, that with notice or the lapse of time or both would constitute a breach of or default under the terms of any Company Material Contract, in each case except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To Each Company Material Contract is a valid and binding obligation of the Company or the Subsidiary of the Company that is party thereto and, to the knowledge of the Company’s Knowledge, as of each other party thereto, and is in full force and effect. There are no disputes pending or, to the knowledge of the date hereofCompany, no threatened with respect to any Company Material Contract, and neither the Company nor any of its Subsidiaries has received any written notice of the intention of any other party to any Company Material Contract is in breach of to terminate for default, convenience or default under the terms of otherwise any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except Contract, nor to the knowledge of the Company, is any such party threatening to do so, in each case except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.
(c) Since January 1, each Material Contract is a valid2016 to the date hereof, binding and enforceable obligation no Top Supplier or Top Customer has canceled, terminated or substantially curtailed its relationship with the Company or any Subsidiary of the Company, given notice to the Company or any Subsidiary of the Company of any intention to cancel, terminate or substantially curtail its relationship with the Company or any Subsidiary which is party thereto andof the Company, or, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as knowledge of the date hereof and without Company, threatened to do any material breachof the foregoing.
Appears in 2 contracts
Sources: Merger Agreement, Merger Agreement (WHITEWAVE FOODS Co)
Material Contracts. (a) Except for For purposes of this Agreement, Section 4.17(a) of "Material Contract" shall mean the Company Disclosure Letter contains a complete and correct list, as of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or following to which the Company or any Company Subsidiary of its Subsidiaries is a party or to which any of their the respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):are bound:
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “"material contract” " (as such term is defined in Item 601(b)(10) of Regulation S-K of the Securities Act), whether or not filed by the Company with the SEC;
(ii) any Lease;
(iii) any employment or consulting Contract (in each case with respect to which the Company has continuing obligations as of the date hereof) with any current or former (x) executive officer of the Company, (y) member of the Company Board, or (z) Company Employee;
(iv) any Contract providing for indemnification or any guaranty by the Company or any Subsidiary thereof, other than (x) any guaranty by the Company or a Subsidiary thereof of any of the obligations of (A) the Company or another wholly-owned Subsidiary thereof or (B) any Subsidiary (other than those a wholly-owned Subsidiary) of the Company that was entered into in the ordinary course of business pursuant to or in connection with a customer Contract, , (y) any Contract providing for any guaranty by a Person other than the Company with respect to a liability or obligation of the Company, or (z) any Contract providing for indemnification of customers or other Persons pursuant to Contracts entered into in the ordinary course of business;
(v) any Contract that purports to limit the right of the Company or any of its Subsidiaries (or, at any time after the consummation of the Merger, Parent or any of its Subsidiaries) (x) to engage in any line of business, or (y) to compete with any Person or operate in any geographical location;
(vi) any Contract relating to the disposition or acquisition, directly or indirectly (by merger or otherwise), by the Company or any of its Subsidiaries after the date of this Agreement of assets other than consumable inventory (including, without limitation, fibers);
(vii) any Contract relating to the repair and maintenance of Company Medical Equipment involving payments by the Company in excess of $50,000 in any year;
(viii) any Contract that obligates the Company or any of its Subsidiaries to conduct business on an exclusive or preferential basis with any third party or upon consummation of the Merger will obligate Parent, the Surviving Corporation or any of their respective Subsidiaries to conduct business on an exclusive or preferential basis with any third party;
(ix) any partnership, joint venture or similar Contract that is material to the Company and its Subsidiaries taken as a whole;
(x) any mortgages, indentures, guarantees, loans or credit agreements, security agreements or other Contracts, in each case relating to indebtedness for borrowed money, whether as borrower or lender, other than accounts receivables and arrangements payables;
(xi) any employee collective bargaining agreement or other Contract with any labor union;
(xii) any other Contract under which the Company or any of its Subsidiaries is obligated to make payment or incur costs in excess of $50,000 in any year and which is not otherwise described in Item 601(b)(10)(iiiclauses (i)-(xi) above;
(xiii) any Contract which is not otherwise described in clauses (i)-(xii) above that is material to the Company and its Subsidiaries, taken as a whole, and listed on Section 4.19(b) of Regulation S-K the Company Disclosure Letter; or
(xiv) any Company IP Agreement that is material to the conduct of the SEC)Company's business.
(b) True Section 4.19(b) of the Company Disclosure Letter sets forth a true and complete copies of each Material Contract in effect list as of the date hereof have been of all Material Contracts. The Company has made available to Parent or publicly filed with correct and complete copies of all Material Contracts, including any amendments thereto.
(i) All the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had Contracts are valid and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of on the Company or the Company Subsidiary which is party thereto andits applicable Subsidiary, to the Company’s Knowledge, of each other party theretoenforceable against it in accordance with its terms, and is in full force and effect, subject (ii) neither the Company nor any of its Subsidiaries nor, to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as Knowledge of the date hereof Company, any third party has materially violated any provision of, or materially failed to perform any obligation required under the provisions of, any Material Contract, and without (iii) neither the Company nor any of its Subsidiaries nor, to the Knowledge of the Company, any third party is in breach, or has received written notice of any material breach, of any Material Contract.
Appears in 2 contracts
Sources: Merger Agreement (Emergent Group Inc/Ny), Merger Agreement (Universal Hospital Services Inc)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.16(a) of the Company Disclosure Letter contains Schedule lists each of the following written contracts and agreements to which any ▇▇▇▇▇▇ Entity is a complete and correct list, party in effect as of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities Agreement (in each case, whether contingent or otherwise) or such contracts and agreements so required to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letterbe disclosed, being referred to herein as “Material Contracts”):
(i) each Contract any agreement for the purchase of products or for the receipt of services, the performance of which will extend over a period of more than one year and which involved consideration or payments by the ▇▇▇▇▇▇ Entities in excess of $1,000,000 in the aggregate during the year ended December 31, 2008;
(ii) any agreement for the furnishing of products or services by the ▇▇▇▇▇▇ Entities to their customers, the performance of which will extend over a period of more than one year and which involved consideration or payments by such customers in excess of $2,500,000 in the aggregate during the year ended December 31, 2008;
(iii) any agreement concerning the establishment or operation of a partnership, joint venture or limited liability company;
(iv) any agreement under which any ▇▇▇▇▇▇ Entity created, incurred, assumed or guaranteed any Indebtedness in excess of $5,000,000 or under which there has been imposed any Encumbrances on any of the assets, tangible or intangible, of any ▇▇▇▇▇▇ Entity;
(v) any agreement entered into in the past four years (or with respect to which any material obligation of any ▇▇▇▇▇▇ Entity is outstanding) for the disposition of any material assets or business of any ▇▇▇▇▇▇ Entity (other than Company Leasessales of products in the ordinary course of business) or any agreement entered into in the past four years for the acquisition of the assets or business of any other Person (other than purchases of products in the ordinary course of business), in each case involving consideration in excess of $5,000,000;
(vi) any agreement that limits in or purports to limit the ability of any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) ▇▇▇▇▇▇ Entity to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areaarea or during any period of time;
(iivii) any material partnershipthe lease and, strategic allianceif applicable, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contractsublease agreements pertaining to each parcel of Leased Real Property;
(iiiviii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected all agreements related to result in mining operations at the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves Mines involving annual payments or consideration in excess of $2,000,000, 1,000,000 or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, are otherwise material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, ▇▇▇▇▇▇ Entities taken as a whole;
(xiiiix) each Contract evidencing all material contracts and agreements between or relating to outstanding Indebtedness (among any ▇▇▇▇▇▇ Entity, on the one hand, and the Seller or commitments in respect thereof) any Affiliate of the Company Seller, on the other hand;
(x) all collective bargaining agreements or other contracts with any Company Subsidiary labor organization, union or other similar association;
(whether incurred, assumed, guaranteed xi) any employment related (including consulting) contract or secured by any asset) in an amount arrangement that is a Transferred Plan or that provides for total annual compensation in excess of $1,000,000 250,000;
(xii) any contract that contains exclusivity or “most favored nation” obligations or similar restrictions binding on any ▇▇▇▇▇▇ Entity or that would be binding on Purchaser or its Affiliates after the Closing;
(xiii) any material ▇▇▇▇▇▇ IP Agreement, other than Contracts solely between non-disclosure agreements entered into in the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiariesordinary course of business;
(xiv) each Contract any contract to which any ▇▇▇▇▇▇ Entity is a party containing a standstill or similar agreement pursuant to which one party has agreed not to acquire assets or securities of the Company other party or any Company Subsidiary grants of its Affiliates;
(xv) any contract relating to any interest rate, currency or receives commodity derivative, hedge, derivative transactions or similar transactions;
(xvi) any licensecontract containing a put, option, waiver, covenant not to assert call or similar right with respect pursuant to Intellectual Property that which any ▇▇▇▇▇▇ Entity could be required to purchase or sell, as applicable, any securities or assets; and
(xvii) any contract other than described above to which any ▇▇▇▇▇▇ Entity is a party or by which it or they or any of its or their assets or properties or business is bound or subject that: (A) is material to the businesses of the Company and the Company Subsidiaries▇▇▇▇▇▇ Entities, taken as a whole, or agrees to limit its the use or exploitation operation of any material Company IP in any material respectof its assets or properties, including pursuant to any settlement agreementtaken as a whole, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company if breached, terminated or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with not renewed could have a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)Adverse Effect.
(b) True and complete copies of each Each Material Contract in effect as of (i) is valid and binding on the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contractapplicable ▇▇▇▇▇▇ Entity, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s KnowledgeKnowledge of the Seller, of each other party the counterparties thereto, and is in full force and effecteffect and (where applicable) Registered or filed with any relevant Governmental Authority, subject to (other than, in respect of the Enforceability Limitations making of this representation and any expiration thereof warranty as of the Closing Date in accordance with the first paragraph of this Article III, where such Material Contract expires in accordance with its terms existing as without a right of renewal or is terminated in accordance with its terms by a counterparty other than due to a ▇▇▇▇▇▇ Entity’s breach) and (ii) upon consummation of the date hereof transactions contemplated by this Agreement, except to the extent that any consents set forth in Section 3.04(c) of the Disclosure Schedule are not obtained, shall continue in full force and effect without penalty or other adverse consequence. None of the ▇▇▇▇▇▇ Entities is in material breach of, or material default under, any material breachMaterial Contract to which it is a party.
Appears in 2 contracts
Sources: Stock Purchase Agreement (Dow Chemical Co /De/), Stock Purchase Agreement (Rohm & Haas Co)
Material Contracts. (a) Except for this Agreement, Section 4.17(athe Company Ancillary Agreements and other contracts and agreements (i) set forth on Schedule 3.20 of the Company Disclosure Letter contains a complete and correct listSchedule or (ii) filed as exhibits to the Company SEC Documents (collectively, the “Material Contracts”) or (iii) which individually or in the aggregate are not material to Company’s or any of its Subsidiaries’ businesses, as of the date hereofof this Agreement, of each Contract described in this Section 4.17(a) under which neither the Company or nor any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is of its Subsidiaries are a party to or to which bound by:
(a) any trust indenture, mortgage, promissory note, loan agreement or other contract for the borrowing of their respective properties money, any currency exchange, commodities or assets is subject, other hedging arrangement (other than any Company Benefit Plans (all Contracts such arrangement entered into for bona fide hedging purposes) or any leasing transaction of the type described required to be capitalized in this Section 4.17(a), whether or not set forth on Section 4.17 accordance with Statement of Financial Accounting Standards No. 13 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):Financing Accounting Standards Board;
(ib) each Contract any contract for capital expenditures in excess of one hundred fifty thousand dollars (other than Company Leases$150,000) that limits in the aggregate;
(c) any material respect contract limiting the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sellbusiness, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of material product or asset from any other Person outside the Company or any Company Subsidiary (excluding ordinary course commitments of business, to purchase goods sell any material product or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure asset outside the ordinary course of business and in excess to, or to perform any material service outside the ordinary course of $1,000,000 per annum;
business, or to compete with any other Person (x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or as that term is defined in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective TimeExchange Act);
(xiid) each Contract governing any collaborationcontract pursuant to which Company is a lessor of real property or of any machinery, co-promotionequipment, strategic alliance motor vehicles, office furniture, fixtures or design project other personal tangible property involving in the case of any such personal property contract which, in each case, is material more than one hundred thousand dollars ($100,000) over the life of the contract that expires or may be renewed at the option of any Person other than Company so as to expire more than one (1) year after the Company and the Company Subsidiaries, taken as a wholedate of this Agreement;
(xiiie) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the any material contract with any Person with whom Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiariesdoes not deal at arm’s length;
(xivf) each Contract pursuant to any contract which provides for the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation indemnification of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner employee or family memberagent;
(xvig) each Contract any guarantee of indebtedness of any other Person;
(h) any contract with or commitment to any labor union;
(i) any contract or commitment for or relating to the employment of any officer, employee or consultant of Company or any other type of contract or understanding with any officer, employee or consultant of the Company that is not immediately terminable (or terminable within thirty (30) days or less in the case of consultants) by Company without cost or other liability;
(j) any joint venture or partnership contract or other agreement which has involved, or is reasonably expected to involve, a Material Suppliersharing of profits, expenses or losses with any other party; and
(xviik) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (IP Rights Agreement other than those object code licenses of commercial off-the-shelf computer software under shrink-wrap or other non-negotiated agreements and arrangements described having a cost of less than five hundred dollars ($500) per seat or other generally available commercial licenses providing for license fees in Item 601(b)(10)(iii) of Regulation S-K of the SECan amount less than ten thousand dollars ($10,000).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Merger Agreement (Authorize.Net Holdings, Inc.), Agreement and Plan of Reorganization (Cybersource Corp)
Material Contracts. (a) Except for this Agreement, as disclosed in Section 4.17(a) 2.9 of the Company Seller Disclosure Letter contains a complete and correct listLetter, as neither of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which Transferred Companies nor any of their respective properties Subsidiaries, or, in the case of any Shared Contract, Seller Group, is a party to or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):bound by:
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset);
(ii) any joint venture, partnership or other similar agreements or arrangements (including any agreement providing for joint research, development or marketing);
(iii) any agreement or series of related agreements, including any option agreement, within the past five years, relating to the acquisition of, investment in or disposition of any business, equity interests or assets of any other Person, any material real property or assets (whether by merger, sale of equity interests, sale of assets or otherwise);
(iv) any agreement that (A) materially limits the freedom of any of the Transferred Companies or any of their respective Subsidiaries to compete in any line of business or with any Person or in any area or that would so limit the freedom of Buyer or its Affiliates or any Target Company after the Closing or (B) contains material exclusivity obligations, “most favored nation” provisions, “shiny new product” provisions or other similar restrictions, rights or obligations binding on any Target Company, or that would be binding on Buyer or any of its Affiliates after the Closing;
(v) any agreement or series of related agreements providing for the purchase of materials, supplies, goods, services, equipment or other assets that provides for aggregate payments by any of the Transferred Companies or any of their respective Subsidiaries of $500,000 or more for the year ended December 31, 2019;
(vi) any agreement or series of related agreements providing for the sale by any of the Transferred Companies or any of their respective Subsidiaries of materials, supplies, goods, services, equipment or other assets that provides for aggregate payments to any of the Transferred Companies or any of their respective Subsidiaries pursuant to which the Transferred Companies or any of their respective Subsidiaries received revenues of $2,000,000 or more for the fiscal year ended December 31, 2019;
(vii) any agreement pursuant to which any of the Transferred Companies or any of their respective Subsidiaries is the lessee or lessor of any tangible personal property that involves an amount aggregate future or potential liability or receivable, as the case may be, in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries100,000;
(xivviii) any agreement relating to any interest rate, derivatives or hedging transaction;
(ix) any agreement with any Governmental Authority, including Governmental Contracts;
(x) any agreement (including any “take-or-pay” or keepwell agreement) under which (A) any Person has directly or indirectly guaranteed any liabilities or obligations of any of the Transferred Companies or any of their respective Subsidiaries or (B) any of the Transferred Companies or any of their respective Subsidiaries has directly or indirectly guaranteed any liabilities or obligations of any other Person (in each Contract case other than endorsements for the purpose of collection in the ordinary course of business);
(xi) any agreement material to the Business (A) pursuant to which any of the Company or any Company Subsidiary grants or Target Companies (1) receives any license, option, waiver, covenant not a license to assert or similar right with respect to use Intellectual Property or (2) provides or otherwise grants any other Person a license to use Owned Intellectual Property or (B) that is material a settlement or coexistence Contract relating to the businesses of the Company and the Company SubsidiariesOwned Intellectual Property, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangementeach case, other than (Ax) licenses for Software that is generally commercially available (or available on an open source basis) or pre-installed in hardware that requires annual license payments less than $500,000 and (y) non-exclusive licenses granted by Seller to customers and suppliers in the Company ordinary course of business;
(xii) any settlement, conciliation or Company similar agreement with a Governmental Authority or other Person pursuant to which the Business or any of the Transferred Companies or any of their respective Subsidiaries for generally available Software or information technology services on substantially standardized termswill (A) have a payment obligation in excess of $100,000, and (B) Contracts that otherwise constitute Material Contracts identified have any ongoing, non-monetary obligation binding on Section 4.17 of any Target Company, or (C) be subject to injunctive relief after the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunderdate hereof;
(xvxiii) each Contract between any agreement that relates both to the Company or any Company SubsidiaryBusiness, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act)Retained Business, on the other handhand (each, including a “Shared Contract”), other than any Contract pursuant Shared Contracts for general, corporate and administrative or similar services;
(xiv) any agreement for capital expenditures in excess of $250,000 in the next 12 months following the date hereof or in excess of $1,000,000 in the aggregate;
(xv) any agreement that grants to which any Person any right of first refusal, right of first offer or similar right or that limits the ability of any Target Company to transfer, pledge or otherwise dispose of any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family memberasset of the Business;
(xvi) each Contract any agreement with a Material Supplier; andCommercial Relationship;
(xvii) any Contract Labor Contract;
(xviii) any Seller Guaranty; or
(xix) any agreement for the employment or engagement of any Business Employee or independent contractor on a full-time, part-time, consulting or other basis (A) providing for an annual base salary or fee in excess of $160,000, (B) at the director level or above or (C) that is not terminable upon 30 days’ notice or less without any liability to any Target Company; or
(xx) any agreement that (A) is not otherwise described in any other subsection of this set forth on Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K 2.9 of the SECSeller Disclosure Letter, (B) with respect to involves annual payments in excess of $2,000,000 and (C) is not terminable by the Company Target Companies (other without penalty or cost) on less than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)90 days’ notice.
(b) True Each agreement, commitment, arrangement or plan disclosed or required to be disclosed in the Seller Disclosure Letter pursuant to this Section 2.9, Section 2.10, Section 2.11 or Section 2.20 (each, a “Material Contract”) is a valid and complete copies of each Material Contract in effect as binding agreement of the date hereof have been made available to Parent Transferred Companies or publicly filed with one of their respective Subsidiaries or, in the SEC prior case of any Shared Contract, Seller or any of its Affiliates (other than a Target Company) (subject to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, Enforceability Exceptions) and is in full force and effect, subject and none of the Transferred Companies, any Subsidiary of the Transferred Companies or, to the Enforceability Limitations Knowledge of Seller, any other party thereto is in default or breach in any material respect under (or is alleged to be in default or breach in any material respect under) the terms of any such Material Contract, and, to the Knowledge of Seller, no change, event, circumstance, development, occurrence or effect has occurred or exists, that, with notice or lapse of time or both, would reasonably be expected to (i) constitute an event of default, breach, or violation thereunder or (ii) give any Person the right to cancel or terminate or materially and adversely modify the economic terms of any expiration thereof Material Contract except, in accordance each case, as would not be material to the Target Companies, taken as a whole.
(c) None of Seller or its Subsidiaries has received any written notice or threat to terminate, materially and adversely amend or modify (including payment terms, price, duration or otherwise) or not renew (or renew on materially different terms) any Material Contract. A true, correct and complete copy of each written Material Contract has been furnished to Buyer. Since December 31, 2019, there has been no agreement or arrangement (including any amendment to, modification to or waiver of any term of any satellite capacity agreement) that does, or would reasonably be expected to, defer, delay or extend the due date for, any payment obligations of Seller Group in connection with its terms existing as the Business or of the date hereof and without any material breachTarget Companies.
Appears in 2 contracts
Sources: Purchase and Sale Agreement (Gogo Inc.), Purchase and Sale Agreement (Intelsat S.A.)
Material Contracts. (a) Except for this Agreement, Section 4.17(aSchedule 4.13(a) of the Company Disclosure Letter contains a complete and correct list, sets forth as of the date hereofhereof an accurate, correct and complete list of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or all Seller Contracts to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not descriptions set forth on Section 4.17 of below apply (the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Real Property Leases, Personal Property Leases and IP Licenses;
(ii) Any outstanding Contract for capital expenditures or for the purchase of goods or services for the Business in excess of $25,000;
(iii) Any joint venture, partnership, cooperative arrangement or any other than Company Leases) that limits in Contract involving a sharing of profits primarily relating to any material respect the freedom of the CompanyPurchased Assets or the Business;
(iv) Any advertising Contract not terminable without payment or penalty on thirty (30) days (or less) notice;
(v) Any Contract granting or receiving any right, title or interest in or to real property;
(vi) Any Contract with any Company Subsidiary Governmental Authority that directly applies to Business or any of their respective affiliates the Purchased Assets;
(including Parent and its affiliates after vii) Any Contract with respect to the Effective Timedischarge, storage or removal of effluent, waste or pollutants primarily relating to the Business or any of the Purchased Assets;
(viii) Any Contract relating to any license or royalty arrangement that directly applies to the Business or any of the Purchased Assets;
(ix) Any power of attorney, proxy or similar instrument;
(x) Any Contract for the manufacture, service or maintenance of any Seller Product;
(xi) Any requirement or output Contract with respect to the Seller Products;
(xii) Any Contract to indemnify any Person or to share in or contribute to the liability of any Person;
(xiii) Any Contract containing covenants not to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect geographical area primarily relating to the Company, the Company Subsidiaries Business or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments Purchased Assets or consideration in excess of $2,000,000, which would be binding on Purchaser or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Purchased Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company SubsidiariesClosing;
(xiv) each Any other Contract pursuant primarily relating to which the Company Business or any Company Subsidiary grants of the Purchased Assets (including current Contracts with customers of the Business), which (i) provides for payment or receives performance by either party thereto having an aggregate value of $50,000 or more; (ii) is not terminable without payment or penalty on thirty (30) days (or less) notice; or (iii) is between, inter alia, an Affiliate and Seller; and
(xv) Any other Contract that involves future payments, performance of services or delivery of goods or materials to or by Seller of an aggregate amount or value in excess of $25,000 on an annual basis and primarily relating to the Business or any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property the Purchased Assets or that otherwise is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)Business.
(b) True Seller has provided to Purchaser accurate, correct and complete copies of each all Material Contracts, including all material amendments, supplements, modifications and waivers thereof.
(c) Each Material Contract is currently valid and in effect full force and effect, and is enforceable by Seller in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws and equitable principles related to or limiting creditors’ rights generally and by general principles of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary equity.
(d) (i) Seller is not in default in a material respect, and no party has notified Seller that it is in breach of or default in a material respect, under the terms of any Material Contract, except as . No event has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, occurred as of the date hereof, and to the Knowledge of Seller, no other party circumstance or condition exists, that will be reasonably likely to any Material Contract is (with or without notice or lapse of time): (A) result in a violation or breach of or default under any of the terms provisions by Seller of any Material Contract where such breach Contract; (B) give any Person the right to declare a default or default has had or would reasonably be expected to have, individually or in the aggregate, a Company exercise any remedy under any Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.Contract;
Appears in 2 contracts
Sources: Asset Purchase Agreement (Smith Micro Software Inc), Asset Purchase Agreement (Pc Tel Inc)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.21(a) of the Company Disclosure Letter contains a complete and correct listsets forth, as of the date hereofof this Agreement, a correct and complete list of each Contract described in this Section 4.17(a) under which of the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or following types of Contracts to which the Company or any Company Subsidiary of its Subsidiaries is a party or to by which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):bound:
(i) each Contract that (other than A) limits or restricts the Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates Subsidiaries (or would, from and after the Effective Time, limit or restrict Parent, any of its Subsidiaries or any of its stockholders) to compete or engage from competing in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic arearegion, or (B) contains “most favored nation” pricing provisions, exclusivity obligations, rights of first refusal, rights of first negotiation or offer or similar restrictions binding on the Company or any of its Subsidiaries;
(ii) any each Contract that is a joint venture or partnership agreement that is material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among to the Company and its wholly owned Subsidiaries) or similar Contract, taken as a whole;
(iii) each acquisition Contract in respect of (A) Secured Company Indebtedness or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligationsB) that would reasonably be expected MSR Related Transactions with respect to result Mortgage Servicing Rights having an unpaid principal balance in the receipt or making by the Company or any Company Subsidiary of future payments in excess aggregate of $1,000,0005 billion or greater;
(iv) each Contract that provides is a loan, guarantee of indebtedness or credit agreement, note, bond, mortgage, indenture or other binding commitment evidencing indebtedness for borrowed money of the Company or any of its Subsidiaries (other than letters of credit, surety bonds and similar performance guarantees and intercompany loans between the Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliersand its wholly-owned Subsidiaries) that involves annual payments or consideration in each case in an amount in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually50 million individually;
(v) each Contract with respect to an interest, rate, currency or other swap or derivative transaction (other than those between the Company and its Subsidiaries) with a fair value in excess of $10 million;
(vi) each Contract that gives is an acquisition agreement or divestiture agreement pursuant to which (A) the Company reasonably expects that it is required to pay total consideration (including assumption of debt) after the date of this Agreement to be in excess of $50 million, (B) any other Person has the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) of its Subsidiaries after the date hereof of this Agreement with consideration a fair market value or purchase price of more than $1,000,000;
50 million, (viC) the Company has any settlement ongoing indemnification or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except outstanding obligations as has not been, and would not reasonably be expected to be, individually or in of the aggregate, date of this Agreement that are material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to which the Company or Company any of its Subsidiaries for generally available Software has continuing “earn out” or information technology services on substantially standardized termsother contingent payment obligations after the date of this Agreement reasonably likely to result in the payment of in excess of $500,000, and excluding, in each case, (Bx) Contracts related to Secured Company Indebtedness, (y) acquisitions or dispositions of inventory, products or assets in the ordinary course of the Company’s and its Subsidiaries’ business, including in connection with MSR Related Transactions, securitizations or other similar transactions involving Mortgage Servicing Rights or Mortgage Loans or (z) of inventory, products, equipment, properties or other assets that otherwise constitute Material Contracts identified on Section 4.17 are obsolete, worn out, surplus or no longer used or useful in the conduct of business of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunderor its Subsidiaries;
(xvvii) each Contract between the Company or any Company Subsidiary, on the one hand, of its Subsidiaries and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family memberGovernmental Authority;
(xviviii) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute is required to be filed by the Company as a “material contract” (as such term is defined in pursuant to Item 601(b)(10) of Regulation S-K under the Securities Act;
(ix) each Related Party Contract;
(x) each Contract which restricts the payment of dividends or distributions in respect of the SECcapital stock or equity interests of the Company or any of its Subsidiaries;
(xi) each Contract under which the Company or any of its Subsidiaries (A) grants or is granted, in any material respect, a license or other right or interest with respect to any Intellectual Property or IT Systems (including any settlement or co-existence agreements or agreements with covenants not to ▇▇▇, but excluding any non-exclusive license (x) for the use of any commercially available, off-the-shelf software with a replacement cost and/or aggregate annual payments of less than $250,000, and/or (y) which is granted in the ordinary course of business by the Company and its Subsidiaries and is not material to the Company and/or any of its Subsidiaries), or (B) is subject to any material restrictions with respect to any Intellectual Property or IT Systems owned by the Company and its Subsidiaries; and
(xii) each Contract involving the settlement of any Proceeding or threatened Proceeding (or series of Proceedings), other than those agreements and arrangements a claim, action or Proceeding relating to Taxes, which (x) may involve payments in excess of $2 million after the date hereof or since December 31, 2015 has involved payments in excess of $2 million or (y) impose or would purport to impose material restrictions on the operation of the businesses of Parent or any of its Subsidiaries following the Closing. Each Contract of the type described in Item 601(b)(10)(iiiclauses (i) of Regulation S-K of the SEC)through (vii) is referred to herein as a “Company Material Contract”.
(b) True and complete copies of each Except for any Company Material Contract that has terminated or expired in effect as of the date hereof have been made available to Parent accordance with its terms or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to havehad, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Company Material Contract is a valid, valid and binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto in full force and effect and, to the Knowledge of the Company’s Knowledge, of each enforceable against the other party thereto, and is or parties thereto in full force and effectaccordance with its terms, subject to the Enforceability Limitations Exceptions. Except for breaches, violations or defaults which have not had, and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, neither the Company nor any of its Subsidiaries, nor to the Knowledge of the Company any other party to a Company Material Contract, is in violation of or in default under any provision of such Company Material Contract. True and complete copies of the Company Material Contracts and any expiration thereof in accordance with its terms existing as of material amendments thereto have been made available to Parent prior to the date hereof and without any material breachof this Agreement.
Appears in 2 contracts
Sources: Merger Agreement (Wmih Corp.), Merger Agreement (Nationstar Mortgage Holdings Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) 4.17 of the Company Disclosure Letter contains a complete and correct list, as of lists the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or following Contracts to which the Company or any Company Subsidiary of its Subsidiaries is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Contract (other than all Contracts that purport to limit, curtail or restrict the right of the Company Leases) that limits or any of its Subsidiaries in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective TimeA) to engage or compete or engage in any line of business or in any geographic region or area, with any Person or sell, supply during any period of time or distribute (B) to solicit or hire any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areaPerson;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement Contract (other than standard purchase orders) that grants any such agreement solely between or among Person other than the Company and or any of its wholly owned SubsidiariesSubsidiaries any (A) exclusive license, supply, distribution or other rights, (B) material “most favored nation” rights, (C) material rights of first refusal, rights of first negotiation or similar Contractrights, (D) exclusive rights to purchase any Company products, (E) material guaranteed availability of supply or services for a period greater than 12 months, (F) guarantee as to production capacity or priority, (G) material rebates or (H) price guarantees for a period greater than 12 months;
(iii) each any Contract relating to the disposition or acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any of its Subsidiaries of any business (whether by merger, sale or purchase of assets, sale or purchase of stock or equity ownership interests or otherwise) (A) entered into on or after February 1, 2015 (whether or not such acquisition or disposition has been consummated prior to the date of this Agreement) or (B) that contains ongoing non-competition or indemnification obligations or other ongoing obligations of the Company Subsidiary or any of future payments in excess of $1,000,000its Subsidiaries;
(iv) each any (A) standstill or similar agreement restricting any Person from acquiring the securities of, soliciting proxies respecting or affecting the control of any other Person, or (B) Contract that provides for requiring the Company or any Company Subsidiary of its Subsidiaries to obtain a service, license, product, product line, operations provide any notice or line of business from information to any Person (including prior to considering or accepting any of the Material Suppliers) that involves annual payments Acquisition Proposal or consideration in excess of $2,000,000, similar proposal or that contains prior to entering into any minimum purchase commitments in excess of $2,000,000 annuallydiscussions or Contract relating to any Acquisition Proposal or similar transaction;
(v) each any Contract (other than Contracts for “off-the-shelf” Software licensed to the Company or its Subsidiaries for a one-time or annual fee of less than $15,000), that gives any Person the right to acquire any assets of requires a license or royalty payment to, or license or royalty payment by, the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of its Subsidiaries and that involves more than $1,000,000100,000 in any 12 month period;
(vi) any settlement or similar Contract with a Governmental Entity, Company IP Agreement (other than those relating Contracts for “off-the-shelf” Software licensed to Taxesthe Company or its Subsidiaries for a one-time or annual fee of less than $15,000);
(vii) except as has not been(A) any customer or client Contract, and would not reasonably be expected to beincluding any Government Contract, individually that involves total required payments in excess of $1,000,000 or (B) any other Contract (excluding Contracts for Company IP Agreements, Software licenses, Company Leased Real Property or Indebtedness) that involves total required payments in excess of $500,000, in each case (other than purchase orders issued (or received) for the purchase or sale of goods in the aggregate, material to ordinary course of business consistent with past practice) that is not terminable by the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time)upon 30 days’ notice without penalty;
(viii) any Contract with distributors or sales representatives or that relates to merchandising or that otherwise entitles a third party to a commission that is not terminable upon 30 days’ notice without penalty;
(ix) any mortgages, indentures, debentures, bonds, guarantees, loans or credit agreements, security agreements or other Contracts, in each case, relating to Indebtedness of the Company or its Subsidiaries, and whether secured or unsecured in excess of $500,000;
(x) any Contract that involves or relates to any exchange traded, over-the-counter or other hedging (including currency or commodity hedging), swap, cap, floor, collar, futures, forward, option or other than derivative financial trading activities;
(xi) any indemnification Contract entered into with an officer or director of the Company Leases) not otherwise described in providing for indemnification by the Company or any other subsection of this Section 4.17(a) pursuant its Subsidiaries (with respect to which the Company or any Company Subsidiary of its Subsidiaries has paid or received payments in excess continuing obligations as of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Timethis Agreement);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance leases or design project contract which, in each case, is material to subleases under which the Company and or its Subsidiaries lease or occupy the Company Subsidiaries, taken as a wholeLeased Real Property that involve rental payments in excess of $100,000 in any 12 month period;
(xiii) any Contract establishing a partnership, joint venture or similar third party business enterprise; and
(A) any change of control, retention or transaction bonus agreement or (B) any employment Contract, (C) any Contract set forth on Section 4.12(k) of the Company Disclosure Letter, (D) any consulting Contract that involves total consideration in excess of $250,000 (in each Contract evidencing case with respect to which any party thereto has continuing obligations as of the date of this Agreement) with any current or relating to outstanding Indebtedness former (1) member of the Company Board, or commitments in respect thereof(2) employee of the Company or any Company Subsidiary of its Subsidiaries or (whether incurred, assumed, guaranteed or secured by E) any assetcollective bargaining agreements.
(b) in an amount in excess of $1,000,000 other than Contracts solely between Neither the Company and nor any of its Subsidiaries is a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each party to any Contract pursuant required to which be filed by the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in pursuant to Item 601(b)(10) of Regulation S-K of under the SECSecurities Act that has not been so filed.
(i) with respect to Each Material Contract is valid and binding on the Company or one of its Subsidiaries and is in full force and effect (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K due to the ordinary expiration of the SECterm thereof).
(b) True and complete copies of each Material Contract in effect as , and, to the Knowledge of the date hereof have been made available to Parent or publicly filed with Company, is valid and binding on the SEC prior other parties thereto (in each case subject to the date hereof. Neither Bankruptcy and Equity Exception) and (ii) neither the Company nor any Company Subsidiary of its Subsidiaries is in default under any Material Contract and no event or condition exists which constitutes or, after notice or lapse of time or both, would constitute a breach of or default on the part of the Company or any of its Subsidiaries under the terms of any such Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as Knowledge of the date hereofCompany, no other party to any Material Contract is in breach or default thereunder, nor does any condition exist that with notice or lapse of time or both would constitute a breach or default by any such other party thereunder. Neither the Company nor any of its Subsidiaries has received any written notice of termination or cancellation under any Material Contract, received any notice of breach or default under the terms any Material Contract that has not been cured, or granted to any third party any rights, adverse or otherwise, that would constitute a breach of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse EffectContract. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of Neither the Company or the Company Subsidiary which nor any of its Subsidiaries is party thereto and, to any Contract pursuant to which the terms and conditions thereof or any information or data contained therein are deemed classified pursuant to the Company’s Knowledge, rules and regulations of each other party thereto, any Governmental Authority. The Company has made available to Parent true and is correct copies of all Material Contracts in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing effect as of the date hereof and without any material breachof this Agreement.
Appears in 2 contracts
Sources: Merger Agreement (Granite Construction Inc), Merger Agreement (Layne Christensen Co)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) 5.19 of the Company Disclosure Letter contains Schedule sets forth a true and complete and correct list, as of the date hereof, list of each Material Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary of its Subsidiaries is a party to or to which any of their respective properties or assets bound that is subject, other than any Company Benefit Plans (all Contracts in effect as of the type described in date of this Section 4.17(a), whether or not set forth on Section 4.17 of Agreement and the Company Disclosure Letterhas made available to Parent, being referred to herein as or publicly filed with the SEC, a true and complete copy of each such Material Contract. For purposes of this Agreement, “Material Contracts”):
Contract” shall mean: (i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the 1934 Act), whether or not filed by the Company with the SEC, (ii) any employment, severance or consulting agreement (in each case with respect to which the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect has continuing obligations as of the date hereof have been made available hereof) with any current or former (x) executive officer or management employee of the Company, (y) member of the Board of Directors, or (z) employee of the Company who receives an annual base salary in excess of $150,000, (iii) any agreement that purports to Parent limit in any material respect the right of the Company or publicly filed any of its Subsidiaries (or, at any time after the consummation of the Merger, Parent, the Surviving Corporation or any of their respective Subsidiaries) to (A) sell, supply or distribute any products or services of or to any other Person or in any geographic region, (B) engage in any line of business or (C) compete with or to obtain products or services from any Person or limiting the SEC prior ability of any Person to provide products or services to the date hereof. Neither Company or any of its Subsidiaries, (iv) any agreement relating to the disposition or acquisition, directly or indirectly (by merger or otherwise), by the Company nor or any of its Subsidiaries after the date of this Agreement of assets with a fair market value in excess of $500,000 individually, (v) any partnership or joint venture agreement or any agreement with a selling partner, in each case that is material to the Company Subsidiary is and its Subsidiaries taken as a whole, (vi) any mortgages, indentures, guarantees, loans or credit agreements, security agreements or other Contracts, in breach each case relating to indebtedness for borrowed money, whether as borrower or lender, in each case in excess of $1,000,000, other than (A) accounts receivables and payables and (B) loans to direct or default under indirect wholly-owned Subsidiaries of the Company, (vii) any employee collective bargaining agreement or other agreement with any labor union, (viii) any agreement that by its terms limits the payment of dividends or other distributions by the Company or any of its Subsidiaries, (ix) any agreement that grants any right of first refusal or right of first offer or similar right or that limits or purports to limit the ability of the Company or any of its Subsidiaries to own, operate, sell, transfer, pledge or otherwise dispose of any Material Contractmaterial amount of assets or businesses, except (x) each Lease involving annual payments by the Company or any of its Subsidiaries in excess of $100,000, (xi) any other Contract under which the Company or any of its Subsidiaries is obligated to make payment or incur costs in excess of $500,000 in any year and which is not otherwise described in clauses (i)-(x) above, (xii) the Contract listed on Section 5.19(xii) of the Company Disclosure Schedule and (xiii) any material Contract pursuant to which the Company or one of its Subsidiaries licenses or otherwise grants to a Third Party, or receives a license or grant from a Third Party of, any Intellectual Property rights material to the Company’s or one of its Subsidiaries’ business as has not had currently conducted (other than Contracts granting rights to readily available hardware and COTS). Except for breaches, violations or defaults which would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, have a Company Material Adverse Effect, (w) each of the Material Contract Contracts is a valid, binding and enforceable obligation of the Company or the applicable Subsidiary of the Company Subsidiary which is party thereto and, to the knowledge of the Company’s Knowledge, of each the other party theretoor parties thereto in accordance with its terms (subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other laws affecting creditors’ rights generally and general principles of equity), (x) each of the Material Contracts is in full force and effect, subject (y) neither the Company nor any of its Subsidiaries, nor to the Enforceability Limitations Company’s knowledge any other party to a Material Contract, has violated any provision of, or taken or failed to take any act which, with or without notice, lapse of time, or both, would constitute a default under the provisions of such Material Contract and any expiration thereof in accordance with its terms existing (z) as of the date hereof and without hereof, neither the Company nor any material breachof its Subsidiaries has received notice in writing that it has breached, violated or defaulted under any Material Contract or that any other party intends to terminate any Material Contract prior to its scheduled termination date.
Appears in 2 contracts
Sources: Merger Agreement (MediaMind Technologies Inc.), Merger Agreement (DG FastChannel, Inc)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) 5.14 of the Company Disclosure Letter Schedule contains a complete and correct list, list of each of the following contracts as of the date hereof, of each Contract described in this Section 4.17(a) under Agreement to which either the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary of its Subsidiaries is a party to or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):legally bound:
(i) each Contract (other than between the Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent its Subsidiaries and any of the 10 largest customers of the Company and its affiliates after Subsidiaries (determined on the Effective Time) to compete or engage in any line basis of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, aggregate revenues received by the Company or any of its Subsidiaries or affiliates (including Parent and its affiliates after over the Effective Time) from the developmentfour consecutive fiscal quarter period ended October 2, marketing or distribution of products and services, in each case, in any geographic area2006);
(ii) any material partnershipexcept for the Contracts disclosed in clause (i) above, strategic allianceeach Contract that involves sale of products, joint venture, collaboration performance of services or limited liability company agreement (other than any such agreement solely between or among development commitments by the Company and or any of its wholly owned Subsidiaries, providing for either (A) annual payments of $1,000,000 or similar Contractmore or (B) aggregate payments of $2,000,000 or more;
(iii) each acquisition Contract between the Company or divestiture Contract that contains representations, covenants, indemnities any of its Subsidiaries and any of the 10 largest suppliers or other obligations licensors to the Company and any of its Subsidiaries (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in determined on the receipt or making basis of aggregate payments made by the Company or any Company Subsidiary of future payments in excess of $1,000,000its Subsidiaries over the four consecutive fiscal quarter period ended October 2, 2006);
(iv) each Contract that provides for the Company any partnership, joint venture or any Company Subsidiary to obtain a service, license, product, product line, operations other similar agreement or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annuallyarrangement;
(v) each Contract that gives relating to the acquisition or disposition of any Person the right to acquire any business (whether by merger, sale of stock, sale of assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000otherwise);
(vi) any settlement or similar each Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually Indebtedness or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement deferred purchase price of property of or similar Contract restricting in any respect the operations or conduct of by the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates Subsidiaries (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each either case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 entered into other than Contracts solely between in the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiariesordinary course of business consistent with past practice;
(xivvii) each Contract to which the Company or any of its Subsidiaries is a party creating or granting a Lien (including Liens upon properties acquired under conditional sales, capital leases or other title retention or security devices), other than Permitted Liens;
(viii) each Contract under which the Company or any of its Subsidiaries has, directly or indirectly, made any loan, capital contribution to, or other investment in, any Person (other than the Company or any of its Subsidiaries and other than extensions of credit or loans in the ordinary course of business consistent with past practice);
(ix) any agency, dealer, sales representative, marketing or other similar agreement that is material to the business of the Company or any of its Subsidiaries as currently conducted;
(x) each Contract that contains provisions restricting the Company or any Subsidiary from competing in any line of business or with any Person or in any area or which would so restrict Parent, the Company or any of their respective Affiliates after the Effective Time;
(xi) each Contract that (A) grants to any Third Party any exclusive license or supply or distribution agreement or other exclusive rights, (B) grants to any Third Party any “most favored nation” rights, rights of first refusal, rights of first negotiation or similar rights with respect to any product, service or Intellectual Property Rights that are material to the business of the Company or any of its Subsidiaries as currently conducted or (C) contains any provision that requires the purchase of all or a specified substantial portion of the Company’s or any of its Subsidiaries’ requirements from a given third party, or any other similar provision;
(xii) each Contract pursuant to which the Company or any Company Subsidiary grants or receives of its Subsidiaries has been granted any license, option, waiver, covenant not to assert or similar right with respect license to Intellectual Property Rights that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) business of the Company or any Company Subsidiaryof its Subsidiaries as currently conducted, any beneficial owner, directly or indirectly, other than licenses granted in the ordinary course of more than five percent (5%) business of the shares Company and its Subsidiaries consistent with past practice;
(xiii) each lease or sublease (whether of Company Common Stock real or any of their respective “associates” or “immediate family” members (as such terms are defined tangible personal property providing for annual payments in Rule 12b-2 and Rule 16a-1 excess of the Exchange Act), on the other hand, including any Contract pursuant $50,000) to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner of its Subsidiaries is a party as either lessor or family memberlessee;
(xvi) each Contract with a Material Supplier; and
(xviixiv) any Contract not otherwise described in agreement with any other subsection director or officer of this Section 4.17(a) that would constitute a the Company or any Subsidiary or with any “material contractassociate” or any member of the “immediate family” (as such term is terms are respectively defined in Item 601(b)(10Rules 12b-2 and 16a-1 of the 1▇▇▇ ▇▇▇) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).any such director or officer; or
(bxv) True and complete copies of each Material Contract in effect as of the date hereof have been any other agreement, commitment, arrangement or plan not made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To ordinary course of business involving the Company’s Knowledge, as payment or receipt of the date hereof, no other party to any Material Contract is annual payments in breach excess of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach$1,000,000.
Appears in 2 contracts
Sources: Merger Agreement (Kla Tencor Corp), Merger Agreement (Therma Wave Inc)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.5(a) of the Company Disclosure Letter contains Schedules lists all Contracts to which any GCL Company is a complete and correct listparty, by which any GCL Company is bound or to which any GCL Company or any of its assets or properties are subject that are in effect as of the date hereofof this Agreement and constitute or involve the following (together with all amendments, of waivers or other changes thereto, each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a)following, whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as a “Material ContractsContract”):
(i) each Contract employee collective bargaining Contract;
(other than Company Leasesii) that limits in obligations of, or payments to, any material respect the freedom of the CompanyGCL Companies of $500,000 or more;
(iii) any Contract under which any GCL Company has created, any Company Subsidiary incurred, assumed or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sellguaranteed Indebtedness, supply or distribute any product or service or that otherwise has the effect of restricting in right to draw upon credit that has been extended for Indebtedness, or has granted a Lien on its assets, whether tangible or intangible, to secure any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and servicesIndebtedness, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments an amount in excess of $1,000,000;500,000;
(iv) each any Contract that provides for the is a definitive purchase and sale or similar agreement entered into in connection with an acquisition or disposition by any GCL Company since March 31, 2022 of any Person or of any Company Subsidiary to obtain a service, license, product, product line, operations business entity or line division or business of business from any Person (including any through merger or consolidation or the purchase of a controlling equity interest in or substantially all of the Material Suppliers) that involves annual payments assets of such Person or consideration by any other manner), but excluding any Contracts in excess of $2,000,000, which the applicable acquisition or that contains any minimum purchase commitments in excess of $2,000,000 annuallydisposition has been consummated and there are no material obligations ongoing;
(v) each any Contract that gives any Person with outstanding obligations for the right to acquire any sale or purchase of personal property, fixed assets of or real estate, other than sales or purchases in the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000Ordinary Course;
(vi) any settlement Contract not made in the Ordinary Course and not disclosed pursuant to any other clause under this Section 3.5(a) and expected to result in revenue or similar Contract with a Governmental Entityrequire expenditures in excess of $500,000 in the calendar year ending March 31, other than those relating to Taxes2023;
(vii) except as has not beenany joint venture Contract, and would not reasonably be expected to bepartnership agreement, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement limited liability company agreement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and business of the Company SubsidiariesGCL Companies, taken as a whole;
(xiiiviii) each Contract evidencing any real property leasehold interest (each, a “Real Property Lease”);
(ix) all leases or relating master leases of personal property reasonably likely to outstanding Indebtedness (or commitments result in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess annual payments of $1,000,000 other than Contracts solely between the Company and 500,000 or more in a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries12-month period;
(xivx) each any Contract pursuant to which the any GCL Company (A) licenses or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to is granted rights from a third party under Intellectual Property that is material to the businesses business of the Company and the Company SubsidiariesGCL Companies, taken as a whole, excluding click-wrap, shrink-wrap, off-the-shelf software licenses and any other software licenses that are commercially available on reasonable terms to the public generally with license, maintenance, support and other fees less than $250,000 per year provided such software is not combined with, linked to or agrees distributed with any Owned Company Software or any Company Product or (B) licenses or grants to limit its use or exploitation of any material Company IP in any material respect, including pursuant a third party to any settlement agreement, coexistence agreement rights in or similar arrangement, other than to use Owned Intellectual Property or Owned Company Software (A) excluding non-exclusive licenses granted to customers, contractors, suppliers or service providers in the Ordinary Course);
(xi) the grant of rights to manufacture, produce, assemble, license, market or sell any Company Products;
(xii) Contracts with any Governmental Authority;
(xiii) any Contract which restricts in any material respect or contains any material limitations on the ability of any GCL Company Subsidiaries for generally available Software to compete in any line of business or information technology services in any geographic territory, in each case excluding customary confidentiality agreements (or clauses) or non-solicitation agreements (or clauses);
(xiv) Contracts between (A) on substantially standardized termsthe one hand, any of the GCL Companies, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant Company Shareholder;
(xv) all broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting and advertising Contracts to which the a GCL Company is a party that provide for payments by any GCL Company or to any GCL Company Subsidiary has an obligation to indemnify such officerin excess of $250,000, directorin the aggregate, affiliate, beneficial owner or family memberover any 12-month period;
(xvi) each Contract with a Material Supplier; andall Contracts that result in any Person holding an irrevocable power of attorney from any GCL Company that relates to any GCL Company or its business;
(xvii) Contracts to which any Contract not otherwise described in any other subsection GCL Company is a party that are of this Section 4.17(a) the type that would constitute a “material contract” be required to be filed with the Registration Statement under applicable SEC requirements pursuant to Items 601(b)(1), (as such term is defined in Item 601(b)(102), (4), (9) or (10) of Regulation S-K of under the SEC) with respect to Securities Act if the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of was the SEC)registrant.
(b) True True, correct and complete copies of each Material Contract in effect as the Contracts required to be listed on Section 3.5(a) of the date hereof Company Disclosure Schedules, have been delivered to or made available to Parent or publicly filed with the SEC SPAC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contractthis Agreement, except together with all amendments thereto.
(c) Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each (i) all Material Contract Contracts to which any of the GCL Companies is a party or by which its assets are bound are valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject except as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting enforcement of creditors’ rights generally and by Laws relating to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as availability of specific performance, injunctive relief or other equitable remedies, (ii) none of the GCL Companies (nor, to the knowledge of the Company, any other party to any such Contract) is or, with the giving of notice, the lapse of time or otherwise, would be in default under any Material Contract to which any of the GCL Companies is or will be a party or by which its assets are bound, (iii) since March 31, 2022, none of the GCL Companies has received any written or, to the Company’s knowledge, oral claim or notice of material breach of or material default under any Material Contract, (iv) to the Company’s knowledge, no event has occurred which, individually or together with other events, would reasonably be expected to result in a material breach of or a material default under any Material Contract by a GCL Company or, to the Company’s knowledge, any other party thereto (in each case, with or without notice or lapse of time or both), and (v) since March 31, 2022 through the date hereof and without hereof, none of the GCL Companies has received written notice from any material breachcustomer or supplier that is a party to any Material Contract that such party intends to terminate or not renew any Material Contract.
Appears in 2 contracts
Sources: Merger Agreement (RF Acquisition Corp.), Merger Agreement (RF Acquisition Corp.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a5.12(a) of the Company Disclosure Letter contains a complete and correct list, as Schedules sets forth all of the date hereof, following Contracts of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) Business or to which the Company or any Company Subsidiary of its Subsidiaries is a party or to by which any of their respective properties or assets it is subject, other than any Company Benefit Plans (all Contracts bound as of the type described in this Section 4.17(a), whether or not date hereof (collectively and together with those Contracts set forth on Section 4.17 5.10(a) of the Company Disclosure LetterSchedules, being referred to herein as the Material In-Bound License Agreements and the Material Out-Bound License Agreements, the “Material Contracts”):
(i) each Contract with any SunGard Capital Stockholder or any current officer or director of any Company Entity or any Affiliate (other than Company Leasesa Subsidiary) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) each Contract with any material partnership, strategic alliance, joint venture, collaboration labor union or limited liability company agreement (other than association representing any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar ContractBusiness Employee;
(iii) (A) each Contract relating to the sale of any of the assets of, or the provisions of any services by, the Business or the Company or any of its Subsidiaries other than the sale or provision of goods and services in the Ordinary Course of Business, for consideration, in excess of $500,000 or the equivalent in other currencies during the twelve-month period ending on the date hereof, (B) each of the ten (10) Contracts for the provision of maintenance and support services (“Maintenance Contracts”) that generated the highest amount of revenues in 2010 for the Business from Maintenance Contracts and (C) each of the ten (10) Contracts for the provision of managed services (“Managed Services Contracts”) that generated the highest amount of revenues in 2010 for the Business from Managed Services Contracts;
(iv) each Contract relating to the acquisition or divestiture disposition by the Business or the Company or any of its Subsidiaries of any business, division or product line or the capital stock of any other Person, in each case (A) entered into during the three-year period ending on the date hereof and for consideration in excess of $500,000 or the equivalent in other currencies or (B) pursuant to which any material Liabilities or obligations of the Company or its Subsidiaries remain outstanding;
(v) each Contract relating to (A) the incurrence of Indebtedness, (B) a letter of credit, performance bond, cash collateral or escrow requirement or similar credit support or (C) the making of any loans (other than routine advances to employees for business expenses in the Ordinary Course of Business in an amount not exceeding $25,000 at any time to any individual employee);
(vi) each Contract creating or governing a partnership, limited liability company, joint venture or similar arrangement;
(vii) each Contract (A) containing a covenant expressly limiting the freedom of the Business or the Company or any of its Subsidiaries to engage in any business with any Person or in any geographic area or to compete with any Person or limiting the ability of the Company or any of its Subsidiaries to incur Indebtedness or to create Liens, (B) containing most favored nation or similar provisions in favor of any customer or other counterparty to the Business or the Company or any of its Subsidiaries that involves a payment to be made to the Company in excess of $500,000 or (C) obligating the Business or the Company or any of its Subsidiaries to purchase or otherwise obtain any product or service exclusively from a single party or sell any product or service exclusively to a single party;
(viii) each Contract creating a Lien (other than Permitted Liens) upon any assets (including any Lien placed on the Company’s or any of the Company Subsidiaries’ Intellectual Property), other than purchase money security interests in connection with the acquisition of equipment in the Ordinary Course of Business;
(ix) each Contract reflecting a settlement of any threatened or pending Actions, other than (A) releases immaterial in nature or amount entered into with former employees or independent contractors of the Company and its Subsidiaries in the Ordinary Course of Business in connection with the routine cessation of such employee’s or independent contractor’s employment with the Company and its Subsidiaries, (B) settlement agreements for cash only (which has been paid) and does not exceed $500,000 as to such settlement or (C) settlement agreements entered into more than three (3) years prior to the date of this Agreement under which none of the Business or the Company or its Subsidiaries have any continuing Liabilities or rights (excluding releases);
(x) each Contract creating or governing a co-marketing, reseller, distributor or similar arrangement for consideration in excess of $500,000 or the equivalent in other currencies; and
(xi) each other Contract that contains representations, covenants, indemnities involves any single or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making related expenditures by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid future financial obligations of more than $250,000 or received payments the equivalent in excess other currencies per year.
(b) True and correct copies of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated each Material Contract have been made available to pay or entitled Parent prior to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof. Each Material Contract is a valid and binding agreement of the relevant Company Entity, as the case may be, and, to the Company’s Knowledge, the other than Contracts solely between parties thereto, in each case enforceable in accordance with its terms (subject to applicable bankruptcy, insolvency, reorganization, moratorium or other Laws affecting generally the Company enforcement of creditors’ rights and a wholly owned Company Subsidiary subject to general principles of equity), except as, individually or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates in the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation aggregate, has not been, had and would not reasonably be expected to be, individually have a Business Material Adverse Effect. The Company or in the aggregate, material its Subsidiaries that are parties to the Company and Material Contracts and, to the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability Knowledge of the Company, any Company Subsidiary each of the other parties thereto, have performed all obligations required to be performed by them under, and are not in breach of, default or violation under, any of its affiliates (including Parent such Material Contracts and no event has occurred that with notice or any lapse of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a wholetime, or agrees to limit its use or exploitation of any material Company IP in any material respectboth, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute such a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contractdefault, except as where such noncompliance, breach, default or violation has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Business Material Adverse Effect. To the Company’s Knowledge, as None of the date hereofSunGard Entities or any of their Subsidiaries has received written notice of any default or event that with notice or lapse of time, no other party to or both, would constitute a default under any Material Contract is in breach of or default under the terms of Contract, except for any Material Contract where such breach or default has had or would reasonably be expected to havedefaults that, individually or in the aggregate, a Company Material Adverse Effect. Except as has have not had and would not reasonably be expected to have, individually or in the aggregate, have a Company Business Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Merger Agreement (Sungard Capital Corp Ii), Merger Agreement (GL Trade Overseas, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a5.12(a) of the Company Vistana Disclosure Letter contains Schedule sets forth a complete and correct listlist of all Contracts described in clauses (i) through (xi) of this Section 5.12(a) to which, as of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary Vistana Entity is a party or to which any of their respective properties or assets is subjectparty, other than (x) the Vistana Benefit Plans, (y) any Company Benefit Plans Contract solely between or among one or more Vistana Entities and (all Contracts z) any purchase orders entered into in connection with any Vistana Entity’s ordinary course of business purchasing activities (such Contracts, collectively, the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Vistana Material Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SECExchange Act);
(ii) each Contract (other than Contracts of the type (without giving effect to dollar thresholds) described in other clauses of this Section 5.12(a)) that Vistana reasonably anticipates will involve annual payments or consideration furnished by or to any of the Vistana Entities of more than $1,500,000;
(iii) each note, debenture, other evidence of indebtedness, guarantee, loan, credit or financing agreement or instrument or other Contract for money borrowed by any of the Vistana Entities, in each case, having an outstanding principal amount in excess of $1,500,000;
(iv) any swap, forward, future, option, cap, floor, collar or similar financial Contract or other derivative Contract, or any other interest rate or foreign currency protection Contract;
(v) each Contract for the acquisition of any Person or any business unit thereof or the disposition of any material assets of any of the Vistana Entities (other than in the ordinary course of business), in each case, involving payments in excess of $5,000,000, other than Contracts in which the applicable acquisition or disposition has been consummated and there are no material obligations ongoing;
(vi) each joint venture Contract, partnership agreement or limited liability company agreement with a third party (in each case, other than with respect to wholly-owned Vistana Subsidiaries);
(vii) each Contract that relates to ongoing or scheduled development plans or arrangements or capital expenditures, in an annual amount in excess of $1,500,000;
(viii) each Contract containing covenants expressly limiting (a) in any material respect the Company freedom of any of the Vistana Entities to compete with any Person in a product line or line of business or operate in any geographic location or (b) the ability of any Vistana Entity to incur a Lien on its assets, including Liens on the capital stock of any Vistana Entity;
(ix) any Contract providing a Person with any: (A) right to cause the appointment or nomination of directors of any Vistana Entity, (B) consent or approval rights with respect to any change in Organizational Documents or other significant corporate action by any Vistana Entity, or (C) right of first refusal or first offer or other approval or consent rights with respect to any liquidation, dissolution, restructuring, recapitalization, reorganization or merger of any Vistana Entity;
(x) any Contract containing a change of control provision which would be triggered by the transactions contemplated by this Agreement and requires payments in excess of $1,500,000; and
(xi) each Contract pursuant to which any of the Vistana Entities grants to a third party or is granted from a third party any license with respect to Intellectual Property material to the Vistana Business, other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)licenses for commercially available software.
(b) True and complete copies of each Material Contract in effect as All of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Vistana Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is Contracts are (i) in full force and effect, subject to the Enforceability Limitations Remedies Exception, and any expiration thereof in accordance with its terms existing as (ii) represent the valid and binding obligations of the date hereof Vistana Entity party thereto and, to the knowledge of Vistana, represent the valid and binding obligations of the other parties thereto, except as has not, individually or in the aggregate, had or would have a Vistana Material Adverse Effect. No Vistana Entity has received any written claim or notice of material breach of or material default under any such Vistana Material Contract, which breach or default has not been cured without penalty, cost or other liability, in each case, that would be material to the Vistana Entities (taken as a whole). No Vistana Entity, nor, to the knowledge of Vistana, any material breachother party thereto, is in breach of or default under any such Vistana Material Contract, and, to the knowledge of Vistana, no event has occurred thereunder which, individually or together with other events, would have a Vistana Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement, Merger Agreement (Starwood Hotel & Resorts Worldwide, Inc)
Material Contracts. (a) Except for this Agreement, Section 4.17(aSection 4.19(a) of the Company Disclosure Letter contains Schedule sets forth a complete and correct list, list as of the date hereof, of this Agreement of each Contract described in this Section 4.17(a) under which of the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or following Contracts to which the Company or any Company Subsidiary of its Subsidiaries is a party or by which it is bound (each such Contract listed or required to be so listed, and each of the following Contracts to which the Company or any of their respective properties its Subsidiaries becomes a party or assets is subjectby which it becomes bound after the date of this Agreement, other than any a “Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material ContractsContract”):
(i) each any Contract pursuant to which the Company or any of its Subsidiaries incurred payment obligations or received payments in excess of $10,000,000 during the twelve (other than Company Leases12) month period ended September 30, 2019, or is expected to incur payment obligations or receive payments in excess of (A) $10,000,000 during any twelve (12) month period ending after September 30, 2019 or (B) $10,000,000 over the remaining term of the Contract;
(ii) any Contract that (A) limits or purports to limit, in any material respect respect, the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) Subsidiaries to engage or compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute in any product or service area or that otherwise has the effect of restricting would so limit or purport to limit, in any material respect respect, the Companyfreedom of Parent, the Company Subsidiaries or affiliates (including Parent and its affiliates any of their respective Affiliates after the Effective Time, (B) from contains any material exclusivity or “most favored nation” obligations or restrictions or similar provisions that are binding on the developmentCompany or any of its Subsidiaries (or, marketing after the Effective Time, that would be binding on Parent or distribution any of products and services, in each caseits Affiliates) or (C) otherwise limits or restricts, in any geographic area;
(ii) any material partnershiprespect, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and or any of its wholly owned SubsidiariesSubsidiaries (or, after the Effective Time, Parent or any of its Affiliates) from hiring or similar Contractsoliciting any Person for employment;
(iii) each acquisition any deposit sweep agreement or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000similar agreement;
(iv) each (A) any standard form Contract that provides for pursuant to which the Company or any Company Subsidiary of its Subsidiaries provides Brokerage Services or Investment Advisory Services to obtain a service, license, product, product line, operations or line of business from any Person Client and (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(viB) any settlement material Contract (or similar Contract with a Governmental Entitygroup of Contracts that, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(aare material) pursuant to which the Company or any of its Subsidiaries provides Brokerage Services or Investment Advisory Services to any Client that is not on any such standard form and includes material deviations from any such standard form;
(v) any material subadvisory agreement;
(vi) any material custody or sub-custody agreement, transfer agent agreement, administrative and accounting agreement, shareholders services agreements, distribution agreement, prime brokerage or other brokerage related agreement, or similar agreement;
(vii) any material Contract that provides for any referral arrangement, commission-sharing arrangement or co-marketing arrangement, including, any finder’s agreement for soliciting, distributing or promoting Investment Advisory Services or Brokerage Services by or to the Company Subsidiary has paid or any of its Subsidiaries;
(viii) any Contract reasonably expected to result in payments made or received payments by the Company and its Subsidiaries in excess of $2,000,000 10,000,000 in any year and for which the fiscal year ended February 1execution, 2025delivery and performance by the Company of this Agreement or the consummation of any of the Transactions would require any consent or other action by any Person (including notice by the Company) thereunder, constitute a default, or an event that, with or without notice or lapse of time or both, would constitute a default, thereunder, or cause or permit the termination, cancellation, acceleration or other change of any right or obligation (including triggering of a price adjustment, right of renegotiation or other remedy) or the loss of any benefit to which the Company or any of its Subsidiaries is obligated entitled thereunder;
(ix) promissory notes, loan agreements, indentures, evidences of indebtedness or other instruments providing for or relating to pay the lending of money, (A) if as borrower or entitled to receive payments guarantor, in aggregate principal amount in excess of $2,000,000 15,000,000, and (B) if as lender, in aggregate principal amount in excess of $5,000,000;
(x) any Contract restricting the payment of dividends or the making of distributions to stockholders of the Company or the repurchase of stock or other equity of the Company;
(xi) any Collective Bargaining Agreements;
(xii) any material joint venture, profit-sharing, partnership or other similar agreements;
(xiii) any Contracts or series of related Contracts entered into within the last three (3) years or containing any material surviving obligations relating to the acquisition or disposition of the assets or securities of any Person or any business for a price in excess of $10,000,000 (in each case, whether by merger, sale of stock, sale of assets or otherwise);
(xiv) any lease or sublease for real or personal property for which annual rental payments made by the Company and its Subsidiaries during the twelve (12) month period following the date hereofended September 30, other than Contracts solely between 2019 or expected to be made by the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiariesits Subsidiaries during any twelve (12) month period ending after September 30, 2019 are greater than $5,000,000;
(ixxv) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, all material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants of its Subsidiaries (A) receives or receives is granted any licenselicense or sublicense to, option, waiver, or covenant not to assert or similar right with respect to be sued under, any Intellectual Property (other than licenses to Software that is material to the businesses of the Company and the Company Subsidiaries, taken as a wholecommercially available on non-discriminatory pricing terms) or (B) grants any license or sublicense to, or agrees covenant not to limit its use or exploitation of be sued under, any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, Intellectual Property (other than (A) immaterial, non-exclusive licenses granted to in the Company ordinary course of business);
(xvi) any Contracts or Company Subsidiaries for generally available Software other transactions with any (A) executive officer or information technology services on substantially standardized termsdirector of the Company, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 record or, to the knowledge of the Company Disclosure Letter and in which the grants Company, beneficial owner of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) or more of the shares voting securities of the Company Common Stock (including TD Bank), or (C) affiliate (as such term is defined in Rule 12b-2 promulgated under the Securities Exchange Act) or “associates” (or members of any of their respective “associates” or “immediate family” members ”) (as such terms are respectively defined in Rule 12b-2 and Rule 16a-1 of the Securities Exchange Act), on the other hand, including ) of any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such executive officer, director, affiliate, director or beneficial owner or family member(each of the foregoing, a “Related Party” and each such Contract, a “Related Party Contract”);
(xvi) each Contract with a Material Supplier; and
(xvii) any other Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in required to be filed by the Company pursuant to Item 601(b)(10) of Regulation S-K of the SECK; and
(xviii) with respect any other Contract that is material to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)its Subsidiaries, taken as a whole.
(b) True and complete copies of each Material Contract in effect as All of the date hereof have been made available to Parent or publicly filed with the SEC prior Company Material Contracts are, subject to the date hereof. Neither Bankruptcy and Equity Exceptions, valid and binding obligations of the Company nor or a Subsidiary of the Company (as the case may be) and, to the knowledge of the Company, each of the other parties thereto, and in full force and effect and enforceable in accordance with their respective terms against the Company or its Subsidiaries (as the case may be) and, to the knowledge of the Company, each of the other parties thereto (except for such Company Material Contracts that are terminated after the date of this Agreement in accordance with their respective terms; provided that if such termination is at the option of the Company or any Company Subsidiary is of its Subsidiaries, such termination must be in breach the ordinary course of or default under the terms of any Material Contractbusiness), except as where the failure to be valid and binding obligations and in full force and effect and enforceable has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as knowledge of the date hereofCompany, no other party Person is seeking to any Material Contract is in breach of terminate or default under challenging the terms validity or enforceability of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has Contract, except such terminations or challenges which have not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Neither the Company nor any of its Subsidiaries, each Material Contract is a valid, binding and enforceable obligation nor to the knowledge of the Company Company, any of the other parties thereto has violated any provision of, or committed or failed to perform any act which (with or without notice, lapse of time or both) would constitute a default under any provision of, and neither the Company Subsidiary nor any of its Subsidiaries has received written notice that it has violated or defaulted under, any Company Material Contract, except for those violations and defaults (or potential defaults) which is party thereto andhave not had and would not reasonably be expected to have, to individually or in the Company’s Knowledgeaggregate, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breacha Company Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (Schwab Charles Corp), Merger Agreement (Td Ameritrade Holding Corp)
Material Contracts. (a) Except for this Agreement, Section 4.17(aSchedule 3.18(a) contains a list of each of the Company Disclosure Letter contains following written Contracts and a complete and correct list, as description of each of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or following oral Contracts to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure LetterEntities is a party (collectively, being referred to herein as the “Material Contracts”):
(i) each Contract all Contracts (other than Company Leasesthe Leases listed on Schedule 3.8(b)) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and servicesreasonably anticipates will, in each caseaccordance with their terms, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making involve aggregate payments by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration Entities of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in 250,000 within the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ixii) all Contracts that Company reasonably anticipates will, in accordance with their terms, involve aggregate payments to any of the Company Entities of more than $250,000 within the twelve (12) month period following the date hereof;
(iii) any employment Contract of any director or officer of any of the Companies or any other written employment, severance, retention, deal bonus, consulting or other Contract with any employee of any of the Companies which will require (or reasonably likely require) the payment of amounts by any of the Companies during the one year period following the date hereof in excess of $150,000;
(iv) all Contracts that limit or purport to limit the ability of any of the Company Entities to compete in any line of business or with any Person or in any geographic area or during any period of time;
(v) all Contracts relating to material Intellectual Property Rights (other than Intellectual Property Rights which are the subject of a license for shrink wrap software, license for other “off the shelf” software, or a license for software for which the license fees, royalties, maintenance fees and support fees do not exceed $150,000 on an annual basis);
(vi) all Contracts under which any of the Company Entities has incurred any Indebtedness which is outstanding on the date hereof or has directly or indirectly guaranteed Indebtedness, liabilities or obligations of any Person (other than any Indebtedness, liabilities or obligations solely by and among the Company Entities);
(vii) any Contract that obligates the Company contains a put or similar right pursuant to which any Company Subsidiary Entity could be required to make purchase, redeem or otherwise acquire any capital investment equity interests (whether exercisable by the party holding such right (A) at any time or capital expenditure outside from time to time (i.e., a “time-based put”) or (B) as a result of, or in connection with, the ordinary course execution and delivery of business and in excess this Agreement by the parties hereto or the consummation of $1,000,000 per annumthe transactions contemplated hereby (i.e., an “event-based put”));
(xviii) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably other than as may be expected to be, individually or set forth in the aggregateCompany Entities’ Organizational Documents, material to the Company and the Company Subsidiaries, taken as a whole, each any Contract that grants any contains a co-sale, call, right of first refusal or right of first offer or that limits offer, with respect to the ability equity interests of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assetsEntities;
(xiix) each Contract that contains any exclusivity rights or “most favored nations” provisionsContract, in each case, that are material in any respect to other than the Company Entities’ Organizational Documents, which contains an earn-out, deferred purchase price, or its affiliates (including Parent other similar contingent obligation, or its affiliates after the Effective Time);
(xii) each Contract governing contains ongoing indemnification obligations on behalf of any collaboration, co-promotion, strategic alliance or design project contract whichCompany Entities and, in each case, is material related to the Company and the Company Subsidiaries, taken as a wholeacquisition of any equity interests of any Person;
(xiiix) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of other than the Company Entities’ Organizational Documents, all joint venture or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplierpartnership agreements; and
(xviixi) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those all medical director agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)other similar agreements.
(b) True and complete copies of Except as set forth on Schedule 3.18(b), each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither is valid and binding on the Company nor any Company Subsidiary Entity that is in breach of or default under the terms of any Material Contracta party thereto and, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as on the other parties thereto, and is in full force and effect. Each of the Company Entities has performed in all material respects all material obligations required to be performed by it to date hereofunder each Material Contract. Except as set forth on Schedule 3.18(b), none of the Company Entities is or is alleged to be in material breach of, or material default under, nor is there any event or condition exists which constitutes, or after notice or lapse of time or both would constitute, a material breach or material default on the part of any Company Entity under, any Material Contract. Except as set forth on Schedule 3.18(b), to Company’s Knowledge, no other party to any Material Contract is or is alleged to be in breach of thereof or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to havethereunder, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, nor to the Company’s Knowledge, is there any event or condition which constitute, or after notice or lapse of each time or both would constitute, a material breach or material default on the part of any other party party, under any Material Contract. Company has made available to Buyer correct and complete copies of all Material Contracts, together with all amendments, modifications or supplements thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Contribution and Merger Agreement, Contribution and Merger Agreement (American Renal Associates LLC)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.16(a) of Trulia Disclosure Schedule lists each of the Company Disclosure Letter contains following types of Contracts to which Trulia or any Trulia Subsidiary is a complete and correct list, party as of the date hereofof this Agreement (such Contracts, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Trulia Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to Trulia or any Trulia Subsidiary that has been, or was required to be, filed with the Company SEC with Trulia’s Annual Report on Form 10-K for the year ended December 31, 2013 or any Trulia SEC Reports filed after the date of filing of such Form 10-K until the date hereof;
(ii) (ii) any Contract (A) relating to the disposition or acquisition by Trulia or any Trulia Subsidiary of a material amount of assets (1) after the date of this Agreement other than those in the ordinary course of business consistent with past practice or (2) prior to the date of this Agreement, which contains any material ongoing obligations (including indemnification, “earn-out” or other contingent obligations) that are still in effect or (B) pursuant to which Trulia or any Trulia Subsidiary will acquire any material ownership interest in any other person or other business enterprise other than Trulia’s Subsidiaries;
(iii) any Contract which grants any right of first refusal, right of first offer or similar right with respect to any material assets, rights or properties of Trulia or any Trulia Subsidiary;
(iv) any Contract containing any covenant (A) materially limiting the right of Trulia or any Trulia Subsidiary to engage in any line of business or to compete with any person in any line of business or (B) granting any most favored customer or similar provision in favor of any customer or other counterparty to Trulia or any Trulia Subsidiary applicable to the sale of Trulia Products;
(v) any mortgages, indentures, guarantees, loans or credit agreements, security agreements or other Contracts relating to the borrowing of money or extension of credit of $500,000 or more, other than (A) accounts receivables and arrangements described payables and (B) loans to direct or indirect wholly-owned subsidiaries, in Item 601(b)(10)(iiieach case in the ordinary course of business consistent with past practice;
(vi) any Contract providing for any guaranty by Trulia or any Trulia Subsidiary of third party obligations (under which Trulia or any Trulia Subsidiary has continuing obligations as of the date hereof) of Regulation S-K $500,000 or more, other than any guaranty by Trulia of any Trulia Subsidiary’s obligations;
(vii) any Contract which relates to a joint venture, partnership, limited liability company agreement, revenue sharing or other similar Contract with third parties, or to the formation, creation or operation, management or control of any partnership or joint venture with any third parties, other than revenue sharing or other similar agreements involving annual payments of less than $500,000 entered into in the ordinary course of business consistent with past practice;
(viii) any Contract with a customer of Trulia or any Trulia Subsidiary which is reasonably likely to involve annual consideration of $500,000 or more;
(ix) any Trulia IP License;
(x) all material Contracts with any Governmental Authority;
(xi) (A) any employment, independent contractor or consulting Contract (in each case, under which Trulia or any Trulia Subsidiary has continuing obligations as of the SECdate hereof) with (1) any current or former executive officer of Trulia or any Trulia Subsidiary or member of Trulia Board, or (2) any former employee, individual consultant or individual independent contractor providing for an annual base compensation in excess of $275,000; and (B) any Contract with any executive officer, director, individual consultant or employee providing for severance, retention or change of control payments or benefits, other than ordinary course severance arrangements with non-executive employees involving payments by Trulia of less than $275,000;
(xii) any Contract or plan, including any stock option plan, stock appreciation right plan or stock purchase plan, any of the benefits of which will be increased, or the vesting of benefits of which will be accelerated, by the consummation of the transactions contemplated hereby (including the Mergers) or the value of any of the benefits of which will be calculated on the basis of any of the transactions contemplated hereby (including the Mergers);
(xiii) any material lease, sublease or other Contract under which Trulia or any Trulia Subsidiary uses or occupies or has the right to use or occupy, now or in the future, any real property;
(xiv) any Contract which grants any person the right to use the name “Trulia”, “Market Leader”, any other trademarks owned by Trulia or any Trulia Subsidiary or any derivation thereof, excluding Contracts containing nonexclusive grants of such trademarks made in the ordinary course of business consistent with past practice;
(xv) any other Contract that provides for annual payment obligations by Trulia or any of its subsidiaries of $500,000 or more in any individual case that is not terminable by Trulia or a Trulia Subsidiary upon notice of ninety (90) days or less without material liability to Trulia or Trulia Subsidiary and is not disclosed pursuant to clauses (i) through (xiv) above; and
(xvi) any Contract, or group of Contracts with a person (or group of affiliated persons), the termination or breach of which would have or would be reasonably expected to have a material adverse effect on any material service offerings of Trulia or otherwise constitute a Trulia Material Adverse Effect on Trulia and is not disclosed pursuant to clauses (i) through (xv) above.
(b) True Except as would not constitute a Trulia Material Adverse Effect:
(i) each Material Trulia Contract is a legal, valid and binding agreement of Trulia or the applicable Trulia Subsidiary and, to the Knowledge of Trulia, the other party thereto;
(ii) none of Trulia or any Trulia Subsidiary has received any claim of default under any Material Trulia Contract and none of Trulia or any Trulia Subsidiary is in breach or violation of, or default under, any Material Trulia Contract;
(iii) to Trulia’s Knowledge, no other party is in breach or violation of, or default under, any Material Trulia Contract; and
(iv) neither the execution of this Agreement nor the consummation of any transactions contemplated hereby shall constitute a default, give rise to cancellation rights, or otherwise adversely affect any of Trulia’s material rights under any Material Trulia Contract.
(c) Trulia has made available to Zillow true and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Trulia Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to including any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party amendments thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Merger Agreement (Zillow Inc), Merger Agreement (Trulia, Inc.)
Material Contracts. (a) Except for this Agreement and the Reassignment Agreement, Section 4.17(a) 3.14 of the Company DouYu Disclosure Letter contains Schedule sets forth a true and complete and correct list, as list of all of the date hereof, following types of each Contract described Contracts that currently remain in this Section 4.17(aeffect (x) under to which the Company DouYu or any Company Subsidiary has of its Subsidiaries is a party or which binds or affects their respective properties or assets, and (y) have not been filed with or furnished to the SEC as an exhibit to the DouYu SEC Reports:
(i) any current Contract that would be required to be filed or future rightsfurnished by DouYu pursuant to Item 19 and paragraph 4 of the Instructions to Exhibits of Form 20-F under the Exchange Act;
(ii) any Contract granting a right of first refusal, responsibilitiesfirst offer or first negotiation;
(iii) any Contract relating to (A) the formation, obligations creation, operation, management or liabilities control of a partnership, joint venture, limited liability company or similar arrangement, (B) strategic cooperation or partnership arrangements, or (C) other similar agreements outside the ordinary course of business involving a sharing of profits, losses, costs or liabilities, in each case, whether contingent or otherwise) or to which the Company more than RMB20,000,000, by DouYu or any Company Subsidiary is a party of its Subsidiaries;
(iv) any Contract for the acquisition, sale or to which any lease (including leases in connection with financing transactions) of their respective material properties or assets is subjectof DouYu (by merger, purchase or sale of assets or stock or otherwise);
(v) any Contract with any Governmental Entity;
(vi) any Contract granting or evidencing a Lien on any material properties or assets of DouYu or any of its Subsidiaries, other than a Permitted Lien;
(vii) any Contract involving the capital expenditure by DouYu or its Subsidiaries, or relating to indebtedness for borrowed money or any financial guaranty, in each case, more than RMB20,000,000;
(viii) any Contract involving a loan (other than accounts receivable from trade debtors in the ordinary course of business) or advance to (other than travel and entertainment allowances to the employees of the Company Benefit Plans and any of its Subsidiaries extended in the ordinary course of business), or investment in, any Person, in each case, more than RMB20,000,000, other than a wholly-owned Subsidiary of DouYu or any Contract relating to the making of any such loan, advance or investment that is material to the financial status of DouYu;
(all ix) any non-competition Contract or other Contract that purports to limit, curtail or restrict in any material respect the ability of DouYu or any of its Subsidiaries to compete in any geographic area, industry or line of business;
(x) any Contract that contains a put, call or similar right pursuant to which DouYu or any of its Subsidiaries could be required to purchase or sell, as applicable, any equity interests or assets of any Person that have a fair market value or purchase price of more than RMB20,000,000;
(xi) any Contracts involving any resolution or settlement of any actual or threatened material litigation, arbitration, claim or other dispute, more than RMB5,000,000;
(xii) any Contract (other than Contracts granting DouYu RSU Awards) giving the other party the right to terminate such Contract as a result of this Agreement or the consummation of the transactions contemplated by this Agreement, including the Merger;
(xiii) any Contract that contains restrictions with respect to (A) payment of dividends or any distribution with respect to equity interests of DouYu or any of its Subsidiaries, (B) pledging of share capital of DouYu or any of its Subsidiaries or (C) issuance of guaranty by DouYu or any of its Subsidiaries;
(xiv) any material DouYu IP Agreements with an aggregate contract value exceeding RMB20,000,000;
(xv) Contracts with top twenty streamers and top twenty talent agencies, in each case, in terms of contract value; or
(xvi) any other Contract, a breach or termination of which could reasonably be expected to have a DouYu Material Adverse Effect. Each Contract of the type described in this Section 4.17(a3.14(a), whether together with any Contract that has been filed or not set forth on Section 4.17 furnished by DouYu pursuant to Item 19 and paragraph 4 of the Company Disclosure LetterInstructions to Exhibits of Form 20-F under the Exchange Act, being is referred to herein as “Material Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True DouYu Material Contract”. A true and complete copies copy of each DouYu Material Contract in effect as of the date hereof have has been made available to Parent Huya (including, where applicable, pursuant to agreed-upon procedures to protect competitively sensitive information) or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any SEC.
(b) Each DouYu Material Contract is in breach of or default under constitutes the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had valid and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, legally binding and enforceable obligation of the Company DouYu or the Company Subsidiary which is party thereto andits applicable Subsidiary, to the Company’s Knowledge, of each other party thereto, enforceable in accordance with its terms and is in full force and effect, subject to Bankruptcy and Equity Exception. There is no material breach or default under any DouYu Material Contract either by DouYu or, to DouYu’s knowledge, by any other party thereto, and no event has occurred that with the Enforceability Limitations and lapse of time or the giving of notice or both would constitute a default thereunder by DouYu or, to DouYu’s knowledge, any expiration thereof in accordance other party. No party to any such DouYu Material Contract has given notice to DouYu of or made a claim against DouYu with its terms existing as of the date hereof and without respect to any material breachbreach or default thereunder.
Appears in 2 contracts
Sources: Merger Agreement (HUYA Inc.), Merger Agreement (DouYu International Holdings LTD)
Material Contracts. (a) Except for this Agreement, Section 4.17(aEach Contract (including any Transferred Contract or Shared Contract) of the Company Disclosure Letter contains a complete and correct list, as of the date hereof, of each Contract described in this Section 4.17(a) under by which the Acquired Company or any of its properties or assets is bound, or by which any of the Transferred Assets are bound, and that is of a type described below (excluding, for the avoidance of doubt, any Benefit Plan) are “Material Contracts:”
(i) all Contracts that individually involve (or could reasonably be expected to involve) expenditures, issued purchase orders, or the payment or receipt of consideration by the Acquired Company Subsidiary has in excess of $10,000,000 in the calendar year ended December 31, 2025, other than any current “Standard Choice Offer” contracts;
(ii) all Contracts between Seller and any of its Affiliates (other than the Acquired Company), on the one hand, and the Acquired Company, on the other hand, that will not be terminated prior to Closing that individually involve (or future rightscould reasonably be expected to involve) expenditures (whether by or to the Acquired Company) in excess of $1,000,000 in any year;
(iii) all collective bargaining agreements or other Contracts with any labor union, responsibilitiesemployees’ association or other employee representative of a group of employees of the Acquired Company, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Acquired Company is party or is otherwise subject;
(iv) all Contracts evidencing Indebtedness of the Acquired Company or any guarantee thereof, in each case in excess of $5,000,000 in any year;
(v) all Contracts providing for the extension of credit by the Acquired Company Subsidiary is a party or to which in excess of $5,000,000 in any of their respective properties or assets is subjectyear, other than any Company Benefit Plans the extension of credit to vendors in the Ordinary Course of Business;
(vi) all Contracts restricting the right of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Acquired Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete with any Person or engage in any line of business or geographic region area or with during any Person or sell, supply or distribute any product or service or that otherwise has the effect period of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxestime;
(vii) all partnership, joint venture, and joint ownership agreements, and all similar material agreements (however named) involving a sharing of assets, profits, losses, costs, or Liabilities;
(viii) all settlement, conciliation or similar agreements with any Governmental Entity (for the avoidance of doubt, not including Orders under regulatory filings) relating to the business or assets of the Acquired Company that will involve payment after the Closing Date of any amount or impose ongoing restrictions on the business or assets of the Acquired Company;
(ix) all settlement, conciliation or similar agreements with any Person, other than a Governmental Entity, relating to the business or assets of the Acquired Company that will involve payment in excess of $5,000,000 after the Closing Date or impose ongoing restrictions or obligations on the business or assets of the Acquired Company;
(x) all Contracts that contain rights of refusal, rights of first offer, or any similar rights by any Person other than the Acquired Company;
(xi) all futures contracts, option contracts or other agreements evidencing a derivative transaction or otherwise relating to the supply or price of natural gas that has a term longer than ninety (90) days and a notional value greater than $2,000,000; and
(xii) any commitment or arrangement to enter into any of the foregoing.
(b) Seller has made available to Buyer copies of each Material Contract as in effect as of the date hereof, together with all material amendments and waivers thereto, which are correct and complete in all material respects, except as has not beenset forth on Schedule 4.7(b)(i). Except as set forth on Schedule 4.7(b)(ii): (i) each Material Contract is a valid and binding obligation of the Acquired Company, enforceable against it in accordance with its terms, and, to Seller’s Knowledge, is a valid and binding obligation of each other party thereto, enforceable against it in accordance with its terms, in each case except as the same may be limited by Remedy Exceptions; and (ii) neither the Acquired Company, nor, to Seller’s Knowledge, any other party thereto, is (or, upon the passage of time or the giving of notice, or both, would be) in default under or breach of any Material Contract in each case, except for breaches, or defaults as would not reasonably be expected to bematerial, individually or in the aggregate, material to the Company and the Company SubsidiariesAcquired Company, taken as a wholeits business, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025assets, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in properties. Neither the twelve (12) month period following Acquired Company nor the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary Seller or any of its affiliates (including Parent or any Affiliates has received written notice from a counterparty to a Material Contract of an intention to terminate such Material Contract prior to the expiration of its affiliates after current term, breach the Effective Time) to ownterms of such Material Contract, operateor materially amend or modify the terms of such Material Contract, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, except in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right for notice received with respect to Intellectual Property any Material Contract that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted that is terminated due to the Company expiration of the term of such Contract in accordance with its terms (including Material Contracts which automatically renew and a party thereto provided notice of its intent not to renew) or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 the renewal terms of which are being or may be negotiated in the Company Disclosure Letter and in which the grants Ordinary Course of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)Business.
(bc) True and complete copies of each Each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breachset forth on Schedule 4.7(c).
Appears in 2 contracts
Sources: Securities Purchase Agreement (National Fuel Gas Co), Securities Purchase Agreement (Centerpoint Energy Resources Corp)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) Schedule 5.16 sets forth all of the Company Disclosure Letter contains a complete and correct list, as of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or following Contracts to which the Company or any Company Subsidiary of its Subsidiaries is a party or to by which any of their respective properties or assets it is subjectbound (collectively, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Contract (other than Company Leases) that limits in Contracts with any material respect the freedom Seller or any current or former officer, director, stockholder or Affiliate of the Company, any Company Subsidiary or any of their respective affiliates its Subsidiaries;
(including Parent and ii) Contracts with any labor union or association representing any employee of the Company or any of its affiliates after Subsidiaries;
(iii) Contracts pursuant to which any party is required to purchase or sell a stated portion of its requirements or output from or to another party;
(iv) Contracts for the Effective Timesale of any of the assets of the Company or any of its Subsidiaries other than in the Ordinary Course of Business or for the grant to any Person of any preferential rights to purchase any of its assets;
(v) Contracts for joint ventures, strategic alliances or partnerships;
(vi) Contracts containing covenants of the Company or any of its Subsidiaries not to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, geographical area or covenants of any other Person not to compete with the Company or any of its Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic line of business or in any geographical area;
(iivii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among Contracts relating to the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess its Subsidiaries of $1,000,000any operating business or the capital stock of any other Person;
(ivviii) each Contract that provides for Contracts relating to the incurrence, assumption or guarantee of any Indebtedness or imposing a Lien on any of its assets;
(ix) Contracts under which the Company or any Company Subsidiary of its Subsidiaries has made advances or loans to obtain any other Person;
(x) Contracts providing for severance, retention, change in control or other similar payments;
(xi) Contracts for the employment of any individual on a servicefull-time, license, product, product line, operations part-time or line consulting or other basis;
(xii) Contracts for the provision of business from any Person (including any of the Material Suppliers) that involves annual payments goods or services involving consideration in excess of $2,000,000, 50,000 annually or that contains any minimum purchase commitments $100,000 in excess the aggregate over the term of $2,000,000 annually;
(v) each the Contract that gives any Person the right to acquire any assets of and not terminable by the Company or any Company the applicable Subsidiary upon thirty (excluding ordinary course commitments to purchase goods 30) days’ notice or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a wholeless;
(xiii) each Contract evidencing outstanding agreements of guaranty, surety or relating to outstanding Indebtedness (indemnification, direct or commitments in respect thereof) of indirect, by the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company its Subsidiaries;
(xiv) each Contract pursuant to Contracts (or group of related contracts) which involve the Company expenditure of more than $50,000 annually or $100,000 in the aggregate or require performance by any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to party more than one (1) year from the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunderdate hereof;
(xv) each Contract between the Company or Contracts involving any Company Subsidiary, royalty payments on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;Intellectual Property; and
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not Contracts that are otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)its Subsidiaries.
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Stock Purchase Agreement (T-3 Energy Services Inc), Stock Purchase Agreement (T-3 Energy Services Inc)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.10(a) of the Company Seller Disclosure Letter contains a complete and correct listsets forth, as of the date hereofExecution Date, a list of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material following Transferred Contracts”)::
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areaReal Property Lease;
(ii) each Transferred Contract with any Federal Government Customer that generated recurring revenue in excess of $5,000,000 in the year ended December 31, 2019 (the “Material Government Contracts”);
(iii) (A) each outstanding Government Bid existing as of the Execution Date, that, if accepted, would lead to a Government Contract that Seller reasonably expects to generate more than $5,000,000 in revenue to the Business in the year ended December 31, 2020 or (B) each outstanding task order Government Bid under a Government Contract that Seller reasonably expects to generate more than $5,000,000 in revenue to the Business in the year ended December 31, 2020 (the Government Bids described in clauses (A) and (B), together, the “Material Government Bids”);
(iv) each Transferred Contract pursuant to which any license or access rights (including on a service basis) material to the Business is granted by Seller to a third party with respect to Transferred Intellectual Property (other than non-exclusive license agreements entered into with contractors, customers or clients);
(v) each Transferred Contract concerning the establishment or operation of a partnership, strategic alliance, joint venture, collaboration limited liability company or similar agreement or arrangement relating to the formation, creation, operation, management or control of any partnership, joint venture or limited liability company agreement material to the Business;
(vi) each Transferred Contract that limits or purports to limit the freedom of Seller (or, after the Closing, Buyer or its Subsidiaries) to compete in any line of business with any Person or engage in any line of business within any geographic area, or otherwise materially restricts Seller’s (or, after the Closing, Buyer or its Subsidiaries’) ability to solicit or hire any Person or solicit business from any Person;
(vii) each Transferred Contract for the employment of any Business Employee pursuant to which such Business Employee earned in excess of $200,000 in the year ended December 31, 2019, or for the engagement of any individual independent contractor providing services to the Business pursuant to which such contractor earned in excess of $200,000 in the year ended December 31, 2019 (excluding, for the avoidance of doubt, any Contract with a Person that is not an individual that provides for services of leased labor);
(viii) any Transferred Contract between Seller, on the one hand, and any Related Party of Seller, on the other hand, that will not be discharged at or prior to the Closing;
(ix) any Transferred Contract for the disposition of any material assets of Seller (other than sales of inventory or services in the Ordinary Course of Business);
(x) any Transferred Contract (other than Government Contracts) pursuant to which Seller has been granted by a third Person any license to any Intellectual Property Rights or pursuant to which a third Person has made available (including on a service basis) any Intellectual Property Rights to Seller (other than any Contract for COTS Software), in each case, where such agreement solely between or among Transferred Contract is material to the Company and its wholly owned Subsidiaries) or similar ContractBusiness;
(iiixi) each acquisition any Transferred Contract (other than trade debt incurred in the Ordinary Course of Business) under which Seller has, directly or divestiture Contract that contains representationsindirectly, covenantsmade any advance, indemnities loan, extension of credit or capital contribution to, or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or investment in, any Company Subsidiary of future payments Person in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vixii) any settlement Transferred Contract involving a research or development collaboration or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a wholearrangement;
(xiii) each any Transferred Contract evidencing or relating to outstanding Indebtedness (or commitments granting any third party a security interest in respect thereof) any of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company SubsidiariesSeller’s assets;
(xiv) each Transferred Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries creating Indebtedness for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunderBorrowed Money;
(xv) each Transferred Contract between entered into at any time within the Company or any Company Subsidiary, on three (3) year period prior to the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract Execution Date pursuant to which the Company Seller acquired another operating business or any Company Subsidiary has other Contract with an obligation to indemnify such officerearnout, director, affiliate, beneficial owner deferred payment or family memberother contingent payment obligation;
(xvi) each Transferred Contract with obligating Seller to purchase or otherwise obtain any product or service exclusively from a Material Suppliersingle party or granting any third party the exclusive right to develop, market, sell or distribute any products or services Related to the Business; and
(xvii) each Transferred Contract containing a “most favored nation” or any right-of-first refusal or right-of-first-offer or similar provision in favor of any customer or other counterparty of Seller or a limitation on Seller’s ability to increase prices. The Transferred Contracts that are, or are required to be, listed in Section 3.10(a) of the Seller Disclosure Letter, and each Transferred Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute have been listed on Section 3.10(a) of the Seller Disclosure Letter as of the Closing Date, are each a “material contractMaterial Contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of and are, collectively, the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)“Material Contracts”.
(b) True and complete copies of each Material Contract in effect as Each of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary Material Contracts is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto on Seller, and, to the CompanySeller’s Knowledge, of each other party thereto, and is in full force and effect. Seller is not, subject and, to Seller’s Knowledge, no other party to any Material Contract is, in any material respect, in violation of, or in default under, any such Material Contract. No event has occurred that, with the Enforceability Limitations and lapse of time or the giving of notice or both, would constitute a material default thereunder by Seller, or, to Seller’s Knowledge, any expiration thereof in accordance with its terms existing other party to a Material Contract.
(c) Except as set forth on Section 3.10(c) of the Seller Disclosure Letter, as of the date hereof and without Execution Date, Seller has not received from any counterparties to any Material Contract: (i) any written notice or, to Seller’s Knowledge, any other notice of any material breachbreach or default or any notice that any such party intends to terminate, cancel or not renew any Material Contract; (ii) any written claim, or to Seller’s Knowledge, any other claim for material damages or indemnification with respect to the products sold or performance of services pursuant to any Material Contract; or (iii) any notice that such party intends to substantially alter in a manner materially adverse to Seller (including as a result of any material reduction in the rate or amount of sales or purchases or material increase in the prices charged or paid, as the case may be) any such Material Contract. Seller has provided true, correct and complete copies of each Material Contract to Buyer.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Unisys Corp), Asset Purchase Agreement (Science Applications International Corp)
Material Contracts. (a) Except for For all purposes of and under this Agreement, Section 4.17(a) a “Material Contract” of the Company Disclosure Letter contains a complete and correct list, as of the date hereof, of each Contract described in this Section 4.17(a) under or its Subsidiaries shall mean (all such Material Contracts which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary of its Subsidiaries is a party or to by which any of them or any of their respective properties properties, rights or assets is subjectare bound, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each any Contract (other than Company Leases) that limits in any material respect the freedom of listed or required to be listed as an exhibit to the Company’s annual report on Form 20-F for the year ending December 31, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area2016;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities requires payments from or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration its Subsidiaries of more than $1,000,000;
500,000 during the past twelve (vi12) any settlement month period or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in during the twelve (12) month period following the date hereof, other than Contracts solely between hereof and is not cancelable by the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiariesits Subsidiaries without any financial or other penalty upon notice of ninety (90) days or less;
(ixiii) any Contract that obligates relates to the Company formation, creation, operation, management or control of any legal partnership or any Company Subsidiary to make joint venture entity (whether a corporation, limited liability company or any capital investment other entity type) or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annumsimilar arrangement;
(xiv) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to Contract (other than any Contract whose only parties are the Company and the Company and/or its Subsidiaries, taken as a whole, each Contract that grants any right of first refusal ) relating to Indebtedness for borrowed money owing or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to guaranteed by the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each other than any Contract evidencing or relating to Indebtedness with an outstanding Indebtedness (or commitments in respect thereof) principal amount of the Company or any Company Subsidiary less than $250,000 (whether incurred, assumed, guaranteed or secured by any asset);
(v) in an amount any Contract under which the Company or its Subsidiaries has made any advance, loan, extension of credit or capital commitment to, or other investment in, any Person in excess of $1,000,000 250,000 (other than Contracts solely between the Company or its Subsidiaries and a wholly owned Company Subsidiary or between wholly owned Company Subsidiariesexcept for any extensions of trade credits in the ordinary course of business consistent with past practice);
(xivvi) each any Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with (A) that contains a license in respect to of Intellectual Property that Rights where such license is material to the businesses business of the Company and the Company Subsidiariesor its Subsidiaries (except for (1) licenses of commercially available, taken as a wholeoff-the-shelf, click-wrap or agrees to limit its use or exploitation of any material Company IP in any material respectshrink-wrap software, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A2) non-exclusive licenses granted of Intellectual Property Rights incidental to the sale or purchase of products or services in the ordinary course of business consistent with past practice) or (B) for the development (by itself or through a third party) of any Intellectual Property Rights material to the current products of the Company or the manufacturing thereof;
(vii) any Contract to which the Company is a party that contains any continuing covenant by, or restriction on, the Company or any of its Subsidiaries to not compete or engage in any line of business or to not engage in its business in any geographic location, in each case other than such Contracts that may be canceled without liability to the Company or Company any of its Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunderwithout notice;
(xvviii) each any Contract between providing for (x) Government Grants from the Company OCS or any Company Subsidiaryother Israeli Governmental Authority, on which Government Grant is extended to support the one handCompany’s research and development operations (i.e., and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange ActKitvei Ishur), on the or (y) material Government Grants from any other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family memberGovernmental Authority;
(xvi) each Contract with a Material Supplier; and
(xviiix) any Contract not otherwise described in with any other subsection of this Section 4.17(a) that would constitute a “material contract” directors, executive officers (as such term is defined in the Exchange Act) or five-percent stockholders of the Company or any of its Affiliates or immediate family members;
(x) any Contract providing for material “earn-outs” or other material contingent payments by the Company or any of its Subsidiaries other than those with respect to which there are no further obligations under such provisions;
(xi) any Contract entered into after January 1, 2015, or has not yet been consummated, and involves the acquisition or disposition, directly or indirectly (by merger or otherwise), of a business (or assets comprising all or part of a business) or capital stock or other equity interest of another Person;
(xii) any Contract involving a grant to any Person of any right of first offer or right of first refusal to purchase, lease, sublease, use, possess or occupy any material assets, rights or properties of the Company; and
(xiii) any Contract that would be required to be filed by the Company as a “material contract” pursuant to Item 601(b)(10) of Regulation S-K of under the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)Securities Act.
(b) True and complete copies Section 3.10(b) of each the Company Disclosure Letter contains a list of all Material Contracts (other than any Material Contract in effect contemplated by clause (i) of the definition thereof) as of the date hereof have of this Agreement, and a true, accurate and complete copy of each such Material Contract has been made available provided to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. this Agreement.
(c) Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) each Material Contract is a valid, valid and binding on the Company and enforceable obligation of against the Company and its Subsidiaries party thereto, in accordance with its terms, except that such enforceability (x) may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting or relating to creditors’ rights generally, and (y) is subject to general principles of equity, (ii) neither the Company Subsidiary which is party thereto andnor any of its Subsidiaries nor, to the Knowledge of the Company’s Knowledge, of each any other party thereto, and is in full force breach of, or default under any such Material Contract and effect(iii) the Company has not received written notice of any actual or potential violation of, subject or failure to the Enforceability Limitations and comply with, any expiration thereof in accordance with its terms existing as term of the date hereof and without any material breachMaterial Contract.
Appears in 2 contracts
Sources: Merger Agreement (Enzymotec Ltd.), Merger Agreement (Frutarom LTD)
Material Contracts. (a) Except for this Agreement, as disclosed in Section 4.17(a) 2.9 of the Company Seller Disclosure Letter contains a complete and correct listLetter, as of the date hereofof this Agreement, neither Target nor any of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary its Subsidiaries is a party to or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):bound by:
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries);
(xivii) each Contract pursuant any joint venture, partnership, limited liability company or other similar agreements or arrangements;
(iii) any agreement or series of related agreements, including any option agreement, relating to which the Company acquisition or disposition of any business, capital stock or material assets of any other Person or any Company Subsidiary grants material real property (whether by merger, sale of stock, sale of assets or receives otherwise);
(iv) any licenseagreement that (A) limits the freedom of Target or any of its Subsidiaries to compete in any line of business or with any Person or in any area or that would so limit the freedom of Buyer or its Subsidiaries after the Closing or (B) contains exclusivity obligations or restrictions binding on Target or any of its Subsidiaries or that would be binding on Buyer or any of its Subsidiaries after the Closing;
(v) agreements with any of the top ten (10) suppliers of materials, optionsupplies, waivergoods, covenant not services, equipment or other assets for Target and its Subsidiaries taken as a whole as determined as of the date hereof based on aggregate purchases made during the twelve-month period ending on Target Balance Sheet Date (other than any work orders or purchase orders that are governed by any of such agreements);
(vi) agreements with any of the top ten (10) customers of Target and its Subsidiaries taken as a whole as determined as of the date hereof based on aggregate purchases made during the twelve-month period ending on Target Balance Sheet Date (other than any work orders or purchase orders that are governed by any of such agreements);
(vii) any agreement relating to assert any interest rate, derivatives or hedging transaction;
(viii) any agreement under which (A) any Person has directly or indirectly guaranteed any liabilities or obligations of Target or any of its Subsidiaries or (B) Target or any of its Subsidiaries has directly or indirectly guaranteed any liabilities or obligations of any other Person (in each case other than endorsements for the purpose of collection in the ordinary course of business);
(ix) any agreement that includes a take-or-pay, guaranteed minimum purchase or supply or similar right term;
(x) any engineering, production and construction agreement or similar agreement related to any downstream solar projects with respect to Intellectual Property generation capacity of five (5) megawatts or more; or
(xi) any other agreement, commitment, arrangement or plan that is (A) not made in the ordinary course of business and (B) material to the businesses of the Company Target and the Company its Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract Each agreement, commitment, arrangement or plan disclosed in effect as of the date hereof have been made available Seller Disclosure Letter or required to Parent be disclosed therein pursuant to this Section 2.9, Section 2.10(c), Section 2.11(b), Section 2.13(b), Section 2.17 or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Section 2.20(a) (each, a “Target Material Contract, except as has not had ”) is a valid and would not reasonably be expected to have, individually binding agreement of Target or in the aggregate, a Company Material Adverse Effect. To the Company’s KnowledgeSubsidiary of Target, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party theretocase may be, and is in full force and effect, subject and none of Target, any Subsidiary of Target or, to the Enforceability Limitations and Knowledge of Seller, any expiration thereof other party thereto is in accordance with its terms existing as of the date hereof and without default or breach in any material breachrespect under (or is alleged to be in default or breach in any material respect under) the terms of, or has provided or received any notice of any intention to terminate, any such Target Material Contract, and, to the Knowledge of Seller, no event or circumstance has occurred that, with notice or lapse of time or both, would constitute an event of default thereunder or result in a termination thereof or would cause or permit the acceleration of or other changes of or to any right or obligation or the loss of any benefit thereunder.
Appears in 2 contracts
Sources: Share Purchase Agreement (Hanwha SolarOne Co., Ltd.), Share Purchase Agreement (Hanwha Solar Holdings Co., Ltd.)
Material Contracts. (a) Except for this Agreement, Subsections (i) through (xvi) of Section 4.17(a3.18(a) of the Company Disclosure Letter contains a Schedule set forth an accurate and complete and correct list, as list of all of the date hereoffollowing types of Contracts (x) to which any Group Company is a party, of excluding in each Contract described in this Section 4.17(a) case, Contracts under which such Group Company has no outstanding rights or obligations and (y) have not been filed with or furnished to the SEC as an exhibit to the Company’s filings with the SEC (such Contracts as are required to be set forth in Section 3.18(a) of the Company Disclosure Schedule being the “Material Contracts”), and, other than this Agreement, none of the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary of its Subsidiaries is a party to or to which bound by any of their respective properties or assets is subject, other than any Company Benefit Plans (all Material Contracts of the type described not listed in this Section 4.17(a), whether or not set forth on Section 4.17 3.18(a) of the Company Disclosure Letter, being referred to herein as “Material Contracts”):Schedule:
(i) each any Contract (other than that would be required to be filed by the Company Leases) that limits in any material respect the freedom pursuant to Item 4 of the Company, any Company Subsidiary or any Instructions to Exhibits of their respective affiliates (including Parent and its affiliates after Form 20-F under the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areaExchange Act;
(ii) any material Contract relating to (A) the formation, creation, operation, management or control of a partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contractarrangement with the Group Company making investment in the amount of more than US$50,000,000, (B) strategic cooperation or partnership arrangements, or (C) other similar agreements outside the ordinary course of business involving a sharing of profits, losses, costs or liabilities by any Group Company that is material to the business of the Company;
(iii) each acquisition or divestiture any Contract that contains representations, covenants, indemnities or involving a loan (other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result than accounts receivable from trade debtors in the receipt ordinary course of business) or making by advance to (other than travel and entertainment allowances to the employees of the Company and any of its Subsidiaries extended in the ordinary course of business), or investment in, any person other than a Group Company or any Company Subsidiary Contract relating to the making of future payments in excess any such loan, advance or investment that is material to the financial status of $1,000,000the Company;
(iv) each any Contract that provides for involving Indebtedness of the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration its Subsidiaries in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annuallyUS$50,000,000;
(v) each any Contract that gives granting or evidencing a Lien on any Person the right to acquire any material properties or assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more its Subsidiaries, other than $1,000,000a Permitted Encumbrances;
(vi) any settlement Contract for the acquisition, disposition, sale, transfer or similar Contract lease (including leases in connection with a Governmental Entity, other than those relating to Taxes;
(viifinancing transactions) except as has not been, and would not reasonably be expected to be, individually of properties or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct assets of the Company or any Company Subsidiary of its Subsidiaries that have a fair market value or any purchase price of their respective affiliates more than US$50,000,000 (including Parent and its affiliates after the Effective Time);
(viiiby merger, purchase or sale of assets or stock or otherwise) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) or pursuant to which the Company or any of its Subsidiaries have continuing, indemnification, guarantee, “earn-out” or other contingent payment obligations;
(vii) any Contracts involving any resolution or settlement of any actual or threatened material litigation, arbitration, claim or other dispute;
(viii) any Contract for the employment of any officer, individual employee or other person by the Company Subsidiary has paid or received any of its Subsidiaries on a full-time or consulting basis or any severance agreements calling for payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company SubsidiariesUS$10,000,000 annually;
(ix) any non-competition Contract or other Contract that obligates purports to limit, curtail or restrict in any material respect the ability of the Company or any Company Subsidiary of its Subsidiaries to make compete in any capital investment geographic area, industry or capital expenditure outside the ordinary course line of business and in excess that is material to the business of $1,000,000 per annumthe Company;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights a put, call or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract similar right pursuant to which the Company or any of its Subsidiaries could be required to purchase or sell, as applicable, any equity interests of any person or assets that have a fair market value or purchase price of more than US$50,000,000;
(xi) any Contract (other than Contracts granting Company Subsidiary grants Options or receives Company RSUs) giving the other party the right to terminate such Contract as a result of this Agreement or the consummation of the Transactions, including the Merger, where (A) such Contract requires any payment in excess of US$50,000,000 to be made by the Company or any of its Subsidiaries or (B) the value of the outstanding receivables due to the Company and its Subsidiaries under such Contract is in excess of US$50,000,000;
(xii) any Contract that contains restrictions with respect to (A) payment of dividends or any distribution with respect to equity interests of the Company or any of its Subsidiaries, (B) pledging of share capital of the Company or any of its Subsidiaries or (C) issuance of guarantee by the Company or any of its Subsidiaries;
(xiii) any material Contract providing for (A) a license, option, waiver, covenant not to assert s▇▇ or similar other right with respect to granted by any Third Party under any Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized termsany of its Subsidiaries, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 a license, covenant not to s▇▇ or other right granted by the Company or any of its Subsidiaries to any Third Party under any Intellectual Property, other than agreements for off-the-shelf Software, (C) an indemnity of any person by the Company or any of its Subsidiaries against any charge of infringement, misappropriation, unauthorized use or violation of any Intellectual Property right, or (D) any royalty, fee or other amount payable by the Company or any of its Subsidiaries to any person by reason of the ownership, use, sale or disposition of Intellectual Property;
(xiv) any material Contract outside the ordinary course of business of the Company Disclosure Letter or not on arm’s length terms between the Company or any of its Subsidiaries, on one hand, and any Affiliate or other entity in which any Group Company has a direct or indirect equity interest, or director, or executive officer, or any person beneficially owning ten percent (10%) or more of the grants outstanding Equity Securities of rights to use Intellectual Property are incidental to performance thereunderany Group Company or any of their respective Affiliates (other than the Group Companies), or immediate family members or any of the respective Affiliates of such family members, on the other hand;
(xv) each any Contract between the Company or any Company Subsidiary, on the one hand, which have not been covered by subsections (i) through (xiv) and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, involves consideration of more than five percent (5%) US$50,000,000, in the aggregate, over the remaining term of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;Contract; or
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not which could reasonably be expected to have, individually or in the aggregate, have a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any .
(i) Each Material Contract is a legal, valid and binding obligation of a Group Company, as applicable, in breach full force and effect and enforceable against the such Group Company in accordance with its terms, subject to the Bankruptcy and Equity Exception; (ii) to the knowledge of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse EffectCompany, each Material Contract is a validlegal, valid and binding and enforceable obligation of the counterparty thereto, in full force and effect and enforceable against such counterparty in accordance with its terms, subject to the Bankruptcy and Equity Exception, (iii) no Group Company and, to the knowledge of the Company, no counterparty, is or is alleged to be in material breach or violation of, or default under, any Material Contract; (iv) to the knowledge of the Company, no person intends to terminate or cancel any Material Contract; (v) no Group Company Subsidiary which is party thereto has received any written claim of default under any such Material Contract and, to the Company’s Knowledgeknowledge, no fact or event exists that would give rise to any claim of each other party theretodefault under any Material Contract; and (vi) neither the execution of this Agreement nor the consummation of any Transaction shall constitute a material default under, and is in full force and effectgive rise to cancellation rights under, subject to the Enforceability Limitations and or otherwise adversely affect any expiration thereof in accordance with its terms existing as of the date hereof material rights of any Group Company under any Material Contract. The Company has furnished or made available to Parent true and without complete copies of all Material Contracts, including any material breachamendments thereto.
Appears in 2 contracts
Sources: Merger Agreement (Yao Jinbo), Merger Agreement (58.com Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) of the Company The Disclosure Letter contains sets forth a complete and correct list, list as of the date hereofhereof of all (i) Contracts for borrowed money or guarantees thereof, other than Contracts entered into in the ordinary course of business consistent with the past practice of the Company involving less than $2,000,000 individually or $10,000,000 in the aggregate or Contracts between the Company and any of its wholly owned Subsidiaries or between any of the Company's wholly owned Subsidiaries, (ii) Contracts involving any rate swap transaction, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction (including any option with respect to any of these transactions), or any combination of these transactions (each Contract described a "Derivative" and collectively, "Derivatives"), other than Derivatives entered into in this Section 4.17(athe ordinary course of business consistent with the past practice of the Company and with the Company's policies regarding Derivatives as previously disclosed to Purchaser, (iii) under which Contracts containing covenants by the Company or any Subsidiary restricting its ability or the ability of any of the affiliates of the Company Subsidiary has or any current of its Subsidiaries to engage in any line of business, (iv) Contracts to purchase materials, supplies or future rightsother assets, responsibilitiesother than purchase orders entered into in the ordinary course of business consistent with the past practice of the Company and other Contracts involving obligations of less than $2,000,000 individually and $10,000,000 in the aggregate, obligations (v) Contracts to purchase or liabilities acquire advertising or other product promotion or brand support other than spot orders purchased in the ordinary course of business or involving commitments by the Company of less than $1,000,000, (vi) Contracts with distributors, brokers or sales agents for the distribution of the products of the Company in any of the Key Jurisdictions identified as Category A Key Jurisdictions in the Disclosure Letter or in which the Company acts as distributor, broker or sales agent for others in any Key Jurisdiction, other than Contracts involving or likely to involve payments of less than $200,000 per year, (vii) Contracts entered into by the Company since January 1, 1986 and in which the Company's surviving liability (including indemnities) could reasonably be expected to exceed $1,000,000 and involving the sale or other disposition by the Company of one or more business units, divisions or entities (including former Subsidiaries), (viii) Contracts involving the investment, including by way of capital contribution, loan or advance, by the Company or any of its Subsidiaries of more than $1,000,000 in any other person, firm or entity (other than wholly-owned Subsidiaries), other than investments no longer owned by the Company or its Subsidiaries, (ix) other Contracts under which the obligation of the Company and its Subsidiaries is $1,000,000 or more, and (x) promotion Contracts in the United States with the Company's ten largest customers having a term of longer than three (3) months (all Contracts described in each caseof the categories (i) through (x) above, whether contingent or otherwise) or "Material Contracts"). For the purposes of this Agreement, "Key Jurisdiction" shall mean each of the countries identified as such in the Disclosure Letter. "Category A Key Jurisdiction" shall mean each of the countries identified as such in the Disclosure Letter. All Contracts to which the Company or any Company Subsidiary of its Subsidiaries is a party or to by which any of their respective properties assets are bound are valid and binding, in full force and effect and enforceable against the parties thereto in accordance with their respective terms, except where the failure to be so valid and binding, in full force and effect or assets enforceable would not individually or in the aggregate have a Material Adverse Effect. There is subject, other than not under any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Companysuch Contract, any Company Subsidiary existing default, or any event, which after notice or lapse of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete time, or engage in any line of business or geographic region or with any Person or sellboth, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Companywould constitute a default, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000its Subsidiaries, or that contains to the Company's knowledge, any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entityother party, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to beany such defaults or events which, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as have a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Merger Agreement (Procter & Gamble Co), Merger Agreement (Procter & Gamble Co)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) 4.19 of the Company Disclosure Letter Schedule contains a complete and correct list, as list of each of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):following contracts:
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) Contracts required to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, be filed by the Company Subsidiaries or affiliates (including Parent and its affiliates after with the Effective Time) from SEC pursuant to Item 601 of Regulation S-K under the development, marketing or distribution of products and services, in each case, in any geographic area1933 Act;
(ii) each Contract between the Company or any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than of its Subsidiaries and any such agreement solely between or among of the 20 largest customers of the Company and its wholly owned Subsidiaries) or similar ContractSubsidiaries by monthly recurring revenue for the quarter ended June 30, 2009;
(iii) except for the Contracts disclosed in clauses (i) and (ii) above and any other customer Contract, each acquisition or divestiture Contract that contains representationsinvolves performance of services or delivery of goods, covenantsmaterials, indemnities supplies or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making equipment by the Company or any of its Subsidiaries, or the payment therefor, by the Company Subsidiary or any of future its Subsidiaries providing for either (A) annual payments in excess of $1,000,0001,000,000 or more or (B) aggregate payments of $2,000,000 or more;
(iv) each Contract that provides for the Company or Lease relating to any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annuallydata center;
(v) each Contract that gives any Person the right to acquire any assets of the Company partnership, joint venture or any Company Subsidiary (excluding ordinary course commitments to purchase goods other similar agreement or products) after the date hereof with consideration of more than $1,000,000arrangement;
(vi) any settlement or similar each Contract with a Governmental Entity, other than those relating to Taxesthe acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise);
(vii) except as has not been, and would not reasonably be expected each Contract relating to be, individually Indebtedness or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement deferred purchase price of property of or similar Contract restricting in any respect the operations or conduct of by the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates Subsidiaries (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each either case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 entered into other than Contracts solely between in the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiariesordinary course of business consistent with past practice;
(xivviii) each Contract pursuant to which the Company or any Company Subsidiary grants of its Subsidiaries is a party creating or receives any licensegranting a Lien (including Liens upon properties acquired under conditional sales, option, waiver, covenant not to assert capital leases or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, other title retention or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangementsecurity devices), other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunderPermitted Liens;
(xvix) each Contract between under which the Company or any Company Subsidiaryof its Subsidiaries has, on the one handdirectly or indirectly, and made any officerloan, director capital contribution to, or affiliate other investment in, any Person (other than a wholly owned the Company Subsidiaryor any of its Subsidiaries and other than extensions of credit or loans in the ordinary course of business consistent with past practice);
(x) any agency, dealer, sales representative, marketing or other similar agreement involving the payment or receipt of annual payments in excess of $500,000;
(xi) each Contract that contains any exclusivity provisions restricting the Company or any of its Affiliates or that limits the freedom of the Company or any Company Subsidiary, of its Affiliates to compete in any beneficial owner, directly line of business or indirectly, with any Person or in any area or which would so limit the freedom of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family memberof its Affiliates after the Closing Date;
(xvixii) each Contract providing for indemnification of any Person with respect to material liabilities relating to any current or former business of the Company, any of its Subsidiaries or any predecessor Person other than indemnification obligations of the Company or any of its Subsidiaries pursuant to the provisions of a Contract entered into by the Company or any of its Subsidiaries in the ordinary course of business consistent with past practices and that could not reasonably be expected to have a Material SupplierAdverse Effect on the Company; and
(xviixiii) any Contract other agreement, commitment, arrangement or plan not otherwise described made in any other subsection the ordinary course of this Section 4.17(a) that would constitute a “material contract” (as such term is defined business involving the payment or receipt of annual payments in Item 601(b)(10) excess of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)$1,000,000.
(b) True and complete copies of each Material Contract in effect as As of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contractthis Agreement, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To Effect on the Company’s Knowledge, as of the date hereofeach agreement, no other party to any Material Contract is in breach of contract, plan, Company Lease, arrangement or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or commitment disclosed in the aggregateCompany Disclosure Schedule or required to be disclosed pursuant to this Section 4.19 (each, a Company “Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract Contract”) is a valid, valid and binding and enforceable obligation agreement of the Company or a Subsidiary, as the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party theretocase may be, and is in full force and effect, subject and none of the Company, any of its Subsidiaries or, to the Enforceability Limitations and knowledge of the Company, any expiration thereof other party thereto is in accordance default or breach in any material respect under the terms of any such agreement, contract, plan, Company Lease, arrangement or commitment, and, to the knowledge of the Company, no event or circumstance has occurred that, with its terms existing notice or lapse of time or both, would constitute any event of default thereunder.
(c) To the knowledge of the Company, as of the date hereof and without of this Agreement no person is renegotiating, or has an express right (absent any default or breach of a Material Contract) pursuant to the terms of any Material Contract to renegotiate, any material breachamount paid or payable to the Company under any Material Contract or any other material term or provision of any Material Contract. As of the date of this Agreement, the Company has not received any written indication of an intention to terminate any of the Material Contracts by any of the parties to any of the Material Contracts.
(d) Complete and correct copies of each Material Contract in existence as of the date of this Agreement have been made available by the Company to Parent prior to the date of this Agreement.
Appears in 2 contracts
Sources: Merger Agreement (Equinix Inc), Merger Agreement (Switch & Data Facilities Company, Inc.)
Material Contracts. (a) Except for this AgreementTo the extent permissible under the Antitrust Laws, Section 4.17(a3.21(a) of the Company Disclosure Letter contains a true, complete and correct list, as list of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or following Contracts to which the Company or any Company Subsidiary of its Subsidiaries is a party or to by which any of their respective properties property or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 asset of the Company Disclosure Letteror any of its Subsidiaries is bound, being referred to herein in each case as of the date of this Agreement, excluding Company Plans listed in Section 3.18(b) of the Company Letter and Company Property Leases listed in Section 3.15(a) of the Company Letter (collectively, the “Material Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) Subsidiaries to compete or engage in any line of business or geographic region or with any Person or sellPerson, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company or its Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areaservices or ownership or leasing of property;
(ii) any material each Customer Contract with a top ten (10) Customer of the Company and its Subsidiaries (each, a “Material Customer”) based on monthly recurring revenue received by the Company and its Subsidiaries in the six month period ended June 30, 2019 (such Customer Contracts, the “Material Customer Contracts”);
(iii) each partnership, strategic alliance, joint venture, collaboration venture or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar ContractContract that provided revenue to the Company and its Subsidiaries in excess of €5,000,000 in 2018 or is expected to provide annual revenue to the Company and its Subsidiaries in excess of €5,000,000 in 2019;
(iiiiv) each Contract entered into since December 31, 2016: (A) relating to the disposition or acquisition by the Company or any of its Subsidiaries of any business (whether by merger, amalgamation, consolidation or other business combination, sale of assets, sale of shares in the share capital or other voting securities, tender offer, exchange offer, or similar transaction); or (B) pursuant to which the Company or any of its Subsidiaries will acquire or is obligated to acquire any ownership interest or make an investment (other than in the Company or any of its Subsidiaries), in the case of each of clauses (A) and (B), valued in excess of €10,000,000;
(v) each Contract with respect to the acquisition or divestiture Contract that contains representationsdisposition of any Person, covenantsthe disposition of any Real Property or Additional Real Property or the acquisition of any real property (whether by merger, indemnities amalgamation, consolidation or other obligations business combination, sale of assets, sale of shares in the share capital or other voting securities, tender offer, exchange offer or similar transaction) pursuant to which the Company or any of its Subsidiaries has (including A) material continuing indemnification obligation or obligation for unpaid consideration, or (B) any “earnoutearn-out” or other similar contingent payment obligations, in the case of each of clauses (A) and (B), that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000€5,000,000;
(vi) any settlement or similar each Contract with granting a Governmental Entity, right to material Intellectual Property Rights (other than those relating Contracts with respect to Taxesgenerally commercially available software and hardware and Customer Contracts entered into in the ordinary course of business);
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer in favor of a Third Party or that materially limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) Subsidiaries to own, operate, sell, transfer, pledge or otherwise dispose of any material businesses or material assets;
(xiviii) each Contract that contains pursuant to which a Third Party is granted any exclusivity rights (other than customization work for Customers) relating to or “most favored nations” provisionsprovisions that is binding on the Company or its Subsidiaries, in each case, that are material in any respect which Contract is not terminable by the Company and each of its Subsidiaries party to such Contract upon ninety (90) or fewer days’ notice by the Company or its affiliates (including Parent relevant Subsidiaries without the requirement of any payment, penalty, premium, fee, liability or its affiliates after the Effective Time)other obligations;
(xiiix) other than instruments providing for indebtedness pursuant to which the current amount of outstanding indebtedness is equal to or less than €5,000,000, each Contract governing that (A) is an indenture, credit agreement, loan agreement, security agreement, guarantee of, note, mortgage or other agreement providing for indebtedness (including obligations under any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to capitalized leases but excluding agreements between the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) any wholly owned Subsidiary of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xivSubsidiaries of the Company) each Contract or pursuant to which the Company or any of its Subsidiaries guarantees any such indebtedness of any other Person (other than the Company or another wholly owned Subsidiary of the Company), (B) materially restricts the Company’s and its Subsidiaries’ (taken as a whole) ability to incur indebtedness or guarantee the indebtedness of others, (C) grants a Lien (other than a Permitted Lien) or receives restricts the granting of Liens on any license, option, waiver, covenant not to assert property or similar right with respect to Intellectual Property asset of the Company or its Subsidiaries that is material to the businesses of the Company and the Company its Subsidiaries, taken as a whole, or agrees to limit its use (D) is an interest rate derivative, currency derivative, forward purchasing, swap or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunderhedging Contract;
(xvx) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to evidencing a settlement of any Action under which the Company or any Company Subsidiary of its Subsidiaries has an obligation to indemnify such officer, director, affiliate, beneficial owner any remaining payment obligations in excess of €1,000,000 or family membermaterial restrictions on operations;
(xvixi) any Contract under which the Company or any of its Subsidiaries is lessee of or holds or operates any tangible property (other than real property), owned by any other Person, except for any Contract under which the aggregate annual rental payments do not exceed €5,000,000;
(xii) any Contract (other than the type described in clauses (i) through (xi) above) that requires aggregate payments by or to the Company or any Subsidiary of the Company in excess of €20,000,000 per annum;
(xiii) each collective bargaining agreement or other Contract with a Material Supplierany labor union, works council or other labor organization; and
(xviixiv) any each Contract not otherwise described in any other subsection of this Section 4.17(a3.21(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of as promulgated by the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)Company.
(b) True A true, correct and complete copies copy of each Material Contract in effect as of the date hereof have of this Agreement has been made available to Parent and Buyer or publicly filed with the SEC prior to the date hereofof this Agreement, subject to the Clean Team Agreement. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and Except for matters that would not reasonably be expected to have, individually have or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) each Material Contract is a valid, binding and enforceable obligation of the Company or one of its Subsidiaries, on the Company Subsidiary which is party thereto one hand, and, to the knowledge of the Company’s Knowledge, of each the other party or parties thereto, on the other hand, in accordance with its terms, subject to the Enforceability Exceptions, and each Material Contract is in full force and effect, subject (ii) the Company and each of its Subsidiaries has performed all obligations required to be performed by it under each Material Contract and, to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as knowledge of the date hereof Company, each other party to each Material Contract has performed all obligations required to be performed by it under such Material Contract, (iii) none of the Company or any of its Subsidiaries has received written notice of any, and, to the knowledge of the Company, none of the Company or any of its Subsidiaries is in, default or material breach under (nor does there exist any condition which upon the passage of time or the giving of notice or both would cause such a default or material breach under) any Material Contract and without (iv) neither the Company nor any material breachof its Subsidiaries has received any written notice from any other party to any such Material Contract that such party intends to terminate, or not renew, any such Material Contract.
Appears in 2 contracts
Sources: Purchase Agreement (InterXion Holding N.V.), Purchase Agreement (Digital Realty Trust, Inc.)
Material Contracts. (a) Except for this Agreement, as set forth in Section 4.17(a6.12(a) of the Company Miami Disclosure Letter contains a complete and correct listSchedule, as of the date hereofof this Agreement, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which neither Miami nor any of their respective properties its Subsidiaries are parties to or assets is subject, other than any Company Benefit Plans otherwise bound by or subject to (all Contracts of the type described in this Section 4.17(a)following types, whether or not set forth on Section 4.17 of together with the Company Disclosure LetterMiami Licenses, being referred to herein as the “Miami Material Contracts”):
(i) each Contract Contracts for the purchase or licensing of products or for the receipt of services, the performance of which will extend over a period of one (1) year or more and which involved payments by Miami or any of its Subsidiaries in excess of $30,000,000 in the aggregate during the fiscal year ended April 30, 2016;
(ii) Contracts for the furnishing of products or services by Miami or any of its Subsidiaries, the performance of which will extend over a period of one (1) year or more and which involved payments to Miami or any of its Subsidiaries in excess of $30,000,000 in the aggregate during the fiscal year ended April 30, 2016;
(iii) Contracts concerning the establishment or operation of any material partnership, joint venture or limited liability company (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary such Contract solely between Miami or any of their respective affiliates its Subsidiaries and another Subsidiary of Miami);
(including Parent and iv) Government Contracts;
(v) material lease agreements for any Miami Leased Real Property existing at the date of this Agreement;
(vi) collective bargaining or other contracts with any labor union, works council, or other labor organization;
(vii) any swap, forward, future, option, cap, floor, collar or similar financial Contract or other derivative Contract, or any other interest rate or foreign currency protection Contract;
(viii) any Contract that relates to ongoing or scheduled development plans or arrangements or capital expenditures, in an annual amount in excess of $30,000,000;
(ix) contracts containing (A) a covenant materially restricting the ability of Miami or any of its affiliates after the Effective Time) Subsidiaries to compete or engage in any line of business in any geographic area or geographic region or to compete with any Person or sellPerson, supply or distribute to market any product or service to solicit customers, (B) a provision granting the other party “most favored nation” status or that otherwise has equivalent preferential pricing terms or (C) a provision granting the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) party exclusivity or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entityrights, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement teaming or similar Contract restricting agreements entered into in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business where the restrictions apply solely to the Contract or pursuit that is the subject matter of the teaming or similar agreement (and any extensions or recompetes in respect thereof); or
(x) indentures, credit agreements, loan agreements and similar instruments pursuant to which Miami or any of its Subsidiaries has incurred or assumed any indebtedness for borrowed money or has guaranteed or otherwise become liable for any indebtedness of any other Person for borrowed money in excess of $1,000,000 per annum;
(x) except where the exercise of 10,000,000, other than any such right indentures, credit agreements, loan agreements or imposition of such limitation has not been, similar instruments solely between or among any Miami and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any Subsidiaries. Table of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).Contents
(b) True Miami has made available to Houston true, complete and complete correct copies of each Miami Material Contract in effect as of on the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereofof this Agreement. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Each Miami Material Contract is in breach of valid and binding on Miami or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to haveits Subsidiaries, individually or in the aggregateas applicable, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledgeknowledge of Miami, of each other party the counterparty thereto, and is in full force and effect, subject to the Enforceability Limitations Remedies Exception. Neither Miami nor any of its Subsidiaries is in material breach of, or material default under, any Miami Material Contract to which it is a party.
(c) Except as would not, individually or in the aggregate, have a Miami Material Adverse Effect, each Miami Entity has established and maintains adequate internal controls, including cybersecurity, adequate cost-accounting and other business systems, for compliance with their Government Contracts and all invoices or other demands for payment submitted by or on behalf of such Miami Entity under any expiration thereof Government Contract were current, accurate and complete in accordance all material respects as of their respective submission dates and there has not been any set-off by a Governmental Authority with its respect to a Government Contract, nor has any cost in excess of $200,000 incurred by any Miami Entity been disallowed or questioned by a Governmental Authority or higher-tier contractor. Except as would not, individually or in the aggregate, have a Miami Material Adverse Effect, since January 1, 2014, the Miami Entities and their respective directors, officers and employees have complied with all terms existing of any Government Contract or Bid and have not: (A) breached or violated any Law, certification or representation, relating to any Government Contract or Bid, including all clauses, provisions and requirements incorporated expressly, by reference or by operation of law therein; (B) received notice, either orally or in writing, that any of the Miami Entities has breached or violated any applicable Law, or any material certification, representation, clause, provision or requirement pertaining to any Government Contract or Bid; (C) been suspended or debarred, or notified of proposed suspension or debarment, from bidding on contracts with any Governmental Authority or received any termination for default, cure notice or show cause notice that is in effect as of the date hereof and without pertaining to any material breachGovernment Contract; (D) to the knowledge of Miami, been investigated by any Governmental Authority with respect to any alleged irregularity, misstatement or omission arising under or relating to a Government Contract; or (E) otherwise conducted or initiated any internal investigation or made a voluntary or mandatory disclosure with respect to any alleged or potential irregularity, misstatement or omission arising under or relating to a Government Contract. To the knowledge of Miami, no facts exist that are reasonably likely to give rise to the revocation of any security clearance held by Miami Entities.
Appears in 2 contracts
Sources: Merger Agreement, Merger Agreement (Hewlett Packard Enterprise Co)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.15(a) of the Company Disclosure Letter contains a complete Schedule accurately lists the following legally binding contracts, agreements, commitments, arrangements, leases, licenses, policies and correct listinstruments, as of the date hereof, of each Contract described in this Section 4.17(awhether written or oral ("Contracts") under which undertaken by or for the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or of its Subsidiaries and to which the Company or any Company Subsidiary of its Subsidiaries is a party or to by which it or any of their respective properties or assets its Subsidiaries is subjectbound (collectively, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “"Material Contracts”"):
(i) each any Contract (other than Company Leases) that limits involving commitments to others to make capital expenditures involving $25,000 or more in any material respect one case, except Contracts for which the freedom obligations of the CompanyCompany and its Subsidiaries are fully reflected in the capital expenditure budget of the Company for the fiscal quarter ending June 30, 2001 previously provided to NBC (the "Cap Ex Budget");
(ii) (A) any Contract relating to any direct or indirect indebtedness for borrowed money (including but not limited to loan agreements, lease-purchase arrangements, guarantees, agreements to purchase goods or services or to supply funds or other undertakings on which others rely in extending credit), or (B) any conditional sales contracts, chattel mortgages, equipment lease agreements, and other security arrangements with respect to personal property with a value in excess of $25,000 in each instance used or owned by the Company Subsidiary or any of their respective affiliates its Subsidiaries;
(including Parent and iii) any lease for real property;
(iv) any Contract containing covenants limiting the ability of the Company or any of its affiliates after the Effective Time) Subsidiaries to compete or engage in any line of business or geographic region or with any Person person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries area or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areaterritory;
(iiv) any material partnershiplicense agreement either as licensor or licensee, strategic alliance, joint venture, collaboration or limited liability company any other agreement (other than of any such agreement solely between type relating to any of the material Intellectual Property owned or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making used by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000its Subsidiaries;
(vi) (A) any settlement Contract for advertising, promotion, distribution, content or similar Contract with a Governmental Entityanchor tenancy providing for payments by or to the Company or any of its Subsidiaries, other than those relating to Taxeswhether in cash or Equity Interests, in excess of $25,000 and (B) any material content Contract;
(vii) any Contract with any consultant providing for the payments by the Company or any of its Subsidiaries, whether in cash or Equity Interests, in excess of $100,000; and
(viii) any Contract not covered by any of the other items of this Section 3.15 that provides for payments by the Company, whether in cash or Equity Interests, or performance of other obligations, in excess of $50,000, except as has Contracts that may be terminated without liability, obligation or penalty by the Company or its Subsidiary on not beenmore than 30 days' notice.
(b) As of the date of this Agreement, neither the Company nor any of its Subsidiaries is, and to the Company's knowledge no other party is, in default or breach of any Material Contract, except for those defaults which would not reasonably be expected to benot, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to behave a Company Material Adverse Effect, and as of the date of this Agreement there has not occurred any event that with the lapse of time or the giving of notice or both would constitute such a default, except for those defaults which would not, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, have a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other The Company is not a party to any Material Contract that is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably required to be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except disclosed as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, an exhibit to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof SEC Documents in accordance with its terms existing as the rules and regulations of the date hereof and without any material breachSEC that has not been so disclosed. All advertising agreements referred to in Section 3.15(a)(vi) are substantially in the form of the form of advertising agreement previously provided to NBC by the Company.
Appears in 2 contracts
Sources: Merger Agreement (General Electric Co), Merger Agreement (NBC Internet Inc)
Material Contracts. (a) Except for this AgreementAnnex 7.9a) lists each of the following contracts and agreements which are still effective and to which any Group Company is a party at the Signing Date (such contracts and agreements, Section 4.17(a) individually being a “Material Contract” and collectively the “Material Contracts”): • all agreements with any supplier or service provider which is likely to involve a consideration of more than EUR 50,000 per year; • all agreements with any customer or distributor which is likely to involve a consideration of more than EUR 50,000 per year; • all agreements with clinical research organizations, clinics, hospitals, sponsors or investigators relating to or in connection with clinical trials conducted by or on behalf of the Company Disclosure Letter contains which are likely to involve a complete and correct list, as consideration of more than EUR 50,000; • all agreements with study sites regarding the conduct of a clinical trial conducted by or on behalf of the date hereof, Company which are likely to involve a consideration of each Contract described in this Section 4.17(a) more than EUR 50,000; • all agreements under which the Company is obliged to reimburse, directly or any Company Subsidiary has any current indirectly, study sites for costs arising out of or future rights, responsibilities, obligations in connection with clinical trials conducted by or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 behalf of the Company Disclosure Letter, being referred which are likely to herein as “Material Contracts”):
(i) each Contract (other involve a consideration of more than EUR 50,000; • all agreements relating to the acquisition or sale of a company or business containing any outstanding obligation of a Group Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after in respect to unpaid purchase price); • all agreements that limit or purport to limit the Effective Time) ability of any Group Company to compete or engage in any line of business or geographic region or with any Person other than a Group Company or sell, supply the Buyer or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) area or during any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement period of time; • all agreements regarding IP Rights and licensed IP Rights (other than any such agreement solely off-the-shelf computer software licenses) other than the IP transfer agreements between or among the Company and its wholly owned Subsidiaries(former) employees and advisors regarding the transfer of IP Right to the Company; • all insurance agreements; • all confidentiality commitments binding any Group Company; • all loan agreements; • all agreements containing a change of control clause • all agreements between (i) any Group Company on the one hand and (ii) a Seller or any of its Affiliates or Connected Persons on the other hand; • all lease agreements; • all guarantees, sureties or comfort letters in favour of third parties; • all agreements with a contractual notice period longer than six months; • all management and services contracts or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected agreements with third parties providing services to result in the receipt or making by the any Group Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary which is likely to obtain involve a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) EUR 75,000 per year; and • all agreements or arrangements entered into by any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Group Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business business.
b) The Material Contracts are valid, binding, enforceable in accordance with their terms and are in excess full force and effect.
c) The Group Companies have in all material respects properly performed all of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability their obligations arising out of the CompanyMaterial Contracts, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereofof this Agreement, no written notice of termination has been received or given or been threatened in writing relating to any of the Material Contracts. The counterparties to the Material Contracts have performed all material obligations arising out of such contracts and, to the Sellers’ Best Knowledge, no grounds for early termination exists. Upon consummation of the transactions contemplated by this Agreement, each Material Contract shall continue in full force and effect without penalty or other party adverse consequence and no counterparty to any Material Contract is has the right to terminate the relevant Material Contract or alter its obligations in breach any material respect as a result of the transactions contemplated by this Agreement.
d) Since the Locked Box Date up to and including the date of this Agreement, none of the Group Companies has been notified in writing by any material customer or default under supplier of their intention to terminate or failure to continue their business relationship with any Group Company and no material customer or supplier has terminated its agreement with any Group Company. Material customers or suppliers for the purposes of this clause shall be the ten largest customers or suppliers of the respective Group Company in terms of any volume for the year 2020. There are no claims or other entitlements of the counterparties to the Material Contract where such breach or default has had or would reasonably be expected to have, individually or Contracts which are not explicitly reflected in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation provisions of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breachMaterial Contracts.
Appears in 2 contracts
Sources: Share Exchange Agreement (Relief Therapeutics Holding SA), Share Exchange Agreement (Relief Therapeutics Holding SA)
Material Contracts. (a) Except for this AgreementAgreement and Contracts filed as exhibits to the Company SEC Documents, Section 4.17(a) 4.12 of the Company Disclosure Letter contains sets forth a complete and correct list, as of the date hereofof this Agreement, and the Company has made available to Parent complete and correct copies, of each Contract described in this Section 4.17(a(together with any and all amendments and supplements thereto and material side letters and similar documentation relating thereto) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary of its Subsidiaries is a party to or to which bound by (each, a “Material Contract”) of any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):following types:
(i) each Contract with a customer representing any of the fifty (50) largest customer relationships by revenue of the Company on a consolidated basis over the twelve (12) months immediately prior to January 31, 2012;
(ii) with a supplier representing any of the ten (10) largest telecommunications services supplier relationships by payments of the Company on a consolidated basis during the current fiscal year through April 19, 2012;
(iii) with a supplier, other than professional service providers, representing any of the ten (10) largest supplier relationships, other than the ten (10) largest telecommunications services supplier relationships, measured by payments of the Company on a consolidated basis during the current fiscal year through April 19, 2012;
(iv) with a sales agent representing any of the ten (10) largest sales agent relationships by revenue of the Company on a consolidated basis generated or managed during the current fiscal year through February 29, 2012;
(v) with a reseller of the Company’s and/or its Subsidiaries’ products or services representing any of the ten (10) largest sales reseller relationships by revenue of the Company on a consolidated basis over the twelve (12) months immediately prior to March 31, 2012;
(vi) with a consultant or independent contractor representing any of the ten (10) largest consultant or independent contractor relationships by payments of the Company on a consolidated basis during the current fiscal year through April 26, 2012;
(vii) entered into within the two (2) years prior to the date hereof that relate to the acquisition or disposition of any business, a material amount of stock or assets of any other Person or any real property (whether by merger, sale of stock, sale of assets or otherwise);
(viii) granting any Person an option or right to acquire on a non-arms’ length basis any Specified Intellectual Property (other than non-exclusive licenses granted to customers in the ordinary course of business) or material assets or tangible property of the Company Leasesor any of its Subsidiaries;
(ix) that limits in relating to (A) indebtedness for borrowed money (including guarantees by the Company or any material respect of its Subsidiaries) other than to or from its wholly-owned Subsidiaries, (B) the freedom incurrence of Liens (other than Permitted Liens) on the assets of the Company or its Subsidiaries, (C) the assumption, guarantee or endorsement, or other responsibility (whether directly, contingently or otherwise) for, the obligations of any Person (other than its wholly-owned Subsidiaries) for borrowed money, or (D) any “keep well” or other agreement to maintain any financial statement condition of another Person (other than a wholly-owned Subsidiary of the Company), any excluding in each case Contracts relating to trade payables arising in the ordinary course of business and those involving an amount of less than $50,000;
(x) that, except as would not have a material restrictive impact on the business of the Company Subsidiary or its Affiliates, to the Knowledge of the Company (A) limit the ability of the Company or any of their respective affiliates its Affiliates to solicit any Person as a customer, (including Parent and B) limit the ability of the Company or any of its affiliates after the Effective Time) Affiliates to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areaarea or during any future period of time, or (C) obligate the Company or any of its Affiliates to pay any royalties or other material amounts, or offer any discounts, to any third party in excess of those payable by, or required to be offered by, any of them, respectively, in the absence of this Agreement or the transactions contemplated hereby;
(iixi) relating to any material partnership, strategic alliance, joint venture, collaboration venture or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contractpartnership arrangements;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(axii) pursuant to which the Company or any of its Subsidiaries are obligated to contribute capital, loan money or otherwise provide funds or make additional investments in any Person other than a wholly-owned Subsidiary of the Company Subsidiary has paid or received other than trade payables arising in the ordinary course of business;
(xiii) relating to open purchase orders (including for services) involving future payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries150,000;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert providing “most favored nation” or similar right pricing to any customer that is a party to a Contract described in subsection (i) above with respect to Intellectual Property that is material the sale, distribution, license or support of any products or services; and
(xv) the termination or loss of which, to the businesses Knowledge of the Company, would materially and adversely affect the ability of the Company and the Company Subsidiariesits Subsidiaries to provide goods or services to customers, taken as a whole, or agrees to limit its use or exploitation of any material Company IP excluding Contracts otherwise described in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than of subsections (Ai) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and through (Bxiv) Contracts that otherwise constitute Material Contracts identified on above.
(b) Section 4.17 4.06(a) of the Company Disclosure Letter and also sets forth, for the Contracts listed in which items (i) through (vi) thereof, the grants of rights revenue or fees received from or paid to use Intellectual Property are incidental to performance thereunder;such customer, supplier, sales agent/reseller or consultant/independent contractor during the time period referenced in Section 4.06(a)(i) through (vi), as applicable.
(xvc) each Each Material Contract between is valid and binding on the Company or any Company Subsidiary, on the one handof its Subsidiaries, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company Company’s Knowledge, each other party thereto in accordance with its terms (subject to applicable bankruptcy, insolvency, moratorium, reorganization and other than those agreements similar laws affecting the rights of creditors generally, and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereofexercise of a court’s equitable powers) and is in full force and effect. Neither the Company nor any Company Subsidiary of its Subsidiaries nor, to the Company’s Knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach of or default under) in any material respect, nor, to the terms Company’s Knowledge, has provided or is in receipt of any written notice of any current intention to terminate, any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as no event or circumstance has occurred that, with notice or lapse of the date hereoftime or both, no other party to would constitute an event of default under any Material Contract is or result in breach of a termination thereof or default under would cause or permit the terms acceleration or other changes of any right or obligation or the loss of any benefit thereunder. No customer who is a party to a Material Contract where such breach or default has had or would reasonably be expected given written, or, to havethe Knowledge of the Company, individually or in the aggregateoral, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected notice to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or any of its Subsidiaries that it intends to reduce its purchase of goods or services from the Company Subsidiary which is party thereto andor any of its Subsidiaries, make any material modifications or change in or to terminate its business relationship with the Company or any of its Subsidiaries and no material credit amounts are owing or, to the Company’s Knowledge, alleged owing, to any customer as a result of each other a breach by the Company or any of its Subsidiaries of any service level obligations except as may have been reserved for in the Financial Statements. No supplier who is a party theretoto a Material Contract has given written, and is in full force and effector, subject to the Enforceability Limitations Knowledge of the Company, oral, notice to either the Company or any of its Subsidiaries that it intends to alter or change any material pricing or other material terms with respect to its supply of goods or services to the Company or any of its Subsidiaries, or to terminate its business relationship with the Company or any of its Subsidiaries.
(d) Neither the entry into nor the consummation of this Agreement or the transactions consummated hereby (including the Merger) will, directly or indirectly, in whole or in part, terminate, adversely modify, increase the obligations or decrease the rights of the Company (including as the Surviving Corporation) or its Subsidiaries under that certain Securities and any expiration thereof in accordance with its terms existing Asset Purchase Agreement dated as of October 21, 2010, by and among the date hereof Company, Premiere Global Services, Inc., Xpedite Systems Holdings (UK) Limited, Premiere Conferencing (Canada) Limited and without any material breachXpedite Systems, LLC (the “PGI Agreement”).
Appears in 2 contracts
Sources: Merger Agreement (Easylink Services International Corp), Merger Agreement (Open Text Corp)
Material Contracts. (a) Except for For all purposes of and under this Agreement, Section 4.17(a) a “Material Contract” shall mean any of the Company Disclosure Letter contains a complete and correct listfollowing, as of excluding the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):Accel Agreement:
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (, other than those agreements and arrangements described in Item 601(b)(10)(iii)) of Regulation S-K of with respect to the SEC).Company and its Subsidiaries, taken as whole;
(bii) True and complete copies of any employment or consulting Contract (in each Material Contract in effect case, under which the Company has continuing obligations as of the date hereof have been made available to Parent hereof) with any executive officer or publicly filed with the SEC prior to the date hereof. Neither other employee of the Company nor or its Subsidiaries or member of the Company Board providing for an annual base salary in excess of $175,000;
(iii) any material Contract with any of the twenty (20) largest customers of the Company Subsidiary and its Subsidiaries, determined on the basis of revenues received by the Company or any of its Subsidiaries for the fiscal year ended December 31, 2008 (the “Material Customer Agreements”);
(iv) any Contract containing any covenant (A) limiting the right of the Company or any of its Subsidiaries to engage in any material line of business or to compete with any Person in any line of business that is in breach of or default under the terms of any Material Contract, except as has not had and would not could reasonably be expected to havebe material to the Company, or (B) prohibiting the Company or any of its Subsidiaries from engaging in business with any Person or levying a fine, charge or other payment for doing so, in each case other than any such Contracts that (x) may be cancelled without material liability to the Company or its Subsidiaries upon notice of ninety (90) days or less or (y) are not, individually or in the aggregate, material to the Company and its Subsidiaries;
(v) any Contract (A) relating to the disposition or acquisition by the Company or any of its Subsidiaries after the date of this Agreement of a material amount of assets other than in the ordinary course of business, or (B) pursuant to which the Company Material Adverse Effect. To or any of its Subsidiaries will acquire any material ownership interest in any other Person or other business enterprise other than the Company’s KnowledgeSubsidiaries;
(vi) any mortgages, as indentures, guarantees, loans or credit agreements, security agreements or other Contracts relating to the borrowing of money or extension of credit, in each case in excess of $500,000, other than (A) accounts receivables and payables, and (B) loans to direct or indirect wholly-owned Subsidiaries, in each case in the ordinary course of business consistent with past practice;
(vii) any Lease or Sublease set forth in Sections 3.15(b) and 3.15(c) of the date hereofCompany Disclosure Letter;
(viii) any Contract providing for the payment, no other party to any Material Contract is in breach of increase or default under the terms vesting of any Material material benefits or compensation in connection with the transactions contemplated hereby (other than Contracts evidencing Company Options or Company Stock-Based Awards);
(ix) any Contract where such breach providing for severance in excess of $75,000 (other than those pursuant to which severance is required by applicable Law);
(x) any Contract relating to or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation evidencing Indebtedness of the Company or any of its Subsidiaries, in the case of each clause in the definition thereof, greater than $100,000 (whether or not contingent);
(xi) any Contract providing for indemnification of any officer, director, manager or employee by the Company or its Subsidiaries;
(xii) any Contract that involves any material joint venture, partnership or similar arrangement; and
(xiii) any Company Intellectual Property Agreements required to be listed pursuant to Section 3.16(c) of the Company Disclosure Letter.
(b) Section 3.13(b) of the Company Disclosure Letter contains a complete and accurate list of all Material Contracts to or by which the Company or any of its Subsidiaries is a party or is bound.
(c) Each Material Contract is valid and binding on the Company (and/or each such Subsidiary which is party thereto and, to of the Company’s Knowledge, of each other Company party thereto, ) and is in full force and effect, subject and neither the Company nor any of its Subsidiaries party thereto, nor, to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as Knowledge of the date hereof Company, any other party thereto, is in breach of, or default under, any such Material Contract, and without no event has occurred that with notice or lapse of time or both would constitute such a breach or default, or otherwise modify any material breachrights or obligations thereunder by the Company or any of its Subsidiaries, or, to the Knowledge of the Company, any other party thereto, except for such failures to be in full force and effect and such breaches and defaults that would not have a Company Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (Sumtotal Systems Inc), Merger Agreement (Vista Equity Partners Fund III LP)
Material Contracts. (a) Except for this Agreement, Section 4.17(a7.9(a) of the Company Clinigence Disclosure Letter contains Schedule provides a true and complete and correct list, as list of each of the date hereof, of each Contract described in this Section 4.17(a) under following contracts to which the Company Clinigence or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary of its Subsidiaries is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans this Agreement (all Contracts of collectively, the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Clinigence Material Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary All leases for real property used by Clinigence or any of their respective affiliates its Subsidiaries and all leases of personal property and any Contract affecting any right, title or interest in or to real property;
(including Parent ii) All Contracts with Persons who are Service Providers, and all Clinigence Plans;
(iii) Any Contract involving financing or borrowing of money, or evidencing indebtedness; any liability for borrowed money; any letters of credit; any obligation for the deferred purchase price of property in excess of $25,000; or guaranteeing in any way any Contract in connection with any Person;
(iv) Any joint venture, partnership, cooperative arrangement or any other Contract involving a sharing of profits;
(v) Any Contract with any Governmental Authority;
(vi) Any Contract with respect to the discharge, storage or removal of effluent, waste or pollutants;
(vii) Any Contract for the purchase or sale of any Assets of Clinigence or any of its affiliates after Subsidiaries other than in the Effective Timeordinary course of business or for the option or preferential rights to purchase or sell any Assets of Clinigence or any of its Subsidiaries;
(viii) Any Contract containing covenants not to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute in any product or service geographical area or that would otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary Clinigence or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025Subsidiaries being bound by, or is obligated to pay subject to, any non-compete or entitled to receive payments in excess other restriction on the operation or scope of $2,000,000 in its businesses, including the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company SubsidiariesClinigence Business;
(ix) Any Contract related to the acquisition of a business or the equity of any Contract that obligates other Entity or the Company sale of Clinigence or any Company Subsidiary to make of its Subsidiaries or any capital investment Asset of Clinigence or capital expenditure outside the ordinary course any of business and in excess of $1,000,000 per annumits Subsidiaries;
(x) except where the exercise Any other Contract which (i) provides for payment or performance by either party thereto having an aggregate value of any such right $25,000 or imposition of such limitation has more; (ii) is not beenterminable without payment or penalty on thirty (30) days (or less) notice; or (iii) is between, and would not reasonably be expected to beinter alia, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary Clinigence or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assetsSubsidiaries and an Affiliate thereof;
(xi) each Any proposed arrangement of a type that, if entered into, would be a Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a7.9(a)(i) that would constitute a “material contract” (as such term is defined in Item 601(b)(10through 7.9(a)(x) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)above.
(b) True and complete copies of each written Clinigence Material Contract in effect as and true and complete written summaries of the date hereof each oral Clinigence Material Contract (including all amendments, supplements, modifications and waivers thereto) have been made available provided to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any iGambit by Clinigence.
(c) Each Clinigence Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a currently valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof is enforceable by Clinigence or its Subsidiaries, as applicable, in accordance with its terms existing as terms.
(d) Neither Clinigence nor any of its Subsidiaries is in default, and no party has notified Clinigence or any of its Subsidiaries in writing that Clinigence or any of its Subsidiaries is in default, under any Clinigence Material Contract. No event has occurred, and no circumstance or condition exists, that might, with or without notice or lapse of time:
(i) result in a violation or breach of any of the date hereof provisions of any Clinigence Material Contract;
(ii) give any Person the right to declare a default or exercise any remedy under any Clinigence Material Contract;
(iii) give any Person the right to accelerate the maturity or performance of any Clinigence Material Contract or to cancel, terminate or modify any Clinigence Material Contract; or
(iv) otherwise have an Clinigence Material Adverse Effect in connection with any Clinigence Material Contract.
(e) Neither Clinigence nor any of its Subsidiaries has waived any of its rights under any Clinigence Material Contract.
(f) The performance of the Clinigence Material Contracts will not result in any violation of or failure by Clinigence or any of its Subsidiaries to comply in all material respects with any Legal Requirement.
(g) The Clinigence Material Contracts constitute all of the Contracts necessary to enable Clinigence and without its Subsidiaries to conduct the Clinigence Business in the manner in which such Clinigence Business is currently being conducted.
(h) The consummation of the Merger shall not result in Clinigence or any material breachof its Subsidiaries being bound by, or subject to, any non-compete or other restriction on the operation or scope of its businesses, including the Clinigence Business.
Appears in 2 contracts
Sources: Merger Agreement (iGambit, Inc.), Merger Agreement (iGambit, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) Schedule 4.17 of the Company Disclosure Letter Schedule contains a true and complete list of all Contracts (other than purchase orders and correct listinvoices) to which the Company or any of its Subsidiaries is a party (a) which is a joint venture, as of the date hereof, of each Contract described in this Section 4.17(apartnership or other similar agreement involving co-investment with a third party; (b) under which the Company or any of its Subsidiaries has created, incurred, assumed or guaranteed indebtedness for borrowed money, or any capitalized lease obligation, or any agreement under which it has granted a Lien on any of its assets, tangible or intangible (but with a value in excess of $100,000), or any currency or interest rate swap, collar or hedge agreement; (c) whereby the Company Subsidiary or any of its Subsidiaries has an obligation to make an investment in or loan to any current Person in excess of $100,000; (d) that contains a minimum purchase requirement for the Company and its Subsidiaries to purchase during the 12-month period immediately following, or future rightspursuant to which the Company and its Subsidiaries have purchased during the 12-month period immediately preceding, responsibilitiesthe Balance Sheet Date, in the aggregate, a minimum of $100,000 of goods and/or services on an annual basis; (e) that contains a minimum supply commitment for the Company and its Subsidiaries to sell during the 12-month period immediately following, or pursuant to which the Company and its Subsidiaries have sold during the 12-month period immediately preceding, the Balance Sheet Date, in the aggregate, a minimum of $100,000 of goods and/or services on an annual basis; (f) that contains covenants restricting or limiting the ability of the Company, any of its Subsidiaries or any of their Affiliates (including, without limitation, Parent or any of its Affiliates from and after the consummation of the Offer or the Closing) to compete in any business or with any person or in any geographic area; (g) that contemplates any extraordinary transaction(s) by the Company or any of its Subsidiaries and/or shares of the Company held by its Affiliates, including letters of intent, confidentiality, non-solicitation and other similar agreements or arrangements; (h) that contains any indemnification rights or obligations, or credit support relating to such indemnification rights or obligations, where the contingent rights or obligations reasonably would be expected to exceed $100,000; (i) to which any agency or liabilities department of the United States federal government is a counterparty; (j) for the lease of personal property to or from any Person providing for lease payments in each caseexcess of $100,000 per annum; (k) that involve the use of Intellectual Property by the Company and its Subsidiaries and which require annual license or royalty payments in excess of $100,000; or (l) with customers, manufacturers, distributors, dealers, manufacturer’s representatives or sales agents with whom the Company deals which involve (or could reasonably be expected to involve) the receipt or payment, whether contingent or otherwise) , by or to which the Company of more than $100,000 in fiscal year 2007. The Company has made available to Parent prior to the date hereof a true and correct copy of each such Contract. Each Contract required to be so listed is valid and binding on the Company or any its Subsidiary, as the case may be, and, to the Knowledge of the Company, on each counterparty and is in full force and effect, and neither the Company Subsidiary is a party or to which nor any of their respective properties or assets is subjectits Subsidiaries, other than any Company Benefit Plans (all Contracts of nor, to the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom Knowledge of the Company, any Company Subsidiary other party thereto, is in breach of, or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or selldefault under, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between Contract, and no event has occurred that with notice or among the Company and its wholly owned Subsidiaries) lapse of time or similar Contract;
(iii) each acquisition both would constitute such a breach or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making default thereunder by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for its Subsidiaries, or, to the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any Knowledge of the Material Suppliers) that involves annual payments Company, any other party thereto, except for such failures to be valid, binding or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, full force and would not reasonably be expected to beeffect and such breaches and defaults that, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, have a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Merger Agreement (Watsco Inc), Merger Agreement (Acr Group Inc)
Material Contracts. (a) Except for this Agreement, any Employee Plans, and the Contracts filed as exhibits to the Company SEC Documents that are available as of the date prior to the date of this Agreement, Section 4.17(a3.22(a) of the Company Disclosure Letter contains a complete and correct list, as of the date hereofof this Agreement, of each Contract described in this Section 4.17(a) under which of the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or following Contracts to which the Company or any Company Subsidiary of its Subsidiaries or an Affiliated Practice is a party or to and which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described remains in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):effect:
(i) each Contract (that involves performance of services or delivery of goods, products or developmental, consulting or other than Company Leases) that limits in any material respect the freedom of services commitments by the Company, any of its Subsidiaries or the Affiliated Practices, and pursuant to which payments to the Company, any of its Subsidiaries or the Affiliated Practices of $6,500,000 or more were made in the Company’s fiscal year ended December 31, 2022, other than Contracts terminable by the Company Subsidiary or one of its Subsidiaries on no more than sixty (60) days’ notice or in connection with an annual renewal without liability, payment or ongoing obligation on the part of the Company or any of their respective affiliates its Subsidiaries;
(including Parent and ii) each Contract that involves performance of services or delivery of goods, materials, supplies or equipment or developmental, consulting or other services commitments to the Company or any of its affiliates after Subsidiaries, pursuant to which payments by the Effective TimeCompany or any of its Subsidiaries of $5,000,000 or more were made in the Company’s fiscal year ended December 31, 2022, other than Contracts terminable by the Company or one of its Subsidiaries on no more than sixty (60) to compete days’ notice or engage in connection with an annual renewal without liability, payment or ongoing obligation on the part of the Company or any of its Subsidiaries;
(iii) each Contract that contains any provisions restricting the Company or any of its Subsidiaries from competing or engaging in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Companyarea, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any except for such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to berestrictions that, individually or in the aggregate, are not material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiiiiv) each Contract evidencing that (A) grants any exclusive rights to any third party, including any exclusive license or relating supply or distribution agreement or other exclusive rights, (B) grants any rights of first refusal or rights of first negotiation with respect to outstanding Indebtedness any product, service or Company Intellectual Property, (C) contains any provision that requires the purchase of all or commitments any portion of the Company’s or any of its Subsidiaries’ requirements from any third party or (D) grants “most favored nation” rights, except in respect thereofthe case of each of clauses (A), (B), (C) and (D) for such rights and provisions that, individually or in the aggregate, are not material to the Company and its Subsidiaries, taken as a whole;
(v) each Contract pursuant to which any member of the Company Group is granting or is granted any license rights to use any Intellectual Property (other than nonexclusive licenses granted in the ordinary course of business), except for (A) Contracts with current and former employees, contractors, or consultants of the Company Subsidiary Group entered into in connection with their engagement by the Company Group, (B) nondisclosure agreements, (C) licenses for open source software, (D) non-exclusive licenses to available commercial software and (E) any other agreements that, individually or in the aggregate, are not material to the Company Group, taken as a whole;
(vi) each Contract relating to indebtedness for borrowed money (whether incurred, assumed, guaranteed or secured by any asset), except any such agreement (A) in with an aggregate available principal amount in excess (whether or not such available principal amount is outstanding) not exceeding $5,000,000 or (B) between or among any of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company its Subsidiaries;
(xivvii) each Contract pursuant to under which the Company or any of its Subsidiaries has, directly or indirectly, made any loan, capital contribution to, or other investment in, any Person (except for the Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right of its Subsidiaries) and has any outstanding obligation with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangementthereto, other than (A) non-exclusive licenses granted to extensions of credit in the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized termsordinary course of business, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 investments in marketable securities in the ordinary course of the Company Disclosure Letter and business, in which the grants of rights to use Intellectual Property are incidental to performance thereundereach case, consistent with past practice;
(xvviii) each Contract under which the Company or any of its Subsidiaries has any ongoing obligations (including indemnification obligations) which have not been satisfied or performed (other than confidentiality obligations) relating to the acquisition or disposition of all or any portion of any business or the assets or properties of any business (whether by merger, sale of shares, sale of assets or otherwise) for consideration in excess of $10,000,000, except for acquisitions or dispositions of inventory, properties and other assets in the ordinary course of business consistent with past practice;
(ix) each material partnership, material joint venture or other similar Contract or arrangement;
(x) each Contract between the Company or any Company Subsidiaryof its Subsidiaries, on the one hand, and any officer, current director or affiliate (other than a wholly owned Company Subsidiary) officer of the Company or any Company Subsidiary, Person (or any beneficial owner, directly or indirectly, of more than their Affiliates) beneficially owning five percent (5%) of the shares or more of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act)Stock, on the other hand, including except for any commercial Contracts entered into on arm’s length terms in the ordinary course of business and Employee Plans;
(xi) each Contract between the Company, any of its Subsidiaries, or an Affiliated Practice, on the one hand, and a Governmental Authority, on the other hand, pursuant to which the Company, any of its Subsidiaries or an Affiliated Practice receives payments from any Governmental Authority;
(xii) each Contract of the type described and set forth on Section 3.22(a)(xii) of the Company Disclosure Letter;
(xiii) all Contracts for management services, administrative services or business support services agreements between an Affiliated Practice and the Company or a Subsidiary of the Company pursuant to which the Company or any a Subsidiary of the Company Subsidiary has an obligation provides administrative and business support services to indemnify such officer, director, affiliate, beneficial owner or family memberthe Affiliated Practice;
(xvixiv) all Contracts that require or provide for the referral or recommendation of patients to the Company Group;
(xv) each Contract entered into in connection with a Material Supplier; and
(xvii) the settlement or other resolution of any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to threatened or actual Legal Proceeding under which the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) or any of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof its Subsidiaries have been made available to Parent any continuing or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of outstanding obligations, liabilities or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to haverestrictions that, individually or in the aggregate, are material to the Company and its Subsidiaries, taken as a whole; and
(xvi) each Contract that commits the Company Material Adverse Effect. To the Company’s Knowledge, as or its Subsidiaries to enter into any Contracts of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or types described in the aggregate, a Company Material Adverse Effect. foregoing clauses (i) through (xv).
(b) Except as has not had and would not reasonably be expected to have, individually or in the aggregate, have a Company Material Adverse Effect, as of the date of this Agreement, each Contract filed as an exhibit to the Company SEC Documents or required to be disclosed in Section 3.22(a) of the Company Disclosure Letter (each, a “Material Contract Contract”) (unless it has terminated or expired (in each case according to its terms)) is in full force and effect and is a validlegal, valid and binding and enforceable obligation agreement of the Company or its Subsidiary, as the Company Subsidiary which is party thereto case may be, and, to the Knowledge of the Company’s Knowledge, of each other party thereto, and is in full force and effectenforceable against the Company or such Subsidiary, subject as the case may be, and, to the Enforceability Limitations and any expiration thereof Knowledge of the Company, against the other party or parties thereto, in each case, in accordance with its terms existing except as such enforceability may be limited by the Enforceability Exceptions. Neither the Company nor any of its Subsidiaries nor, to the Knowledge of the date hereof Company, any other party is in breach of or in default under any Material Contract, and no event has occurred that, with or without the lapse of time or the giving of notice or both, would constitute a default thereunder by the Company or any material breachof its Subsidiaries party thereto, except for such breaches and defaults which would not have a Company Material Adverse Effect. The Company has made available to Parent a true and correct copy of each Material Contract, including all amendments and supplements thereto.
Appears in 2 contracts
Sources: Merger Agreement (CVS HEALTH Corp), Merger Agreement (Oak Street Health, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a4.18(a) of the Company Disclosure Letter contains a complete and correct list, as Schedule lists each of the date hereof, following contracts and agreements of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights(such contracts and agreements, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which together with the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure LetterLeases, being referred to herein as “Material Contracts”):
(i) each Contract all employment contracts that are not cancelable without penalty or further payment and without more than 30 days’ notice (other than Company Leasesstandard offer letters to employees being paid on an hourly basis or with an annual base salary of less than $100,000 which do not contain provisions for any payments upon a change of control);
(ii) all contracts and agreements relating to indebtedness for borrowed money, guaranty, notes, purchase money debt or other similar undertaking;
(iii) all contracts and agreements that limits limit or purport to limit in any material respect the freedom ability of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) Subsidiary to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areaarea or during any period of time;
(iiiv) any material partnershipall contracts and agreements involving total annual payments or receipts in excess of $2,500,000, strategic alliance, other than purchase orders issued or received in the ordinary course of business;
(v) all joint venture, collaboration partnership or limited liability company agreement similar contracts between the Company or any Subsidiary and a third party;
(vi) all licenses of Intellectual Property to the Company or a Subsidiary (other than ordinary course “shrinkwrap” and other over-the-counter commercially available licenses), and all licenses of Intellectual Property by the Company or a Subsidiary to third parties;
(vii) all contracts or agreements providing for the indemnification of any person with respect to material liabilities or such agreement solely person’s service as an officer or director or the Company or any Subsidiary; and
(viii) all contracts and agreements between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and a Stockholder or any officerAffiliate of a Stockholder, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company a Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those commercial agreements and arrangements described entered into with an Affiliate that is an operating company on an arms-length basis in Item 601(b)(10)(iii) the ordinary course of Regulation S-K of the SEC)business.
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Each Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had valid and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of on the Company or a Subsidiary, as the Company Subsidiary which is party thereto case may be, and, to the Knowledge of the Company’s Knowledge, of each other party the counterparties thereto, and is in full force and effect. Neither the Company nor any Subsidiary is in breach of, subject or default under, in any material respects, any Material Contract to which it is a party, and, to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as Knowledge of the date hereof and without Company, no other Person is in breach of, or default under, in any material breachrespects, any Material Contract.
Appears in 2 contracts
Sources: Stock Purchase Agreement (Reliance Steel & Aluminum Co), Stock Purchase Agreement (PNA Group, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.08(a) of the Company Disclosure Letter contains Schedules sets forth a true, correct and complete and correct list, list of the following Purchased Contracts as of the date hereof, of each Contract described in this Section 4.17(a) under which hereof (the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”) (and Sellers have made available to Buyer true, correct and complete copies of all such Material Contracts, together with all amendments, modifications or supplements thereto):
(i) each any partnership, joint venture, strategic alliance or similar Contract (involving a sharing of profits, losses, costs or liabilities with any other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates Person (including Parent and its affiliates after the Effective Time) organizational documents with respect to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areaJV Entity);
(ii) any material partnershipContract relating to any options, strategic alliancerights (preemptive or otherwise), joint venturewarrants, collaboration calls, convertible securities or limited liability company agreement (commitments or any other than agreements or arrangements with respect to any such agreement solely between or among equity securities of the Company and its wholly owned Subsidiaries) or similar ContractPurchased Entities;
(iii) any Contract relating to (A) the Indebtedness of any Seller or (B) the mortgage or pledge of, or otherwise creating an Encumbrance (other than a Permitted Encumbrance) on, any of the Purchased Assets in each acquisition case, other than (x) intercompany Indebtedness amongst Sellers, (y) Indebtedness which will be fully discharged under the Bankruptcy Code or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligationsz) that would reasonably be expected to result in the receipt or making by Pre-Petition Credit Agreement and the Company or any Company Subsidiary of future payments in excess of $1,000,000DIP Credit Agreement;
(iv) each any Contract that provides relating to the acquisition or disposition of any business, assets or properties for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,00010,000,000 (whether by merger, sale of stock, sale of assets or that contains otherwise) (A) entered into in the last (3) years and (B) pursuant to which any minimum material earn-out or deferred or contingent payment obligations remain outstanding (in each case, excluding for the avoidance of doubt, purchase commitments of inventory in excess of $2,000,000 annuallythe Ordinary Course);
(v) each Contract that gives any Person Lease with respect to the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000Leased Real Property;
(vi) any settlement Contract for the lease of personal property (tangible or similar Contract with a Governmental Entity, other than those relating intangible) to Taxesor from any Person providing for lease payments in excess of $250,000 per annum;
(vii) except as any Contract with any Material Customer;
(viii) any Contract with any Material Supplier;
(ix) any prime Contract with any Governmental Authority;
(x) any Contract with a Material Customer or Material Supplier that (A) prohibits or limits the freedom of any Seller of the Business to compete in any line of business with any Person or in any geographic area or (B) contains exclusivity obligations or restrictions binding on any Seller of the Business or (C) grants any right of first refusal or right of first offer obligations or restrictions to any Person;
(xi) any Contract to which any Seller is a party (A) pursuant to which any Seller is granted a right to use any third party Intellectual Property that is material to the Business, other than non-exclusive licenses for commercially available or off-the-shelf software or software that is subject to click-through or shrink wrap agreements entered into by Sellers in the Ordinary Course, (B) pursuant to which any Seller grants a third party the right to use any Purchased Intellectual Property that is material to the Business, other than any Contract with any end user of any Seller’s products or services which is entered into in the Ordinary Course or any marketing agreement which contains an incidental trademark license to use the Seller’s Trademarks in the scope of providing such services, (C) covering the settlement of any claims related to any Intellectual Property and (D) pursuant to which any Seller is prohibited or restricted in any manner from using any Purchased Intellectual Property; or
(xii) any Contract with any Employee that includes base annual compensation in excess of $200,000 that is not terminable at-will on no more than sixty (60) days’ advance notice and includes no severance-type benefits; and
(xiii) any Contract that is a Collective Bargaining Agreement.
(b) With respect to each Contract set forth on Section 3.08(a) of the Disclosure Schedules, (i) such Contract is in full force and effect and constitutes the legal, valid and binding of the Seller party thereto and, to the Knowledge of Sellers, the counterparty thereto, enforceable against such Seller and, to the Knowledge of Sellers, the counterparty thereto in accordance with its terms and conditions, subject to the Bankruptcy and Equity Exception and (ii) neither the Seller party thereto nor, to the Knowledge of Sellers, the counterparty thereto is in material breach or default thereof that would permit or give rise to a right of termination, modification or acceleration thereunder, and (iii) no Seller and, to the Knowledge of Sellers, no counterparty thereto, has commenced any Proceeding against any other party to such Contract or given or received any written notice of any breach or default under such Contract that has not beenbeen withdrawn or dismissed, except, in the cases of clauses (ii) and (iii), for breaches or defaults (A) caused by or resulting from the Chapter 11 Cases or (B) which are not, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, Business taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Global Eagle Entertainment Inc.), Asset Purchase Agreement
Material Contracts. (a) Except for this Agreementas set forth in Schedule 4.09 and excluding any Contract that is an Excluded Asset or an Excluded Liability, Section 4.17(a) of but including the Company Disclosure Letter contains a complete and correct listShared Contracts listed on Schedule 6.08, with respect to the Business, as of the date hereof, of each Contract described in this Section 4.17(aAgreement neither Seller nor any of its Subsidiaries (including the Purchased Subsidiaries) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party to or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):bound by:
(i) any Contract providing for the performance of services or the delivery of goods or materials by Seller or any of its Subsidiaries that requires annual payments to Seller or any of its Subsidiaries of $100,000 or more;
(ii) any lease of personal property requiring annual rentals of $100,000 or more that cannot be terminated on not more than 60 days’ notice without payment by Seller or and its Subsidiaries of any penalty in excess of $20,000;
(iii) any agreement for the purchase of materials, supplies, goods, services, equipment or other tangible assets from a third party that is one of the fifteen (15) largest suppliers (by dollar-value of total purchases) of the Business for (A) the twelve (12)-month period ended December 26, 2017 and (B) the six (6)-month period ended June 26, 2018;
(iv) any partnership, joint venture, franchise, royalty, management or other similar agreement;
(v) any Contract that limits the freedom of Seller or of its Subsidiaries to compete in any line of business or with any Person or in any area, in each case which would so limit the freedom of Buyer after the Initial Closing Date, the North Carolina Closing Date or the Delaware Closing Date, as applicable;
(vi) any Contract granting to Seller or one of its Subsidiaries any exclusive right to use, exploit or practice, or including any covenant not to ▇▇▇, with respect to any Intellectual Property Right that is material to the Business (other than Company Leases) COTS Licenses and other Contracts entered into in the ordinary course of business); any material Contract under which Seller or any of its Subsidiaries grants to a third party any rights under or with respect to Transferred Business Intellectual Property other than non-exclusive licenses granted in the ordinary course of business; or any co-existence agreement or similar Contract that limits in any material respect the freedom of the Company, any Company Subsidiary Seller’s or any of their respective affiliates (including Parent and its affiliates after the Effective Time) Subsidiaries’ rights to compete use or engage in any line of business otherwise exploit, enforce or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in register any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result Trademarks included in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to TaxesTransferred Business Intellectual Property;
(vii) except any Contract with any Governmental Authority;
(viii) any employment or consulting Contract with any Business Employee that involves aggregate annual payment in excess of $50,000;
(ix) any Contract with any labor union;
(x) any Contract relating to settlement of any material administrative or judicial proceedings within the past three (3) years;
(xi) any Contract that results in any Person holding a power of attorney on behalf of Seller or any of its Subsidiaries (including the Purchased Subsidiaries) and/or the Business; or
(xii) any note, mortgage, indenture or other obligation or agreement or other instrument for or relating to Indebtedness for borrowed money (including capitalized leases), or any guarantee of third party obligations, or any lien securing such Indebtedness or obligations, or any letters of credit, performance bonds or other credit support for the Business that will need to be replaced at the Initial Closing.
(b) Except as has not been, and would not reasonably be expected to beexpected, individually or in the aggregate, material to the Company and the Company Subsidiarieshave a Material Adverse Effect, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viiii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025set forth, or required to be set forth, in Schedule 4.09 (each, a “Material Contract”) is obligated a valid and binding agreement of Seller and/or its applicable Subsidiaries party thereto, enforceable in accordance with its terms, subject to pay applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar Laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity, (ii) neither Seller nor any of its Subsidiaries is in material breach of, or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereofmaterial default under, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) Material Contract, except where the exercise of any such right breach or imposition of such limitation has not been, and default would not reasonably be expected to be, individually or in the aggregate, be material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized termsBusiness, and (Biii) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) knowledge of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereofSeller, no other party to any a Material Contract is in breach default of or default under such Material Contract. As of the terms date of this Agreement, no party to any Material Contract where such breach has given written, or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledgeknowledge of Seller oral, notice to Seller or any of each other party its Subsidiaries (including the Purchased Subsidiaries) of its intention to cancel or otherwise terminate any such agreement. Seller has delivered or made available to Buyer true and complete copies of all Material Contracts, including any amendments thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Asset and Equity Purchase Agreement (Del Frisco's Restaurant Group, Inc.), Asset and Equity Purchase Agreement (Del Frisco's Restaurant Group, Inc.)
Material Contracts. (a) Except for this Agreement, as set forth in Section 4.17(a) 3.19 of the Company Disclosure Letter contains a complete Schedule and correct listfor this Agreement and the Company Benefit Plans, as of the date hereof, of each Contract described in this Section 4.17(a) under which neither the Company or nor any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary of its Subsidiaries is a party to or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
bound by (i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SECExchange Act) with respect or (ii) any of the following: (A) contract that purports to limit, curtail or restrict the ability of the Company or any of its existing or future Subsidiaries or affiliates to compete in any geographic area or line of business or restrict the persons to whom the Company or any of its existing or future Subsidiaries or affiliates may sell products or deliver services, (B) loan or credit agreement, mortgage, indenture, note or other contract or instrument evidencing indebtedness for borrowed money by the Company or any of its Subsidiaries or any contract or instrument pursuant to which indebtedness for borrowed money may be incurred or is guaranteed by the Company or any of its Subsidiaries, (C) mortgage, pledge, security agreement, deed of trust or other contract granting a Lien on any property or assets of the Company or any of its Subsidiaries, (D) (x) customer or client contract, or (y) any supplier contract that is reasonably likely to involve annual purchases by the Company and its Subsidiaries in excess of $20,000 (in the aggregate) in any of fiscal years 2011, 2012 or 2013, (E) contract (other than those agreements customer, client or supply contracts) that involve consideration (whether or not measured in cash) of greater than $20,000, (F) contract that restricts or otherwise limits the payment of dividends or other distributions on equity securities, (G) to the extent material to the business or financial condition of the Company and arrangements its Subsidiaries, taken as a whole, (1) product or intellectual property design or development contract, (2) license or royalty contract or (3) contract granting a right of first refusal or first negotiation or “most favored nation” status, (H) investment banker engagement or similar agreement pursuant to which any person would be entitled to payment in connection with the Merger, (I) contract which would prohibit or delay the consummation of any of the transactions contemplated by this Agreement, and (J) commitment or agreement to enter into any of the foregoing (all contracts of the type described in Item 601(b)(10)(iiithis Section 3.19(a) of Regulation S-K of the SECbeing referred to herein as “Company Material Contracts”).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any of its Subsidiaries is a party to, or otherwise bound by or subject to, any agreement, contract, commitment or understanding, oral or written, regarding the sale, license or other transfer of rights or interests in any of the products listed in Section 3.19(a)(1) of the Company Subsidiary is in breach Disclosure Schedule. The Company has provided to Parent correct and complete copies of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a each Company Material Adverse Effect. To the Company’s Knowledge, Contract in existence as of the date hereof, together with any and all amendments and supplements thereto, “side letters” and similar documentation relating thereto.
(b) Each Company Material Contract to which any of the Company or its Subsidiaries is a party or by which any of them is bound is in full force and effect and constitutes the valid and binding obligation of the Company or such Subsidiary, as the case may be, and, to the knowledge of the Company, constitutes the valid and binding obligation of the other parties thereto. To the knowledge of the Company, no other party to any Company Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse EffectContract. Except Section 3.19(b)(i) of the Company Disclosure Schedule sets forth a correct and complete list, as has not had and would not reasonably be expected to haveof the date hereof, individually or in the aggregate, a Company Material Adverse Effect, of each Material Contract is a valid, binding and enforceable obligation current customer of the Company or any of its Subsidiaries that has provided notice of an intention (A) to terminate its contract(s) with the Company and/or a Company Subsidiary, (B) not to renew its contract(s) with the Company and/or a Company Subsidiary which is party thereto and, to at the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as end of the date hereof and without any material breachcurrent contract term(s), (C) to substantially reduce its business under its contract or (D) to terminate its contract(s) or business relationship with the Company and/or a Company Subsidiary as a result of the announcement or consummation of the transactions contemplated by the Agreement.
Appears in 2 contracts
Sources: Merger Agreement (Cardionet Inc), Merger Agreement (Biotel Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a2.8(a) of the Company Sellers Disclosure Letter contains sets forth a complete and correct list, as list of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or following Contracts to which the an Acquired Company or any Company Subsidiary is a party or otherwise bound, which shall be deemed to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as constitute “Material Contracts”):, true and correct copies of which (including all exhibits, schedules and amendments thereto) have been made available to Purchaser prior to the date hereof:
(i) each Contract (other than all Contracts that individually involve expenditures by an Acquired Company Leases) that limits in excess of $3,000,000 in any material respect the freedom of the three calendar years preceding the date of this Agreement and pursuant to which an Acquired Company has ongoing obligations;
(ii) all Contracts that individually involve the receipt of payments by an Acquired Company in excess of $3,000,000 in any of the three calendar years preceding the date of this Agreement and pursuant to which an Acquired Company has ongoing obligations;
(iii) the Utility Money Pool Agreement, the TransCo Intercompany Notes, the Debt Agreements, the Senior KPCo Notes, the Senior Note Purchase Agreements, and all other Contracts for, or relating to, Indebtedness of an Acquired Company in excess of $3,000,000 in any of the three calendar years preceding the date of this Agreement or under which a security interest has been imposed on any assets, rights or properties of an Acquired Company, which security interest secures outstanding Indebtedness in excess of $3,000,000 in any of the three calendar years preceding the date of this Agreement and pursuant to which an Acquired Company Subsidiary has ongoing obligations;
(iv) all Contracts of guaranty, indemnity or surety by an Acquired Company with outstanding obligations guaranteed or indemnified by such Acquired Company or for which such Acquired Company is a surety in excess of $3,000,000 in any of the three calendar years preceding the date of this Agreement and pursuant to which an Acquired Company has ongoing obligations;
(v) all Intercompany Arrangements involving payments or receipts by or to an Acquired Company in excess of $500,000 in any of the three calendar years preceding the Effective Date or pursuant to which an Acquired Company or any member of their respective affiliates the Seller Group has any ongoing obligations or rights with a value allocable to an Acquired Company in excess of $500,000;
(vi) all Contracts granting to any Person any right or option to purchase or otherwise acquire any assets of an Acquired Company involving consideration over the remaining term of any such Contract in excess of $5,000,000, including Parent and its affiliates after rights of first option, rights of first refusal, or other preferential purchase rights;
(vii) all Contracts that (x) limit the Effective Time) ability of an Acquired Company to compete or engage in any activity or line of business or in any geographic region area or (y) contain any obligation on an Acquired Company, or that would apply to Purchaser or its Affiliates following the Closing, to use or purchase any material good or material service exclusively from one or more Persons;
(viii) all Contracts relating to the issuance, sale, transfer, disposition, registration, liquidity, granting, encumbering, pledging, voting, repurchase or redemption of any of the Shares or any other equity securities of an Acquired Company or rights in connection therewith (other than the Organizational Documents of the Acquired Companies);
(ix) all settlement, conciliation or similar Contracts with any Person Governmental Entity or sellthird party that impose any continuing monetary or other ongoing material obligations upon any of the Acquired Companies, supply except for Contracts filed publicly with FERC or distribute any product the KPSC in connection with the settlement of a Rate Proceeding;
(x) all Master Leases;
(xi) all Shared Contracts involving payments or service or that otherwise has the effect receipts in excess of restricting $3,000,000 in value allocated to an Acquired Company in any material respect of the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after three calendar years preceding the Effective TimeDate;
(xii) from all Contracts for Continuing Support Obligations;
(xiii) all Contracts for the procurement of power, energy or capacity, including any power purchase agreement or Contracts committing to the development, marketing purchase or distribution construction of products new generation, involving payments by an Acquired Company over the term of such Contract in excess of $3,000,000 and servicespursuant to which any Acquired Company has any ongoing obligations, other than Contracts for purchases and sales on arm’s-length terms with a delivery term of less than three (3) months ahead;
(xiv) all Contracts relating to fuel supply or transportation involving payments by an Acquired Company over the term of such Contract in excess of $3,000,000 and pursuant to which any Acquired Company has any ongoing obligations;
(xv) all Commercial ▇▇▇▇▇▇ having a current market value attributed or allocated to an Acquired Company or any of its assets or involving aggregate consideration or aggregate payment obligations by an Acquired Company over the term of such Contract in excess of $3,000,000;
(xvi) Contracts related to Intellectual Property owned or used by an Acquired Company involving payments or receipts in excess of $3,000,000 in value allocated to an Acquired Company in any of the three calendar years preceding the Effective Date (other than non-exclusive licenses (A) for off-the-shelf or otherwise commercially available software or (B) granted by an Acquired Company in the ordinary course of business);
(xvii) all Collective Bargaining Agreements; and
(xviii) all partnership, joint venture and joint ownership Contracts.
(b) (i) Other than any Intercompany Arrangements severed or terminated in accordance with Section 4.8(a), each Material Contract is a legal, valid and binding obligation of the applicable Acquired Company and, to the Knowledge of Sellers, each counterparty, and is in full force and effect, subject to the Enforceability Exceptions, (ii) neither the applicable Acquired Company nor, to the Knowledge of Sellers, any other party thereto is in breach of, or in default under, and no event has occurred which with notice or lapse of time or both would constitute any such breach or default, or permit termination, modification or acceleration by such other parties under, any Material Contract, (iii) no Acquired Company has waived any material right under any Material Contract, and (iv) no party to any Material Contract has notified any Seller or any Acquired Company in writing that it intends to terminate or fail to renew at the end of its term such Material Contract, materially increase rates, costs or fees charged under any Material Contract or materially reduce the level of goods or services provided under any Material Contract, except, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Stock Purchase Agreement (Ohio Power Co), Stock Purchase Agreement (Algonquin Power & Utilities Corp.)
Material Contracts. (a) Except for this AgreementAll Contracts, Section 4.17(aincluding amendments thereto, required to be filed as an exhibit to any report of Pi filed pursuant to the Exchange Act of the type described in Item 601(b)(10) of Regulation S-K under the Company Disclosure Letter contains a complete and correct list, Exchange Act have been so filed as of the date hereof, and no such Contract has been amended or modified (or further amended or modified, as applicable) since the date such Contract or amendment was filed.
(b) Other than the Contracts set forth in clause (a) above which were filed in an unredacted form, Section 3.10(b) of the Pi Disclosure Letter sets forth a correct and complete list, and Pi has made available to Lambda correct and complete copies (including all material amendments, modifications, extensions or renewals with respect thereto), of each Contract described in this Section 4.17(a) under of the following Contracts to which the Company Pi or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which of the Company or any Company Subsidiary Pi Subsidiaries is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts bound as of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):date hereof:
(i) each Contract (other than Company Leases) containing any area of mutual interest, joint bidding area, joint acquisition area, or non-compete or similar type of provision that limits in any material respect materially restricts the freedom ability of the Company, any Company Subsidiary Pi or any of their respective affiliates the Pi Subsidiaries (including Parent Lambda and its affiliates after the Effective TimeLambda Subsidiaries following the Closing) to (A) compete or engage in any line of business or geographic region area or with any Person during any period of time after the Effective Time or sell(B) make, supply sell or distribute any product products or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each caseor use, in transfer or distribute, or enforce any geographic areaof their rights with respect to, any of their material assets or properties;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that creates, evidences, provides commitments in respect of, secures or guarantees (A) Indebtedness for the Company or borrowed money in any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments amount in excess of $2,000,000 annually;
or (vB) each Contract that gives any Person the right to acquire any assets other Indebtedness of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary Pi or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary Pi Subsidiaries (whether incurred, assumed, guaranteed or secured by any asset) in an amount excess of $2,000,000, other than agreements solely between or among Pi and the Pi Subsidiaries;
(iii) each Contract for lease of personal property or real property (excluding Oil and Gas Leases) involving annual payments in excess of $1,000,000 or aggregate payments in excess of $2,000,000 that are not terminable without penalty or other liability to Pi or any of the Pi Subsidiaries (other than any ongoing obligation pursuant to such Contract that is not caused by any such termination) within sixty (60) days, other than Contracts solely between related to drilling rigs;
(iv) each Contract involving the Company pending acquisition, swap, exchange, sale or other disposition of (or option to purchase, acquire, swap, exchange, sell or dispose of) any Oil and a wholly owned Company Gas Properties of Pi and the Pi Subsidiaries for which the aggregate consideration (or the fair market value of such consideration, if non-cash) payable to or from Pi or any Pi Subsidiary exceeds $2,000,000, other than Contracts involving the acquisition or between wholly owned Company sale of (or option to purchase or sell) Hydrocarbons in the ordinary course of business;
(v) each material partnership, stockholder, joint venture, limited liability company agreement or other joint ownership agreement, other than with respect to arrangements exclusively among Pi and/or its Subsidiaries and other than any customary joint operating agreements or unit agreements affecting the Oil and Gas Properties of Pi or any of the Pi Subsidiaries;
(xivvi) each joint development agreement, exploration agreement, participation, farmout, farm-in or program agreement or similar Contract pursuant requiring Pi or any of the Pi Subsidiaries to make annual expenditures in excess of $2,000,000 or aggregate payments in excess of $10,000,000 (in each case, net to the interest of Pi and the Pi Subsidiaries) following the date of this Agreement, other than customary joint operating agreements and continuous development obligations under Oil and Gas Leases;
(vii) each agreement that contains any exclusivity, “most favored nation” or most favored customer provision, call or put option, preferential right or rights of first or last offer, negotiation or refusal, to which the Company Pi or any Company Subsidiary grants or receives any licenseof the Pi Subsidiaries is subject, optionand, waiverin each case, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses business of the Company Pi and the Company Pi Subsidiaries, taken as a whole, in each case other than those contained in (A) any agreement in which such provision is solely for the benefit of Pi or agrees to limit its use any of the Pi Subsidiaries, (B) customary royalty pricing provisions in Oil and Gas Leases or exploitation (C) customary preferential rights in joint operating agreements or unit agreements affecting the business or the Oil and Gas Properties of Pi or any material Company IP in of the Pi Subsidiaries;
(viii) any material respectacquisition or divestiture Contract that contains “earn out” or other contingent payment obligations, including pursuant to any settlement agreement, coexistence agreement or remaining indemnity or similar arrangement, obligations (other than (A) non-exclusive licenses granted asset retirement obligations or plugging and abandonment obligations set forth in the Pi Reserve Report or (B) customary indemnity obligations with respect to the Company post-closing ownership and operation of acquired assets), that would reasonably be expected to result in (1) earn out payments, contingent payments or Company other similar obligations to a third party (but excluding indemnity payments) in any year in excess of $5,000,000 or (2) earn out payments, contingent payments or other similar obligations to a third party, including indemnity payments, in excess of $10,000,000 in the aggregate after the date hereof;
(ix) any Contract (other than any other Contract otherwise covered by this Section 3.10(b)) that creates future payment obligations (including settlement agreements or Contracts that require any capital contributions to, or investments in, any Person) of Pi or any of the Pi Subsidiaries outside the ordinary course of business, in each case, involving annual payments in excess of $1,000,000 or aggregate payments in excess of $2,000,000 (excluding, for generally available Software the avoidance of doubt, customary joint operating agreements or information technology unit agreements affecting the Oil and Gas Properties of Pi or any of the Pi Subsidiaries), or creates or would create an Encumbrance on any material asset or property of Pi or any of the Pi Subsidiaries (other than Permitted Encumbrances);
(x) any Contract that (A) provides for midstream services to, or the sale by, Pi or any of the Pi Subsidiaries of Hydrocarbons (1) in excess of 10,000 gross barrels of oil equivalent of Hydrocarbons per day (calculated on substantially standardized terms, a per day yearly average basis) or (2) for a term greater than or equal to ten (10) years and (B) Contracts has a remaining term of greater than ninety (90) days and does not allow Pi or the Pi Subsidiaries to terminate it without penalty to Pi or the Pi Subsidiaries within ninety (90) days;
(xi) any Contract that provides for a “take-or-pay” clause or any similar prepayment obligation, minimum volume commitments or capacity reservation fees to a gathering, transportation or other arrangement downstream of the wellhead, or similar arrangements that otherwise constitute Material Contracts identified on Section 4.17 guarantee or commit volumes of Hydrocarbons from Pi or any Pi Subsidiary’s Oil and Gas Properties, which in each case, would reasonably be expected to involve payments (including penalty or deficiency payments) in excess of $5,000,000 during the twelve (12)-month period following the date of this Agreement or aggregate penalty or deficiency payments in excess of $10,000,000 during the two (2)-year period following the date of this Agreement;
(xii) any Labor Agreement;
(xiii) any Contract that is a settlement, conciliation or similar agreement with any Governmental Entity or pursuant to which Pi or any of the Company Disclosure Letter Pi Subsidiaries will have any material outstanding obligation to a Governmental Entity after the date of this Agreement;
(xiv) any Contract (other than Oil and Gas Leases) pursuant to which Pi or any of the Pi Subsidiaries has paid amounts associated with any Production Burden in which excess of $1,000,000 during the grants of rights to use Intellectual Property are incidental to performance thereunder;immediately preceding fiscal; or
(xv) each Contract between the Company or any Company SubsidiaryPi Organizational Document that would, on or after the one handClosing Date, and any officer, director prohibit or affiliate (other than a wholly owned Company Subsidiary) restrict the ability of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock Surviving Corporation or any of their respective “associates” its Subsidiaries to declare and pay dividends or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) distributions with respect to their capital stock, pay any Indebtedness for borrowed money, obligations or liabilities from time to time owed to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) Surviving Corporation or any of Regulation S-K its Subsidiaries, make loans or advances or transfer any of the SEC)its properties or assets.
(c) The Contracts described in the foregoing clauses (a) and (b) True ), together with all exhibits and complete copies of each Material Contract in effect schedules to such Contracts, as of amended through the date hereof have been made available or as hereafter amended in accordance with Section 4.2 hereof, are referred to Parent herein as “Pi Material Contracts.”
(d) Each Pi Material Contract is valid and binding on Pi or publicly filed with the SEC prior Pi Subsidiary party thereto, as the case may be, and, to the date hereof. Neither the Company nor any Company Subsidiary Knowledge of Pi, each other party thereto, and is in breach of or default under the terms of any Material Contractfull force and effect in accordance with its terms, except for (i) terminations or expirations at the end of the stated term or (ii) such failures to be valid and binding or to be in full force and effect as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Pi Material Adverse Effect. To the Company’s Knowledge, as in each case subject to Enforceability Exceptions.
(e) Neither Pi nor any of the date hereofPi Subsidiaries is in breach of, or default under the terms of, and, to the Knowledge of Pi, no other party to any Pi Material Contract is in breach of of, or default under the terms of, any Pi Material Contract, nor is any event of default (or similar term) continuing under any Pi Material Contract Contract, and, to the Knowledge of Pi, there does not exist any event, condition or omission that would constitute such a default, breach or event of default (or similar term) (whether by lapse of time or notice or both) under any Pi Material Contract, in each case where such breach breach, default or event of default has had (or similar term) would reasonably be expected to have, individually or in the aggregate, a Company Pi Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Merger Agreement (Penn Virginia Corp), Merger Agreement (Lonestar Resources US Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a4.13(a) of the Company Peabody Disclosure Letter contains sets forth a correct and complete and correct list, list as of the date hereof, hereof of each Contract described all of the following types of Contracts used or held for use primarily in this Section 4.17(a) under or related primarily to the operation or conduct of the Peabody Business that are to be transferred to and assumed by the JV Entities as of the Closing Date and to which the Company Peabody or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary of its Affiliates is a party or to which any of their respective properties the Peabody Contributed Assets or assets is the Peabody Transferred Subsidiaries are subject, in each case other than any Company Benefit Plans Excluded Assets (all Contracts of the type described in this Section 4.17(a)each, whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as a “Peabody Material ContractsContract”):
(i) each Contract (any loan and credit agreement, Contract, note, debenture, bond, indenture, mortgage, security agreement, pledge or other than Company Leases) that limits in similar agreement pursuant to which any material respect the freedom of the Company, any Company Subsidiary Indebtedness for borrowed money is outstanding or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areamay be incurred;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement Contract (other than any coal supply agreement, or purchase order or commitment to sell or offer to sell coal) with a remaining term of more than one year from the date hereof which is expected to involve the payment of an amount in excess of $10,000,000 or receipt of an amount in excess of $10,000,000 in the aggregate over the remaining term of such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition any joint venture, partnership or divestiture similar organizational Contract that contains representations, covenants, indemnities involving a sharing of profits or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected losses related to result in the receipt or making by the Company all or any Company Subsidiary portion of future payments in excess of $1,000,000the Peabody Business;
(iv) each any Contract that provides for the Company or any Company Subsidiary granting to obtain a service, license, product, product line, operations or line of business from any Person an option, right of first offer or right of first refusal to purchase or acquire any Peabody Contributed Asset (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum other than purchase commitments in excess of $2,000,000 annuallyoptions for additional coal volumes);
(v) each any Contract that gives (A) provides for exclusive rights for the benefit of any Person the right third party, (B) grants “most favored nation” status to acquire any assets of the Company third party or (C) requires Peabody or any Company Subsidiary of its Affiliates to provide any minimum level of service, in each case which (excluding ordinary course commitments 1) are, or in a manner which is, material to purchase goods the Peabody Business taken as a whole and (2) may not be terminated (including such restrictive provisions) by Peabody or products) after the date hereof with consideration its Affiliates on less than 90 days’ notice without payment by Peabody or any of more than $1,000,000its Affiliates of any material penalty;
(vi) any settlement Contract that restricts in any material respect the ability of Peabody or similar Contract its Affiliates (or could restrict in any material respect the ability of the JV Entities) to compete in any business or with a Governmental Entity, other any Person in any geographical area and which may not be terminated (including such restrictive provisions) by Peabody or its Affiliates on less than those relating to Taxes90 days’ notice without payment by Peabody or any of its Affiliates of any material penalty;
(vii) except as has not been, any Contract with a remaining term of more than one year from the date hereof that could require the JV Entities to purchase all (or a specified portion of) their total requirements of any product or service from a third party or that contains “take or pay” provisions and would not reasonably be which (A) is expected to be, individually or involve the payment of an amount in excess of $10,000,000 in the aggregateaggregate during the fiscal year ending December 31, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company 2019 or any Company Subsidiary future fiscal year and (B) may not be terminated (including such restrictive provisions) by Peabody or its Affiliates on less than 90 days’ notice without payment by Peabody or any of their respective affiliates (including Parent and its affiliates after the Effective Time)Affiliates of any material penalty;
(viii) each any Contract relating to the disposition or acquisition by Peabody or any of its Affiliates of any material business or any material amounts of assets (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, ordinary course of business) with obligations remaining to be performed or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following Liabilities continuing after the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company lease or agreement (including capital lease arrangements) under which Peabody or any Company Subsidiary of its Affiliates is lessee of, or holds or operates, any Tangible Personal Property for which the annual rental costs exceed $10,000,000;
(x) any coal supply agreement, or purchase order or commitment to make sell or offer to sell coal, (A) with a remaining term of more than three years from the date hereof or (B) with remaining deliverable tonnage of (1) 10,000,000 tons from any capital investment mines located in Wyoming that are set forth on Schedule 1.1(b) or capital expenditure outside (2) 1,500,000 tons from any mines located in Colorado that are set forth on Schedule 1.1(b);
(xi) any Contract involving swaps, futures, derivatives or similar instruments, regardless of value, except such Contracts entered into as a hedging activity in the ordinary course of business consistent with Peabody’s past practice and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time)internal policy guidelines;
(xii) each any Contract governing any collaboration, co-promotion, strategic alliance pursuant to which a Governmental Authority is providing tax abatements or design project contract which, other similar economic incentives in each case, is material to connection with the Company and the Company Subsidiaries, taken as a whole;Peabody Business; and
(xiii) each any other Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)Peabody Business.
(b) True Peabody and its Affiliates have duly performed and complied in all material respects with their respective obligations under each Peabody Material Contract. None of Peabody or any of its Affiliates has received any notice of termination or default from any other party to such Peabody Material Contract. To the Knowledge of Peabody, no other party to such Peabody Material Contract is in default of its obligations thereunder.
(c) Except as set forth on Section 4.13(c) of the Peabody Disclosure Letter, Peabody has made available to Arch true and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Peabody Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Implementation Agreement (Arch Coal Inc), Implementation Agreement (Peabody Energy Corp)
Material Contracts. (a) Except for this AgreementSCHEDULE 3.13(a) sets forth a true, Section 4.17(a) correct and complete list of the Company Disclosure Letter contains a complete and correct listall contracts, as of the date hereofcommitments, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rightslicenses, responsibilitiesagreements, obligations or liabilities (in each casearrangements, whether contingent oral or otherwise) written, formal or informal, to which the Company or any Company Party or Subsidiary is a party (or intends to become a party) or to which any of their respective its assets or properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):bound:
(i) each Contract under which any Company Party or Subsidiary is indemnified for or against any liability in excess of $100,000 or under which any Company Party or Subsidiary is or could be obligated to indemnify any Person in excess of $100,000;
(ii) under which any Company Party or Subsidiary leases personal property from or to third parties under Capital Leases which involve rental payments of at least $100,000 per annum or under operating leases which involve rental payments of at least $100,000;
(iii) (A) granting representation, marketing or distribution rights or (B) relating to Intellectual Property (including, without limitation, license, franchise or similar agreements);
(iv) under which any Company Party or Subsidiary has created, incurred, assumed or guaranteed (or may create, incur, assume or guarantee) Indebtedness in excess of $100,000;
(v) establishing or maintaining any partnership, joint venture or strategic alliance, or which provides for the retention of the services of a third party to locate or identify potential acquisitions of dental practices;
(vi) under which there is or may be imposed a security interest or other Lien on any of its assets, whether tangible or intangible, whose net book value or fair market value is in excess of $100,000 (other than Company Leases) that limits the security interests or Liens granted in any material respect the freedom favor of the Company, Purchaser and the Senior Agents);
(vii) concerning any confidentiality or non-solicitation obligations entered into outside the ordinary course of business;
(viii) under which any Company Party or Subsidiary is restricted from carrying on its business or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete part thereof, or engage from competing in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company SubsidiariesPerson;
(ix) any Contract that obligates the Company with officers, directors, employees, consultants or independent contractors of any Company Party or Subsidiary;
(x) resulting in the creation of any Lien (including any lease notifications) other than a Customary Permitted Lien;
(xi) involving any Affiliates of any Company Party or Subsidiary;
(xii) under which the consequences of a default or termination could have a Material Adverse Effect;
(xiii) under which any Company Party or Subsidiary will make aggregate payments to make any capital investment vendors or capital expenditure outside other suppliers in excess of $250,000 per annum;
(xiv) under which any Company Party or Subsidiary manages any dental practice, professional corporation or professional association (including, without limitation, the Management Agreements), whether or not the financial statements of such practice, corporation or association are consolidated with the financial statements of Parent and its Subsidiaries, and under which any Company Party or Subsidiary is a party to any contract or other agreement relating to the Dental Insurance Business; and
(xv) not entered into in the ordinary course of business and in excess of $1,000,000 per annum;not otherwise disclosed on SCHEDULE 3.13
(xa) except where in response to any of the exercise foregoing clauses. All of any such right the contracts, commitments, licenses, agreements, obligations or imposition of such limitation has not beenarrangements described in clauses (i) through (xv) above, together with the Senior Credit Documents and would not reasonably be expected all Other Debt Documents, the real property leases, subleases, licenses and other interests described in SECTION 3.24, whether entered into prior to, on or after the Closing Date, are collectively referred to be, individually or in herein as the aggregate, material to the Company and the Company Subsidiaries, taken "MATERIAL CONTRACTS."
(b) Except as a wholedisclosed on SCHEDULE 3.13(a), each Material Contract that grants any right of first refusal or right of first offer or that limits the ability existing as of the Companydate hereof is a legal, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company valid and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) binding obligation of the Company Parties or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiaryparties thereto, on the one hand, and any officer, director or affiliate (the other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act)parties thereto, on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) enforceable against each Contract of them in accordance with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contractits terms, except as has not had and would not reasonably enforcement may be expected limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or conveyance or similar laws relating to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party limiting creditors' rights generally or by equitable principles relating to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party theretoenforceability, and is in full force and effect, subject . The parties to the Enforceability Limitations and any expiration thereof in accordance with its terms each Material Contract existing as of the date hereof are in substantial compliance with the terms thereof, and without no default or event of default by any material breachCompany Party or Subsidiary or, to the knowledge of the Company Parties, any other party thereto exists thereunder.
(c) Except as expressly set forth on SCHEDULE 3.13(a), no Company Party or Subsidiary is a party to any contract, commitment, license, agreement, obligation or arrangement that restricts it from carrying on its business or any part thereof, or from competing in any line of business or with any other Person.
(d) Each of the Management Agreements entered into by any Company Party or Subsidiary since November 1997 either satisfies the criteria set forth on SCHEDULE 1.1A or is substantially in the form of EXHIBIT ▇-▇, ▇-▇ OR D-3.
Appears in 2 contracts
Sources: Securities Purchase Agreement (Levine Leichtman Capital Partners Ii Lp), Securities Purchase Agreement (Interdent Inc)
Material Contracts. (ai) Except for this Agreement, Section 4.17(aDisclosure Schedule 3.1(o)(i) contains an accurate and complete list of the Contracts to which any of the Company Disclosure Letter contains or its Subsidiaries is a complete and correct listparty or by which any of the Company or its Subsidiaries are bound that are or involve (each, a “Material Contract”):
(A) the twenty-five (25) largest customers of the Company in September 2016 based on the dollar amount of invoiced monthly recurring revenue;
(B) any non-customer Contract with any Governmental Authority (other than Network Agreements);
(C) each Network Agreement;
(D) any Contract with any current employee that either (i) provides base compensation in excess of $200,000 in any calendar year or (ii) entitles such employee to severance;
(E) any non-employee sales representative or sales agent to the extent there has been aggregate compensation to such non-employee since January 1, 2016 (whether paid or accrued as of the date hereof, ) in excess of each Contract described in this Section 4.17(a$75,000;
(F) under which a covenant or other restriction that materially limits the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 ability of the Company Disclosure Letterto conduct its business, being referred to herein as “Material Contracts”):including non-solicitation, non-competition and most-favored nation pricing restrictions, which are not terminable without payment by the Company on sixty (60) days’ notice;
(iG) each Contract (other than Company Leases) that limits in any material respect the freedom director or officer of any Seller, the Company, any Company Subsidiary the Company’s Subsidiaries or any of their respective affiliates Affiliates (including Parent and its affiliates after other than employment agreements with such Persons entered into in the Effective Time) to compete or engage in any line ordinary course of business or geographic region plans or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areaagreements set forth on Disclosure Schedule 3.1(p)(i));
(iiH) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement the granting of a Lien (other than a Permitted Lien) upon any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any material assets of the Company or any Company Subsidiary its Subsidiaries, or a loan agreement, note, mortgage, indenture, security agreement, guaranty, pledge or other agreement relating to Indebtedness (excluding other than intercompany indebtedness and guarantees and accounts receivable or accounts payable in the ordinary course commitments to purchase goods and any performance bonds or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Timesecurity set forth on Disclosure Schedule 3.1(l));
(viiiI) each Contract the acquisition of an equity interest in, or of all or substantially all of the assets or business of, any other Person entered into on or after January 1, 2013;
(J) indemnification of any Person with respect to losses relating to any current or former business of the Company (other than Company Leases) not otherwise described standard indemnification provisions entered into in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Timebusiness);
(xiiK) each Contract governing any collaboration, co-promotion, strategic alliance a joint venture or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a wholepartnership;
(xiiiL) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company SubsidiariesLease;
(xivM) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company SubsidiarySubsidiary of the Company, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company Seller or any Company Subsidiary, Affiliate of any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act)Seller, on the other hand, hand (including any Network Underlying Rights) (other than employment, equity, indemnification or service agreements entered into in the ordinary course of business consistent with past practice);
(N) any customer Contract pursuant involving an indefeasible right of use or similar right to use dark or lit Network Fiber involving an annual payment or amortized revenue totaling more than $100,000 (where not already set forth on Disclosure Schedule 3.1(o)(i));
(O) all Contracts under which the Company is lessee of or holds, uses or operates any Company Subsidiary has an obligation to indemnify tangible property (other than real property) that is owned by any other Person, other than such officer, director, affiliate, beneficial owner or family memberContracts entered into in the ordinary course of business consistent with past practice and not in excess of $100,000 (the “Tangible Property Leases”) (where not already set forth on Disclosure Schedule 3.1(o)(i));
(xviP) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company all Contracts (other than those agreements customer Contracts) under which the Company is lessor of or permits any third party to hold, use or operate any tangible property (other than real property) owned or controlled by the Company, except for any Contract under which the aggregate annual rental payments do not exceed $100,000 and arrangements described the total aggregate rental payments do not exceed $500,000; or
(Q) any agreement not made in Item 601(b)(10)(iii) the ordinary course of Regulation S-K business and that is material to the business of the SEC)Company, except as otherwise listed in response to clauses (A) through (P) above.
(bii) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to haveset forth on Disclosure Schedule 3.1(o)(ii), individually or in the aggregate, a Company all Material Adverse Effect, each Material Contract is a Contracts are valid, binding and enforceable obligation of against the Company or the Company Subsidiary which is party thereto in accordance with their terms and, to the Knowledge of the Company’s Knowledge, of are valid, binding and enforceable against each other party thereto, and is are in full force and effect. The Company has performed all material obligations imposed on it under such Material Contracts, subject and neither the Company nor any other party thereto is in material default thereunder, nor has there occurred any event that with notice or lapse of time, or both, (a) would constitute a material default by the Company or, to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as Knowledge of the date hereof Company, any other party thereunder, (b) would allow or give rise to the limitation, revocation, modification, or termination of any Material Contract or (c) would result in the impairment of the rights of the Company under any Material Contract; nor has the Company or any Subsidiary received any notice regarding the matters described in (a) through (c). There is no pending disagreement or dispute with any other party to any Material Contract, nor is there any pending request or process for amendment of any Material Contract. Accurate and without complete copies of each written Material Contract (and written summaries of the terms of any material breachoral Material Contract) have been made available to Buyer. The Company has not received any notification that any party to a Material Contract intends to cancel, terminate, materially modify, or refuse to perform such Material Contract, or any written notification that a party intends to refuse renew such Material Contract.
Appears in 2 contracts
Sources: Merger Agreement (Zayo Group LLC), Merger Agreement (Zayo Group LLC)
Material Contracts. (a) Except for this AgreementAll Contracts, Section 4.17(aincluding amendments thereto, required to be filed as an exhibit to any report of Lambda filed pursuant to the Exchange Act of the type described in Item 601(b)(10) of Regulation S-K under the Company Disclosure Letter contains a complete and correct list, Exchange Act have been so filed as of the date hereof, and no such Contract has been amended or modified (or further amended or modified, as applicable) since the date such Contract or amendment was filed.
(b) Other than the Contracts set forth in clause (a) above which were filed in an unredacted form, Section 2.11(b) of the Lambda Disclosure Letter sets forth a correct and complete list, and Lambda has made available to Pi correct and complete copies (including all material amendments, modifications, extensions or renewals with respect thereto), of each Contract described in this Section 4.17(a) under of the following Contracts to which the Company Lambda or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which of the Company or any Company Subsidiary Lambda Subsidiaries is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts bound as of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):date hereof:
(i) each Contract (other than Company Leases) containing any area of mutual interest, joint bidding area, joint acquisition area, or non-compete or similar type of provision that limits in any material respect materially restricts the freedom ability of the Company, any Company Subsidiary Lambda or any of their respective affiliates its Affiliates (including Parent Pi and its affiliates after the Effective TimePi Subsidiaries following the Closing) to (A) compete or engage in any line of business or geographic region area or with any Person during any period of time after the Effective Time or sell(B) make, supply sell or distribute any product products or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each caseor use, in transfer or distribute, or enforce any geographic areaof their rights with respect to, any of their assets or properties;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representationscreates, covenantsevidences, indemnities provides commitments in respect of, secures or other obligations guarantees (including “earnout” or other contingent payment obligationsA) that would reasonably be expected to result Indebtedness for borrowed money in the receipt or making by the Company or any Company Subsidiary of future payments amount in excess of $1,000,000;
500,000 or (ivB) each Contract that provides for the Company other Indebtedness of Lambda or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary Lambda Subsidiaries (whether incurred, assumed, guaranteed or secured by any asset) in an amount excess of $500,000, other than agreements solely between or among Lambda and the Lambda Subsidiaries;
(iii) each Contract for lease of personal property or real property (excluding Oil and Gas Leases) involving annual payments in excess of $500,000 or aggregate payments in excess of $1,000,000;
(iv) each Contract involving the pending acquisition, swap, exchange, sale or other disposition of (or option to purchase, acquire, swap, exchange, sell or dispose of) any Oil and Gas Properties of Lambda and the Lambda Subsidiaries for which the aggregate consideration (or the fair market value of such consideration, if non-cash) payable to or from Lambda or any Lambda Subsidiary exceeds $1,000,000, other than Contracts involving the acquisition or sale of (or option to purchase or sell) Hydrocarbons in the ordinary course of business;
(v) each Contract for any Derivative Product;
(vi) each material partnership, stockholder, joint venture, limited liability company agreement or other joint ownership agreement, other than with respect to arrangements exclusively among Lambda and/or its wholly-owned Subsidiaries and other than any customary joint operating agreements or unit agreements affecting the Oil and Gas Properties of Lambda or any of the Lambda Subsidiaries;
(vii) each joint development agreement, exploration agreement, participation, farmout, farm-in or program agreement or similar Contract requiring Lambda or any of the Lambda Subsidiaries to make annual expenditures in excess of $500,000 or aggregate payments in excess of $1,000,000 (in each case, net to the interest of Lambda and the Lambda Subsidiaries) following the date of this Agreement, other than Contracts solely between the Company customary joint operating agreements and a wholly owned Company Subsidiary or between wholly owned Company Subsidiariescontinuous development obligations under Oil and Gas Leases;
(xivviii) each Contract pursuant agreement that contains any exclusivity, “most favored nation” or most favored customer provision, call or put option, preferential right or rights of first or last offer, negotiation or refusal, to which the Company Lambda or any Company Subsidiary grants or receives any licenseof the Lambda Subsidiaries is subject, optionand, waiverin each case, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses business of the Company Lambda and the Company Lambda Subsidiaries, taken as a whole, in each case other than those contained in (A) any agreement in which such provision is solely for the benefit of Lambda or agrees to limit its use any of the Lambda Subsidiaries, (B) customary royalty pricing provisions in Oil and Gas Leases or exploitation (C) customary preferential rights in joint operating agreements or unit agreements affecting the business or the Oil and Gas Properties of Lambda or any material Company IP in of the Lambda Subsidiaries;
(ix) any material respectacquisition or divestiture Contract that contains “earn out” or other contingent payment obligations, including pursuant to any settlement agreement, coexistence agreement or remaining indemnity or similar arrangement, obligations (other than (A) non-exclusive licenses granted to asset retirement obligations or plugging and abandonment obligations set forth in the Company Lambda Reserve Report or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) customary indemnity obligations with respect to the post-closing ownership and operation of acquired assets), that would reasonably be expected to result in (1) earn out payments, contingent payments or other similar obligations to a third party (but excluding indemnity payments) in any year in excess of $500,000 or (2) earn out payments, contingent payments or other similar obligations to a third party, including indemnity payments, in excess of $500,000 in the aggregate after the date hereof;
(x) any Contract (other than any other Contract otherwise covered by this Section 2.10(b) that creates future payment obligations (including settlement agreements or Contracts that otherwise constitute Material Contracts identified on Section 4.17 require any capital contributions to, or investments in, any Person) of Lambda or any of the Company Disclosure Letter Lambda Subsidiaries, in each case), involving annual payments in excess of $500,000 or aggregate payments in excess of $1,000,000 (excluding, for the avoidance of doubt, customary joint operating agreements or unit agreements affecting the Oil and Gas Properties of Lambda or any of the Lambda Subsidiaries), or creates or would create an Encumbrance on any material asset or property of Lambda or any of the Lambda Subsidiaries (other than Permitted Encumbrances);
(xi) any Contract that provides for midstream services (including gathering, transporting, marketing, processing and storing) to, or the sale by, Lambda or any of the Lambda Subsidiaries of Hydrocarbons (1) in excess of 1,000 gross barrels of oil equivalent of Hydrocarbons per day (calculated on a per day yearly average basis) or (2) for a term greater than or equal to ten (10) years;
(xii) any Contract for the sale of Hydrocarbons that are not terminable without penalty or other liability to Lambda or any of the Lambda Subsidiaries within sixty (60) days;
(xiii) any Contract that provides for a “take-or-pay” clause or any similar prepayment obligation, minimum volume commitments or capacity reservation fees to a gathering, transportation or other arrangement downstream of the wellhead, or similar arrangements that otherwise guarantee or commit volumes of Hydrocarbons from Lambda or any Lambda Subsidiary’s Oil and Gas Properties, which in each case, would reasonably be expected to involve payments (including penalty or deficiency payments) in excess of $500,000 during the grants twelve (12)-month period following the date of rights to use Intellectual Property are incidental to performance thereunderthis Agreement or aggregate penalty or deficiency payments in excess of $1,000,000 during the two (2)-year period following the date of this Agreement;
(xiv) any Labor Agreement;
(xv) each any Contract between the Company that is a settlement, conciliation or similar agreement with any Company Subsidiary, on the one hand, and any officer, director Governmental Entity or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock pursuant to which Lambda or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including Lambda Subsidiaries will have any Contract pursuant to which the Company or any Company Subsidiary has an material outstanding obligation to indemnify such officer, director, affiliate, beneficial owner or family membera Governmental Entity after the date of this Agreement;
(xvi) each any Contract (other than Oil and Gas Leases) pursuant to which Lambda or any of the Lambda Subsidiaries has paid amounts associated with a Material Supplierany Production Burden in excess of $1,000,000 during the immediately preceding fiscal year or with respect to which Lambda reasonably expects that it and the Lambda Subsidiaries will make payments associated with any Production Burden in any of the next three (3) succeeding fiscal years that could, based on current projections, exceed $1,000,000 annually or $2,000,000 in the aggregate; andor
(xvii) any each Contract not otherwise described in any other subsection of this Section 4.17(a) or Lambda Organizational Document that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K would, on or after the Closing Date, prohibit or restrict the ability of the SEC) Surviving Corporation or any of its Subsidiaries to declare and pay dividends or distributions with respect to their capital stock, pay any Indebtedness for borrowed money, obligations or liabilities from time to time owed to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) Surviving Corporation or any of Regulation S-K its Subsidiaries, make loans or advances or transfer any of the SEC)its properties or assets.
(c) The Contracts described in the foregoing clauses (a) and (b) True ), together with all exhibits and complete copies of each Material Contract in effect schedules to such Contracts, as of amended through the date hereof have been made available or as hereafter amended in accordance with Section 4.1 hereof, are referred to Parent herein as “Lambda Material Contracts.”
(d) Each Lambda Material Contract is valid and binding on Lambda or publicly filed with the SEC prior Lambda Subsidiary party thereto, as the case may be, and, to the date hereof. Neither the Company nor any Company Subsidiary Knowledge of Lambda, each other party thereto, and is in breach of or default under the terms of any Material Contractfull force and effect in accordance with its terms, except for (i) terminations or expirations at the end of the stated term or (ii) such failures to be valid and binding or to be in full force and effect as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Lambda Material Adverse Effect. To the Company’s Knowledge, as in each case subject to Enforceability Exceptions.
(e) Neither Lambda nor any of the date hereofLambda Subsidiaries is in breach of, or default under the terms of, and, to the Knowledge of Lambda, no other party to any Lambda Material Contract is in breach of of, or default under the terms of, any Lambda Material Contract, nor is any event of default (or similar term) continuing under any Lambda Material Contract Contract, and, to the Knowledge of Lambda, there does not exist any event, condition or omission that would constitute such a default, breach or event of default (or similar term) (whether by lapse of time or notice or both) under any Lambda Material Contract, in each case where such breach breach, default or event of default has had (or similar term) would reasonably be expected to have, individually or in the aggregate, a Company Lambda Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Merger Agreement (Penn Virginia Corp), Merger Agreement (Lonestar Resources US Inc.)
Material Contracts. (ai) Except for this Agreement, Section 4.17(a) Seller has provided to Buyer true and correct copies of the following agreements (each a “Material Contract”) to which the Company Disclosure Letter contains is a complete and correct listparty:
(A) any agreement for the purchase or sale of products or for the furnishing or receipt of services (1) which involves more than the sum of $10,000 or (2) in which the Company has granted “most favored nation” pricing provisions or marketing or distribution rights relating to any services, as products or territory or has agreed to purchase a minimum quantity of goods or services or has agreed to purchase goods or services exclusively from a certain party;
(B) any agreement concerning the date hereofestablishment or operation of a partnership, of each Contract described in this Section 4.17(ajoint venture or limited liability company;
(C) any agreement under which the Company has created, incurred, assumed or guaranteed (or may create, incur, assume or guarantee) indebtedness (including capitalized lease obligations) or under which it has imposed (or may impose) any Encumbrance on any of its assets, tangible or intangible (excluding indebtedness and Encumbrances being paid off, terminated or otherwise satisfied in connection with the Closing);
(D) any agreement for the disposition of any significant portion of the assets or business of the Company (other than sales of products in the Ordinary Course of Business) or any Company Subsidiary has agreement for the acquisition of the assets or business of any other entity (other than purchases of inventory or components in the Ordinary Course of Business);
(E) any agreement concerning confidentiality or non-solicitation;
(F) any employment agreement, consulting agreement, severance agreement (or agreement that includes provisions for the payment of severance) or retention agreement;
(G) any agreement involving any current director, manager, officer, shareholder or future rightsmember of the Company;
(H) any lease or agreement under which the Company is the lessee of, responsibilitiesor holds or operates, obligations any personal property owned by any other party, for which the annual rental exceeds $15,000;
(I) any agreement that prohibits the Company from freely engaging in business anywhere in the world;
(J) any distributor, sales representative, franchise or liabilities (in each case, whether contingent or otherwise) or similar agreement to which the Company or any Company Subsidiary is a party or to by which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letteris bound; and
(K) any other agreement (or group of related agreements) either (A) involving more than $50,000 or (B) not entered into in the Ordinary Course of Business and involving more than $10,000. The Company has made available to Buyer a complete and accurate copy of each Material Contract (as amended to date). With respect to each Material Contract, being referred and subject to herein as “Material Contracts”):
applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting generally the enforcement of creditors’ rights and subject to general principles of equity: (i) the Material Contract is legal, valid, binding and enforceable and in full force and effect against the Company, to the Knowledge of any Seller or the Company, against each other party thereto; and (ii) the Material Contract (will continue to be legal, valid, binding and enforceable and in full force and effect against the Company and against each other than party thereto immediately following the Closing in accordance with the terms thereof as in effect immediately prior to the Closing. Neither the Company Leases) that limits in nor, to the Knowledge of any material respect the freedom of Seller or the Company, any Company Subsidiary other party, is in breach or violation of, or default under, any such Material Contract, and no event has occurred, is pending or, to the Knowledge of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete any Seller or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates is threatened, which, after the Effective Time) from the developmentgiving of notice, marketing with lapse of time, or distribution of products and servicesotherwise, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration would constitute a breach or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making default by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the other party under such Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)Contract.
(bii) True and complete copies of each Material Contract in effect as of the date hereof have been made available The Company is not party to Parent any oral contract, agreement or publicly filed with the SEC prior other arrangement that, if reduced to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default written form, would be required to provide under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.Section 3(y)
Appears in 2 contracts
Sources: Share Purchase Agreement (BAIYU Holdings, Inc.), Share Purchase Agreement (TD Holdings, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a4.12(a) of the Company Disclosure Letter contains a Schedule is an accurate and complete and correct list, as list of all of the date hereof, following Contracts to which one or more of each Contract described in this Section 4.17(a) under which the Companies or the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary Subsidiaries is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Contract Contracts evidencing Indebtedness or imposing any Lien (other than Permitted Liens) on the assets of a Company Leasesor Company Subsidiary;
(ii) all Company Employment Contracts that limits provide for annual base compensation in excess of $150,000, retention payments, severance benefits, or transaction bonuses;
(iii) all Company IP Agreements;
(iv) leases of personal property under which a Company or Company Subsidiary is the lessee and is obligated to make payments in excess of $50,000 per annum;
(v) Contracts providing for any material respect business or equity acquisition or disposition by or relating to a Company or Company Subsidiary entered into at any time during the last four (4) years or under which a Company or Company Subsidiary has continuing or ongoing obligations;
(vi) Contracts (A) limiting the freedom of the Company, any a Company or Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business business, acquire any entity or geographic region or compete with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect market or geographical area, (B) granting “most favored nation” status to any other Person or (C) containing any “right of first refusal,” “right of first offer” or similar preferential right to acquire any asset;
(vii) any collective bargaining agreements;
(viii) any joint venture and limited partnership agreements;
(ix) Contracts for any hedging or similar derivative transactions;
(x) any distributor agreements, sales representative agreements, reseller agreements or similar agreements that provide for annual payments by a Company or Company Subsidiary of $100,000 or more;
(xi) Contracts for capital expenditures or the Company, the Company Subsidiaries acquisition or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution construction of products and services, in each casefixed assets, in any geographic areacase involving future payments by a Company or Company Subsidiary in excess of $100,000 in the aggregate;
(iixii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture individual Contract with a Material Customer that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of requires aggregate future payments in excess of $1,000,000;100,000; and
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vixiii) any settlement or similar individual Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received Material Supplier that requires aggregate future payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)100,000.
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Equity Purchase Agreement (Esco Technologies Inc), Equity Purchase Agreement (Sonoco Products Co)
Material Contracts. (a) Except for For purposes of this Agreement, Section 4.17(a) a “Company Contract” shall mean any of the Company Disclosure Letter contains a complete and correct list, as of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or following agreements to which the Company or any Company Subsidiary of its Subsidiaries is a party to or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):bound:
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K under the Securities Act);
(ii) any agreement that is not terminable for convenience by the Company or its Subsidiary upon not more than 30 days’ notice at no charge, that (A) purports to restrain or limit the ability of the SECCompany or any of its Affiliates to compete or engage in any line of business or the localities in which the Company or any of its Affiliates may conduct business, (B) provides for exclusivity by the Company or any of its Affiliates with respect to any products or services sold or purchased by the Company or any of its Affiliates, (other than those agreements and arrangements described in Item 601(b)(10)(iiiC) extends “most favored nation” or similar pricing to any Person, or (D) provides for the non-solicitation of Regulation S-K of the SEC).any Person;
(biii) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contractagreement that requires, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to haveresult in, individually any payment by the Company or its Subsidiaries in excess of $1,000,000 in the aggregateCompany’s fiscal year ending February 28, a Company Material Adverse Effect. Except as has not had and 2011 or any subsequent fiscal year or which requires, or would not reasonably be expected to haveresult in, individually any payment to the Company or its Subsidiaries in excess of $1,000,000 in the aggregateCompany’s fiscal year ending February 28, 2011 or any subsequent fiscal year;
(iv) any agreement relating to Indebtedness owed by the Company or any of its Subsidiaries to third parties;
(v) any agreement relating to the acquisition or disposition, directly or indirectly, of any business (whether by merger, sale of stock, sale of assets or otherwise) under which the Company or any of its Subsidiaries has continuing material obligations;
(vi) any agreement with an executive officer of the Company, other than agreements under which the Company and its Subsidiaries have no further liabilities or obligations and no continuing rights;
(vii) any agreement of indemnification or any guaranty of a material obligation by the Company Material Adverse Effector any of its Subsidiaries of a third party, each Material Contract other than any agreement entered into in connection with the sale or license by or to the Company or any of its Subsidiaries of products or services in the ordinary course of business;
(viii) any material agreement with any Governmental Authority providing for the purchase of the Company’s products by such Governmental Authority;
(ix) any agreement set forth in clauses (i), (iii), (iv) or (vi) above or clause (xiii) below containing any “change in control” or similar provisions with respect to the Company or any of its Subsidiaries;
(x) any collective bargaining agreements (including memoranda of understanding or extension agreements);
(xi) any agreement with any beneficial owner of more than 5% of the outstanding Company Common Stock;
(xii) any settlement agreement which materially affects the conduct of the Company’s or any of its Subsidiaries’ businesses;
(xiii) any other agreement that is material to the Company and its Subsidiaries, taken as a valid, binding and enforceable obligation whole; and
(xiv) any agreement that by its terms would prohibit or materially delay the consummation of the Merger or any of the other transactions contemplated by this Agreement.
(b) Section 3.15(b) of the Company or Disclosure Schedule lists each Company Contract in existence on the date hereof. The Company has previously made available to Parent true, complete and correct copies of each Company Contract in existence on the date hereof. All of the Company Subsidiary which is party thereto Contracts are valid and binding on the Company or its Subsidiary, as the case may be, and, to the Company’s Knowledge, of each other party thereto, and is are in full force and effect, subject to applicable bankruptcy, insolvency, moratorium or other similar Laws relating to creditors’ rights and general principles of equity. Neither the Enforceability Limitations Company nor any of its Subsidiaries has, and any expiration thereof in accordance with its terms existing as to the Company’s Knowledge, none of the date hereof and without other parties thereto have, violated in any material breachrespect any provision of, or committed or failed to perform any act, and no event or condition exists, which with or without notice, lapse of time or both would constitute a material default under the provisions of any Company Contract and neither the Company nor any of its Subsidiaries has received written notice of any of the foregoing.
Appears in 2 contracts
Sources: Merger Agreement (Clearwater Paper Corp), Merger Agreement (Cellu Tissue Holdings, Inc.)
Material Contracts. (a) Except for For purposes of this Agreement, Section 4.17(a) a “Material Contract” means each of the Company Disclosure Letter contains a complete and correct list, as of the date hereof, of following Contracts (excluding in each Contract described in this Section 4.17(a) under which case any purchase order entered into by the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (of its Subsidiaries in each case, whether contingent or otherwisethe ordinary course of business consistent with past practice) or which is currently in effect and to which the Company or any Company Subsidiary of its Subsidiaries is a party or to by which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):are bound:
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (, other than those agreements and arrangements described in Item 601(b)(10)(iii)) with respect to the Company and its Subsidiaries;
(ii) other than at-will offer letters on the Company’s standard form containing no severance provisions or consulting Contracts which may be cancelled on less than ninety (90) days’ notice without penalty to the Company, any employment or independent contractor Contract (in each case, under which the Company has continuing obligations as of the date hereof) with any current or former executive officer, consultant or employee of the Company or its Subsidiaries or member of the Company Board providing for an annual base compensation in excess of $100,000;
(iii) any Contract or plan, including any stock option plan, stock appreciation right plan or stock purchase plan, any of the benefits of which will be increased, or the vesting of benefits of which will be accelerated, by the consummation of the transactions contemplated by this Agreement or the value of any of the benefits of which will be calculated on the basis of any of the transactions contemplated by this Agreement (including the Merger);
(iv) any Collective Bargaining Agreement or other similar Contract with a Labor Organization;
(v) any Contract (excluding, for the avoidance of doubt, any purchase order) with any Significant Customer or any Significant Supplier providing for indemnification or any guaranty (in each case, under which the Company has continuing obligations as of the date hereof), other than (A) any guaranty by the Company of any of its Subsidiaries’ obligations or (B) any Contract providing for indemnification entered into in connection with the distribution, sale or license of services or hardware or software products in the ordinary course of business consistent with past practice, which indemnification does not materially differ from the provisions embedded in Company’s standard terms of sale as provided or made available to Parent;
(vi) any Contract containing any covenant, commitment or other obligation (A) limiting the right of the Company or any of its Subsidiaries to engage in any line of business or to compete with any Person in any line of business, (B) granting any exclusive rights to any third party, (C) containing a “most favored nation” or similar provision that would affect more than 1% of the Company’s aggregate annual revenues (based solely on the fiscal year ended December 31, 2014) or the provisions of which would be applicable to Parent after the Effective Time, (D) including any “take or pay” or “requirements” obligation, (E) prohibiting the Company or any of its Subsidiaries (or, after the Effective Time, Parent) from engaging in business with any Person or levying a fine, charge or other payment for doing so (other than any prohibition pertaining to the non-solicitation of employees) or (F) otherwise prohibiting or limiting the right of the Company or its Subsidiaries to sell, distribute or manufacture any products or services or to purchase or otherwise obtain any software, components, parts or subassemblies, in the case of each of clauses (A) through (F) other than any such Contracts that may be cancelled without liability to the Company or its Subsidiaries of more than $200,000 and upon notice of ninety (90) days or less;
(vii) any Contract (A) relating to the license, disposition or acquisition by the Company or any of its Subsidiaries after the date of this Agreement of a material amount of assets other than in the ordinary course of business, (B) pursuant to which the Company or any of its Subsidiaries will acquire any material ownership interest in any other Person or other business enterprise other than the Company’s Subsidiaries or (C) relating to the formation, control or operation of any joint venture;
(viii) any Contract for the acquisition or disposition of any business containing any continuing (A) profit sharing arrangements or “earn-out” arrangements or (B) indemnification or similar contingent payment obligations;
(ix) any joint marketing or development agreements under which the Company or any of its Subsidiaries have continuing obligations or costs in excess of $200,000 per year, to jointly market any product, technology or service, and which may not be canceled without penalty upon notice of ninety (90) days or less;
(x) any material outsourcing Contracts (including material Contracts to assemble, manufacture and package any Company Product) other than Contracts between the Company and a Significant Supplier;
(xi) Based upon amounts paid or received thereunder during the most recent completed fiscal year of the Company, (A) any Contract between the Company and any Significant Customer, (B) the top five (5) distributor contracts, (C) any Contract between the Company and any Significant Supplier, (D) the top three (3) development contracts, and (E) the top five (5) sales representative contracts;
(xii) The top five (5) Contracts (based upon amounts paid thereunder during the most recent completed fiscal year of the Company, and excluding, for the avoidance of doubt, any purchase order) containing any service obligation on the part of the Company or any of its Subsidiaries (as measured by continuing costs to be incurred by the Company or any of its Subsidiaries in connection with those services);
(xiii) any Contract that is required to be listed in Section 3.22(c) of Regulation Sthe Company Disclosure Letter;
(xiv) any mortgages, indentures, guarantees, loans or credit agreements, security agreements or other Contracts relating to the borrowing of money by, or extension of credit to, the Company or any of its Subsidiaries, other than (A) accounts receivables and payables in the ordinary course of business consistent with past practice and (B) loans to direct or indirect wholly-K owned Subsidiaries;
(xv) any mortgage, lease, loan or other material Contract relating to any sale leaseback transaction of any real property previously owned by the Company or any of its Subsidiaries;
(xvi) any Leases;
(xvii) any Contract entered into since January 1, 2013 to settle a Legal Proceeding other than (A) releases entered into with former employees or independent contractors of the SEC)Company which do not contain cash settlements in excess of $300,000 or (B) settlement agreements for cash only (which has been paid) and does not exceed $300,000 as to such settlement; and
(xviii) any material Contract with any Governmental Entity.
(b) True Section 3.11(b) of the Company Disclosure Letter contains a list that is complete and complete copies of each Material Contract accurate in effect all material respects as of the date hereof have been of all Material Contracts, and identifies each subsection of Section 3.11(a) that describes such Material Contract. The Company has delivered or made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach complete and correct copies of or default under the terms of any each such Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any .
(c) Each Material Contract is in breach of or default under valid and binding on the terms of any Material Contract where Company (and/or each such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation Subsidiary of the Company or Company, as the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, case may be) and is in full force and effect, subject and neither the Company nor any of its Subsidiaries party thereto, nor, to the Enforceability Limitations Knowledge of the Company, any other party thereto, is in breach of, or default under any such Material Contract, and no event has occurred that with notice or lapse of time or both would constitute such a breach or default thereunder by the Company or any expiration thereof of its Subsidiaries, or, to the Knowledge of the Company, any other party thereto, except in accordance with each of the foregoing cases as is not and would not reasonably be expected to be, individually or in the aggregate, material to the Company and its terms existing Subsidiaries, taken as a whole. As of the date hereof hereof, neither the Company nor any of its Subsidiaries has received any written notice or other written communication regarding any actual or possible violation or breach of or default under, or intention to cancel or modify, any Material Contract, except as is not and without any would not reasonably be expected to be, individually or in the aggregate, material breachto the Company and its Subsidiaries, taken as a whole.
Appears in 2 contracts
Sources: Merger Agreement (Microchip Technology Inc), Merger Agreement (Micrel Inc)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) 3.16 of the Company Seller Disclosure Letter contains Schedule sets forth a true and complete and correct listlist of all Contracts that are Assets or under which there is an Assumed Liability, as in each case under which any party thereto has continuing Liabilities or rights, with respect to any of the date hereoffollowing (each, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material ContractsContract”):
(i) each (A) any Contract containing any covenant (other than Company Leases1) that limits in any material respect prohibiting or limiting the freedom right of the Company, any Company Subsidiary Parent or any of their respective affiliates (including Parent and its affiliates after the Effective Time) Affiliates to compete or engage in any line of business or to compete with any Person in any line of business or in any market or geographic region location, or (2) prohibiting Parent or any of its Affiliates from engaging in business with any Person or selllevying a fine, supply charge or distribute other payment for doing so, or (B) any product Contract otherwise qualifying as a Material Contract granting to any Person a right of first refusal, right of first offer, “most favored nation” or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areasimilar arrangement;
(ii) any material partnershipContracts for the acquisition or disposition by Parent or any of its Affiliates of any ownership interest in any other Person or other business enterprise (A) since November 1, strategic alliance2014 for consideration with an aggregate value of $1,000,000 or more or (B) pursuant to which Parent or any of its Affiliates is subject to any continuing deferred purchase price, joint venture“earn out”, collaboration purchase price adjustment or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contractnon-competition payment obligations;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material all Contracts related to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct incurrence of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 ), other than Contracts solely between accounts receivables and payables in the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiariesordinary course of business consistent with past practice;
(xiviv) each any Contract that grants to any third party an Encumbrance, other than a Permitted Encumbrance, on all or any part of any material Assets;
(v) all Contracts with Material Customers or Material Suppliers;
(vi) any material Contract relating to any (A) material Business Intellectual Property or IT Assets that are Purchased Assets or (B) material Intellectual Property or IT Assets used primarily in the Business and licensed to Parent or its Affiliates from a third party, other than in the case of clauses (A) or (B) off-the-shelf software with annual fees of less than $500,000;
(vii) all Contracts other than purchase orders made in the ordinary course of business involving the expenditure, payment or receipt by Parent or any of its Affiliates attributable to the Business during 2016 or expected in 2017 (calculated using the average expenditure, payment or receipt per month during the 2017 year to date multiplied by twelve (12)) of more than $2,000,000 in the aggregate;
(viii) Contracts relating to any joint venture, partnership or similar arrangement of Parent or any of its Affiliates, including any agreement to share profits or losses;
(ix) any Contract involving a resolution or settlement of any actual or threatened Action with either a value greater than $1,000,000 or other material ongoing requirements;
(x) any obligation, such as a put or similar right, pursuant to which the Company Parent or any Company Subsidiary grants of its Affiliates could be required to purchase, redeem, or receives otherwise acquire an equity securities of another Person;
(xi) any licenseobligation to make any investment in (in the form of a loan, optioncapital contribution or otherwise, waiver, covenant not to assert or similar right other than with respect to Intellectual Property that is material to trade accounts receivable in the businesses ordinary course of the Company and the Company Subsidiaries, taken as a wholebusiness consistent with past practice), or agrees to limit its use or exploitation of provide any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) guarantee with respect to the Company obligations of, any third party; or
(other than those agreements and arrangements described in Item 601(b)(10)(iiixii) of Regulation S-K any Contract required to be disclosed on Section 3.24 of the SEC)Seller Disclosure Schedule.
(b) True and complete copies of each all Material Contract in effect as of the date hereof Contracts (other than immaterial amendments, supplements, exhibits or schedules thereto) have been made available to Parent or publicly filed with the SEC Buyer prior to the date hereof. Neither All of the Company nor Material Contracts are valid and binding on each party thereto and are in full force and effect in accordance with their terms, except to the extent they have previously expired or terminated in accordance with their terms and except with respect to Contracts listed on Section 3.16(a)(xii) of the Seller Disclosure Schedule that are terminated prior to Closing pursuant to Section 5.06. None of Parent or any Company Subsidiary of its Affiliates is (with or without notice or lapse of time, or both) in breach material violation of or material default under the terms of any Material Contract, except as has not had and, to the Knowledge of Parent and would not reasonably be expected to haveSellers, individually there is no existing or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no claimed material violation or material default by any other party to any Material Contract is in breach Contract. None of Parent or default under the terms any of its Affiliates has received any written notice of any actual or threatened termination, cancellation or limitation of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breachContract.
Appears in 2 contracts
Sources: Purchase Agreement (Owens & Minor Inc/Va/), Purchase Agreement (Halyard Health, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a4.17(a) of the Company Disclosure Letter contains Schedule sets forth a complete and correct list, list as of the date hereof, of this Agreement of each Contract described in this Section 4.17(a) under which of the following Contracts (other than Company Employee Plans and such Contracts solely among the Company or and any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwiseof its wholly owned Subsidiaries) or to which the Company or any Company Subsidiary of its Subsidiaries is a party or by which it is bound (each such Contract listed or required to be so listed, and each of the following Contracts to which the Company or any of their respective properties its Subsidiaries becomes a party or assets is subjectby which it becomes bound after the date of this Agreement, other than any a “Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material ContractsContract”):
(i) each any Contract (other than Company Leases) that limits in to which any material respect the freedom of the Company, any Company Subsidiary top ten (10) customers or any top ten (10) vendors of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries (determined on the basis of the consolidated revenue or affiliates (including Parent and its affiliates after the Effective Time) from the developmentconsolidated expenses, marketing or distribution as applicable, of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, for the fiscal year ended December 31, 2024) is a party (excluding any settlement immaterial non-disclosure agreements that are ancillary to Contracts pursuant to which payments are made to the Company or similar its Subsidiaries);
(ii) any Contract restricting that (A) limits or purports to limit, in any respect material respect, the operations or conduct freedom of the Company or any of its Subsidiaries to engage or compete in any line of business or with any Person or in any area or that would so limit or purport to limit, in any material respect, the freedom of Parent, the Company Subsidiary or any of their respective affiliates (including Parent and its affiliates Affiliates after the Effective Time), (B) contains any material exclusivity or material “most favored nation” obligations, material rights of first refusal, material rights of first offer, material put or call rights or other restrictions or similar provisions that are binding on the Company or any of its Subsidiaries (or, after the Effective Time, that would be binding on Parent or any of its Affiliates) or (C) otherwise limits or restricts, in any material respect, the Company or any of its Subsidiaries (or, after the Effective Time, Parent or any of its Affiliates) from hiring or soliciting any Person for employment;
(viiiiii) each (A) any standard form Contract pursuant to which the Company or any of its Subsidiaries provides the Company Product or other Product to any client and (B) any material Contract (other than Company Leases) not otherwise described or group of Contracts that, in any other subsection of this Section 4.17(athe aggregate, are material) pursuant to which the Company or any of its Subsidiaries provides the Company Subsidiary has paid Product or other Product to any client that is not on any such standard form or includes any material deviations from any such standard form;
(iv) any Contract reasonably expected to result in payments made or received payments by the Company and its Subsidiaries in excess of $2,000,000 1,500,000 in any year that provides for any referral arrangement, commission sharing arrangement or co-marketing arrangement, including any finder’s agreement;
(v) any material Contract for which the fiscal year ended February 1execution, 2025delivery and performance by the Company of this Agreement or the consummation of any of the Transactions would (A) require any consent or other action (including notice by the Company) thereunder, (B) constitute a default, or an event that, with or without notice or lapse of time or both, would constitute a default, thereunder, (C) cause or permit the termination, cancellation, acceleration or other change of any material right or obligation (including triggering of a price adjustment, right of renegotiation or other remedy) or the loss of any material benefit to which the Company or any of its Subsidiaries is obligated entitled thereunder or (D) require any material payment by the Company or any of its Subsidiaries thereunder;
(vi) promissory notes, loan agreements, indentures, evidences of indebtedness or other instruments providing for or relating to pay the lending of money, (A) if as borrower or entitled to receive payments guarantor, in excess of $2,000,000 1,500,000, and (B) if as lender, in excess of $1,500,000;
(vii) any material joint venture, profit-sharing, partnership, stockholders, investors rights, registration rights or similar Contract;
(viii) any Contracts or series of related Contracts entered into within the twelve last three (123) month period following years relating to the date hereofacquisition or disposition of the business, other than Contracts solely between the Company and assets or securities of any Person or any business for a wholly owned Company Subsidiary price in excess of $1,500,000 (in each case, whether by merger, sale of stock, sale of assets or solely between wholly owned Company Subsidiariesotherwise);
(ix) any Contract that obligates the Company Contracts or other transactions with any Company Subsidiary to make any capital investment (A) executive officer or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability director of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 record or, to the knowledge of the Company Disclosure Letter and in which the grants Company, beneficial owner of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) or more of the shares voting securities of Company Common Stock the Company, or (C) affiliates or “associates” (or members of any of their respective “associates” or “immediate family” members ”) (as such terms are respectively defined in Rule 12b-2 and Rule 16a-1 of the Securities Exchange Act), on the other hand, including ) of any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such executive officer, director, affiliate, director or beneficial owner or family member;
(xvi) each Contract with of the foregoing, a Material Supplier“Related Party” and each such Contract, a “Related Party Contract”); and
(xviix) any other Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in required to be filed by the Company pursuant to Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.K.
Appears in 2 contracts
Sources: Merger Agreement (Strive, Inc.), Merger Agreement (Semler Scientific, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(aSchedule 5.18(a) of the Company Parent Disclosure Letter contains Letter, together with the lists of exhibits contained in the Parent SEC Documents, sets forth a true and complete and correct listlist (but excluding any Parent Plan), as of the date hereofentry into this Agreement, of each Contract described in this Section 4.17(a) under the following contracts to which the Company Parent or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary of its Subsidiaries is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):party:
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K under the Exchange Act);
(ii) each agreement or Organizational Document of Parent or any of its Subsidiaries that would, on or after the SECClosing Date, prohibit or restrict the ability of Parent or any of its Subsidiaries (including the Surviving Corporation and its Subsidiaries) to declare and pay dividends or distributions with respect to their capital stock, pay any Indebtedness for borrowed money, obligations or Liabilities from time to time owed to Parent or any of its Subsidiaries (including the Company Surviving Corporation and its Subsidiaries), make loans or advances to Parent or any of its Subsidiaries (including the Surviving Corporation and its Subsidiaries);
(iii) each contract that contains covenants that limit the ability of Parent or any of its Affiliates to compete in any business or with any person or in any geographic area or distribution or sales channel, or to sell, supply or distribute any service or product, in each case, that could reasonably be expected to be material to the business of Parent and its Subsidiaries, taken as a whole;
(iv) each contract that (A) provides for material exclusive rights for the benefit of any third party, (B) grants “most favored nation” status to any third party or (C) requires Parent or any of its Affiliates to provide any minimum level of service, in each case which (1) are, or in a manner which is, material to Parent and its Subsidiaries taken as a whole and (2) may not be terminated (including such restrictive provisions) by Parent or its Subsidiaries on less than 90 days’ notice without payment by Parent or any of its Subsidiaries of any material penalty;
(v) each contract with a remaining term of more than one year from the date hereof that could require Parent or any of its Affiliates to purchase all (or a specified portion of) its total requirements of any product or service from a third party or that contains “take or pay” provisions and which (A) is expected to involve the payment of an amount in excess of $25 million in the aggregate during the fiscal year ending December 31, 2024 or any future fiscal year and (B) may not be terminated (including such restrictive provisions) by Parent or its Subsidiaries on less than 90 days’ notice without payment by Parent or any of its Subsidiaries of any material penalty;
(vi) each agreement evidencing any Indebtedness for borrowed money having an outstanding principal amount or outstanding commitments in excess of $25 million;
(vii) any coal supply agreement or purchase order or commitment to sell or offer to sell coal, (A) with a remaining term of more than three years from the later of the commencement of the term of the agreement and the date hereof (or, if the contract is entered into after the date of this Agreement, three years from the later of the commencement of the term of the agreement and the date the contract is entered into), (B) under which the aggregate amounts to be paid by Parent and its Subsidiaries over the remaining term of such agreement, order or commitment would reasonably be expected to exceed $100 million or (C) under which the aggregate amounts to be received by Parent and its Subsidiaries over the remaining term of such agreement, order or commitment would reasonably be expected to exceed $100 million;
(viii) that is a contractual royalty, production payment, net profits, earn-out or similar contract on a material property of such Party that has a value or expected value in excess of $5 million from the date hereof, excluding, however, any of the foregoing payable pursuant to any instrument with respect to Parent Real Property;
(ix) each contract relating to the disposition or acquisition by Parent or any of its Subsidiaries of any material business or any material amount of assets (other than those agreements in the Ordinary Course) with obligations remaining to be performed or Liabilities continuing after the entry into this Agreement;
(x) each contract involving any exchange traded, over-the-counter or other swap, cap, floor, collar, futures contract, forward contract, option or any other derivative financial instrument or contract including commodities, in each case, with a notional amount exceeding $100 million and arrangements described a term of at least three years from the entry into the instrument or contract, in Item 601(b)(10)(iiieach case, other than contracts for the purchase and sale of coal, diesel fuel and ANFO (ammonium nitrate and fuel oil) and contracts entered into as a hedging activity in the Ordinary Course consistent with Parent’s past practice and internal policy guidelines;
(xi) any joint venture, partnership or similar organizational contract involving a sharing of Regulation S-K profits or losses by Parent or any of its Subsidiaries (or any contract, agreement or understanding involving any joint venture partner or any of its affiliates that relates to the SECapplicable joint venture or the assets thereof) other than any contract entered into in the Ordinary Course which would not reasonably be expected to be material to Parent and its Subsidiaries, taken as a whole; and
(xii) any contract to which Parent or any of its Subsidiaries is party granting to any Person an option, right of first offer or right of first refusal to purchase or acquire any assets of Parent or any of its Subsidiaries (other than any purchase option for additional coal volumes or any contract entered into in the Ordinary Course which would not reasonably be expected to be material to Parent and its Subsidiaries, taken as a whole).
(b) True Collectively, the contracts set forth in Section 5.18(a), whether or not set forth in the Parent Disclosure Letter, are referred to in this Agreement as the “Parent Contracts.” A complete and complete copies correct copy of each Material Contract in effect as of the date hereof have Parent Contracts has been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor (provided that order forms, purchase orders and statements of work, in each case, that do not contain any Company Subsidiary is in breach of restrictive covenants or default under the terms of any Material Contractother material terms, except as has need not had and would not reasonably be expected made available pursuant to havethis sentence, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effectbut shall nonetheless constitute Parent Contracts). Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Parent Material Adverse Effect, each Material Parent Contract is a legal, valid, binding and enforceable obligation in accordance with its terms on Parent and each of the Company or the Company Subsidiary which its Subsidiaries that is a party thereto and, to the Company’s Knowledgeknowledge of Parent, of each other party thereto, and is in full force and effect, subject subject, as to enforceability, to Creditors’ Rights. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect, neither Parent nor any of its Subsidiaries is in breach or default under any Parent Contract nor, to the Enforceability Limitations knowledge of Parent, is any other party to any such Parent Contract in breach or default thereunder, and no event has occurred that with the lapse of time or the giving of notice or both would constitute a default thereunder by Parent or its Subsidiaries, or, to the knowledge of Parent, any expiration thereof in accordance with its terms existing as other party thereto. As of the date hereof entry into this Agreement, there are no disputes pending or, to the knowledge of Parent, Threatened with respect to any Parent Contract and without neither Parent nor any material breachof its Subsidiaries has received any notice of the intention of any other party to any Parent Contract to terminate for default, convenience or otherwise any Parent Contract, nor to the knowledge of Parent, is any such party threatening to do so, in each case except as has not had or would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (Arch Resources, Inc.), Merger Agreement (CONSOL Energy Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) of the The Company Disclosure Letter contains a complete and correct listSchedule sets forth the following contracts, as of the date hereofundertakings, of each Contract described in this Section 4.17(a) under which the Company commitments, licenses or any Company Subsidiary has any current agreements, written or future rightsoral, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or which are applicable to which any of their respective assets or properties (true and complete copies (or assets is subjectwritten summaries, if oral) of which have been made available to Parent prior to the date hereof) other than any Company Benefit Plans those contracts or agreements listed as exhibits in the Company’s Form 10-K for the fiscal year ended December 28, 2008 (all Contracts of the type described in this Section 4.17(a), whether each such contract or not agreement as is required to be set forth on Section 4.17 in the Company Disclosure Schedule, together with all contracts and agreements of the Company Disclosure Letteror any Company Subsidiary listed or required to be listed as exhibits in the Company’s Form 10-K for the fiscal year ended December 28, 2008, being referred to herein as a “Material ContractsContract”):
(i) each Contract (promissory notes, loan agreements, indentures, evidences of indebtedness or other than Company Leases) that limits in instruments and contracts providing for the borrowing or lending of money, whether as borrower, lender or guarantor, and any material respect the freedom agreements or instruments pursuant to which any cash of the Company, Company or any Company Subsidiary is held in escrow or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making use by the Company or any Company Subsidiary is otherwise restricted, in each case in an amount of future payments in excess of more than $1,000,000;
(ivii) each Contract that provides for the Company all contracts involving a value of more than $1,000,000 pursuant to which any material property or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary is subject to a Lien;
(excluding ordinary course commitments iii) joint venture, alliance, affiliation or partnership agreements or joint development or similar agreements pursuant to purchase goods which any third party is entitled to develop or productsmarket any products or services on behalf of, or together with, the Company or any Company Subsidiary or receive referrals of business from, or provide referrals of business to, the Company or any Company Subsidiary;
(iv) after executory contracts for the acquisition or sale, directly or indirectly (by merger or otherwise) of all or a substantial portion of the assets (whether tangible or intangible) or the Equity Interests of another Person, including, without limitation, contracts for any completed acquisitions or sales pursuant to which an “earn out” or similar form of obligation (whether absolute or contingent) is pending or for which there are any continuing indemnification or similar obligations;
(v) any interest rate or currency swaps, caps, floors or option agreements or any other interest rate or currency risk management arrangement or foreign exchange contracts;
(vi) all licenses, sublicenses, or consent, royalty or other agreements concerning Company Intellectual Property involving an amount of more than $200,000;
(vii) contracts relating to rights to indemnification and/or advancement of expenses as in effect on the date hereof with respect to matters occurring on or prior to the Effective Time (including the transactions contemplated hereby);
(viii) any contract, agreement or other instrument of understanding which is not terminable by the Company or a Company Subsidiary without additional payment or penalty within sixty (60) days and obligates the Company or any Company Subsidiary for payments or other consideration with a value of more than $1,000,000;
(viix) any settlement contracts of the type required under Section 3.5(b) or similar Contract with a Governmental Entity, other than those relating Section 3.12(h) to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to disclosed on the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annumDisclosure Schedule;
(x) except where contracts imposing any material restriction on the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company or a Company Subsidiary (A) to compete with any other Person, (B) to acquire any product or other asset or any of its affiliates services from any other Person, (including Parent or any of its affiliates after the Effective TimeC) to ownsolicit, operatehire or retain any Person as an employee, consultant or independent contractor, (D) to develop, sell, transfersupply, pledge distribute, offer, support or otherwise dispose of service any businesses product or assetsany technology or other asset to or for any other Person, (E) to perform services for any other Person, or (F) to transact business or deal in any other manner with any other Person or contracts granting to any Person (other than the Company or any wholly owned Company Subsidiary) any “most favored nation” clause as to price or any other material term;
(xi) each Contract that contains contracts (i) imposing any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of confidentiality obligation on the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between routine confidentiality or nondisclosure agreements entered into in the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant ordinary course of business that do not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on under this Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder3.17) or (ii) containing “standstill” or similar provisions;
(xvxii) each Contract between contracts that could reasonably be expected to have a material effect on (i) the Company business, condition, capitalization, assets, liabilities, operations or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) financial performance of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%ii) the ability of the shares of Company Common Stock or to perform any of their respective “associates” its obligations under, or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 to consummate any of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Suppliertransactions contemplated by this Agreement; and
(xviixiii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute contract, if a “material contract” Default (as defined below) under such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect contract would be reasonably likely to the have a Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)Material Adverse Effect.
(b) True and complete copies of each Each Material Contract is valid and in effect as full force and effect, and is enforceable in accordance with its terms, subject to (i) Laws of general application relating to bankruptcy, insolvency and the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. relief of debtors, and (ii) rules of Law governing specific performance, injunctive relief and other equitable remedies.
(c) Neither the Company nor any Company Subsidiary is is, or has received any notice that any other party is, in breach breach, default or violation of or default is unable to perform in any respect under (each, a “Default”) any Material Contract (and no event has occurred or not occurred through the terms Company’s or any Company Subsidiary’s action or inaction or, to the knowledge of the Company, through the action or inaction of any Material Contractthird party, which with notice or the lapse of time or both would constitute or give rise to a Default), except as has not had and for those Defaults which would not be reasonably be expected likely to have, individually or in the aggregate, a Company Material Adverse Effect. To Neither the Company’s Knowledge, as Company nor any Company Subsidiary has received written notice of the date hereoftermination of, no other party or intention to terminate, any Material Contract is in breach of Contract, except for such notices or default under the terms of any Material Contract where such breach or default has had or terminations that would not be reasonably be expected likely to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or set forth in the aggregateCompany Disclosure Schedule, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of no Claims for indemnification under any agreement have been made by or against the Company or the any Company Subsidiary which is party thereto andsince January 1, 2006 and there are no such Claims outstanding or, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as knowledge of the date hereof and without any material breachCompany, threatened.
Appears in 2 contracts
Sources: Merger Agreement (Comsys It Partners Inc), Merger Agreement (Manpower Inc /Wi/)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.15(a) of the Company Disclosure Letter contains a complete and correct list, as Schedule lists each of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts following contracts and agreements of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, Pershing Companies (such contracts and agreements being referred to herein as “Material Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom all contracts and agreements relating to Indebtedness of the Company, Pershing Companies to a third party that individually are in excess of $2,000,000;
(ii) all contracts and agreements with any Company Subsidiary or Governmental Authority to which any of their respective affiliates the Pershing Companies is a party;
(including Parent iii) all contracts and its affiliates after agreements that limit or purport to limit the Effective Time) ability of any of the Pershing Companies to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) area or during any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary period of future payments in excess of $1,000,000time;
(iv) each Contract that provides for the Company all contracts and agreements between or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including among any of the Material Suppliers) that involves annual payments Pershing Companies and the Seller or consideration in excess any Affiliate of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annuallythe Seller;
(v) each Contract that gives all contracts and agreements, other than option and margin agreements entered into in the ordinary course of business, to which any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after Pershing Companies is a party requiring the payment of money in excess of $1,000,000 during the 12 month period ending on the date hereof or that would, on an annualized basis, have required such payment during such period; provided, however, that with consideration respect to those contracts and agreements the terms of more than $1,000,000which prohibit the Seller from disclosing their contents, the Seller shall only provide the Purchaser with a list of such contracts and agreements;
(vi) any settlement or similar Contract with a Governmental Entityall Company IP Licenses, other than those relating to Taxesshrink-wrap or click-through licenses of computer software, contemplating an exchange of value in excess of $1,000,000 during the 12 month period ending on the date hereof;
(vii) except as has not beenall contracts and agreements granting an Encumbrance, and would not reasonably be expected to beother than Permitted Encumbrances, individually upon any property or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, asset of any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time)Pershing Company;
(viii) each Contract (other than all contracts and agreements obligating any Pershing Company Leases) not otherwise described in to pay to any other subsection Person any money as a result of the execution and delivery of this Section 4.17(a) pursuant to which Agreement or the Company or any Company Subsidiary has paid or received payments in excess consummation of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiariestransactions contemplated herein;
(ix) all contracts and agreements providing for the acquisition or disposition after the date of this Agreement of any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course Assets contemplating an exchange of business and value in excess of $1,000,000 per annum500,000;
(x) except where the exercise all contracts and agreements providing for a power of attorney on behalf of any such right or imposition Pershing Company other than qualified service representative agreements, stock powers of such limitation has not been, attorney and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;similar agreements; and
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company all leases and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments subleases in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)Leased Real Property.
(b) True Each Material Contract: (i) is valid and complete copies of binding on each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract Pershing Companies which is a validparty thereto, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledgeknowledge of the Seller, of each other party the counterparties thereto, and is in full force and effecteffect and (ii) upon consummation of the transactions contemplated by this Agreement, subject except to the Enforceability Limitations and extent that any expiration thereof consents set forth in accordance with its terms existing as Section 3.08 of the date hereof Disclosure Schedule are not obtained, shall continue in full force and effect without penalty or other adverse consequence. None of the Pershing Companies is in breach of, or default under, any Material Contract, except where such breach or default would not, individually or in the aggregate, have a Material Adverse Effect, and to the knowledge of Seller, none of the other parties thereto is in material default or material breach.
Appears in 2 contracts
Sources: Transaction Agreement (Credit Suisse First Boston Usa Inc), Transaction Agreement (Credit Suisse Group)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) 3.15 of the Company Seller Disclosure Letter contains a complete and correct listSchedule includes, as of the date hereofof this Agreement, all of each the following Contracts (other than purchase orders, invoices, mineral leases and any Contract described in this Section 4.17(athat is an Excluded Asset or Shared Contract) under to which any member of the Company Seller Group or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which member of the Company or any Company Subsidiary Alkali Group is a party or is bound with respect to which any of their respective properties or assets is subjectthe Business (together with the Union Agreements, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each any Contract (other than Company Leases) that limits in any material respect involves non-cancelable commitments to make capital expenditures or which provide for payments for goods or services by the freedom members of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) Alkali Group to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect in excess of restricting $5,000,000 in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areafiscal year 2014;
(ii) any material partnership, strategic alliance, joint venture, collaboration Contract that involved annual consideration to the Business for products or limited liability company agreement (other than any such agreement solely between or among services provided by the Company and its wholly owned Subsidiaries) or similar ContractBusiness in excess of $5,000,000 in fiscal year 2014;
(iii) each acquisition any joint venture or divestiture Contract that contains representations, covenants, indemnities partnership agreements with any unaffiliated third party involving a sharing of profits or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000losses with such unaffiliated third party;
(iv) each Contract that provides for the Company any employment or consulting agreements with any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves natural person involving an annual payments or consideration base compensation in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually175,000;
(v) each any Contract that gives any Person pursuant to which the right to acquire any assets members of the Company Alkali Group are a lessee of any personal property or any Company Subsidiary (excluding ordinary course commitments to purchase goods real property, for which the aggregate annual base rent or products) after the date hereof with consideration of more than lease payments exceed $1,000,0005,000,000, respectively;
(vi) any settlement Contract providing for or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding securing Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
10,000,000 outstanding (xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to intracompany Indebtedness (as between the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, members of the Alkali Group) and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter trade accounts payable and in which the grants of rights to use Intellectual Property are incidental to performance thereunderother accrued Current Liabilities);
(xvvii) each any Contract between with respect to any future disposition or granting a right of first refusal or first negotiation with respect to the Company sale of any equity interests (or rights thereto) of any member of the Alkali Group;
(viii) any Contract that is an operating or leveraged lease for railcars;
(ix) other than Contracts in the ordinary course of business, Contracts for the acquisition, sale, assignment, transfer or other acquisition or disposition of any material assets of the members of the Alkali Group or the Business (in a single transaction or a series of related transactions, whether by merger, sale of stock, sale of assets or otherwise) and (A) under which the members of the Alkali Group have any continuing liability or (B) which were for a purchase price in excess of $15,000,000, and were entered into by any member of the Seller Group (with respect to the Business) or any Company Subsidiarymember of the Alkali Group after December 31, on 2012;
(x) any Contract containing a provision that materially restricts the one hand, and any officer, director Business from competing in a particular geographic area or affiliate scope of business (other than a wholly owned Company Subsidiary) exclusive distribution agreements entered into in the ordinary course of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Actbusiness), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvixi) each any Contract with a Material Suppliercustomer of the Business granting such customer exclusive relations;
(xii) any material Contract for the supply of products or services to a Governmental Entity; and
(xviixiii) any settlement, conciliation, or litigation “standstill” Contract not otherwise described in any other subsection pursuant to which, after the date of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of Agreement, the SEC) with respect Business will be required to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)satisfy any obligation.
(b) True and complete copies of each Each Material Contract in effect is, or will be as of the date hereof have been made available to Parent Closing Date, a legal, valid and binding obligation of a member of the Seller Group or publicly filed with the SEC prior Alkali Group, and, to the date hereof. Neither the Company nor any Company Subsidiary Knowledge of Seller, on each counterparty thereto, and is in breach of or default under the terms of any Material Contractfull force and effect, except as has for such failures to be valid, binding or in full force and effect that have not had and or would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as Neither any member of the date hereofSeller Group nor any member of the Alkali Group, no on the one hand, nor, to the Knowledge of Seller, any other party to a Material Contract, on the other hand, is in breach or default under any Material Contract to which it is in breach of or default under the terms of any Material Contract where a party, except for such breach or default has breaches and defaults that have not had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. There are no material disputes pending or, each Material Contract is a validto the Knowledge of Seller, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto threatened in writing, and, to the Company’s KnowledgeKnowledge of Seller no written notice of any intention to terminate or materially modify any Material Contract has been received by Seller since December 31, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach2013.
Appears in 2 contracts
Sources: Stock and Asset Purchase Agreement (Tronox LTD), Stock and Asset Purchase Agreement (FMC Corp)
Material Contracts. (a) Except for this AgreementEach correspondingly lettered section of Schedule 4.15 sets forth a true, Section 4.17(a) correct and complete list of the following Contracts to which the Company Disclosure Letter contains is a complete and correct list, as of the date hereof, of each Contract described party that are currently in this Section 4.17(a) force or under which the Company or any Company Subsidiary has any current or future rightscontinuing benefits, responsibilities, liabilities and/or obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any the Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of Schedule 4.18(a) and the Company Disclosure Letterinsurance policies on Schedule 4.20) (collectively, being referred to herein as the “Material Contracts”):
(ia) each Contract bonds, debentures, notes, credit or loan agreements or loan commitments, mortgages, indentures, guarantees or other Contracts relating to the borrowing of money or the deferred purchase price of property or binding upon any properties or assets (other than Company Leasesreal, personal or mixed, tangible or intangible) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(iib) any material partnershipContracts that were not entered into in the ordinary course of business, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contractconsistent with past practices;
(iiic) each acquisition leases relating to the Leased Real Property, leases of any personal property and all other Contracts involving any properties or divestiture Contract assets (whether real, personal or mixed, tangible or intangible), involving an annual commitment or payment of or performance having a value of more than Twenty-Five Thousand Dollars ($25,000) by the Company;
(d) Contracts that contains representations, covenants, indemnities (i) limit or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by restrict the Company or any officers, directors, employees or Shareholders of the Company Subsidiary (in their capacity as such) from engaging in the Business in any jurisdiction, (ii) create or purport to create any exclusive or preferential relationship or arrangement, (iii) otherwise restrict or limit the Company’s ability to operate or expand its business in any material respect, or (iv) impose, or purport to impose, any obligations or restrictions on Affiliates of future payments the Company in any material respect;
(e) Contracts for capital expenditures or the acquisition or construction of fixed assets requiring payment by the Company of an outstanding amount in excess of Ten Thousand Dollars ($1,000,00010,000);
(ivf) each Contract Contracts that provides provide for any payment or benefit upon the Company execution hereof in connection with the transactions contemplated hereby, including accelerated vesting or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annuallyother similar rights;
(vg) each Contract that gives Contracts granting any Person a Lien on all or any part of any properties or assets of the Company other than Permitted Liens;
(h) Contracts for the cleanup, abatement or other actions in connection with any Hazardous Materials, the remediation of any existing environmental condition or relating to the performance of any environmental audit or study;
(i) Contracts granting to any Person an option or a right of first refusal, first-offer or similar preferential right to purchase or acquire any assets of the Company;
(j) Contracts with any agent, distributor or representative that is not terminable without penalty on ninety (90) days’ or less notice;
(k) Contracts for the granting or receiving of a license, sublicense or franchise or under which any Person is obligated to pay or has the right to receive a royalty, license fee, franchise fee or similar payment;
(l) Contracts (i) with respect to Company Intellectual Property licensed or transferred to any third party (other than end user licenses in the ordinary course of business) or (ii) pursuant to which a third party has licensed or transferred any Company Intellectual Property to the Company;
(m) Contracts providing for the indemnification or holding harmless of any officer or director of the Company;
(n) joint venture or partnership Contracts or Contracts entitling any Person to any profits, revenues or cash flows of the Company or requiring payments or other distributions based on such profits, revenues or cash flows;
(o) Contracts with Customers or Suppliers;
(p) outstanding powers of attorney empowering any Person to act on behalf of the Company;
(q) Contracts relating to any co-operative organization, franchise organization or similar organization;
(r) Contracts with any Governmental Entity;
(s) Employment Agreements;
(t) Medical Provider Agreements with the top twenty (20) Medical Providers by volume for the third quarter ended September 30, 2015, or Medical Provider Agreements that provide for medical directorate services or which otherwise cannot be terminated by the Company Subsidiary upon notice of ninety (excluding ordinary course commitments 90) days or less;
(u) Contracts with any independent contractor or consultant (other than Medical Provider Agreements); and
(v) Contracts (other than those described in subsections (a) through (u) of this Section 4.15) to purchase goods which the Company is a party or productsby which the Company’s properties or assets are bound (i) after involving an annual commitment or annual payment to or from the date hereof with consideration Company of more than Twenty-Five Thousand Dollars ($1,000,000;
25,000) individually or (viii) any settlement or similar Contract with a Governmental Entity, other than those relating that are otherwise material to Taxes;
(vii) except as has not been, and would not reasonably be expected to bethe Company, individually or in the aggregate. True, correct and complete copies of all Material Contracts have been provided to the Purchaser. The Material Contracts are legal, valid, binding and enforceable in accordance with their respective terms with respect to the Company and, to the Knowledge of the Company, each other party thereto. There is no existing material default or material breach of the Company under any Material Contract (or event or condition that, with notice or lapse of time or both could constitute a material default or material breach) and, to the Knowledge of the Company and the Company SubsidiariesShareholders, taken as there is no such material default (or event or condition that, with notice or lapse of time or both, could constitute a wholematerial default or material breach) with respect to any third party to any Material Contract. There is no term, obligation, understanding or agreement that would modify any settlement or similar term of a Material Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary material right or any obligation of their respective affiliates (including Parent and its affiliates after a party thereunder which is not reflected on the Effective Time);
(viii) each Contract (other face of such Material Contract. Other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not beenconsistent with past practices, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material is not participating in any respect discussions or negotiations regarding modification of or amendment to the Company any Contract or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP entry in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)new Contract.
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Share Purchase Agreement, Share Purchase Agreement (ExamWorks Group, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.12(a) of the Company Seller Disclosure Letter contains Schedules sets forth a complete and correct list, list of Contracts (other than Contracts that are Excluded Assets) in effect as of the date hereof, of each Contract described in this Section 4.17(ahereof (i) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company is a party, or (ii) to which Seller or any Company Subsidiary Rolling Mill Affiliate (in respect to the Rolling Mill Business) is a party that relates to the Rolling Mill Business or to by which any of their respective properties or assets Rolling Mill Asset is subjectbound, other than any Company Benefit Plans in either case which are in the categories listed below (all Contracts of collectively, the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each any Contract evidencing Indebtedness or under which Seller, the Company or any Rolling Mill Affiliate (in respect of the Rolling Mill Business) has issued any note, bond, indenture, mortgage, security interest or other evidence of Indebtedness, or has directly or indirectly guaranteed Indebtedness of any Person;
(ii) any Contract with a Key Customer;
(iii) any Contract with a Key Supplier or any other supplier for the purchase of products or services pursuant to which Seller, the Company or any Rolling Mill Affiliate (in respect of the Rolling Mill Business) paid at least $2,000,000 during the ten (10) month period ended October 31, 2020;
(iv) any Contract under which Seller, the Company or any Rolling Mill Affiliate (in respect of the Rolling Mill Business) is or may become obligated to pay any material amount in respect of deferred or conditional purchase price (other than Company Leasesordinary trade terms) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and servicesa purchase price adjustment, in each case, in connection with any geographic area;
(iiA) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representationsdisposition of all or substantially all of the assets or securities of any Person, covenants(B) merger, indemnities consolidation or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000combination, or that contains any minimum purchase commitments (C) series or group of related transactions of a type specified in excess of $2,000,000 annuallysubclauses (A) and (B);
(v) each any Contract (including, without limitation, letters of intent) that gives any Person relate to the right to acquire any disposition or acquisition of assets of or properties (other than in the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or productsof business) after the date hereof with involving consideration of more than $1,000,0001,000,000 in the aggregate, or relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise);
(vi) any settlement Contract granting a license or similar other grant of rights to any Third Party for use of any Intellectual Property related to the Rolling Mill Business and any Contract with material to the Rolling Mill Business relating to Intellectual Property, including under which a Governmental Entitylicense or other grant of rights is provided to Seller, the Company or any Rolling Mill Affiliate for the use of any Intellectual Property rights or any Third Party (other than those relating to Taxesoff-the-shelf, commercially available software), in each case including, without limitation, joint development Contracts, research Contracts, customer formulation Contracts, royalty Contracts or management, consulting or advisory contracts, excluding Contracts for the purchases and sales of goods and services entered into in the ordinary course of business;
(vii) except as has not beenany Contract involving consideration of more than $1,000,000 annually which (A) limits the ability of Seller, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Rolling Mill Affiliate (in respect of the Rolling Mill Business) to compete in any material respect with any Person generally or in any geographic region, including the expansion thereof to other geographical areas, customers, suppliers or lines of business, (B) limits the ability of Seller, the Company Subsidiary or any Rolling Mill Affiliate (in respect of their respective affiliates the Rolling Mill Business) to solicit employees or clients or (including Parent and its affiliates after C) that grants the Effective Time)other party or any third person “most favored nation” or similar status;
(viii) each Contract any lease (other than Company Leaseswhether as lessor or lessee) not otherwise described in any other subsection of this Section 4.17(a) pursuant Equipment relating to which the Company or any Company Subsidiary has paid or received payments in excess Rolling Mill Business providing for annual rentals of $2,000,000 in the fiscal year ended February 1, 2025, 250,000 or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiariesmore;
(ix) any Contract with respect to collective bargaining, any employment Contract covering a Business Employee, and any Contract with a Contingent Worker that obligates covers the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and Rolling Mill Business providing for base compensation in excess of $1,000,000 per annum150,000;
(x) except where the exercise of any such right material joint venture, strategic alliance, partnership, development, joint development or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assetssimilar agreement;
(xi) each any Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to other arrangements between the Company on the one hand, and Seller or any of its affiliates (including Parent or its affiliates after Affiliates on the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, other hand that is material to the Company and the Company Subsidiaries, Rolling Mill Business taken as a whole;
(xii) any Contract with third-party sales agents or representatives, brokers or distributors requiring annual payments of more than $125,000;
(xiii) each any Contract evidencing or relating to outstanding Indebtedness (the leasing, subleasing or commitments in respect thereof) licensing of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company SubsidiariesRolling Mill Real Property;
(xiv) each any Contract pursuant to which the Company or granting any Company Subsidiary grants or receives Person an Encumbrance on any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangementRolling Mill Assets, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunderPermitted Encumbrances;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and Contracts with any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family memberGovernmental Authority;
(xvi) each any Contract with a Material Supplierthat relates to the settlement of any legal proceeding regarding amounts of $250,000 or more in dispute; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)factoring or similar Contract.
(b) True Seller has made available to Buyer true and complete copies of all Material Contracts and all amendments thereto, except for such Contracts that are listed in Section 3.12(b)(i) of the Seller Disclosure Schedules. Except as set forth in Section 3.12(b)(ii) of the Seller Disclosure Schedules, each Material Contract that (i) is valid and binding on Seller, the Company or the applicable Rolling Mill Affiliate, as the case may be, and, to the Knowledge of Seller, the counterparties thereto, and is in effect full force and effect, enforceable against Seller, the Company or such Rolling Mill Affiliate, as the case may be, and, to the Knowledge of Seller, against the counterparties thereto, in each case in accordance with its terms, except as may be limited by the General Enforceability Exceptions. Except as set forth in Section 3.12(b)(iii) of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither Seller Disclosure Schedules, none of Seller, the Company nor or any Company Subsidiary Rolling Mill Affiliate is in material breach of of, or default (with or without giving of notice, lapse of time or both) under the terms of any Material Contract. Except as set forth in Section 3.12(b)(iv), except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as Knowledge of the date hereofSeller, no other party to any Material Contract is in material breach of or default under the terms of thereunder. Except as set forth in Section 3.12(b)(v), no other party to any Material Contract where such has (i) notified Seller, the Company or any Rolling Mill Affiliate in writing of any breach or default has had or would reasonably be expected that such other party intends not to haverenew, individually to cancel or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each otherwise terminate such Material Contract is or (ii) since September 30, 2020, taken any action or, to the Knowledge of Seller, threatened to take any action with respect to seeking a validrepayment of amounts paid to Seller, binding and enforceable obligation of the Company or any Rolling Mill Affiliate, as applicable, pursuant to such Material Contract or a reduction in fees or other payments that will become due to Seller, the Company Subsidiary which is party thereto andor such Rolling Mill Affiliate, as applicable, pursuant to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breachsuch Material Contract.
Appears in 2 contracts
Sources: Purchase Agreement (Alcoa Corp), Purchase Agreement (Kaiser Aluminum Corp)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.9(a) of the Company Seller Disclosure Letter contains Schedule is a true and complete and correct list, as of the date hereof, of each Contract described in this Section 4.17(a) under all of the following Contracts to which the Company Seller or any Company Subsidiary has any current of its Affiliates is a party or future rightsby which they are bound and that relate solely to the Consumer Care Business (the “Material Contracts”) (excluding, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which Contract with any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”merchandiser):
(i) each Contract (other than Company Leases) that limits Contracts for the marketing of Consumer Care Products involving reasonably anticipated payments to or from the Consumer Care Business in excess of $500,000 in any material respect calendar year;
(ii) Contracts for the freedom distribution of Consumer Care Products involving reasonably anticipated payments to or from the Consumer Care Business in excess of $500,000 in any calendar year;
(iii) Contracts for (x) the manufacturing of Consumer Care Products or (y) the supply of any materials forming part of the Companymanufacturing process of products of the Consumer Care Business, in each case involving reasonably anticipated payments to or from the Consumer Care Business in excess of $500,000 in any calendar year;
(iv) all Purchased Consumer Care IP Agreements that are material to the operation of the Consumer Care Business as currently conducted;
(v) all Real Property Leases;
(vi) Contracts evidencing Indebtedness;
(vii) Contracts evidencing any obligations of any Company Subsidiary or any of its Subsidiaries to issue, sell, repurchase or redeem any Equity Securities of such Company or any of its Subsidiaries;
(viii) all Business Employment Contracts;
(ix) all Collective Bargaining Agreements;
(x) leases of personal property under which the Companies or any of their respective affiliates Subsidiaries (including Parent or any member of the Seller Group) is the lessee and its affiliates after is obligated to make payments of more than $250,000 in any calendar year;
(xi) Contracts limiting the Effective Time) freedom of any Company or a Subsidiary of any Company or the Consumer Care Business to compete or engage in any line of business business, acquire any entity or geographic region or compete with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries market or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic geographical area;; and
(iixii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among Contracts entered into outside of the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line ordinary course of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in within the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC immediately prior to the date hereof. Neither , providing for a business combination, divestment of material assets, joint venture or similar relationship, involving the Company nor Companies, the Transferred Consumer Care Assets or any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as aspect of the date hereofConsumer Care Business, no other party to any Material Contract is in breach of or default under and which contain material ongoing obligations on the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation part of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breachCompanies.
Appears in 2 contracts
Sources: Asset Purchase Agreement, Stock and Asset Purchase Agreement (Merck & Co. Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(aSchedule 4.18(a) of the Company Disclosure Letter contains sets forth a true and complete and correct list, as of the date hereofExecution Date, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or following to which the Company or any of the Company Subsidiary Subsidiaries is a party or to by which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):are bound:
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K under the Exchange Act);
(ii) each contract that provides for the acquisition, disposition, license, use, distribution, or outsourcing of the SEC) assets, services, rights, or properties with respect to which the Company reasonably expects that the Company or any of the Company Subsidiaries will make annual payments in excess of $3,000,000 or aggregate payments in excess of $30,000,000;
(iii) each contract relating to Indebtedness for Borrowed Money or the deferred purchase price of property by the Company or any of the Company Subsidiaries (whether incurred, assumed, guaranteed, or secured by any asset), other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K solely between or among the Company or any of the SEC).
(b) True and complete copies Company Subsidiaries, or those involving an amount of each Material Contract in effect as of the date hereof have been made available to Parent Indebtedness for Borrowed Money or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to havedeferred purchase price, individually or in the aggregate, of no more than $30,000,000;
(iv) any acquisition or divestiture contract that contains “earn out” or other contingent payment obligations, or remaining indemnity or similar obligations, for which the Company or any of the Company Subsidiaries may be liable;
(v) each contract for lease of personal property or real property (other than the Company Real Property Leases and the Company Rights-of-Way) involving payments in excess of $3,000,000 in any calendar year or aggregate payments in excess of $30,000,000 that are not terminable without penalty or other liability to the Company or any of the Company Subsidiaries (other than any ongoing obligation pursuant to such contract that is not caused by any such termination) within 60 days;
(vi) each contract that is a non-competition contract or other contract that (A) purports to limit in any material respect either the type of business in which the Company Material Adverse Effect. To or any of the Company’s KnowledgeCompany Subsidiaries may engage or the manner or locations in which any of them may so engage in any business, (B) could require the disposition of any material assets or line of business of the Company or any of the Company Subsidiaries, or (C) prohibits or limits the rights of the Company or any of the Company Subsidiaries to make, sell, or distribute any products or services, or use, transfer, or distribute, or enforce any of their rights with respect to, any of their material assets;
(vii) each Hydrocarbon purchase and sale, gathering, treating, transportation, processing, compression or similar contracts entered into by the Company or any of the Company Subsidiaries that (A) (1) if a fee-based contract, provides for aggregate payments to or from the Company or the Company Subsidiary, as applicable, during any fiscal year in excess of $7,500,000, or (2) if a percentage of proceeds contract, is reasonably anticipated to result in a share of proceeds retained by the Company or the Company Subsidiary, as applicable, for its own account during any such fiscal year in excess of $7,500,000, or (B) (y) involves the gathering, treating, transportation, processing, compression, purchase, sale, or storage of more than 15 MMcf of gaseous Hydrocarbons per day, or 7,500 barrels of liquid Hydrocarbons per day, or (2) provides for an acreage dedication or similar commitment;
(viii) each contract for any Derivative Transaction;
(ix) each collective bargaining agreement or other labor-related contract with a labor union, works council, or other labor organization;
(x) any employment contract that (i) requires annualized base salary payments in excess of $45,000, (ii) provides for change in control or transaction bonuses, or (iii) provides for severance in excess of one month of base salary or notice of termination in excess of thirty (30) days;
(xi) each material partnership, joint venture, or limited liability company agreement;
(xii) each agreement under which the Company or any of the date hereof, no other party Company Subsidiaries has advanced or loaned any amount of money to any Material Contract of its officers, directors, employees, or consultants, in each case with a principal amount in excess of $45,000;
(xiii) any contract not entered into in the ordinary course of business that is a water rights agreement or disposal agreement or relates to the sourcing, transportation, or disposal of water (including brine water and flowback water) that (A) provides for an acreage dedication in breach excess of 3,000 gross surface acres, or default under the terms of any Material Contract where such breach or default has had or would (B) that could reasonably be expected to have, individually or result in the aggregatereceipt or payment by the Company or any of the Company Subsidiaries of an amount in excess of $30,000,000 over the remaining term of such agreement;
(xiv) any contract that provides for a “take-or-pay” clause or any similar prepayment obligation, acreage dedication, minimum volume commitments, area of mutual interest or capacity reservation fees;
(xv) any contract with any Governmental Entity (other than the Company Permits);
(xvi) any contract that obligates the Company or any of the Company Subsidiaries to make any future capital commitment, loan, or expenditure in an amount in excess of $30,000,000;
(xvii) each contract for any Company Related Party Transaction;
(xviii) each agreement that contains any “most favored nation” or most favored customer provision, call or put option, preferential right, or rights of first or last offer, negotiation or refusal, other than those contained in any agreement in which such provision is solely for the benefit of the Company or any of the Company Subsidiaries, to which the Company or any of the Company Subsidiaries is subject, and is material to the business of the Company and the Company Subsidiaries, taken as a whole;
(xix) each contract that constitutes a pipeline interconnect or facility operating agreement;
(xx) any contract whereby the Company Material Adverse Effector Company Subsidiaries lease capacity (whether firm or interruptible) on a third party pipeline or lease capacity on the Company Midstream Facilities to a third-party shipper; and
(xxi) any other contract that requires or entitles the Company or any of the Company Subsidiaries to make or receive payments of $3,000,000 or more annually; provided, however, that the Company shall have no obligation to list any contract on Schedule 4.18(a) of the Company Disclosure Letter to which any Company JV is a party, but all such contracts shall otherwise constitute Company Contracts for purposes of Section 4.18(b).
(b) Collectively, the contracts set forth in Section 4.18(a) (excluding, for the avoidance of doubt, any Company Real Property Lease or Company Right-of-Way) are herein referred to as the “Company Contracts.” A complete and correct copy of each of the Company Contracts has been made available to Contributor. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Company Contract is a legal, valid, binding binding, and enforceable obligation in accordance with its terms on the Company and each of the Company or the Company Subsidiary which Subsidiaries that is a party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject subject, as to enforceability, to Creditors’ Rights. Except as has not had and would not have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of the Company Subsidiaries is in breach or default under any Company Contract nor, to the Enforceability Limitations Company’s Knowledge, is any other party to any such Company Contract in breach or default thereunder, and (ii) no event has occurred that with the lapse of time or the giving of notice or both would constitute a default thereunder by the Company or the Company Subsidiaries, or, to the Company’s Knowledge, any expiration thereof in accordance other party thereto. There are no disputes pending or, to the Company’s Knowledge, threatened with its terms existing as respect to any Company Contract and neither the Company nor any of the Company Subsidiaries has received any written notice of the intention of any other party to any Company Contract to terminate for default, convenience, or otherwise any Company Contract, nor to the Company’s Knowledge, is any such party threatening to do so, in each case except as has not had or would not have, individually or in the aggregate, a Company Material Adverse Effect.
(c) No Person, other than Artemis Midstream, has any rights under the Existing Stockholders Agreement, and no Person, other than Artemis Midstream and the individuals set forth on Schedule 4.18(c) of the Company Disclosure Letter, has any rights under the Existing Registration Rights Agreement, in each case, that are exercisable following the date hereof hereof, except in the case of the Existing Registration Rights Agreement the obligations specified in Section 3.5 and without any material breachArticle IV thereof.
Appears in 2 contracts
Sources: Contribution Agreement (Blackstone Holdings III L.P.), Contribution Agreement (Altus Midstream Co)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) 3.18 of the Company Disclosure Letter contains Schedule sets forth a list of all Material Contracts. The Company has heretofore made available to Parent true, correct and complete copies of all written or oral contracts and correct listagreements (and all amendments, as of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or modifications and supplements thereto and all side letters to which the Company or any Company Subsidiary of its subsidiaries is a party or to which affecting the obligations of any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(iparty thereunder) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid of its subsidiaries is a party or received payments in excess by which any of $2,000,000 in its assets or properties are bound that are of the fiscal year ended February 1following type: (i) to the extent material to the business, 2025, assets or is obligated to pay or entitled to receive payments in excess properties of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, its subsidiaries taken as a whole, each Contract that grants any right of first refusal product design or right of first offer development, or that limits the ability of the Companyindemnification contracts (including, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants of its subsidiaries is a party involving employees of the Company); (ii) merchandising or receives any license, option, waiver, covenant not distribution agreements involving the payment of in excess of $2,500,000 per year; (iii) to assert or similar right with respect to Intellectual Property that is the extent material to the businesses business, assets or properties of the Company and the Company Subsidiaries, its subsidiaries taken as a whole, contracts granting a right of first refusal or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than first negotiation; (Aiv) non-exclusive licenses granted to the Company extent material to the business, assets or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 properties of the Company Disclosure Letter and its subsidiaries taken as a whole, partnership or joint venture agreements; (v) agreements for the acquisition, sale or lease of material assets or properties of the Company (by merger, purchase or sale of assets or stock or otherwise) entered into since January 1, 1996 involving in which excess of $1,000,000; (vi) to the grants extent material to the business, assets or properties of rights to use Intellectual Property are incidental to performance thereunder;
the Company and its subsidiaries taken as a whole, contracts or agreements with any Governmental Entity; (xvvii) each Contract between loan or credit agreements, mortgages, indentures or other agreements or instruments evidencing indebtedness for borrowed money by the Company or any of its subsidiaries or any such agreement pursuant to which indebtedness for borrowed money, in each case involving in excess of $1,000,000; (viii) to the extent material to the business, assets or properties of the Company Subsidiaryand its subsidiaries taken as a whole, on agreements that purport to limit, curtail or restrict the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) ability of the Company or any Company Subsidiaryof its subsidiaries to compete in any geographic area or line of business; (ix) to the extent material to the business, any beneficial owner, directly assets or indirectly, of more than five percent (5%) properties of the shares Company and its subsidiaries taken as a whole, foundry, wafer manufacturing or fabricating agreements, (x) supply or second source agreements involving the payment of Company Common Stock or in excess of $2,500,000 per year, (xi) agreements with customers relating to the sale of products involving the payment of in excess of $2,500,000 per year and (xii) commitments and agreements to enter into any of their respective “associates” or “immediate family” members the foregoing (as collectively, together with any such terms are defined contracts entered into in Rule 12b-2 and Rule 16a-1 of accordance with Section 5.1, the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC"MATERIAL CONTRACTS").
(b) True and complete copies of each Material Contract in effect as Each of the date hereof have been made available to Parent or publicly filed with Material Contracts constitutes the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had valid and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, legally binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto andits subsidiaries, to the Company’s Knowledge, of each other party theretoenforceable in accordance with its terms, and is in full force and effect. There is no default under any Material Contract so listed either by the Company (or its subsidiaries) or, subject to the Enforceability Limitations Company's knowledge, by any other party thereto, and no event has occurred that with the giving of notice, the lapse of time, or both would constitute a default thereunder by the Company (or its subsidiaries) or, to the Company's knowledge, any expiration thereof other party.
(c) No party to any such Material Contract has given notice to the Company of or made a claim against the Company in accordance with its terms existing as respect of the date hereof and without any material breachbreach or default thereunder.
Appears in 2 contracts
Sources: Merger Agreement (Unitrode Corp), Merger Agreement (Texas Instruments Inc)
Material Contracts. (a) Except for this Agreement and the Reassignment Agreement, Section 4.17(a) 4.14 of the Company Huya Disclosure Letter contains Schedule sets forth a true and complete and correct list, as list of all of the date hereof, following types of each Contract described Contracts that currently remain in this Section 4.17(aeffect (x) under to which the Company Huya or any Company Subsidiary has of its Subsidiaries is a party or which binds or affects their respective properties or assets, and (y) have not been filed with or furnished to the SEC as an exhibit to the Huya SEC Reports:
(i) any current Contract that would be required to be filed or future rightsfurnished by Huya pursuant to Item 19 and paragraph 4 of the Instructions to Exhibits of Form 20-F under the Exchange Act;
(ii) any Contract granting a right of first refusal, responsibilitiesfirst offer or first negotiation;
(iii) any Contract relating to (A) the formation, obligations creation, operation, management or liabilities control of a partnership, joint venture, limited liability company or similar arrangement, (B) strategic cooperation or partnership arrangements, or (C) other similar agreements outside the ordinary course of business involving a sharing of profits, losses, costs or liabilities, in each case, whether contingent or otherwise) or to which the Company more than RMB20,000,000, by Huya or any Company Subsidiary is a party of its Subsidiaries;
(iv) any Contract for the acquisition, sale or to which any lease (including leases in connection with financing transactions) of their respective material properties or assets is subjectof Huya (by merger, purchase or sale of assets or stock or otherwise);
(v) any Contract with any Governmental Entity;
(vi) any Contract granting or evidencing a Lien on any material properties or assets of Huya or any of its Subsidiaries, other than a Permitted Lien;
(vii) any Contract involving the capital expenditure by Huya or its Subsidiaries, or relating to indebtedness for borrowed money or any financial guaranty, in each case, more than RMB20,000,000;
(viii) any Contract involving a loan (other than accounts receivable from trade debtors in the ordinary course of business) or advance to (other than travel and entertainment allowances to the employees of the Company Benefit Plans and any of its Subsidiaries extended in the ordinary course of business), or investment in, any Person, in each case, more than RMB20,000,000, other than a wholly-owned Subsidiary of Huya or any Contract relating to the making of any such loan, advance or investment that is material to the financial status of Huya;
(all ix) any non-competition Contract or other Contract that purports to limit, curtail or restrict in any material respect the ability of Huya or any of its Subsidiaries to compete in any geographic area, industry or line of business;
(x) any Contract that contains a put, call or similar right pursuant to which Huya or any of its Subsidiaries could be required to purchase or sell, as applicable, any equity interests or assets of any Person that have fair market value or purchase price of more than RMB20,000,000;
(xi) any Contracts involving any resolution or settlement of any actual or threatened material litigation, arbitration, claim or other dispute, more than RMB5,000,000;
(xii) any Contract (other than Contracts granting Huya Options / Huya RSU Awards) giving the other party the right to terminate such Contract as a result of this Agreement or the consummation of the transactions contemplated by this Agreement, including the Merger;
(xiii) any Contract that contains restrictions with respect to (A) payment of dividends or any distribution with respect to equity interests of Huya or any of its Subsidiaries, (B) pledging of share capital of Huya or any of its Subsidiaries or (C) issuance of guaranty by Huya or any of its Subsidiaries;
(xiv) any material Huya IP Agreements with an aggregate contract value exceeding RMB20,000,000;
(xv) Contracts with top twenty streamers and top twenty talent agencies, in each case, in terms of contract value; or
(xvi) any other Contract, a breach or termination of which could reasonably be expected to have a Huya Material Adverse Effect. Each Contract of the type described in this Section 4.17(a4.14(a), whether together with any Contract that has been filed or not set forth on Section 4.17 furnished by Huya pursuant to Item 19 and paragraph 4 of the Company Disclosure LetterInstructions to Exhibits of Form 20-F under the Exchange Act, being is referred to herein as “Material Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True Huya Material Contract”. A true and complete copies copy of each Huya Material Contract in effect as of the date hereof have has been made available to Parent DouYu (including, where applicable, pursuant to agreed-upon procedures to protect competitively sensitive information) or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any SEC.
(b) Each Huya Material Contract is in breach of or default under constitutes the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had valid and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, legally binding and enforceable obligation of the Company Huya or the Company Subsidiary which is party thereto andits applicable Subsidiary, to the Company’s Knowledge, of each other party thereto, enforceable in accordance with its terms and is in full force and effect, subject to Bankruptcy and Equity Exception. There is no material breach or default under any Huya Material Contract either by Huya or, to Huya’s knowledge, by any other party thereto, and no event has occurred that with the Enforceability Limitations and lapse of time or the giving of notice or both would constitute a default thereunder by Huya or, to Huya’s knowledge, any expiration thereof in accordance other party. No party to any such Huya Material Contract has given notice to Huya of or made a claim against Huya with its terms existing as of the date hereof and without respect to any material breachbreach or default thereunder.
Appears in 2 contracts
Sources: Merger Agreement (HUYA Inc.), Merger Agreement (DouYu International Holdings LTD)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.14(a) of the Company Disclosure Letter contains a complete and correct list, as Schedule lists each of the date hereof, following types of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or Contracts to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts as of the type described in date of this Section 4.17(a)Agreement (such Contracts, whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to Company or any Company Subsidiary that has been, or was required to be, filed with the SEC with the Company’s Annual Report on Form 10-K for the year ended July 31, 2014 or any SEC Reports filed after the date of filing of such Form 10-K until the date hereof;
(ii) any Contract for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments by the Company or any Company Subsidiary of $3,000,000 or more and is not cancelable without penalty or further payment and without more than 120 days’ notice;
(iii) any Contract with a customer of the Company or any Company Subsidiary which involves or is reasonably likely to involve annual payments of more than $10,000,000 (it being understood that the Company is not making any representation or warranty as to the actual amount of future payments to be received under any such Contract);
(iv) any mortgages, indentures, guarantees, loans or credit agreements, security agreements or other Contracts relating to the borrowing of money or extension of credit of $50,000,000 or more, other than (A) accounts receivable and accounts payable in the ordinary course of business and (B) loans to direct or indirect wholly-owned Company Subsidiaries;
(v) with respect to a joint venture, partnership or other similar arrangement that is material to the business of the Company and the Company Subsidiaries, taken as a whole, any Contract that relates to the formation, creation, governance or control of, or the economic rights or obligations of the Company or any of the Company Subsidiaries in, any such joint venture, partnership or other similar arrangement;
(vi) any Contract containing any covenant materially limiting the right of the Company or any Company Subsidiary to engage in any line of business or to compete with any person in any line of business;
(vii) any Contract containing a “most favored nation” clause or other term providing preferential pricing or treatment to a third party that is not cancelable without penalty or further payment and without more than 120 days’ notice;
(viii) any Contract that grants any right of first refusal or right of first offer or similar right or that limits the ability of the Company or any of the Company Subsidiaries to sell, transfer, pledge or otherwise dispose of assets or any business with an aggregate value in excess of $25,000,000;
(ix) any Collective Bargaining Agreement;
(x) any Contract that relates to the acquisition or disposition of any business, assets or properties (whether by merger, sale of stock, sale of assets or otherwise) for aggregate consideration under such Contract in excess of $25,000,000 (A) that was entered into after July 31, 2013, or (B) pursuant to which any earn-out, indemnification or deferred or contingent payment obligations remain outstanding, in each case, in excess of $5,000,000; and
(xi) any Contract that is a license, royalty or similar Contract with respect to Intellectual Property (other than those agreements generally commercially available “off-the-shelf” software programs) that would reasonably be expected to involve aggregate payments by or to the Company or any Company Subsidiary of $5,000,000 or more or that is otherwise material to the Company and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)Company Subsidiaries, taken as a whole.
(b) True True, correct and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed Parent. Except as would not have a Company Material Adverse Effect, (i) each Material Contract is valid, binding and in full force and effect with the SEC prior respect to the Company and the Company Subsidiaries party thereto and, to the Knowledge of the Company, each other party thereto, (ii) none of the Company or any Company Subsidiary has received any written claim of breach or default under or cancellation of any Material Contract and none of the Company or any Company Subsidiary is in breach or violation of, or default under, any Material Contract (iii) to the Knowledge of the Company, no other party is in breach or violation of, or default under, any Material Contract and (iv) to the Knowledge of the Company, neither the Company nor any Company Subsidiary has received, as of the date hereof. Neither of this Agreement, any written notice from any person that such person intends to terminate or not renew any Material Contract.
(c) Except for such matters as would not have a Company Material Adverse Effect, neither the Company nor any Company Subsidiary is in breach or, since August 1, 2013, has been, and to the Knowledge of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as none of the date hereoftheir respective officers or directors is or, no other party to since August 1, 2013, has been, suspended or debarred from doing business by any Material Contract is in breach of Governmental Authority or default under the terms of any Material Contract where such breach declared nonresponsible or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party theretoineligible for government contracting, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breachno such suspension or debarment action has been commenced.
Appears in 2 contracts
Sources: Merger Agreement (Danaher Corp /De/), Merger Agreement (Pall Corp)
Material Contracts. (a) Except for this Agreement, Section 4.17(aSchedules 2.15 (a)(i) through (xx) of the Company Disclosure Letter contains set forth a complete and correct list, as list of each of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or following Contracts to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans that are in effect on the Agreement Date (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary Contract with a (A) Significant Customer or any of their respective affiliates (including Parent and its affiliates after the Effective TimeB) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areaSignificant Supplier;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by under which the Company or any Company Subsidiary of the Subsidiaries committed to make future payments in excess of $1,000,0001,000,000 over the life of the Contract, other than employment-related Contracts and Contracts with lawyers, accountants, financial advisors and other similar professional service providers;
(iii) any Company Contract with respect to a dealer, distributor, referral or similar agreement, or any Company Contract providing for the grant by the Company of rights to market or sell Company Products on behalf of the Company to any other Person (collectively, the “Reseller Agreements”);
(iv) each other than the Reseller Agreements, (A) any joint venture Contract or (B) any Contract that provides for involves a sharing of revenues, profits, cash flows, expenses or losses with other Persons and (C) any Contract that involves the payment of royalties to any other Person, in each case, pursuant to which amounts have been received or delivered by the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess an aggregate amount of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually100,000 during the twelve (12) months preceding the Fiscal Year End Date;
(v) each Contract that gives any Person the right to acquire separation agreement or severance agreement with any assets of current or former employees under which the Company or any Company Subsidiary had any actual, current Liability in an aggregate amount of $100,000 in cash or more during the twelve (excluding ordinary course commitments to purchase goods or products12) after months preceding the date hereof with consideration of more than $1,000,000Agreement Date;
(vi) any settlement Contract for or similar relating to the employment or service of any director or officer or beneficial owner of more than 5% of the total shares of Company Capital Stock or any other type of Contract with a Governmental Entityany of its officers or beneficial owners of more than 5% of the total shares of Company Capital Stock, other than those relating to Taxesas the case may be;
(vii) except as has not been, and would not reasonably be expected any material Contract pursuant to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of which the Company or any Company Subsidiary has agreed to grant a license of any Company-Owned Intellectual Property or express covenant not to ▇▇▇ under any of their respective affiliates patents (including Parent and its affiliates after other than non-exclusive licenses granted in the Effective Timeordinary course);
(viii) each any Contract made available to Acquirer (A) pursuant to which any other party is granted exclusive rights, “most favored nations” pricing or “most favored customer” status or similar with respect to any of the Company Products, (B) containing any covenants by the Company not to compete with any other Person, in any line of business, market or geographic area with respect to the Company Products, or (C) that contain any rights of first refusal, negotiation or other similar material business restriction on the Company’s rights to sell, distribute or manufacture any Company Products;
(ix) any Contracts (other than Company Leases) not otherwise described in any other subsection “shrink wrap” and similar generally available commercial end-user licenses to software that have an individual acquisition cost of this Section 4.17(a$100,000 or less per annum) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated a party and pursuant to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates which the Company or any Company Subsidiary to make licenses any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or Third-Party Intellectual Property used in the aggregate, material to development or licensing of the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisionsProducts, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the business of the Company and the Company its Subsidiaries, taken as a whole;
(xiiix) each any material outsourced development or joint development Contract evidencing or providing for the development of any material items of Company-Owned Intellectual Property on behalf of the Company;
(xi) any Contracts relating to outstanding Indebtedness (the membership of, or commitments in respect thereof) participation by, the Company or any Subsidiary in, or the affiliation of the Company or any Subsidiary with, any industry standards group or association which obligates the Company or any Subsidiary to license or contribute any material Company-Owned Intellectual Property;
(whether incurredxii) any Contract containing any indemnification, assumedwarranty, guaranteed support, maintenance or secured service that represents a material obligation or material Liability on the part of the Company or any Subsidiary other than any such Contract entered into by the Company or any assetSubsidiary in the ordinary course of business consistent with past practice;
(xiii) any settlement agreement with respect to any Legal Proceeding with an aggregate value in excess of $100,000;
(xiv) any Contract with any labor union or any collective bargaining agreement or similar contract with its employees;
(xv) any trust indenture, mortgage, promissory note, loan agreement or other Contract for the borrowing of money, any currency exchange, commodities or other hedging arrangement or any leasing transaction of the type required to be capitalized in accordance with GAAP;
(xvi) other than for any intercompany loans and capital contributions and accounts payable to trade creditors and accrued expenses in the ordinary course, any Contract of guarantee, surety, support, assumption or endorsement of, or any similar commitment with respect to, the Liabilities or indebtedness of any other Person, in each case, with an amount aggregate value in excess of $100,000;
(xvii) any Contract for capital expenditures in excess of $1,000,000 other than Contracts solely between in the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiariesaggregate entered into during the twelve (12) months preceding the Fiscal Year End Date;
(xivxviii) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officeris a lessor or lessee of any real property or any machinery, directorequipment, affiliatemotor vehicles, beneficial owner office furniture, fixtures or family memberother personal property involving expenditures in excess of $500,000 per annum;
(xvixix) each any Contract with pursuant to which the Company or any Subsidiary has acquired a Material Suppliermaterial business or entity, or assets constituting a line of a business or entity, whether by way of merger, consolidation, purchase of stock, purchase of assets, license or otherwise, or any Contract pursuant to which it has any material ownership interest in any other Person (other than the Subsidiaries); and
(xviixx) any Contract not otherwise described in with any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)U.S. Federal Governmental Entity.
(b) True and complete copies of each All Material Contract Contracts are in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effectwritten form. To the Company’s Knowledge, as knowledge of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse EffectCompany, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and Material Contracts is in full force and effect, subject only to the effect, if any, of the Enforceability Limitations and any expiration thereof in accordance with its terms existing Exceptions. To the knowledge of the Company, as of the date hereof and without Agreement Date, there exists no default or event of default or event, occurrence, condition or act, with respect to the Company or any Subsidiary or with respect to any other contracting party, that, with the giving of notice, the lapse of time or the happening of any other event or condition, would reasonably be expected to (i) become a material default or material event of default under any Material Contract or (ii) give any third party (A) the right to declare a material default or exercise any material breachremedy under any Material Contract, (B) the right to a material rebate, chargeback, refund, credit, penalty or change in delivery schedule under any Material Contract, (C) the right to accelerate the maturity or performance of any material obligation of the Company under any Material Contract, or (D) the right to cancel, terminate or modify any Material Contract. As of the Agreement Date, neither the Company nor any Subsidiary has received any written notice or, to the Company’s knowledge other communication, regarding any actual, material violation or breach of, default under, or intention to cancel or modify any Material Contract. True, correct and complete copies of all Material Contracts have been made available to Acquirer.
Appears in 2 contracts
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.15(a) of the Company Seller Disclosure Letter contains a complete and correct list, Schedule sets forth as of the date hereofof this Agreement a list of the following Contracts (other than Benefit Plans, of each Contract described in this Section 4.17(apurchase orders and invoices) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which any of the Company Transferred Entities or any Company Subsidiary other applicable Affiliate of Seller is a party or to by which any of their respective properties or assets is subjectare bound, other than any Company Benefit Plans in each case with respect to the Business (all such Contracts of the type described in this Section 4.17(a), and including purchase orders and invoices whether or not set forth listed on Section 4.17 3.15(a) of the Company Seller Disclosure LetterSchedule, being referred to herein as the “Business Material Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Companypower purchase agreement, any Company Subsidiary sale or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete exchange agreement or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areasimilar bilateral Contract;
(ii) any material partnershipeach electricity interconnection, strategic alliance, joint venture, collaboration transmission or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contractmarketing agreement;
(iii) each acquisition (A) engineering, procurement and construction agreement, (B) equipment supply or divestiture Contract that contains representationsservice agreement, covenants(C) warranty agreement and performance guarantee agreement and (D) operation and maintenance agreement, indemnities or other obligations in each case (including “earnout” or other contingent payment obligationsx) that would reasonably be expected obligates any Transferred Entity to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received make payments in excess of $2,000,000 in any calendar year and (y) other than any such agreement that has expired or otherwise been terminated in accordance with its terms;
(iv) any Contract committing the fiscal Business or any Transferred Entity to any future capital expenditures or capital investments in excess of $1,000,000 during any calendar year ended February 1or $8,000,000 over the term of such Contract;
(v) the Real Property Leases;
(vi) any Contract that by its express terms (A) materially limits or materially impairs the ability of the Transferred Entities to compete in any line of business or with any Person or in any geographic area or otherwise carry out their business (including through non-compete, 2025exclusivity or “most-favored nation” provisions), (B) contains any rights of first offer or is obligated refusal or similar rights binding on any Transferred Entity or (C) obligates any Transferred Entity to pay make a minimum amount of purchases of goods or entitled services or obligates any Transferred Entity or the Business to receive payments maintain a minimum amount of inventory, in each case in excess of $2,000,000 in during any calendar year or $8,000,000 over the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiariesterm of such Contract;
(ixvii) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise evidencing Indebtedness for borrowed money of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary Transferred Entity (whether or not incurred, assumed, guaranteed or secured by any asset) in an amount in excess asset of $1,000,000 any Transferred Entity), other than Contracts solely between any Indebtedness for borrowed money to the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiariesextent owing from any of the Transferred Entities to any of the other Transferred Entities;
(xivviii) any Contract with a Governmental Entity (other than any such Contract that is entered into in the ordinary course of business and is not material);
(ix) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted Seller or any of its Affiliates, including any Transferred Entity, provides or posts any guarantee, indemnity (other than standard indemnity agreements entered into in the ordinary course of business), performance or surety bond, letter of credit, commitments or other similar credit support arrangement or obligation relating to the Company Business or Company Subsidiaries for generally available Software a Transferred Entity (collectively, the “Seller Guarantees”) or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 any third party (for clarity, not including Seller or any of its Affiliates) provides or posts any guarantee, indemnity (other than standard indemnity agreements entered into in the Company Disclosure Letter and in which ordinary course of business), performance or surety bond, letter of credit, commitments or other similar credit support arrangement or obligation relating to the grants of rights to use Intellectual Property are incidental to performance thereunderBusiness or a Transferred Entity;
(xvx) each Contract (A) between any member of the Company or any Company SubsidiarySeller Group (other than the Transferred Entities), on the one hand, and any officerTransferred Entity, on the other hand and (B) each Contract between any Transferred Entity, on the one hand, and any director or affiliate officer of such Transferred Entity (or any Affiliate of any such director or officer (other than a wholly owned Company Subsidiary) any of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange ActTransferred Entities), on the other hand, including other than (for (A) and (B) any such Contract that will be fully performed by, or will not otherwise survive, the Closing);
(xi) any Contract, other than as set forth in clauses (a)(i) through (xix), which is necessary for the physical delivery of natural gas to the Facilities;
(xii) any Commingled Contract;
(xiii) any joint venture, partnership, strategic alliance, profit sharing, limited liability company agreement, co-development Contract or Contract relating to any equity interests or other securities of a Transferred Entity or rights in connection therewith;
(xiv) any Contract that relates to the acquisition or disposition of any business, Equity Interests or assets of any other Person (whether by merger, sale of Equity Interests, sale of assets or otherwise) pursuant to which a Transferred Entity has material outstanding obligations;
(xv) any Contract pursuant to which any Transferred Entity licenses to or from another Person any Intellectual Property (other than “shrink wrap” and similar generally available commercial end-user licenses to software with an annual cost of no more than $100,000 in the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family memberaggregate);
(xvi) each any outstanding futures, swap, collar, put, call, floor, cap, option or other Contract with entered into by a Material Supplier; andTransferred Entity that is intended to benefit from or reduce or eliminate the risk of fluctuations in interest rates or the price of commodities, including electric power, in any form, including energy, capacity or any ancillary services;
(xvii) any Contract not otherwise described involving the resolution, compromise or settlement of any actual or threatened claim in an amount greater than $1,000,000 payable by any other subsection of this Section 4.17(aTransferred Entity, in each case, (A) entered into in during the last three (3) years or (B) that would constitute a “material contract” have not been fully performed or that otherwise imposes any continuing nonmonetary obligations on any Transferred Entity;
(as such term is defined in Item 601(b)(10xviii) any Contract that evidences any obligations of Regulation S-K of the SEC) any Transferred Entity with respect to the Company (issuance, sale, pledge, voting, repurchase or redemption of any equity interests of any Transferred Entity other than those agreements and arrangements described solely among Transferred Entities; and
(xix) any Contract, other than as set forth in Item 601(b)(10)(iiithe foregoing clauses (i) through (x), which expressly provides for future payments to or from any Transferred Entity (contingent or otherwise) in excess of Regulation S-K $2,500,000 during any calendar year or $8,000,000 over the term of the SEC)such Contract.
(b) True and complete copies of each Material Contract in effect Except as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to havebe material to the Business and the Transferred Entities, individually or in the aggregatetaken as a whole, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) each Business Material Contract is a validlegal, valid and binding and enforceable obligation of the Company applicable Transferred Entity or the Company Subsidiary which is other applicable Affiliate of Seller party thereto thereto, and, to the Company’s KnowledgeKnowledge of Seller, of each other party theretocounterparty, and is in full force and effect, subject (ii) none of the Transferred Entities or other applicable Affiliate of Seller nor, to the Enforceability Limitations Knowledge of Seller, any other party thereto, is in breach of, or in default under, any such Business Material Contract, and (iii) no event has occurred that with notice or lapse of time or both would constitute such a breach or default thereunder by any expiration thereof such Transferred Entity or other applicable Affiliate or, to the Knowledge of Seller, any other party thereto. No party to any Business Material Contract has exercised in accordance writing any termination rights with its terms existing as respect thereto and neither any Transferred Entity nor any other member of the date hereof Seller Group have received written notice from any party to any Business Material Contract to the effect that such party will, or has threatened to, terminate, not renew or materially and without adversely change the terms, conditions or provisions (including with respect to payment or pricing) with respect to, any material breachBusiness Material Contract. A true and complete copy of each Business Material Contract (or a written summary of the terms of any oral Business Material Contract), other than purchase orders or invoices, has been made available to Purchaser.
Appears in 2 contracts
Sources: Equity Purchase Agreement (Pseg Power LLC), Equity Purchase Agreement (Pseg Power LLC)
Material Contracts. (a) Except for this Agreement, Section 4.17(a2.14(a) of the Company Disclosure Letter contains Schedule sets forth a correct and complete and correct listlist of all binding contracts, as of the date hereofagreements, of each Contract described in this Section 4.17(a) under which the Company commitments, instruments or any Company Subsidiary has any current obligations (whether written or future rightsoral, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or (x) to which the Company or any Company Subsidiary is a party or to which any of their respective its properties or assets is subjectbound, other than and under which any Company Benefit Plans party has continuing obligations, (all Contracts y) which constitute Purchased Assets or (z) by which any Purchased Assets will be bound or subject following the Closing, in each case (of clauses (x) – (z)) which falls into any of the type described in this Section 4.17(a)following categories (each, whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as a “Material ContractsContract”):
(i) each Contract the Franchise Agreements;
(other than Company Leasesii) all contracts that limits in contain any material respect covenant (A) limiting the freedom right of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) Asset Seller to compete or engage in any line of business or to compete with any Person in any line of business or in any geographic region location, or (B) prohibiting the Company or any Asset Seller from engaging in business with any Person or selllevying a fine, supply charge or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contractpayment for doing so;
(iii) each acquisition or divestiture Contract that contains representationsall contracts resulting in payment by the Company to a third party in excess of $100,000 annually, covenants, indemnities or other obligations in any individual case;
(including “earnout” or other contingent payment obligationsiv) that would reasonably be expected to result in all contracts for the receipt or making performance of services by the Company or any Company Subsidiary of future payments Asset Seller in excess of $1,000,000;
(iv) each Contract that provides for the Company or 100,000 annually, in any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annuallyindividual case;
(v) each Contract all contracts that gives any Person the right to acquire any assets of require the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,00050% of its total requirements of any product or service from a third party or that contain “take or pay” provisions;
(vi) all contracts that relate to the acquisition by the Company of any settlement ownership interest in any other Person or similar Contract with a Governmental Entity, other than those relating to Taxesbusiness enterprise;
(vii) except as has not been, and would not reasonably be expected to be, individually all contracts for the incurrence of indebtedness for borrowed money or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct extension of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary credit (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 ), other than Contracts solely between accounts receivables and payables in the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiariesordinary course of business consistent with past practice;
(xivviii) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property all contracts that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant grant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate third party a Lien (other than a wholly owned Company SubsidiaryPermitted Lien) on all or any of the Company’s properties and assets or any Purchased Assets;
(ix) all contracts regarding any Business Intellectual Property, including related maintenance and support agreements;
(x) all contracts that provide for the assumption of any Tax, environmental or other Liability of any Person, other than pursuant to customary indemnification provisions;
(xi) all agency, promotion, market research, marketing consulting and advertising contracts, other than Franchise Agreements;
(xii) all contracts containing any continuing “earn-out” or other contingent payment obligations of the Company or any Company SubsidiaryAsset Seller; or
(xiii) all contracts that involve any joint venture, any beneficial owner, directly partnership or indirectly, similar revenue sharing arrangement of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)Asset Seller.
(b) True The Stockholder has made available to Purchaser correct and complete copies of each all of the Material Contract in effect Contracts (other than any intercompany agreements that will be terminated as of Closing). All of the date hereof have been made available to Parent or publicly filed Material Contracts are valid, binding and in full force and effect in accordance with the SEC prior their terms, except to the date hereofextent they have previously expired or terminated in accordance with their terms. Neither the Company nor any Company Subsidiary Asset Seller is in breach material violation of or material default under the terms of any Material Contract, and to the Company’s Knowledge, there is no existing or claimed material violation or material default by any other party to any Material Contract. No event or circumstance has occurred that, with notice or lapse of time or both, is likely to constitute a material default by the Company or any Asset Seller under any Material Contract. Except as set forth on Section 2.14(b) of the Company Disclosure Schedule, there are no material disputes under any Material Contract pending and the Company has not received notice pursuant to any Material Contract of any threatened material disputes.
(c) Except as set forth on Section 2.14(c) of the Company Disclosure Schedule, in the twelve (12) months prior to the date of this Agreement, neither the Company nor any Asset Seller has received notice pursuant to any Material Contract that the counterparty intends to terminate or request a material modification to such Material Contract. Except as set forth on Section 2.14(c) of the Company Disclosure Schedule and except as has not had and would not reasonably be expected to havehave a Material Adverse Effect, individually or in the aggregate, a (i) in the six (6) months prior to the date of this Agreement, neither the Company Material Adverse Effect. To nor any Asset Seller has received, to the Company’s KnowledgeKnowledge (which for this purpose shall be actual knowledge), as oral notice from any counterparty to a Franchise Agreement that such party intends to terminate or request a material modification to, or materially breach, such Franchise Agreement, and (ii) in the six (6) months prior to the date of this Agreement, to the Company’s Knowledge (which for this purpose shall be actual knowledge), none of the date hereof, no following circumstances has occurred: (1) the Company has provided a notice of non-renewal to the other party to any Material Contract a Franchise Agreement; (2) possession or control of the property that is in breach the subject of the Franchise Agreement has been assumed by a receiver, management company, bankruptcy trustee, secured lender, or default under similar party that has not agreed to assume the terms Franchise Agreement (whether on a temporary or permanent basis); (3) at least 50% of any Material Contract the guest rooms at the property that is the subject of a Franchise Agreement have become un-rentable or otherwise out of service, whether as a result of fire, flood, or other natural disaster, the exercise of partial eminent domain, a life/safety issue or otherwise; or (4) a change of control of the property that is the subject of the Franchise Agreement, where such breach the transferee has failed to assume the Franchise Agreement or default has had or enter into a new Franchise Agreement after 30 days. Except as set forth on Section 2.14(c) of the Company Disclosure Schedule and except as would not reasonably be expected to havehave a Material Adverse Effect, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation ninety (90) days prior to the date of the Company or the Company Subsidiary which is party thereto andthis Agreement, to the Company’s Knowledge (which for this purpose shall be actual knowledge), the Company has not provided the franchisee with written notice that the franchisee is in default of the Franchise Agreement as a result of quality assurance issues, where the franchisee has not agreed in writing to a corrective action plan.
(d) Section 2.14(d) of the Company Disclosure Schedule identifies by jurisdiction and effective date all currently effective registrations under the Federal Trade Commission trade regulation rule entitled “Disclosure Requirements and Prohibitions Concerning Franchising,” 16 C.F.R. Section 436 et seq. and any other Law regulating the offer and/or sale of franchises, business opportunities, seller-assisted marketing plans or similar relationships (the “Franchise Laws”) that are applicable to the Business. The Company and each Asset Seller has complied in all material respects with the Franchise Laws. None of the Company or any Asset Seller is subject to any Order that would prohibit or restrict the offer or sale of any Knights Inn Franchise in any jurisdiction within the United States.
(e) To the Company’s Knowledge, all funds administered by or paid to the Business by or on behalf of each other party theretoone or more Knights Inn Franchises at any time since January 1, 2015, including funds that the Knights Inn Franchises contributed for advertising and promotion, and is in full force any rebates and effectother payments made by suppliers and other third parties on account of the Knights Inn Franchises’ purchases from those suppliers and third parties, subject to the Enforceability Limitations have been administered and any expiration thereof spent in accordance in all material respects with its terms existing as of the date hereof and without any material breachapplicable Franchise Agreements.
Appears in 2 contracts
Sources: Purchase Agreement, Purchase Agreement (Red Lion Hotels CORP)
Material Contracts. (a) Except for this Agreement, Section 4.17(aSchedules 2.15(a)(i) through (xvi) of the Company Seller Disclosure Letter contains set forth a complete and correct list, as accurate list of the date hereof, of each Contract described in this Section 4.17(a) under all Contracts to which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) of its Subsidiaries is a party or to which the Company or any Company Subsidiary its Subsidiaries or the Business is a party or to which any of their respective properties or assets is subjectotherwise bound that fall into the following categories (collectively, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each any Contract (A) with a Significant Customer pursuant to which the Company or any of its Subsidiaries has received cumulative revenue in excess of $15,000,000 in fiscal year 2019; or (B) with a Significant Supplier pursuant to which the Company or any of its Subsidiaries has cumulative expenditures in excess of $15,000,000 in fiscal year 2019 (collectively under (A) and (B), the “Material Commercial Contracts”);
(ii) any Contract (other than a Company LeasesEmployee Plan, a Material Commercial Contract or a Contract that is a lease) that limits in any material respect providing for payments by or to the freedom of the Company, any Company Subsidiary or any of their respective affiliates its Subsidiaries (including or under which the Company or any of its Subsidiaries has made or received such payments) in fiscal year 2019 in an annual aggregate amount of $15,000,000 or more, and in the case of a Contract that is a lease, in an annual aggregate amount of $1,000,000 or more;
(iii) (A) any joint venture Contract, (B) any Contract that involves a sharing of revenues, profits, cash flows, expenses or losses with other Persons and (C) any Contract that involves the payment by the Company or any of its Subsidiaries of royalties to any other Person, other than Contracts with respect to Generally Available Software;
(iv) any written Contract with any labor union or any collective bargaining agreement or similar Contract with its employees;
(v) any Contract (A) pursuant to which any other party is granted exclusive rights or “most favored party” rights of any type or scope with respect to any of the Company Products or material Company-Owned Intellectual Property; (B) that materially limits or purports to materially limit the ability of the Company or any of its Subsidiaries, or, upon the consummation of the Transactions, Parent and its affiliates after the Effective Time) or any Subsidiary of Parent, to compete or engage with any Person, in any line of business business, market or geographic region field, or with any Person or develop, sell, supply supply, manufacture, market, distribute, or distribute support any material product or service service, or that otherwise has the effect to make use of restricting in any material respect the Company, -Owned Intellectual Property including any grants by the Company or its Subsidiaries of exclusive rights or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and serviceslicenses, in each case, in any geographic area;
area or during any period of time; and (iiC) containing any material partnership, strategic alliance, joint venture, collaboration “take or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) pay,” minimum commitments or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000provisions;
(vi) any settlement standstill or similar Contract with agreement containing provisions prohibiting a Governmental EntityThird Party from purchasing Equity Interests of the Company or its Subsidiaries or, other than those relating in each case, the assets of the Company or its Subsidiaries or otherwise seeking to Taxesinfluence or exercise control over the Company or any of its Subsidiaries;
(vii) except as has not beenall Contracts under which any material Intellectual Property is licensed, and would not reasonably be expected assigned or transferred to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any of its Subsidiaries by a Third Party, other than (A) Contracts for the license or sale of Company Subsidiary Products or Intellectual Property in the Ordinary Course, (B) Contracts for the in-license of Generally Available Software or Open Source Materials, (C) permitted use rights to confidential information in nondisclosure agreements granting a limited right to use confidential information subject to customary protections to preserve confidentiality and proprietary rights and entered into in the Ordinary Course, and (D) employee invention assignment agreements and consulting agreements with Authors on the Company’s or any of their respective affiliates its Subsidiaries’ standard form of agreement, copies of which have been provided to Parent, or a substantially similar agreement (including Parent and its affiliates after the Effective Time“Material IP Contracts”);
(viii) each any Contract pursuant to which any material Company-Owned Intellectual Property is licensed (other than whether or not such license is currently exercisable), sold, assigned or otherwise conveyed or provided to a Third Party by the Company Leases) not otherwise described in or any other subsection of this Section 4.17(a) its Subsidiaries, or pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or Subsidiaries has agreed not to enforce any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of material Company-Owned Intellectual Property against any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisionsThird Party, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than excluding (A) non-exclusive licenses granted to Contracts for the license or sale of Company Products or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.Ordinary Course,
Appears in 2 contracts
Material Contracts. (a) Except for this Agreement, Section 4.17(a) 4.18 of the Company Disclosure Letter contains a complete and correct list, as of Schedule lists the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or following Contracts to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts as of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of date hereof (the “Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Contract (other than all Contracts that purport to limit, curtail or restrict the right of the Company Leases) that limits or any Company Subsidiary in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective TimeA) to engage or compete or engage in any line of business or in any geographic region or area, with any Person or sellduring any period of time, supply or distribute (B) to solicit or hire any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areaPerson;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (Contract that grants any Person other than any such agreement solely between or among the Company and its wholly owned Subsidiariesor any Company Subsidiary any (A) exclusive license, supply, distribution or other rights, (B) material “most favored nation” rights, (C) material rights of first refusal, rights of first negotiation or similar Contractrights, (D) exclusive rights to purchase any Company products, including products produced through foundry services, (E) material guaranteed availability of supply or services for a period greater than twelve (12) months, (F) guarantee as to foundry capacity or priority, (G) material rebates or (H) price guarantees for a period greater than twelve (12) months;
(iii) each any Contract relating to the disposition or acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess any business (whether by merger, sale or purchase of $1,000,000assets, sale or purchase of stock or equity ownership interests or otherwise) (A) entered into on or after January 1, 2006 (whether or not such acquisition or disposition has been consummated prior to the date of this Agreement), or (B) that contains ongoing non-competition or material indemnification obligations or other material ongoing obligations;
(iv) each Contract listing separately, except for such Contracts that provides for have expired or been terminated and have no ongoing obligations (other than confidentiality obligations or indemnity obligations), all (A) In-Bound Patent Licenses, the primary purpose of which is to license one or more Patents, (B) Out-Bound Patent Licenses that license, or agree to license, a substantial portion of issued Company Patents or the primary purpose of which is to license one or more Patents, (C) Cross-licenses that license, or agree to license, a substantial portion of issued Company Patents or the primary purpose of which is to license one or more Patents and (D) other Patent Licenses, excluding Software license agreements executed in the normal course of business, that require a royalty payment to, or royalty payment by, the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annuallyCompany Subsidiaries;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company product or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, Intellectual Property development that is material to the Company and the Company Subsidiaries, taken as a whole;
(vi) any Technology transfer or license agreement related to a (A) manufacturing process or (B) related to product design that, in the case of clause (B), affects a material portion of the Company’s product portfolio;
(vii) any Contract with respect to product design services, foundry services, product assembly (packaging) and/or test, or material contract manufacturing services that affects a material portion of the Company’s product portfolio;
(viii) any Contract with any Governmental Authority or any Contract incorporating government acquisition terms (e.g., in the U.S., the Federal Acquisition Regulation (FAR) or the Defense Federal Acquisition Regulation Supplement (DFARS)) involving payments of more than Two Million Dollars ($2,000,000) in any twelve (12) month period or requiring delivery of cost and pricing data;
(ix) any Contract that reasonably contemplates payments by or to the Company or any of the Company Subsidiaries of more than Ten Million Dollars ($10,000,000) in any twelve (12) month period;
(x) any customer Contract (other than standard purchase orders) that reasonably contemplates payment to the Company or any of the Company Subsidiaries of more than Five Million Dollars ($5,000,000) in any twelve (12) month period;
(xi) any Contracts with distributors or sales representatives or that otherwise entitle a third party to a commission;
(xii) any mortgages, indentures, guarantees, loans or credit agreements, security agreements or other Contracts, in each case, relating to indebtedness for borrowed money of Five Million Dollars ($5,000,000) or greater, whether as borrower or lender, and whether secured or unsecured;
(xiii) each any Contract evidencing with a notional value of Fifteen Million Dollars ($15,000,000) or relating greater that involves or relates to outstanding Indebtedness any exchange traded, over-the-counter or other hedging (including currency hedging), swap, cap, floor, collar, futures, forward, option or commitments in respect thereofother derivative financial trading activities;
(xiv) of any Contract providing for indemnification or any guaranty by the Company or any Company Subsidiary that (whether incurred, assumed, guaranteed i) has not been made in the ordinary course of business or secured by any asset(ii) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the any Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP whole (in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant case with respect to which the Company or any Company Subsidiary has an obligation continuing obligations as of the date hereof);
(xv) leases or subleases under which the Company or the Company Subsidiaries (A) lease or occupy Leased Real Property for manufacturing purposes or in excess of one hundred thousand (100,000) gross square feet and (B) leases, subleases or licenses of any property to indemnify such officer, director, affiliate, beneficial owner a third party for manufacturing purposes or family memberin excess of one hundred thousand (100,000) gross square feet;
(xvi) any Contract establishing a partnership, joint venture or similar third party business enterprise in which the Company or any Company Subsidiaries has (A) an equity interest or the right to acquire an equity interest or (B) a capital commitment or other obligation under such Contract;
(xvii) (A) any Employee Change-of-Control Agreement or (B) any employment, independent contractor or consulting Contract (in each case with respect to which any party thereto has continuing obligations as of the date hereof) with any current or former (1) executive officer of the Company or any of the Company Subsidiaries, (2) member of the Company Board, or (3) employee, independent contractor who is a natural person or consultant of the Company or any of the Company Subsidiaries, in each case providing for an annual base compensation in excess of Two Hundred Fifty Thousand Dollars ($250,000);
(xviii) collective bargaining agreements or other Contracts with any labor union;
(xix) any other Contract with under which the consequences of a default or breach or the early termination of which would reasonably be expected to have a Company Material SupplierAdverse Effect; and
(xviixx) any Contract not otherwise described in any all other subsection of this Section 4.17(a) that would constitute Contracts required to be filed by the Company as a “material contract” (as such term is defined in pursuant to Item 601(b)(10) of Regulation S-K of promulgated under the SEC) with respect to Securities Act or disclosed by the Company on a Current Report on Form 8-K, whether or not so filed or disclosed.
(i) Each Company Material Contract is valid and binding on the Company and is in full force and effect (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K due to the ordinary expiration of the SECterm thereof).
(b) True and complete copies of each Material Contract in effect as , and, to the Knowledge of the date hereof have been made available to Parent or publicly filed with Company, is valid and binding on the SEC prior other parties thereto (in each case subject to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, Bankruptcy and Equity Exception) except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To , (ii) the Company’s KnowledgeCompany and each Company Subsidiary has in all material respects performed all obligations required to be performed by it under each Company Material Contract, as and (iii) no event or condition exists which constitutes or, after notice or lapse of the date hereoftime or both, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such would constitute a breach or default has had on the part of the Company or would reasonably be expected to have, individually or in the aggregate, a any Company Subsidiary under any such Company Material Adverse Effect. Except as has Contract, except such breaches that have not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Knowledge of the Company, each no other party to any Company Material Contract is in material breach or default thereunder, nor does any condition exist that with notice or lapse of time or both would constitute a valid, binding and enforceable obligation of material breach or default by any such other party thereunder. Neither the Company or the nor any Company Subsidiary which is party thereto andhas received any written notice of termination or cancellation under any Company Material Contract, received any written or, to the Knowledge of the Company’s Knowledge, oral notice of each other material breach or default under any Company Material Contract that has not been cured, or granted to any third party theretoany rights, adverse or otherwise, that would constitute a material breach of any Company Material Contract. Neither the Company nor any Company Subsidiary is party to any Contract pursuant to which the terms and is in full force and effect, subject conditions thereof or any information or data contained therein are deemed classified pursuant to the Enforceability Limitations rules and regulations of any expiration thereof Governmental Authority. The Company has furnished or made available to Parent true, correct and complete copies of all Company Material Contracts in accordance with its terms existing effect as of the date hereof and without any material breachhereof.
Appears in 2 contracts
Sources: Merger Agreement (National Semiconductor Corp), Merger Agreement (Texas Instruments Inc)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) 4.9 of the Company Disclosure Letter contains Schedule lists each Contract to which any Acquired Company is a complete and correct listparty, or by which it is bound, as of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities Agreement (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”Plans):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act), whether or not filed by the Company with the SEC;
(ii) pursuant to which any Acquired Company made or received payments of more than an aggregate of $100,000 during the fiscal year ended December 31, 2022;
(iii) evidencing a commitment by an Acquired Company to make a future capital expenditure in excess of $100,000 that is not terminable by such Acquired Company upon notice of sixty (60) days or less;
(iv) containing a covenant limiting the ability of any Acquired Company to compete or engage in any line of business, in either case, in any material respect, or to compete with any Person in any geographic area;
(v) relating to or evidencing indebtedness for borrowed money or any guarantee of indebtedness for borrowed money by any Acquired Company in excess of $150,000;
(vi) providing for or governing the formation of any joint venture, partnership, strategic alliance, research and development collaboration, or similar arrangement;
(vii) that is a Company Inbound License or Company Outbound License, in each case, which requires by its terms or is reasonably likely to require the payment or delivery of cash or other consideration by or to an Acquired Company in an amount having an expected value in excess of $100,000;
(viii) that has continuing obligations or interests involving (A) “milestone” or other similar contingent payments, including upon the achievement of regulatory, commercial, or other milestone that could result in an aggregate payment in excess of $100,000, or (b) payment of royalties or other amounts calculated based upon sales, revenue, income or similar measure of an Acquired Company;
(ix) any employment or consulting Contract (in each case with respect to which the Company has continuing obligations as of the date hereof) with any current or former (A) officer of the Company, (B) member of the Company Board, or (C) employee of the Company;
(x) any Contract providing for indemnification or any guaranty by the Company or any Subsidiary thereof, in each case that is not entered into the ordinary course of business and is material to the Company and its Subsidiaries, taken as a whole;
(xi) any Contract relating to the disposition or acquisition, directly or indirectly (by merger, sale of stock, sale of assets, or otherwise), by the Company or any of its Subsidiaries after the date of this Agreement of assets or capital stock or other equity interests of any Person, in each case with a fair market value in excess of $100,000;
(xii) any Contract that grants any right of first refusal, right of first offer, or similar right with respect to any material assets, rights, or properties of the Company or any of its Subsidiaries;
(xiii) any Contract that contains any provision that requires the purchase of all or a material portion of the Company’s or any of its Subsidiaries’ requirements for a given product or service from a given third party, which product or service is material to the Company and its Subsidiaries, taken as a whole;
(xiv) any Contract that obligates the Company or any of its Subsidiaries to conduct business on an exclusive or preferential basis or that contains a “most favored nation” or similar covenant with any Person;
(xv) any employee collective bargaining agreement or other Contract with any labor union;
(xvi) any Contract with any Affiliate, director, executive officer (as such term is defined in the Exchange Act), holder of 5% or more of the Company Common Stock, or to the Knowledge of the Company, any of their Affiliates (other than those agreements the Company), or immediate family members (other than offer letters that can be terminated at will without severance obligations and arrangements Contracts pursuant to Company equity awards);
(xvii) all Contracts with independent contractors or consultants (or similar arrangements) with annual compensation owed to the contractor or consultant that either exceeded $50,000 in the fiscal year ended December 31, 2022 or is projected to exceed $50,000 during the fiscal year ended December 31, 2023;
(xviii) any Contract that is not otherwise described in Item 601(b)(10)(iiiclauses (i) of Regulation S-K of through (xviii) above that is material to the SEC)Company and its Subsidiaries, taken as a whole.
(b) True and complete copies of each Material Each Contract in effect as of the date hereof have been made available to Parent type described above in this Section 4.9, whether or publicly filed with the SEC prior to the date hereof. Neither not set forth in Section 4.9 of the Company nor any Company Subsidiary Disclosure Schedule, is in breach of or default under the terms of any referred to herein as a “Material Contract, except as has not had and would not reasonably be expected to have, individually ”. Except Material Contracts that have expired or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledgeterminated by their terms, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation all of the Company or Material Contracts are (i) valid and binding on the Company Subsidiary which is party thereto Acquired Companies, as the case may be, and, to the Knowledge of the Company’s Knowledge, of each other party thereto, and is (ii) in full force and effect, subject except as may be limited by bankruptcy, insolvency, moratorium, and other similar applicable Law affecting creditors’ rights generally and by general principles of equity. As of the date hereof, no Acquired Company has, and to the Enforceability Limitations Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act, and no event or condition exists, that (with or without notice, lapse of time or both) would constitute a material default under the provisions of any expiration thereof in accordance with its terms existing Material Contract, and, as of the date hereof hereof, to the Knowledge of the Company, no Acquired Company has received written notice of any of the foregoing. The Company has made available to Parent complete and without any material breachcorrect copies of all Material Contracts.
Appears in 2 contracts
Sources: Merger Agreement (Harmony Biosciences Holdings, Inc.), Merger Agreement (Zynerba Pharmaceuticals, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a4.09(a) of the Company Disclosure Letter contains a complete and correct listSchedule sets forth all currently active: (i) joint venture, as of the date hereofpartnership or similar Contracts entered into since April 1, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or 2014 to which the Company or any Company Subsidiary of its Subsidiaries is a party or to which any of their respective properties the Company’s or any of its Subsidiaries’ assets is subjectare subject to or bound; (ii) indemnification, employment, consulting or other than Contract entered into since April 1, 2014 with any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 executive officer of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract those Contracts entered into since April 1, 2014 that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making are terminable by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
its Subsidiaries on no more than thirty (iv30) each Contract that provides for days’ notice without liability or financial obligation to the Company or any Company Subsidiary such Subsidiary; (iii) any mortgages, indentures, guarantees, loans or credit agreements, security agreements or promissory notes relating to obtain a servicethe borrowing of money, license, product, product line, operations extension of credit or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of other indebtedness for borrowed money by the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of its Subsidiaries, in each case for more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, 50,000 individually or $250,000 in the aggregate, material to the Company and the Company Subsidiariesentered into since April 1, taken as a whole2014; (iv) any Contract entered into since April 1, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) 2014 pursuant to which the Company or any Company Subsidiary has of its Subsidiaries received or paid or received payments in excess of $2,000,000 in 187,500 during the fiscal year eight (8) months ended February on November 30, 2014; (v) any Contract entered into since April 1, 20252014 under which the Company or any of its Subsidiaries is the lessee or sublessee of, or is obligated to pay holds or entitled to receive operates any real property or any personal property requiring payments in excess of at least $2,000,000 in the 250,000 during any twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
period; (ixvi) any Contract that obligates the Company entered into since April 1, 2014 granting most favored customer pricing, exclusive sales, distribution, marketing, or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not beenother material exclusive rights, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right rights of first refusal or right rights of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any negotiation with respect to the software products of the Company or its affiliates Subsidiaries; (including Parent vii) any Contract entered into since April 1, 2014 required to be listed under Section 4.12(c)(i) or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof4.12(c)(ii) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, Disclosure Schedule; and (Bviii) Contracts that otherwise constitute Material Contracts identified any Contract listed on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary3.10(a) of the Company or any Company SubsidiaryUnit Purchase Agreement Disclosure Schedule (collectively, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SECContracts”).
(b) True Assuming the accuracy and complete copies of each Material Contract in effect as completeness of the date hereof have been made available to Parent or publicly filed with representations and warranties in Section 3.10 of the SEC prior to the date hereof. Neither Unit Purchase Agreement, neither the Company nor any Subsidiary of the Company Subsidiary is in material breach of or default under the terms of any Material Contract and, to the Knowledge of the Company, no other party to any Material Contract is in material breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had for the Bankruptcy and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse EffectEquity Exception, each Material Contract is a valid, valid and binding and enforceable obligation of the Company or the Subsidiary of the Company Subsidiary which is party thereto and, (and to the Knowledge of the Company’s Knowledge, of each other party thereto), and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Merger Agreement (PCF 1, LLC), Merger Agreement (Neulion, Inc.)
Material Contracts. (a) Except for this Agreement, as set forth on Section 4.17(a3.16(a) of the Company Disclosure Letter contains a complete and correct listSchedule, as of the date hereof, none of the Company or any of its Subsidiaries is a party to or bound by any:
(A) Contract relating to indebtedness for borrowed money or to mortgaging, pledging or otherwise placing a Lien on any material portion of their assets, (B) Contract relating to any factoring, supplier, trade or vendor financing or (C) Contract under which it has advanced or loaned any other Person (other than the Company or any of its Subsidiaries), in each case of the foregoing clauses (A) and (B), in an amount in excess of $100,000, and in case of the foregoing clause (C), in an amount in excess of $50,000;
(ii) guaranty of any financial obligation made on behalf of any Person other than the Company or any of its Subsidiaries or other guaranty, in each case, in an amount in excess of $100,000;
(iii) Contract described with respect to any interest rate, currency or other swap or derivative transaction (other than those between the Company and its Subsidiaries);
(iv) Contract involving any resolution or settlement of any actual or threatened Proceeding against the Company or any of its Subsidiaries involving (A) a payment in this Section 4.17(aexcess of $500,000 which was not covered by insurance and entered into within the last three (3) years or (B) any material ongoing requirements or restrictions on the Company or any of its Subsidiaries;
(v) Leased Real Property Leases and Landlord Leases;
(vi) lease or agreement under which the Company or any Company Subsidiary has any current of its Subsidiaries is lessee or future rightslessor of, responsibilities, obligations or liabilities (in each case, whether contingent holds or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Contract (other than Company Leases) that limits in operates any material respect the freedom of the Companypersonal property owned by any other party, or permits any Company Subsidiary Third Party to hold or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in operate any material respect the Company, the Company Subsidiaries personal property owned or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making controlled by the Company or any Company Subsidiary of future payments its Subsidiaries, in excess of each case for which the annual rental exceeds $1,000,000150,000;
(ivvii) each Contract that provides for agreements (A) relating to any pending or completed material business combination, merger, acquisition or divestiture or similar transaction by the Company or any Company Subsidiary of its Subsidiaries within the last three (3) years, (B) pursuant to obtain a service, license, product, product line, operations or line of business from any Person (including which any of the Material Suppliers) that involves annual payments Company or consideration in excess any of $2,000,000its Subsidiaries has remaining material obligations or liabilities relating to any completed material business combination, merger, acquisition or divestiture or similar transaction, or that contains (C) giving any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person person the right to acquire any material equity interests, stock, assets or businesses of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) of its Subsidiaries after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time)hereof;
(viii) each Contract concerning (A) the formation, creation, operation, management or control of any joint venture, partnership or similar agreement or other similar arrangement with a Third Party or (B) the ownership of any equity interest in any entity or business other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability Subsidiaries of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, case that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the business of the Company and the Company its Subsidiaries, taken as a whole;
(xiiiix) each Contract evidencing pursuant to which (A) the Company or relating any of its Subsidiaries are licensed or otherwise permitted by a Third Party to outstanding Indebtedness use any Intellectual Property material to the business of the Company and its Subsidiaries, taken as a whole (other than non-exclusive licenses of “shrink-wrap”, “click-wrap” and “off-the-shelf” software, and non-exclusive licenses of other software that is generally commercially available with one-time or commitments aggregate annual license, maintenance, support and other fees of $100,000 or less per vendor) or (B) any Third Party is licensed or otherwise permitted to use any material Company Intellectual Property;
(x) Contract which (A) expressly limits or prohibits the Company or any of its Subsidiaries from competing or freely engaging in respect thereofbusiness anywhere in the world, (B) purports to restrict the ability of Parent or its Subsidiaries (including the Surviving Corporation and its Subsidiaries) following the Effective Time to compete in any line of business or (C) contains any right of first refusal, right of first negotiation or offer, “most favored nation,” exclusivity or similar covenants that would materially restrict future business activity of the Company or any of its Subsidiaries following the Effective Time, excluding customary back-solicitation provisions;
(xi) with respect to material Company Subsidiary Intellectual Property, any (whether incurred, assumed, guaranteed A) Contract that limits the freedom or secured by any asset) in an amount in excess right of $1,000,000 other than Contracts solely between the Company or any of its Subsidiaries to use such Company Intellectual Property, (B) settlement Contract, consent-to-use or co-existence agreement or (C) Contract providing for the assignment, ownership, creation or development of such Company Intellectual Property (excluding employee and a wholly owned independent contractor agreements on the standard form of the Company Subsidiary or any of its Subsidiaries which are entered into in the ordinary course of business);
(xii) Contract between wholly owned any Governmental Entity and the Company or any of its Subsidiaries;
(xiii) collective bargaining agreement, neutrality agreement, card check agreement or any other Contract with any union, works council or other labor organization affecting any employee of the Company or any of its Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiaryof its Subsidiaries, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) officer of the Company or its Subsidiaries or any Company Subsidiary, any beneficial owner, directly person beneficially owning 5% or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act)outstanding Shares, on the other hand, including hand (except for any Company Benefit Plan);
(xv) Contract pursuant to which with suppliers of the Company or any Company Subsidiary has an obligation to indemnify such officerand its Subsidiaries paid more than $250,000 for the 12-month period ending September 30, director, affiliate, beneficial owner or family member2023;
(xvi) each Contract with a Material Supplierwhich restricts the payment of dividends or distributions in respect of any Equity Interests of the Company and its Subsidiaries; andor
(xvii) other than customer Contracts entered into in the ordinary course, any other Contract not otherwise described in covered by any other subsection hereof, which involves annual consideration in excess of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)$250,000.
(b) True and complete copies of each Material Contract in effect as Section 3.16(b) of the date hereof have been Company Disclosure Schedule contains a list, in alphabetical order, of the Company’s top fifteen customers by revenue for the 12-month period ending September 30, 2023.
(c) The Company has delivered or made available to Parent or publicly filed its Representatives, including by filing as exhibits to Company SEC Documents, as applicable (i) true and correct copies in all material respects of all written Contracts that are required to be set forth on Section 3.16(a) of the Company Disclosure Schedule and (ii) information on all contracts with the SEC prior customers set forth on Section 3.16(b) of the Company Disclosure Schedule (clauses (i) and (ii) collectively, the “Company Material Contracts”), together with all material amendments, waivers or other changes thereto (but subject, in each case, to redactions of pricing and other competitively sensitive information to the date hereof. Neither the Company nor any Company Subsidiary is extent required by Antitrust Law).
(d) Except for those that have terminated or expired in breach of or default under the terms of any Material Contractaccordance with their terms, and except as has not had and would not reasonably be expected to havenot, individually or in the aggregate, reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole, (i) each of the Company and its Subsidiaries have performed the obligations required to be performed by it and is not in default under, in breach of, nor in receipt of any written claim of default or breach under, any Company Material Adverse Effect. To Contract, (ii) no event has occurred which, with the Company’s Knowledgepassage of time or the giving of notice or both, would result in a default or breach by the Company or any of its Subsidiaries under any Company Material Contract and (iii) as of the date hereof, to the Knowledge of the Company, there is no breach or threatened breach by the other party parties to any Company Material Contract is Contract. Except for those that have terminated or expired in breach of or default under the terms of any Material Contract where such breach or default has had or accordance with their terms, and except as would reasonably be expected to havenot, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to havebe material to the Company and its Subsidiaries, individually or in taken as a whole, all of the aggregate, a Company Material Adverse EffectContracts are valid and in full force and effect and constitute legal, each Material Contract is a valid, valid and binding and enforceable obligation obligations of the Company or its Subsidiaries party thereto, and are enforceable against the Company Subsidiary which is or its Subsidiaries party thereto in accordance with their respective terms (except as enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar Laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity), and, to the Knowledge of the Company’s Knowledge, constitute legal, valid and binding obligations of each the other party or parties thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof enforceable against such party or parties in accordance with its their respective terms existing (except as enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar Laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of the date hereof and without any material breachequity).
Appears in 2 contracts
Sources: Merger Agreement (Patriot Transportation Holding, Inc.), Merger Agreement (Patriot Transportation Holding, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(aSchedule 3.11(a) of the Company Seller Disclosure Letter contains a complete and correct list, sets forth as of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is hereof a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts list of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
following Contracts (i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and servicesother, in each case, in than real property leases and Excluded Contracts) (i) that relate primarily to the Business to which an Asset Selling Entity or Seller or any geographic area;
of its Affiliates is a party or (ii) any material partnershipto which a Conveyed Company is a party (collectively, strategic alliancethe “Material Contracts”), joint venturetrue, collaboration or limited liability company agreement correct and complete copies of which and all amendments thereto (other than any such agreement solely between missing documents identified in writing by Seller or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected Purchaser prior to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to bewhich do not, individually or in the aggregate, material materially change the terms, rights or obligations under the applicable Material Contracts) (and reasonably complete and accurate written descriptions of all oral Material Contracts) Seller has made available to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant Purchaser prior to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;:
(ixi) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and each Equipment Lease which entails rental payments in excess of $1,000,000 per annum;
(xii) except where each material Contract between Seller and/or any of its Affiliates (other than the exercise Conveyed Companies) or any of the officers or directors of Seller and/or any of its Affiliates (other than the Conveyed Companies), on the one hand, and any Asset Selling Entity and/or Conveyed Company, on the other hand, other than employment contracts which do not provide for annual base salary in excess of $250,000 in any given year;
(iii) each mortgage, indenture, security agreement, pledge, note, loan agreement or guarantee or other Contract (excluding items set forth on Schedule 3.13(a) or Schedule 3.13(b) of the Seller Disclosure Letter) in respect of or evidencing (A) Indebtedness of any Conveyed Company or (B) Assumed Debt, in each case in excess of $500,000;
(iv) each customer Contract (other than a Contract with a distributor) with payments to the applicable Asset Selling Entity or Conveyed Company in excess of $16,000,000 for the last completed fiscal year;
(v) each outstanding Contract with vendors of the Business with payments by the applicable Asset Selling Entity or Conveyed Company in excess of $6,000,000 for the last completed fiscal year;
(vi) each Contract materially limiting or purporting to materially limit the freedom of the applicable (A) Seller Entity to engage in the Business or compete with any Person in connection with such right Seller Entity’s conduct of the Business or imposition (B) Conveyed Company to engage in the Business or compete with any Person in connection with such Conveyed Company’s conduct of the Business;
(vii) each acquisition, merger, consolidation, recapitalization or similar agreement or letter of intent related to the acquisition of a business or line of business entered into in the previous three (3) years for aggregate consideration under such limitation Contract in excess of $2,500,000, other than Contracts in which the applicable transaction has not beenbeen consummated and there are no earnouts, and would not reasonably be expected to becontingent payments, indemnification or other obligations ongoing or outstanding in excess of $1,000,000 individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xiviii) each distributor Contract that contains any exclusivity rights which involves revenues for the applicable Asset Selling Entity or “most favored nations” provisions, in each case, that are material in any respect to the Conveyed Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between 16,000,000 for the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiarieslast completed fiscal year;
(xivix) each Contract pursuant to which regarding the Company formation or participation in any Company Subsidiary grants or receives any licensematerial equity joint venture, option, waiver, covenant not to assert material joint product development Contract (excluding Contracts with customers entered into in the ordinary course of business consistent with past practice) or similar right material arrangement that involves a sharing of revenues, profits, losses, costs or liabilities, with respect to a third party;
(x) each Contract for the licensing or use of Intellectual Property that is material to the businesses Business taken as a whole or the development of Intellectual Property that is material to the Company and the Company Subsidiaries, Business taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to entered into in the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized termsordinary course of business consistent with past practice, and (B) development agreements using Seller’s standard forms of consulting and/or development agreements, (C) Contracts that otherwise constitute Material Contracts identified on Section 4.17 with customers entered into in the ordinary course of business consistent with past practice and which contain only non-exclusive licenses and (D) Information Technology Contracts;
(xi) each Contract entered into in the Company Disclosure Letter and in which previous three (3) years for the grants purchase or sale of rights to use Intellectual Property that is or, in the case of sold Intellectual Property, was material to the Business taken as a whole;
(xii) each Information Technology Contract exclusively used in the Business which involves payments in excess of $2,500,000 for the last completed fiscal year, other than commercially available off-the-shelf Software, hosting or similar services licensed or made available pursuant to shrink-wrap, click wrap licenses or subscription agreements that are incidental not material to performance thereunderthe Business;
(xiii) each Contract granting to any Person a first refusal, first offer or similar preferential right to purchase or acquire any material Purchased Asset, any equity or other interest in any Conveyed Company or any assets of any Conveyed Company;
(xiv) each Contract under which (A) any Conveyed Company has directly or indirectly guaranteed liabilities or obligations of Seller or any of its Affiliates (other than a Conveyed Company) or (B) Seller or any of its Affiliates (other than a Conveyed Company) has guaranteed any liabilities or obligations of any Conveyed Company, in each case in excess of $500,000;
(xv) each Contract between which requires the Company purchase of all or any Company Subsidiary, on the one hand, and any officer, director substantially all of a particular product or affiliate (other than material from a wholly owned Company Subsidiary) supplier or containing a minimum purchase or supply commitment in each case in excess of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member$6,000,000 per annum;
(xvi) each Contract which provides for consignment of goods with a Material Suppliervalue in excess of $16,000,000 or requires the Seller or any of its Affiliates (including the Conveyed Companies) to maintain inventory with a value in excess of $16,000,000, in each case, in connection with the Business;
(xvii) each (A) Contract for the employment of, or receipt of any services from, the President of the Business and any of his direct reports and (B) Contract which provides for a severance, termination, retention, change in control or similar payment to the President of the Business and any of his direct reports; and
(xviixviii) each Contract relating to a Retention Bonus. Notwithstanding anything to the contrary in this Agreement, it is agreed that (x) Material Contracts that are purchase orders, order acknowledgements, invoices or similar documents for the purchase or sale of products or services shall not be required to be listed on Schedule 3.11(a) of the Seller Disclosure Letter (provided that the identity of any customer, supplier or other Person that is a counterparty to such a Material Contract is listed on the applicable subsection of Schedule 3.11(a) of the Seller Disclosure Letter), (y) true, correct and complete copies of Material Contracts that are purchase orders or invoices for the purchase or sale of products or services shall not otherwise described be required to have been made available to Purchaser if they do not deviate in any material respect from the standard forms made available to Purchaser prior to the date hereof and (z) Contracts for the employment of, or receipt of any services from, any director or officer of Seller, any Asset Selling Entity, or any Conveyed Company or any other subsection Business Employee or Shared Service Employee on a full-time, part-time, consulting or other basis providing for an annual base salary in excess of $175,000, and each Contract which provides for a severance, termination, retention, change in control or similar payment to any such Person shall be deemed “Material Contracts” for purposes of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10Agreement but shall not be required to be listed on Schedule 3.11(a) of Regulation S-K of the SEC) with respect Seller Disclosure Letter or, subject to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SECSection 5.5(q), made available to Purchaser.
(b) True and complete copies of each Material Each Contract in effect as set forth on Schedule 3.11(a) of the date hereof have been made available to Parent or publicly filed Seller Disclosure Letter is binding and in full force and effect with the SEC prior respect to the date hereof. Neither Asset Selling Entity or Conveyed Company party thereto and, to the Knowledge of Seller, each other party thereto in accordance with its terms and there exists no breach (other than breaches that are cured or are curable within the applicable cure period, if any, and other than in respect of ordinary course product warranty claims), default or event of default (or occurrence or event that with notice or lapse of time or both would result in a breach, default or event of default) by the applicable Asset Selling Entity or Conveyed Company nor or, to the Knowledge of Seller, any Company Subsidiary is in breach of other party to any such Contract, with respect to any term or default under the terms provision of any Material such Contract, except as has not had and would not reasonably be expected to havein each case, which would, individually or in the aggregate, be reasonably expected to be material to the Business, the Conveyed Companies and the Purchased Assets, taken as a Company Material Adverse Effectwhole. To Except as would not, individually or in the Company’s Knowledgeaggregate, be reasonably expected to be material to the Business, the Conveyed Companies and the Purchased Assets, taken as a whole, as of the date hereof, no Asset Selling Entity or Conveyed Company has given to or received from any other Person any written notice or communication (i) regarding any actual, alleged, possible, or potential breach of, or default under, any Material Contract (other than in respect of ordinary course product warranty claims) or (ii) announcing or threatening termination or cancellation of any Material Contract. As of the date hereof, except in the ordinary course of business, there is no pending or, to the Knowledge of Seller, threatened audit or investigation of the Seller’s or its applicable Affiliate’s (including any Conveyed Company’s) compliance with any Material Contract by any other party to such Material Contract. To the Knowledge of Seller, there are no product warranty claims pending by any customers of the Business party to any Material Contract is Contracts (whether or not in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to haveordinary course) which claims are, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation excess of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach$5,000,000.
Appears in 2 contracts
Sources: Stock and Asset Purchase Agreement (TE Connectivity Ltd.), Stock and Asset Purchase Agreement (CommScope Holding Company, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(aSchedule 5.09(a) of the Company Disclosure Letter contains a complete and correct listlists, as of the date hereofof this Agreement, the following types of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or Contracts and agreements to which the any Acquired Company or any Company Subsidiary is a party (such Contracts and agreements as are set forth, or required to which any of their respective properties or assets is subjectbe set forth, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(aon Schedule 5.09(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Contract (pension, profit sharing or retirement plans, other than Company Leases) that limits in any material respect the freedom of the Company, Multiemployer Plan or any Company Subsidiary Plan, whether or any of their respective affiliates (including Parent and its affiliates after not set forth in Section 5.15 or the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areaSchedules relating thereto;
(ii) any material partnership, strategic alliance, joint venture, collaboration Contracts and agreements pursuant to which an Acquired Company has obligated one or limited liability company agreement (other than any such agreement solely between or among more of the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) Acquired Companies to make capital expenditures that would reasonably be expected to result exceed $100,000;
(iii) Contracts and agreements with consideration paid or payable to or by any Acquired Company of more than $250,000, in the receipt or making by the Company or aggregate, over any Company Subsidiary of future payments in excess of $1,000,00012-month period;
(iv) each Contract that provides Contracts for the Company services of any officer, director, individual employee (except, as it relates to any former employee, only to the extent of ongoing liability), independent contractor or individual service provider that cannot be terminated on 60 or fewer days’ notice without any Company Subsidiary liability or financial obligation incurred by any Acquired Company;
(v) agreements, indentures or other evidence of Indebtedness relating to obtain the borrowing of money by the Acquired Companies or to mortgaging, pledging or otherwise placing a service, license, product, product line, operations or line of business from Lien (other than a Permitted Lien) on any Person (including any portion of the Material Suppliersassets of the Acquired Companies;
(vi) that involves annual guaranties of any obligation for Borrowed Money Debt or other material guaranties;
(vii) any individual lease or agreement under which it is lessee of, or holds or operates any personal property owned by any other party, for which the aggregate rental payments exceed (or are expected to exceed) $100,000 in any 12-month period;
(viii) lease or agreement under which it is lessor of or permits any third party to hold or operate any property, real or personal, for which the aggregate rental payments exceed (or are expected to exceed) $100,000 in a 12-month period;
(ix) other than purchase orders entered into in the ordinary course of business, any Contracts with any customers or suppliers of the Acquired Companies, in each case involving consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually750,000;
(vx) each Contract that gives Contracts containing any Person the right grant, license, sublicense, right, consent, waiver, permission or covenant not to acquire assert any assets claims relating to or under any Intellectual Property (A) by any of the Company Acquired Companies to a third party or (B) by a third party to any Company Subsidiary of the Acquired Companies (excluding ordinary course commitments to purchase goods licenses of commercially available, non-customized, off-the-shelf Software available on standard terms for a potential annual or productsaggregate license fee (whichever is higher) after the date hereof with consideration of no more than $1,000,00050,000);
(vixi) Contracts providing for the invention, creation, conception or other development of any settlement or similar Contract with a Governmental EntityIntellectual Property (A) by any of the Acquired Companies for any third party, (B) by any third party for any of the Acquired Companies (other than those relating to Taxesany Personnel IP Contracts) or (C) jointly by any of the Acquired Companies and any third party;
(viixii) except as has not been, and would not reasonably be expected all Contracts providing for the assignment or transfer of any ownership interest in any Intellectual Property by (A) any of the Acquired Companies to be, individually any third party or in (B) any third party to any of the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, Acquired Companies (other than any settlement Personnel IP Contracts);
(xiii) Contracts prohibiting or similar Contract restricting in any respect the operations or conduct ability of the any Acquired Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described to engage in any other subsection of this Section 4.17(a) pursuant business, to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material operate in any respect geographical area or to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing compete with any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company SubsidiariesPerson;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material Contracts relating to the businesses acquisition or disposition (whether in one transaction or a series of the Company transactions and the Company Subsidiarieswhether by merger, taken as a wholesale, lease, purchase or otherwise) of any equity interests, operating business, or agrees to limit its use or exploitation material assets of any Person or material Company IP in any assets or material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 line of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunderbusiness;
(xv) each joint venture Contract, partnership agreement, limited liability company agreement, strategic alliance agreement or other similar Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than with a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family memberthird party;
(xvi) each Contract with Contracts providing for the grant of an option or a Material Supplier; andfirst-refusal, first-offer or similar preferential right to purchase, lease or acquire any material asset of the Acquired Companies;
(xvii) Contracts granting exclusivity, “most-favored nation”, “take or pay” or similar rights, or that require or purport to require any Acquired Company to acquire all or a specified portion of its requirements of a particular material good or service from any Person;
(xviii) Contracts with any supplier (A) that is a sole source supplier to the Acquired Companies or (B) from which the Acquired Companies source substantially all of their supply of any material product or service, except in each case where the Acquired Companies would likely be able to replace such source of supply with a substitute supply at substantially the same volume and quality, on substantially comparable terms and without material delay;
(xix) Contracts under which any of the compensation or benefits thereunder, to any Person that is a party thereto, shall be increased, or the vesting of benefits of which shall be accelerated, by the consummation of the Transactions or the value of any of the benefits of which shall be calculated on the basis of any of the Transactions, excluding any Multiemployer Plan or any Company Plan;
(xx) Contracts that currently are, or at any point in the three-year period ending on the date of this Agreement were, in effect (A) to which any present or former director, officer, employee, stockholder or holder of derivative securities of the Acquired Companies, or any member of any such Person’s immediate family, or any entity owned or controlled by any such Person, is a party, excluding any Multiemployer Plan or any Company Plan or other benefit or compensation plan or other plans, programs, policies, commitments or arrangements or (B) pursuant to which any Acquired Company receives any “preferred pricing” or similar benefit that is utilized by such Acquired Company in the ordinary course;
(xxi) any Contracts (A) of the Company involving the payment of royalties or other amounts calculated based upon the revenues or income of any Acquired Company or income or revenues related to any product of any Acquired Company that deviate from the Company’s standard form agreements made available to Buyer, or (B) with the Company’s top 10 licensing partners as measured by revenue during the 12 months prior to the date of this Agreement;
(xxii) Contracts in respect of any settlements or coexistence agreements with respect to any pending or threatened action (A) entered into within 12 months prior to the date of this Agreement, or (B) with respect to which any unsatisfied amounts or ongoing obligations remain outstanding;
(xxiii) any Company Related Party Contracts;
(xxiv) Contracts with any Governmental Authority or any Contract with a third party that is a party to a Contract with a Governmental Authority with respect to the subject matter of such underlying Contract;
(xxv) any documents not otherwise described in any other subsection covered by (i)-(xxiv) of this Section 4.17(a5.09(a) that would constitute may be required to be filed by the Company as an exhibit for a “material contract” registration statement on Form S-1 pursuant to Items 601(b)(1), (as such term is defined in Item 601(b)(102), (4), (9) or (10) of Regulation S-K under the Securities Act as if the Company was the registrant; and
(xxvi) any written offer or proposal that, if accepted, would constitute any of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)foregoing.
(b) True and complete copies of each Each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject and is the legal, valid and binding obligation of either the Company or a Subsidiary of the Company that is party thereto, and, to the Enforceability Limitations and any expiration thereof Company’s knowledge, of the other parties thereto enforceable against each of them in accordance with its terms existing (in each case, subject to the Enforceability Exceptions). Except as set forth on Schedule 5.09(b), no Acquired Company is in material default under any Material Contract, and, to the Company’s knowledge, the other party to each of the date hereof Material Contracts is not in material default thereunder. Except as set forth on Schedule 5.09(b), no event has occurred that with the lapse of time or the giving of notice or both would constitute a material breach or default on the part of the Company, or any Subsidiary of the Company or, to the Company’s knowledge, any other party under any Material Contract. To the knowledge of the Company, (i) no party to any Material Contract has exercised any termination rights with respect thereto, and without (ii) no party has given written notice of any material breachdispute with respect to any Material Contract. The Company has made available to Buyer true, correct and complete copies of each Material Contract, together with all amendments, modifications or supplements thereto.
Appears in 2 contracts
Sources: Merger Agreement (Edify Acquisition Corp.), Merger Agreement (Unique Logistics International, Inc.)
Material Contracts. (a) Except for Neither Parent nor any of its Subsidiaries is a party to any Contract required to be filed by Parent as a “material contract” pursuant to Item 601(b)(10) of Regulation S-K under the Securities Act that has not been so filed.
(b) As of the date of this Agreement, Section 4.17(a) neither Parent nor any of the Company Disclosure Letter contains a complete and correct list, as of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary its Subsidiaries is a party or bound by the following Contracts (with such Contracts to which Parent or any of their respective properties its Subsidiaries is a party or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, otherwise bound being referred to herein as the “Parent Material Contracts”):
(i) each any Contract (other than Company Leases) that limits purports to limit, curtail or restrict the right of Parent or any of its Subsidiaries in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective TimeA) to engage or compete or engage in any line of business or in any geographic region or area, with any Person or sell, supply during any period of time or distribute (B) to solicit or hire any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areaPerson;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company Contract that is a master service agreement (other than with any such agreement solely between or among of the Company and its wholly owned Subsidiaries) or similar Contractcustomers listed on Section 5.21 of the Parent Disclosure Schedule;
(iii) each acquisition or divestiture any Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company requiring Parent or any Company Subsidiary of future payments in excess of $1,000,000its Subsidiaries to provide any notice or information to any Person prior to considering or accepting any Acquisition Proposal or similar proposal or prior to entering into any discussions or Contract relating to any Acquisition Proposal or similar transaction;
(iv) each any Contract that provides for the Company (other than a Contract or any Company Subsidiary to obtain purchase order with a service, license, product, product line, operations customer of Parent or line of business from any Person (including any of the Material Suppliersits Subsidiaries) that involves annual payments total consideration by or consideration to Parent or any of its Subsidiaries of more than $5,000,000 in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually12 month period;
(v) each any indemnification Contract that gives entered into with an officer or director of Parent providing for indemnification by Parent or any Person the right of its Subsidiaries (with respect to acquire which Parent or any assets of its Subsidiaries has continuing obligations as of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000this Agreement);
(vi) any settlement Contract establishing a partnership, joint venture or similar Contract with a Governmental Entity, other than those relating to Taxes;third party business enterprise; and
(vii) except as has not been(A) any Employee Change-of-Control Agreement, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, (B) any settlement or similar employment Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments that involves base consideration in excess of $2,000,000 in the fiscal year ended February 1, 2025, 200,000 per annum or is obligated to pay or entitled to receive payments (C) any consulting Contract that involves base consideration in excess of $2,000,000 200,000 per annum (in the twelve (12) month period following each case with respect to which any party thereto has continuing material obligations as of the date hereof, ) with any current or former (1) member of Parent Board or (2) employee.
(c) (i) Each Parent Material Contract is valid and binding on Parent or one of its Subsidiaries and is in full force and effect (other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary due to make any capital investment or capital expenditure outside the ordinary course expiration of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not beenterm thereof), and would not reasonably be expected to beand, individually or in the aggregate, material to the Company Knowledge of Parent, is valid and binding on the Company Subsidiaries, taken as a whole, other parties thereto (in each Contract that grants any right of first refusal or right of first offer or that limits case subject to the ability of the Company, any Company Subsidiary or Bankruptcy and Equity Exception); (ii) neither Parent nor any of its affiliates (including Subsidiaries is in material default under any Parent Material Contract and no event or condition exists which constitutes or, after notice or lapse of time or both, would constitute a material breach or default on the part of Parent or any of its affiliates after the Effective TimeSubsidiaries under any such Parent Material Contract; and (iii) to ownthe Knowledge of Parent, operateno other party to any Parent Material Contract is in material breach or default thereunder, sellnor does any condition exist that with notice or lapse of time or both would constitute a material breach or default by any such other party thereunder. Since January 1, transfer2012, pledge neither Parent nor any of its Subsidiaries has received any written notice of termination or otherwise dispose cancellation under any Parent Material Contract or received any written notice of material breach or default under any businesses or assets;
(xi) each Parent Material Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including has not been cured. Neither Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or nor any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including its Subsidiaries is party to any Contract pursuant to which the Company terms and conditions thereof or any Company Subsidiary information or data contained therein are deemed classified pursuant to the rules and regulations of any Governmental Authority. Parent has an obligation to indemnify such officer, director, affiliate, beneficial owner furnished or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect made available to the Company (other than those agreements true and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete correct copies of each all Parent Material Contract Contracts in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Merger Agreement (TTM Technologies Inc), Merger Agreement (Viasystems Group Inc)
Material Contracts. (a) Except for this Agreement, Section 4.17(a4.16(a) of the Company Zillow Disclosure Letter contains Schedule lists each of the following types of Contracts to which Zillow or any Zillow Subsidiary is a complete and correct list, party as of the date hereofof this Agreement (such Contracts, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Zillow Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to Zillow or any Zillow Subsidiary that has been, or was required to be, filed with the Company SEC with Zillow’s Annual Report on Form 10-K for the year ended December 31, 2013 or any Zillow SEC Reports filed after the date of filing of such Form 10-K until the date hereof;
(ii) any Contract (A) relating to the disposition or acquisition by Zillow or any Zillow Subsidiary of a material amount of assets (1) after the date of this Agreement other than those in the ordinary course of business consistent with past practice or (2) prior to the date of this Agreement, which contains any material ongoing obligations (including indemnification, “earn-out” or other contingent obligations) that are still in effect or (B) pursuant to which Zillow or any Zillow Subsidiary will acquire any material ownership interest in any other person or other business enterprise other than Zillow Subsidiaries;
(iii) any Contract which grants any right of first refusal, right of first offer or similar right with respect to any material assets, rights or properties of Zillow or any Zillow Subsidiary;
(iv) any Contract containing any covenant (A) materially limiting the right of Zillow or any Zillow Subsidiary to engage in any line of business or to compete with any person in any line of business, or (B) granting any most favored customer or similar provision in favor of any customer or other counterparty to Zillow or any Zillow Subsidiary applicable to the sale of the Zillow Products;
(v) any mortgages, indentures, guarantees, loans or credit agreements, security agreements or other Contracts relating to the borrowing of money or extension of credit of $1,000,000 or more, other than (A) accounts receivables and arrangements described payables and (B) loans to direct or indirect wholly-owned subsidiaries, in Item 601(b)(10)(iiieach case in the ordinary course of business consistent with past practice;
(vi) any Contract providing for any guaranty by Zillow or any Zillow Subsidiary of third party obligations (under which Zillow or any Zillow Subsidiary has continuing obligations as of the date hereof) of Regulation S-K $1,000,000 or more, other than any guaranty by Zillow of any Zillow Subsidiary’s obligations;
(vii) any Contract which relates to a joint venture, partnership, limited liability company agreement, revenue sharing or other similar Contract with third parties, or to the formation, creation or operation, management or control of any partnership or joint venture with any third parties, other than revenue sharing or other similar agreements involving annual payments of less than $1,000,000 entered into in the ordinary course of business consistent with past practice;
(viii) any Contract with a customer of Zillow or any Zillow Subsidiary which is reasonably likely to involve consideration of $1,000,000 or more;
(ix) any Zillow IP License;
(x) all material Contracts with any Governmental Authority;
(xi) (A) any employment, independent contractor or consulting Contract (in each case, under which the Zillow or any Zillow Subsidiary has continuing obligations as of the SECdate hereof) with (1) any current or former executive officer of the Zillow or any Zillow Subsidiary or member of the Zillow Board, or (2) any former employee, individual consultant or individual independent contractor providing for an annual base compensation in excess of $275,000; and (B) any Contract with any executive officer, director, individual consultant or employee providing for severance, retention or change of control payments or benefits, other than ordinary course severance arrangements with non-executive employees involving payments by the Zillow of less than $400,000;
(xii) any Contract or plan, including any stock option plan, stock appreciation right plan or stock purchase plan, any of the benefits of which will be increased, or the vesting of benefits of which will be accelerated, by the consummation of the transactions contemplated hereby (including the Mergers) or the value of any of the benefits of which will be calculated on the basis of any of the transactions contemplated hereby (including the Mergers);
(xiii) any material lease, sublease or other Contract under which Zillow or any Zillow Subsidiary uses or occupies or has the right to use or occupy, now or in the future, any real property;
(xiv) any Contract which grants any person the right to use the name “Zillow”, any other trademarks owned by Zillow or any derivation thereof, excluding Contracts containing nonexclusive grants of such trademarks made in the ordinary course of business consistent with past practice;
(xv) any other Contract that provides for annual payment obligations by Zillow or any of its subsidiaries of $1,000,000 or more in any individual case that is not terminable by Zillow or a Zillow Subsidiary upon notice of ninety (90) days or less without material liability to Zillow or the Zillow Subsidiary and is not disclosed pursuant to clauses (i) through (xiv) above; and
(xvi) any Contract, or group of Contracts with a person (or group of affiliated persons), the termination or breach of which would have or would be reasonably expected to have a material adverse effect on any material product or service offerings of Zillow or otherwise constitute a Zillow Material Adverse Effect on Zillow and is not disclosed pursuant to clauses (i) through (xv) above.
(b) True Except as would not constitute a Zillow Material Adverse Effect:
(i) each Material Zillow Contract is a legal, valid and binding agreement of Zillow or the applicable Zillow Subsidiary and, to the Knowledge of Zillow, the other party thereto;
(ii) none of Zillow or any Zillow Subsidiary has received any claim of default under any Material Zillow Contract and none of Zillow or any Zillow Subsidiary is in breach or violation of, or default under, any Material Zillow Contract;
(iii) to Zillow’s Knowledge, no other party is in breach or violation of, or default under, any Material Zillow Contract; and
(iv) neither the execution of this Agreement nor the consummation of any transactions contemplated hereby shall constitute a default, give rise to cancellation rights, or otherwise adversely affect any of Zillow’s material rights under any Material Zillow Contract.
(c) Zillow has made available to Trulia true and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Zillow Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to including any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party amendments thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Merger Agreement (Zillow Inc), Merger Agreement (Trulia, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.13(a) of the Company Aqua Disclosure Letter contains sets forth a list of the following Contracts, whether written or oral (and if oral, a complete and correct list, as of the date hereof, of each Contract described in this Section 4.17(aaccurate summary thereof) under to which the Company Aqua or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Aqua Subsidiary is a party or party, in each case to which any the extent in effect on this date of their respective properties or assets is subject, other than any Company Benefit Plans this Agreement (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Aqua Material Contracts”):
(i) each Contract Aqua Benefit Plans or Aqua Benefit Agreements;
(ii) Contracts for the provision of laboratory services to the top 25 customers of Aqua, measured by revenue for the period January to June 2005;
(iii) Contracts providing for the licensing of material Intellectual Property Rights (as defined in Section 3.14);
(iv) Contracts which are reasonably likely to involve aggregate payments by or to Aqua or any Aqua Subsidiary of more than $2,500,000 annually or $5,000,000 over the remaining term of the Contract), other than Company Leasesthe sale of services or products in the ordinary course of business;
(v) real property leases or subleases;
(vi) Contracts that limits in (A) limit the ability of Aqua or any material respect Aqua Subsidiary or affiliate of, or successor to, Aqua, or, to the freedom knowledge of the CompanyAqua, any Company Subsidiary or any executive officer of their respective affiliates (including Parent and its affiliates after the Effective Time) Aqua, to compete or engage in any line of business or geographic region or with any Person person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
area or during any period of time, (iiB) require Aqua or any Aqua Subsidiary or affiliate of, or successor to, Aqua to use any supplier or third party for all or substantially all of any of its material partnershiprequirements or need in any respect, strategic alliance(C) limit or purport to limit the ability of Aqua or any Aqua Subsidiary or affiliate of, joint ventureor successor to, collaboration Aqua to solicit any customers or limited liability company agreement clients of the other parties thereto, (D) require Aqua or any Aqua Subsidiary or affiliate of, or successor to, Aqua to provide to the other parties thereto “most favored nations” pricing or (E) require Aqua or any Aqua Subsidiary or affiliate of, or successor to, Aqua to market or co-market any products or services of a third party (other than any such agreement solely between customer of Aqua or among the Company and its wholly owned Subsidiaries) or similar Contractany Aqua Subsidiary);
(iiivii) each acquisition or divestiture Contract that contains representationsContracts relating to (A) any indebtedness (which does not include accounts payable incurred in the ordinary course of business), covenantsnotes payable (including notes payable in connection with acquisitions), indemnities accrued interest payable or other obligations for borrowed money, whether current, short-term, or long-term, secured or unsecured, of Aqua or any Aqua Subsidiary, (B) any purchase money indebtedness or earn-out or similar obligation in respect of purchases of property or assets by Aqua or any Aqua Subsidiary, (C) any lease obligations of Aqua or any Aqua Subsidiary under leases which are capital leases in accordance with GAAP, (D) any financing of Aqua or any Aqua Subsidiary effected through “special purpose entities” or synthetic leases or project financing, (E) any obligations of Aqua or any Aqua Subsidiary in respect of banker’s acceptances or letters of credit (other than stand-by letters of credit in support of ordinary course trade payables), (F) any obligation or liability of Aqua or any Aqua Subsidiary with respect to interest rate swaps, collars, caps, currency derivatives and similar hedging obligations or (G) any guaranty of any of the foregoing (the liabilities and obligations referred to in (A) through (G) above, “Indebtedness”);
(viii) Contracts entered into by Aqua or any of the Aqua Subsidiaries and any other person providing for the acquisition by Aqua or such Aqua Subsidiary (including by merger, consolidation, acquisition of stock or assets or any other business combination) of any corporation, partnership, other business organization or division or unit thereof or any material amount of assets of such other person, and information identifying the maximum amounts, if any, that are still payable or potentially payable to any other person under such Contracts pursuant to any post-closing adjustment to the purchase price (including under any “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000similar provision);
(ivix) each Contract that provides for stockholder agreements, registration rights agreements, voting trusts or other Contracts to which Aqua is a party or by which it is bound relating to the Company voting of any shares of the capital stock of Aqua,
(x) joint venture contracts, partnership arrangements or other agreements outside the ordinary course of business involving a sharing of profits, losses, costs or liabilities of any person by Aqua or any Company Aqua Subsidiary to obtain a servicewith any third person;
(xi) all confidentiality, license, product, product line, operations non-disclosure or line of business from any Person (including standstill agreements entered into by Aqua or any of the Material Suppliers) that involves annual payments or consideration Aqua Subsidiaries (other than in excess the ordinary course of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;business); and
(vxii) each Contract other Contracts not covered by the foregoing, that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, are otherwise material to the Company Aqua and the Company Aqua Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Subscription, Merger and Exchange Agreement (Specialty Laboratories Inc), Subscription, Merger and Exchange Agreement (Ameripath Inc)
Material Contracts. Schedule 4.29 lists the following contracts and other agreements (a“Material Agreements”) Except for this Agreement, Section 4.17(a) of the Company Disclosure Letter contains a complete and correct list, as of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary Buyer is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
party: (i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than or group of related agreements) for the lease of real or personal property, including capital leases, to or from any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future person providing for annual lease payments in excess of $1,000,000;
25,000; (ivii) each Contract that provides for the Company any licensing agreement, or any Company Subsidiary to obtain agreement forming a servicepartnership, licensestrategic alliances, productprofit sharing or joint venture; (iii) any agreement (or group of related agreements) under which it has created, product lineincurred, operations assumed, or line of business from guaranteed any Person (including any of the Material Suppliers) that involves annual payments or consideration indebtedness for borrowed money in excess of $2,000,00010,000, or that contains under which a security interest has been imposed on any minimum purchase commitments of its assets, tangible or intangible; (iv) any profit sharing, deferred compensation, severance, or other material plan or arrangement for the benefit of its current or former officers, directors and managers or any of the Buyer’s employees; (v) any employment or independent contractor agreement providing annual compensation in excess of $2,000,000 annually;
(v) each Contract 10,000 or providing post-termination or severance payments or benefits or that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of cannot be cancelled without more than $1,000,000;
thirty (30) days’ notice; (vi) any settlement agreement with any current or similar Contract with a Governmental Entityformer officer, director, shareholder, members, manager or affiliate of the Buyer; (vii) any agreements relating to the acquisition (by merger, purchase of units or assets or otherwise) by the Buyer of any operating business or material assets or the capital stock of any other person; (viii) any agreements for the sale of any of the assets of the Buyer, other than those in the ordinary course of business; (ix) any outstanding agreements of guaranty, surety or indemnification, direct or indirect, by the Buyer; (x) any royalty agreements, licenses or other agreements relating to Taxes;
Intellectual Property (viiexcluding licenses pertaining to “off-the-shelf” commercially available software used pursuant to shrink-wrap or click-through license agreements on reasonable terms for a license fee of no more than $10,000); and (xi) except as has not been, and would not any other agreement under which the consequences of a default or termination could reasonably be expected to be, individually or in have a Material Adverse Effect on the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, Buyer including any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);customer agreements.
(viiia) The Buyer has made available to Company either an original or a correct and complete copy of each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant written Material Agreement. With respect to each Material Agreement to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a party thereto: (i) the agreement is the legal, valid, binding and binding, enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effecteffect in all material respects, subject to bankruptcy and equitable remedies exceptions; (ii) (A) the Enforceability Limitations Company is not in material breach or default thereof and (B) no event has occurred which, with notice or lapse of time, would constitute a material breach or default of, or permit termination, modification, or acceleration under, the Material Agreement; and (iii) the Company has not repudiated any expiration thereof in accordance with its terms existing as material provision of the date hereof and without any material breachagreement.
Appears in 2 contracts
Sources: Share Exchange Agreement (Madison Technologies Inc.), Share Exchange Agreement (Madison Technologies Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) 3.10 of the Company Disclosure Letter contains a complete and correct listSchedule sets out, as of the date hereofof this Agreement, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a)following agreements constituting Purchased Assets or, whether or not set forth on Section 4.17 of to the Company Disclosure Letterextent held by Acquired Entities, being referred to herein as “Material Contracts”would otherwise constitute Purchased Assets (but excluding any Business Benefit Plan):
(i) each Contract any agreement (other than Company Leasesexcluding purchase orders entered into in the Ordinary Course) that limits in any material respect the freedom of the Company, any Company Subsidiary Seller or any of their respective affiliates (including Parent its Subsidiaries reasonably anticipates will involve annual payments or consideration furnished to Seller and its affiliates Subsidiaries (in the aggregate) of more than $10,000,000 after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic areadate hereof;
(ii) any material partnershipbinding sales, strategic alliance, joint venture, collaboration distribution or limited liability company other similar agreement (other than any such agreement solely between or among excluding purchase orders entered into in the Company Ordinary Course) providing for the purchase by Seller and its wholly owned Subsidiaries) Subsidiaries of materials, supplies, goods, services, equipment or similar Contractother tangible assets requiring annual payments by Seller and its Subsidiaries of $5,000,000 or more after the date hereof;
(iii) any lease (whether of real or personal property and including sale leaseback arrangements) requiring Seller and its Subsidiaries to make (A) annual rental payments of seven hundred fifty thousand dollars ($750,000) after the date hereof or (B) aggregate rental payments of one million dollars ($1,000,000) or more after the date hereof, in each case, that cannot be terminated on not more than one hundred and twenty (120) days’ notice without payment by Seller or any of its Subsidiaries of any material penalty;
(iv) any partnership or joint venture agreement that an Acquired Entity has entered into or is otherwise primarily related to the Business;
(v) any agreement (A) containing covenants limiting the freedom of the Business to engage or participate or compete in any line of business, or with any Person or in any geographic region or (B) granting a third party exclusive rights of any type or scope with respect to any applicable products, technology, rights in Intellectual Property or other aspects of the Business;
(vi) any agreement as obligor or guarantor relating to indebtedness for borrowed money (excluding intercompany loans) in excess of one million dollars ($1,000,000) or the deferred purchase price of property (in either case, whether incurred, assumed, guaranteed or secured by any asset);
(vii) any Business Intercompany Contract;
(viii) any material agreements to which Seller or any of its Subsidiaries grants to or obtains from a third party a license under any Intellectual Property, other than any (A) licenses for non-customized commercial or off the shelf computer software that are generally available on nondiscriminatory pricing terms or licensed for internal use in object code only on the relevant licensor’s non-negotiated standard terms, and (B) non-exclusive licenses granted or obtained in the Ordinary Course;
(ix) any agreement involving resolution or settlement of any actual or threatened Action (A) in an amount greater than five million dollars ($5,000,000) that has not been fully performed by Seller or its Subsidiaries or (B) otherwise imposes continuing obligations on Seller or any of its Subsidiaries;
(x) any agreement containing “most-favored nation,” “most favored pricing” or similar clauses in favor of any Person;
(xi) any agreement pursuant to which Seller or any of its Subsidiaries grants any other party any rights of first refusal, rights of first negotiation, or similar rights;
(xii) any agreement providing for Seller or any of its Subsidiaries to indemnify a third party, other than such agreements entered into in the Ordinary Course;
(xiii) any material agreement with any Governmental Authority excluding any agreement with any state-owned enterprise or partially state-owned enterprise entered into in the Ordinary Course; or
(xiv) any acquisition or divestiture Contract contract that contains representations, financial covenants, indemnities or other payment obligations (including “earnoutearn-out” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by of payments after the Company or any Company Subsidiary of future payments Closing Date in excess of five hundred thousand dollars ($1,000,000;500,000).
(ivb) each Contract that provides for Each agreement, contract, lease, arrangement or commitment required to be disclosed pursuant to this Section 3.10 (each, a “Material Contract”) is a valid and binding agreement of Seller or its applicable Subsidiary party thereto and is in full force and effect and neither Seller nor such applicable Subsidiary nor, to the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line knowledge of business from any Person (including any Seller as of the date hereof, any other party thereto is in default or breach in any respect under the terms of any such Material Suppliers) that involves annual payments Contract, and, to the knowledge of Seller, no event has occurred which, with lapse of time or consideration action by a third party, would result in excess of $2,000,000a material default under any Material Contract, or that contains any minimum purchase commitments except in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets case of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except foregoing as has not been, and would not reasonably be expected to benot, individually or in the aggregate, reasonably be expected to be material to the Company and the Company SubsidiariesBusiness, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as As of the date hereof, no other party to neither Seller nor any Material Contract is in breach of or default under the terms its Subsidiaries has received any written notice of any Material Contract where such breach or default has had or would reasonably be expected to havetermination with respect to, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledgeknowledge of Seller, of each other no party theretohas threatened to terminate, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breachMaterial Contract.
Appears in 2 contracts
Sources: Asset and Stock Purchase Agreement (SB/RH Holdings, LLC), Asset and Stock Purchase Agreement (SB/RH Holdings, LLC)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) 3.18 of the Company Disclosure Letter contains a complete and correct list, as Schedule lists each of the date hereoffollowing oral or written contracts, of each Contract described in this Section 4.17(a) under which the Company agreements, licenses, notes, bonds, mortgages, indentures, commitments or any Company Subsidiary has any current other instruments or future rightsobligations (and all amendments, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or modifications and supplements thereto and all side letters to which the Company or any of its Subsidiaries is a party affecting the obligations of any party thereunder) (collectively, “Contracts”) to which the Company Subsidiary or any of its Subsidiaries is a party or to by which any of their respective properties or assets are bound (each such Contract and agreement, being a “Material Contract”) (notwithstanding anything below, “Material Contract” shall not include any Contract that (1) is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of terminable by the Company Disclosure Letteror any of its Subsidiaries upon 30 days’ notice without a penalty, being referred premium or other cost, (2) will be fully performed and satisfied as of or prior to herein as “Material Contracts”Closing or (3) is a Company Lease, a Leasehold Interest or an Employee Benefit Plan):
(ia) each Contract (all Contracts that call for aggregate payments to or by, or other than considerations to or from, the Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates its Subsidiaries under such Contract of more than $1,750,000 over the remaining term of such Contract;
(including Parent and b) all Contracts that call for annual aggregate payments to or by, or other consideration to or from, the Company or any of its affiliates after Subsidiaries under such Contract of more than $750,000 over the Effective Timeremaining term of such Contract;
(c) to any Contract that contains any non-compete or engage in exclusivity provisions with respect to any line of business or geographic region or area with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company its Subsidiaries, or any Company Subsidiary to obtain a service, license, product, product line, operations existing or line future affiliate of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, them or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person purports to restrict the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments Subsidiaries or any existing or future affiliate of any of them to purchase goods conduct any line of business or products) after the date hereof to compete with consideration of more than $1,000,000any Person or operate in any geographic area or location;
(vid) any settlement partnership, limited liability company agreement, joint venture or other similar Contract agreement entered into with a Governmental Entity, other than those relating to Taxesany third party;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ixe) any Contract that obligates Contracts for the Company pending purchase or any Company Subsidiary sale, option to make any capital investment purchase or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not beensell, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or refusal, right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) other contractual right to own, operatepurchase, sell, transferdispose of, pledge or otherwise dispose master lease, by merger, purchase or sale of assets or stock or otherwise, any businesses or assetsreal property;
(xif) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation of its Subsidiaries agrees to indemnify such officer, director, affiliate, beneficial owner or family memberhold harmless any director or executive officer of the Company or any of its Subsidiaries (other than the organizational documents for the Company or any of its Subsidiaries);
(xvig) (i) any loan agreement, letter of credit, indenture, note, bond, debenture, mortgage or any other document, agreement or instrument evidencing a capitalized leased obligation or other indebtedness, or any guarantee thereof, of, for the benefit of, or payable to the Company or any of its Subsidiaries, in each case in excess of $1,750,000, or (ii) any Contract to provide any funds to or make any investment in (whether in the form of a loan, capital contribution or otherwise) any Subsidiary of the Company or other Person;
(h) any Contract concerning an interest rate cap, interest rate collar, interest rate swap, currency hedging transaction or any other similar agreement to which the Company or any of its Subsidiaries is a party;
(i) any Contract pursuant to which the Company or any of its Subsidiaries has continuing indemnification obligations (other than Contracts entered into in the ordinary course of business) or potential liability in respect of any purchase price adjustment, earn-out or contingent purchase price or other indemnity that, in each case, could reasonably be expected to result in future payments of more than $1,750,000; or any Contract relating to the settlement or proposed settlement of any action, which involves the issuance of equity securities or the payment of an amount in excess of $750,000;
(j) any “standstill” or similar agreement, voting agreement or registration rights agreement;
(k) any Contract with any Governmental Entity;
(l) any Contract (other than among consolidated Subsidiaries of the Company) under which indebtedness is outstanding or may be incurred or pursuant to which any property or asset is mortgaged, pledged or otherwise subject to encumbrances, other than a Material SupplierPermitted Encumbrance, or any Contract restricting the incurrence of indebtedness or the incurrence of Encumbrances or restricting the payment of dividends or the transfer of any properties owned by the Company or any of its Subsidiaries; and
(xviim) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC).
(b) True and complete copies of each Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except Securities Act). Except as has not had and would not reasonably be expected to have, individually or result in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) neither the Company nor any of its Subsidiaries is and, to the Knowledge of the Company, no other party is in breach or violation of, or default under, any Material Contract, (ii) none of the Company or any of its Subsidiaries has received any claim of default under or cancellation of any Material Contract, and (iii) no event has occurred which would result in a breach or violation of, or a default under, any Material Contract (in each case, with or without notice or lapse of time or both). Each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, in accordance with its terms and is in full force and effect, subject effect with respect to the Enforceability Limitations and Company or any expiration thereof in accordance with of its terms existing as Subsidiaries and, to the Knowledge of the date hereof Company, with respect to the other parties thereto. The Company has made available to Parent true and without complete copies of all Material Contracts (including any material breachamendments or other modifications thereof).
Appears in 2 contracts
Sources: Merger Agreement (Trustreet Properties Inc), Merger Agreement (Trustreet Properties Inc)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) 6.9 of the Company iGambit Disclosure Letter contains Schedule provides a true and complete and correct list, as list of each of the date hereof, of each Contract described in this Section 4.17(a) under following contracts to which the Company iGambit or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary of its Subsidiaries is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans this Agreement (all Contracts of collectively, the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “iGambit Material Contracts”):
(i) each Contract (other than Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary All leases for real property used by iGambit or any of their respective affiliates its Subsidiaries and all leases of personal property and any Contract affecting any right, title or interest in or to real property;
(including Parent ii) All Contracts with Persons who are Service Providers, and all iGambit Plans;
(iii) Any Contract involving financing or borrowing of money, or evidencing indebtedness; any liability for borrowed money; any letters of credit; any obligation for the deferred purchase price of property in excess of $25,000; or guaranteeing in any way any Contract in connection with any Person;
(iv) Any joint venture, partnership, cooperative arrangement or any other Contract involving a sharing of profits;
(v) Any Contract with any Governmental Authority;
(vi) Any Contract with respect to the discharge, storage or removal of effluent, waste or pollutants;
(vii) Any Contract for the purchase or sale of any iGambit Assets or assets of or any of its affiliates after Subsidiaries other than in the Effective Timeordinary course of business or for the option or preferential rights to purchase or sell any iGambit Assets or assets of or any of its Subsidiaries;
(viii) Any Contract containing covenants not to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute in any product or service geographical area or that would otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary iGambit or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025Subsidiaries being bound by, or is obligated to pay subject to, any non-compete or entitled to receive payments in excess other restriction on the operation or scope of $2,000,000 in its businesses, including the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company SubsidiariesiGambit Business;
(ix) Any Contract related to the acquisition of a business or the equity of any Contract that obligates other Entity or the Company sale of iGambit or any Company Subsidiary to make of its Subsidiaries or any capital investment of the iGambit Assets or capital expenditure outside the ordinary course any assets of business and in excess any of $1,000,000 per annumits Subsidiaries;
(x) except where the exercise Any other Contract which (i) provides for payment or performance by either party thereto having an aggregate value of any such right $25,000 or imposition of such limitation has more; (ii) is not beenterminable without payment or penalty on thirty (30) days (or less) notice; or (iii) is between, and would not reasonably be expected to beinter alia, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary iGambit or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assetsSubsidiaries and an Affiliate thereof;
(xi) each Any proposed arrangement of a type that, if entered into, would be a Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a6.9(a)(i) that would constitute a “material contract” (as such term is defined in Item 601(b)(10through 6.9(a)(x) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)above.
(b) True and complete copies of each written iGambit Material Contract in effect as and true and complete written summaries of the date hereof each oral iGambit Material Contract (including all amendments, supplements, modifications and waivers thereto) have been made available provided to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Clinigence by iGambit.
(c) Each iGambit Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a currently valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof is enforceable by iGambit or its Subsidiaries, as applicable, in accordance with its terms existing as terms.
(d) Neither iGambit nor any of its Subsidiaries is in default, and no party has notified iGambit or any of its Subsidiaries in writing that iGambit or any of its Subsidiaries is in default, under any iGambit Material Contract. No event has occurred, and no circumstance or condition exists, that might, with or without notice or lapse of time:
(i) result in a violation or breach of any of the date hereof provisions of any iGambit Material Contract;
(ii) give any Person the right to declare a default or exercise any remedy under any iGambit Material Contract;
(iii) give any Person the right to accelerate the maturity or performance of any iGambit Material Contract or to cancel, terminate or modify any iGambit Material Contract; or
(iv) otherwise have an iGambit Material Adverse Effect in connection with any iGambit Material Contract.
(e) Neither iGambit nor any of its Subsidiaries has waived any of its rights under any iGambit Material Contract.
(f) The performance of the iGambit Material Contracts will not result in any violation of or failure by iGambit or any of its Subsidiaries to comply in all material respects with any Legal Requirement.
(g) The iGambit Material Contracts constitute all of the Contracts necessary to enable iGambit and without its Subsidiaries to conduct the iGambit Business in the manner in which such iGambit Business is currently being conducted.
(h) The consummation of the Merger shall not result in iGambit or any material breachof its Subsidiaries being bound by, or subject to, any non-compete or other restriction on the operation or scope of its businesses, including the iGambit Business.
Appears in 2 contracts
Sources: Merger Agreement (iGambit, Inc.), Merger Agreement (iGambit, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.17(a) of the Company Disclosure Letter Schedule contains a correct and complete and correct list, as list of the date hereof, of each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or following Contracts to which the Company or any Company Subsidiary of its Subsidiaries is a party or to which any of their respective properties assets are currently bound or assets is subject, other than subject (and with respect to any Company Benefit Plans (all Contracts oral Contract provides a complete description of the type described in this Section 4.17(a)terms of such Contract) (collectively, whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”):
(i) each Contract (other than that involves performance of services by the Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete Subsidiaries of an amount or engage value in any line excess of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area$10,000;
(ii) any material partnership, strategic alliance, joint venture, collaboration each Contract that involves performance of services or limited liability company agreement (other than any such agreement solely between delivery of goods or among materials to the Company and or any of its wholly owned Subsidiaries) Subsidiaries of an amount or similar Contractvalue in excess of $10,000;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result was not entered into in the receipt Ordinary Course of Business that involves expenditures or making by the Company or any Company Subsidiary of future payments receipts in excess of $1,000,00010,000;
(iv) each all notes, loans, credit agreements, mortgages, indentures, security agreements, operating leases, capital leases and other Contract that provides for relating to Indebtedness of the Company or any Company Subsidiary to obtain a service, license, product, product line, operations of its Subsidiaries and any Contract of suretyship or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annuallyguaranty;
(v) each Contract that gives any Person the right to acquire any assets for capital expenditures in excess of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,00010,000;
(vi) any settlement each Contract with management, independent contractors, or consultants (or similar Contract with a Governmental Entity, other than those relating to Taxesarrangements) which are not cancellable without penalty or further payment and without thirty (30) days’ or more notice;
(vii) except as has not beenall employee agreements, Contracts with consultants and independent contractors, and would not reasonably be expected to beall bonus, individually or in commission, compensation, pension, insurance, retirement, deferred compensation and other plans, Contracts and other arrangements for the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct benefit of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time)Employee;
(viii) each Contract (other than Company Leases) not otherwise described in with any other subsection of this Section 4.17(a) pursuant to which the Company broker, distributor, dealer, representative, franchise, agency, sales promotion, market research, marketing consultant or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiariesadvertising company;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates Subsidiaries (including Parent or any manager or officer thereof) to compete in any line of business or with any Person or in any geographic area or during any period of time;
(x) each power of attorney of the Company or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assetsSubsidiaries that is currently effective and outstanding;
(xi) each license agreement or other Contract that contains any exclusivity rights relating to Intellectual Property owned or “most favored nations” provisions, in each case, that are material in any respect to license by the Company or its affiliates used in connection with the Business (including Parent or its affiliates after the Effective Timeeach a “License Agreement”);
(xii) each Contract governing containing any collaboration, co-promotion, strategic alliance restrictions with respect to payment of dividends or design project contract which, any other distributions in each case, is material to respect of the capital stock of the Company and the Company or its Subsidiaries, taken as a whole;
(xiii) each Contract evidencing Company Contract, including any stock option plan, stock appreciation rights plan or relating stock purchase plan related to outstanding Indebtedness (or commitments in respect thereof) shares of the Company Company’s stock, any of the benefits of which will be increased, or the vesting of benefits of which will be accelerated by the occurrence of any Company Subsidiary (whether incurred, assumed, guaranteed of the transactions contemplated by this Agreement or secured the value of any of the benefits of which will be calculated on the basis of any of the transactions contemplated by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiariesthis Agreement;
(xiv) each Contract pursuant to which concerning the issuance, delivery, pledge or other encumbrance, proxy, redemption, sale or disposal of any shares of capital stock or other securities of the Company or its Subsidiaries or the creation, issuance, delivery, pledge or other encumbrance, proxy, redemption, sale or disposal of any Company Subsidiary grants securities convertible into, or receives any license, option, waiver, covenant not to assert or similar right rights with respect to, or options or warrants to Intellectual Property that is material purchase or rights to the businesses subscribe to, any shares of capital stock or other securities of the Company and the Company or its Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company joint venture, partnership or any Company Subsidiary, on the one hand, and any officer, director other Contracts involving a share of profits or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family memberlosses with another Person;
(xvi) each Contract with a Material Supplier; andbetween or among the Company or any of its Subsidiaries, the Seller or any Affiliate or Related Person of the Company or the Seller;
(xvii) any material Contract not otherwise described in any other subsection which is terminable upon or prohibits a change of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K ownership or control of the SECCompany;
(xviii) with respect each Contract granting or permitting any Lien upon the assets or the properties of the Company or any of its Subsidiaries; and
(xix) each other Contract, whether or not made in the Ordinary Course of Business, which is material to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) or any of Regulation S-K its Subsidiaries or the conduct of the SEC)Business, or the absence of which would have a Material Adverse Effect.
(b) True The Company has delivered to Buyer a correct and complete copies copy of each written Material Contract in effect (as of the date hereof have been made available amended to Parent or publicly filed with the SEC prior to the date hereofdate). Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Each Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party on all respective parties thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect. Each Material Contract will continue to be valid, subject binding, enforceable on all respective parties thereto, and in full force and effect on identical terms following the consummation of the transactions contemplated hereby. The Company or its Subsidiaries have not received any notice from any other party to a Material Contract of the termination or threatened termination thereof, or of any claim, dispute or controversy with respect thereto, nor, to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as Knowledge of the Seller and the Company, has any event occurred or circumstance exists, which could reasonably be expected to result in such termination, claim, dispute or controversy.
(c) The Company or its Subsidiaries, as the case may be, has performed in all material respects all obligations imposed on it to date hereof and without under each Material Contract. Neither the Company nor any of its Subsidiaries is in breach or default in any material breachrespect under any Material Contract, and no event has occurred or circumstances exist which, with notice or lapse of time or both, would constitute a material breach or default by the Company or any of its Subsidiaries thereunder or permit termination, modification or acceleration thereunder.
(d) To the Knowledge of the Seller and the Company, no other party is in breach or default in any material respect under any Material Contract, and no event has occurred or circumstances exist which, with notice or lapse of time or both, would constitute a material breach or default by any other party thereunder or permit termination, modification or acceleration thereunder. No other party has repudiated any provision of any Material Contract.
(e) None of the payments required to be made by the Company or any of its Subsidiaries under any Material Contract has been prepaid more than thirty (30) days prior to the due date of such payment thereunder.
(f) No consent of, or notice to, any third party is required under any Material Contract as a result of or in connection with, and neither the enforceability nor any of the terms or provisions of any Material Contract will be affected in any manner by, the execution, delivery and performance of this Agreement, or the transactions contemplated hereby.
Appears in 2 contracts
Sources: Stock Purchase Agreement (Homeland Security Capital CORP), Stock Purchase Agreement (DJSP Enterprises, Inc.)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) of the Company Disclosure Letter contains a complete and correct list, as of the date hereof, of each Contract described in this Section 4.17(a) under which neither the Company or nor any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary of its Subsidiaries is a party to or to which bound by (any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts contract of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, 4.21(a) being referred to herein as a “Company Material ContractsContract”):
(i) each Contract (any outbound lease, license, sale or other than similar agreement providing for the sale, lease or license by the Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates its Subsidiaries of goods, services, Intellectual Property or other assets that is expected to result in either (including Parent and its affiliates after the Effective TimeA) annual payments to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company or any of its Subsidiaries of $350,000 or affiliates more, or (including Parent and B) aggregate payments to the Company or any of its affiliates after Subsidiaries of $1,000,000 or more over the Effective Timenext five (5) from years, except for any such contract between the development, marketing or distribution Company and/or any of products and services, in each case, in any geographic areaits Subsidiaries;
(ii) any material inbound lease, license, purchase or other similar agreement for the purchase, lease or license by the Company or any of its Subsidiaries of goods, services, Intellectual Property or other assets that is expected to result in either (A) annual payments by the Company or any of its Subsidiaries of $350,000 or more, or (B) aggregate payments by the Company or any of its Subsidiaries of $1,000,000 or more over the next five (5) years, except for any such contract between the Company and/or any of its Subsidiaries;
(iii) any contract or agreement evidencing (A) outstanding indebtedness for borrowed money, or (B) an obligation of the Company or any of its Subsidiaries to guarantee, or otherwise indemnify or hold harmless any Person, in respect of indebtedness for borrowed money, in the case of each of clauses (A) and (B), in or for an amount of $350,000 or more, except for any such contract or agreement between the Company and/or any of its Subsidiaries;
(iv) any joint venture, partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annuallyagreement;
(v) each Contract that gives any Person contract or agreement relating to the right to acquire acquisition or disposition of any assets of material business or any interest therein under which the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods of its Subsidiaries has any material outstanding rights or products) after the date hereof with consideration of more than $1,000,000obligations;
(vi) any settlement contract or similar Contract agreement that limits, or purports to limit, in any material respect, the ability of the Company or any of its Subsidiaries to compete in a line of business or with a Governmental Entity, other than those relating to Taxesany Person or in any geographic area or during any period of time;
(vii) except as has not beenany contract or agreement that, and would not reasonably be expected to beupon the consummation of the transactions contemplated by this Agreement, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting will result in any respect the operations of Parent or conduct any of its Subsidiaries or any of the Company or any Company Subsidiary of its Subsidiaries, granting any rights or licenses to any material Intellectual Property of any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge Subsidiaries or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company its Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material SupplierThird Party; and
(xviiviii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (, other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)).
(bi) True and complete copies of each Each Company Material Contract in effect as of the date hereof have been made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject (ii) no written or, to the Enforceability Limitations Knowledge of the Company, other claim of default under or cancellation of any Company Material Contract has been received by the Company or any of its Subsidiaries, and (iii) neither the Company nor any expiration thereof of its Subsidiaries is, in accordance with its terms existing as any material respect, in breach or violation of, or default under, any Company Material Contract, and, to the Knowledge of the Company, no other party is, in any material respect, in breach or violation of, or default under, any Company Material Contract. As of the date hereof hereof, the Company has heretofore delivered or made available to Parent true and without any material breachcomplete copies of all Company Material Contracts.
Appears in 2 contracts
Sources: Merger Agreement (Powerdsine LTD), Merger Agreement (Microsemi Corp)
Material Contracts. (a) Except for this Agreement, Section 4.17(a) 4.15 of the Company Disclosure Letter contains Schedules sets forth a true, correct and complete and correct list, as of the date hereofof this Agreement, of each Contract described in this Section 4.17(athe following Contracts (but not including any Lease Agreements or Company Employee Plans) by which any of the Company or any of the Company Subsidiaries is bound and under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure LetterSubsidiaries has ongoing executory obligations or the ability to enforce rights thereunder (collectively, being referred to herein as the “Material Contracts”):
(i) each Contract required to be filed by the Company as a “Material Contract” pursuant to Item 601(b)(10) of Regulation S-K under the Securities Act;
(other than ii) each Contract to which the Company Leases) that limits in any material respect the freedom of the Company, any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time) Company Subsidiaries is a party that restricts the ability of the Company or any of the Company Subsidiaries to compete or engage in any line of business or geographic region or with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and servicesgeographical area, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract a manner that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments in excess of $1,000,000;
(iv) each Contract that provides for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000, or that contains any minimum purchase commitments in excess of $2,000,000 annually;
(v) each Contract that gives any Person the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000;
(vi) any settlement or similar Contract with a Governmental Entity, other than those relating to Taxes;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiiiiii) each credit agreement, note, debenture, bond, indenture and other similar Contract evidencing or relating pursuant to outstanding which any Indebtedness (or commitments in respect thereof) of the Company or any of the Company Subsidiary (whether incurredSubsidiaries, assumed, guaranteed or secured by any asset) in an amount each case in excess of $1,000,000 250,000 is outstanding or may be incurred, other than Contracts solely any such Contract between or among any of the Company and a wholly owned Company Subsidiary or between wholly owned any of the Company Subsidiaries;
(xiviv) each Contract to which the Company or any of the Company Subsidiaries is a party with an ISO, sales representative, sales agent, referral partner, sub-agent or any other Person pursuant to which the Company or any of its Subsidiaries generated $250,000 or more in the twelve (12) month period ended December 31, 2017;
(v) each Contract to which the Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and Subsidiaries is a party that is expected to result in aggregate payments in excess of $250,000 by the Company Subsidiariesor any of its Subsidiaries in the twelve (12) month period ending December 31, taken 2018, except for (1) Lease Agreements or (2) Contracts relating to the acquisitions and dispositions of properties and assets in the ordinary course of business;
(vi) each Contract entered into within two (2) years of the date of this Agreement, to which the Company or any of the Company Subsidiaries is a party for the acquisition or disposition by the Company or any of the Company Subsidiaries of properties or assets for, in each case, aggregate consideration of more than $250,000 except for acquisitions and dispositions of properties and assets in the ordinary course of business;
(vii) each Contract (1) under which the Company or any of the Company Subsidiaries licenses any Licensed Company IP Rights (other than licenses for commercially-available software) that by its terms calls for fees related to the use of Licensed Company IP Rights by the Company or any of the Company Subsidiaries of more than $250,000 over the remaining term of such Contract (assuming, where applicable, that the sales or user levels remain at the same levels as a wholefiscal year 2017), or agrees (2) under which the Company or any of the Company Subsidiaries has licensed any Company Owned IP to limit Third Parties (i) under an exclusive license or (ii) that by its terms calls for aggregate royalty payments related to the use or exploitation of any material Company Owned IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted payable to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 any of the Company Disclosure Letter and in which Subsidiaries of more than $250,000 over the grants remaining term of rights to use Intellectual Property are incidental to performance thereundersuch Contract (assuming, where applicable, that the sales or user levels remain at the same levels as fiscal year 2017);
(xvviii) each Contract between under which the Company or any Company SubsidiarySubsidiary has granted any Person registration rights (including demand and piggy-back registration rights);
(ix) each Contract relating to the Warrants;
(x) each Contract relating to the acquisition or disposition of any Person, on business or operations or assets constituting a business (whether by merger, sale of stock, sale of assets, consolidation or otherwise) entered into since December 31, 2015 (including any such Contract under which contemplated transactions were consummated but under which one or more of the one handparties thereto has executory indemnification, and earn-out or other liabilities);
(xi) each Contract which provides for a loan or advance of any officer, director amount to any employee of the Company or affiliate (other than a wholly owned Company Subsidiary) any temporary agency employee or individual consultant of the Company or any Company Subsidiary, other than the advancement of travel and other business expenses in the ordinary course of business;
(xii) each Contract (other than pursuant to Organizational Documents) providing for indemnification by the Company or any beneficial ownerCompany Subsidiary of any officer, directly director or indirectly, of more than five percent (5%) employee of the shares Company;
(xiii) each Contract or arrangement that involves any officer or director or, to the Company’s Knowledge, equityholder of Company Common Stock the Company, or any Affiliate, spouse or sibling of their respective “associates” such Persons;
(xiv) each Contract with any Card Network or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 with Principal Members of the Exchange Act)Card Networks, on in each case enabling the other hand, including any Company or a Company Subsidiary to participate in a Card Network; or
(xv) each Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SECCompany Subsidiaries is a party constituting a joint venture, partnership, limited liability or other similar agreement (excluding licensing Contracts) with respect relating to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) formation, creation, operation, management or control of Regulation S-K of the SEC)any partnership or joint venture.
(b) True The Company has Made Available to Parent true, correct and complete copies of each Material Contract. Each Material Contract in effect is, as of the date hereof have been made available to Parent hereof, in full force and effect and a valid and binding agreement enforceable against the Company or publicly filed with any of the SEC prior Company Subsidiaries party thereto and, to the Company’s Knowledge, each other party thereto, in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. As of the date hereof. Neither of this Agreement, none of the Company nor any of the Company Subsidiary Subsidiaries party to, nor, to the Company’s Knowledge, any other party to, any Material Contract is in breach of or default under the terms under, or has provided or received any written notice of any intention to terminate or seek renegotiation of, any Material Contract, except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as As of the date hereofof this Agreement, no other party to any Material Contract is in event or circumstance has occurred that, with or without notice or lapse of time or both, would (i) constitute a material breach of or material event of default by the Company, (ii) result in a right of termination for the counterparty or (iii) cause or permit the acceleration of, or other material changes to, any material right of the counterparty or obligation of the Company, in each case, under the terms of any Material Contract where such breach or default has had or would reasonably be expected to haveContract, individually or except, in the aggregatecase of each of clauses (i), (ii) and (iii), as has not had a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as of the date hereof and without any material breach.
Appears in 2 contracts
Sources: Merger Agreement (JetPay Corp), Agreement and Plan of Merger (NCR Corp)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.5(a) of the Company Disclosure Letter contains Schedules lists all Contracts to which any KE Company is a complete and correct listparty, by which any KE Company is bound or to which any KE Company or any of its assets or properties are subject that are in effect as of the date hereofof this Agreement and constitute or involve the following (together with all amendments, of waivers or other changes thereto, each Contract described in this Section 4.17(a) under which the Company or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a)following, whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as a “Material ContractsContract”):
(i) each Contract employee collective bargaining Contract;
(other than Company Leasesii) that limits in obligations of, or payments to, any material respect the freedom of the CompanyKE Companies of $56,000 or more;
(iii) any Contract under which any KE Company has created, any Company Subsidiary incurred, assumed or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or with any Person or sellguaranteed Indebtedness, supply or distribute any product or service or that otherwise has the effect of restricting in right to draw upon credit that has been extended for Indebtedness, or has granted a Lien on its assets, whether tangible or intangible, to secure any material respect the Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and servicesIndebtedness, in each case, in any geographic area;
(ii) any material partnership, strategic alliance, joint venture, collaboration or limited liability company agreement (other than any such agreement solely between or among the Company and its wholly owned Subsidiaries) or similar Contract;
(iii) each acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingent payment obligations) that would reasonably be expected to result in the receipt or making by the Company or any Company Subsidiary of future payments an amount in excess of $1,000,000;100,000;
(iv) each any Contract that provides for the is a definitive purchase and sale or similar agreement entered into in connection with an acquisition or disposition by any KE Company since December 31, 2020 of any Person or of any Company Subsidiary to obtain a service, license, product, product line, operations business entity or line division or business of business from any Person (including any through merger or consolidation or the purchase of a controlling equity interest in or substantially all of the Material Suppliers) that involves annual payments assets of such Person or consideration by any other manner), but excluding any Contracts in excess of $2,000,000, which the applicable acquisition or that contains any minimum purchase commitments in excess of $2,000,000 annuallydisposition has been consummated and there are no material obligations ongoing;
(v) each any Contract that gives any Person with outstanding obligations for the right to acquire any sale or purchase of personal property, fixed assets of or real estate, other than sales or purchases in the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000Ordinary Course;
(vi) any settlement Contract not made in the Ordinary Course and not disclosed pursuant to any other clause under this Section 3.5(a) and expected to result in revenue or similar Contract with a Governmental Entityrequire expenditures in excess of $56,000 in the calendar year ending December 31, other than those relating to Taxes2024;
(vii) except as has not beenany joint venture Contract, and would not reasonably be expected to bepartnership agreement, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement limited liability company agreement or similar Contract restricting in any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time);
(viii) each Contract (other than Company Leases) not otherwise described in any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company Subsidiaries;
(ix) any Contract that obligates the Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(x) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer or that limits the ability of the Company, any Company Subsidiary or any of its affiliates (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose of any businesses or assets;
(xi) each Contract that contains any exclusivity rights or “most favored nations” provisions, in each case, that are material in any respect to the Company or its affiliates (including Parent or its affiliates after the Effective Time);
(xii) each Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and business of the Company SubsidiariesKE Companies, taken as a whole;
(xiiiviii) each Contract evidencing any real property leasehold interest (each, a “Real Property Lease”);
(ix) all leases or relating master leases of personal property reasonably likely to outstanding Indebtedness (or commitments result in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess annual payments of $1,000,000 other than Contracts solely between the Company and 50,000 or more in a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries12-month period;
(xivx) each any Contract pursuant to which the any KE Company (A) licenses or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to is granted rights from a third party under Intellectual Property that is material to the businesses business of the Company and the Company SubsidiariesKE Companies, taken as a whole, excluding click-wrap, shrink-wrap, off-the-shelf software licenses and any other software licenses that are commercially available on reasonable terms to the public generally with license, maintenance, support and other fees less than $50,000 per year or agrees (B) licenses or grants to limit its use or exploitation of any material Company IP in any material respect, including pursuant a third party to any settlement agreement, coexistence agreement rights in or similar arrangement, other than to use Owned Company Intellectual Property (Aif applicable and if any) or Owned Company Software (excluding non-exclusive licenses granted to customers, contractors, suppliers or service providers in the Ordinary Course);
(xi) the grant of rights to manufacture, produce, assemble, license, market or sell any Company Services;
(xii) Contracts with any Governmental Authority;
(xiii) any Contract which restricts in any material respect or contains any material limitations on the ability of any KE Company Subsidiaries for generally available Software to compete in any line of business or information technology services in any geographic territory, in each case excluding customary confidentiality agreements (or clauses) or non-solicitation agreements (or clauses);
(xiv) Contracts between (A) on substantially standardized termsthe one hand, any of the KE Companies, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant Company Shareholder;
(xv) all broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting and advertising Contracts to which the a KE Company is a party that provide for payments by any KE Company or to any KE Company Subsidiary has an obligation to indemnify such officerin excess of $50,000, directorin the aggregate, affiliate, beneficial owner or family memberover any 12-month period;
(xvi) each Contract with a Material Supplier; andall Contracts that result in any Person holding an irrevocable power of attorney from any KE Company that relates to any KE Company or its business;
(xvii) Contracts to which any Contract not otherwise described in any other subsection KE Company is a party that are of this Section 4.17(a) the type that would constitute a “material contract” be required to be filed with the Proxy Statement/Prospectus under applicable SEC requirements pursuant to Items 601(b)(1), (as such term is defined in Item 601(b)(102), (4), (9) or (10) of Regulation S-K of under the SEC) with respect to Securities Act if the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of was the SEC)registrant.
(b) True Accurate and complete copies of each Material Contract in effect as the Contracts required to be listed on Section 3.5(a) of the date hereof Company Disclosure Schedules, have been delivered to or made available to Parent or publicly filed with the SEC prior to the date hereof. Neither the Company nor any Company Subsidiary is in breach of or default under the terms of any Material Contractthis Agreement, except together with all amendments thereto.
(c) Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each (i) all Material Contract Contracts to which any of the KE Companies is a party or by which its assets are bound are valid, binding and enforceable obligation of the Company or the Company Subsidiary which is party thereto and, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject except as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other Laws of general application affecting enforcement of creditors’ rights generally and by Laws relating to the Enforceability Limitations and any expiration thereof in accordance with its terms existing as availability of specific performance, injunctive relief or other equitable remedies, (ii) none of the KE Companies (nor, to the knowledge of the Company, any other party to any such Contract) is or, with the giving of notice, the lapse of time or otherwise, would be in default under any Material Contract to which any of the KE Companies is or will be a party or by which its assets are bound, (iii) since December 31, 2021, none of the KE Companies has received any written or, to the Company’s knowledge, oral claim or notice of material breach of or material default under any Material Contract, (iv) to the Company’s knowledge, no event has occurred which, individually or together with other events, would reasonably be expected to result in a material breach of or a material default under any Material Contract by a KE Company or, to the Company’s knowledge, any other party thereto (in each case, with or without notice or lapse of time or both), and (v) since December 31, 2021 through the date hereof and without hereof, none of the KE Companies has received written notice from any material breachcustomer or supplier that is a party to any Material Contract that such party intends to terminate or not renew any Material Contract.
Appears in 2 contracts
Sources: Merger and Contribution Agreement (Black Titan Corp), Merger and Contribution and Share Exchange Agreement (Titan Pharmaceuticals Inc)
Material Contracts. (a) Except for this Agreement, Section 4.17(a3.08(a) of the Disclosure Schedules sets forth a true, correct and complete list of the following Contracts to which any Group Company Disclosure Letter contains is a complete and correct list, party as of the date hereofhereof (and Sellers have made available to Buyer true, correct and complete copies of each Contract described in this Section 4.17(a) under which the Company all such Contracts, together with all amendments, modifications or any Company Subsidiary has any current or future rights, responsibilities, obligations or liabilities (in each case, whether contingent or otherwise) or to which the Company or any Company Subsidiary is a party or to which any of their respective properties or assets is subject, other than any Company Benefit Plans (all Contracts of the type described in this Section 4.17(a), whether or not set forth on Section 4.17 of the Company Disclosure Letter, being referred to herein as “Material Contracts”supplements thereto):
(i) each any Contract (other than Company Leases) that limits in relating to the formation, creation, governance, economics or control of any material respect the freedom of the Companypartnership, any Company Subsidiary joint venture, strategic alliance or any of their respective affiliates (including Parent and its affiliates after the Effective Time) to compete or engage in any line of business or geographic region or similar arrangement with any Person or sell, supply or distribute any product or service or that otherwise has the effect of restricting in any material respect the is not a Group Company, the Company Subsidiaries or affiliates (including Parent and its affiliates after the Effective Time) from the development, marketing or distribution of products and services, in each case, in any geographic area;
(ii) any material partnershipContract relating to any options, strategic alliancerights (preemptive or otherwise), joint venturewarrants, collaboration calls or limited liability company agreement (other than any such agreement solely between or among convertible securities of the Company and its wholly owned Subsidiaries) or similar ContractPurchased Entities;
(iii) each acquisition or divestiture any Contract that contains representations, covenants, indemnities or other obligations relating to (including “earnout” or other contingent payment obligationsA) that would reasonably be expected to result in the receipt or making by the Indebtedness of any Group Company or any Company Subsidiary of future payments in excess of $1,000,000100,000 or (B) the mortgage or pledge of, or otherwise creating an Encumbrance (other than a Permitted Encumbrance) on, any of the Purchased Assets in excess of $100,000 (in each case, other than intercompany Indebtedness amongst the Group Companies);
(iv) each any Contract that provides relating to the acquisition or disposition of any business, assets or properties for the Company or any Company Subsidiary to obtain a service, license, product, product line, operations or line of business from any Person (including any of the Material Suppliers) that involves annual payments or consideration in excess of $2,000,000100,000 (whether by merger, sale of stock, sale of assets or that contains otherwise) as to which any minimum material earn-out, indemnification or deferred or contingent payment obligations remain outstanding (in each case, excluding for the avoidance of doubt, purchase commitments of inventory in excess of $2,000,000 annuallythe Ordinary Course);
(v) each Contract that gives any Person Lease with respect to the right to acquire any assets of the Company or any Company Subsidiary (excluding ordinary course commitments to purchase goods or products) after the date hereof with consideration of more than $1,000,000Leased Real Property;
(vi) any settlement Contract for the lease of tangible personal property to or similar Contract with a Governmental Entity, other than those relating to Taxesfrom any Person providing for lease payments in excess of $50,000 per annum;
(vii) except as has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, any settlement or similar Contract restricting in with any respect the operations or conduct of the Company or any Company Subsidiary or any of their respective affiliates (including Parent and its affiliates after the Effective Time)Material Supplier;
(viii) each any Contract (other than Company Leases) not otherwise described in with any other subsection of this Section 4.17(a) pursuant to which the Company or any Company Subsidiary has paid or received payments in excess of $2,000,000 in the fiscal year ended February 1, 2025, or is obligated to pay or entitled to receive payments in excess of $2,000,000 in the twelve (12) month period following the date hereof, other than Contracts solely between the Company and a wholly owned Company Subsidiary or solely between wholly owned Company SubsidiariesGovernmental Authority;
(ix) any Contract that obligates (A) prohibits or limits the freedom of any Group Company to compete in any line of business with any Person or in any geographic area or (B) contains exclusivity obligations or restrictions binding on any Group Company or any Company Subsidiary to make any capital investment or capital expenditure outside the ordinary course of business and in excess of $1,000,000 per annum;
(xC) except where the exercise of any such right or imposition of such limitation has not been, and would not reasonably be expected to be, individually or in the aggregate, material to the Company and the Company Subsidiaries, taken as a whole, each Contract that grants any right of first refusal or right of first offer obligations or restrictions to any Person;
(x) any material Contract under which any Group Company (A) has licensed any Intellectual Property from a third party (other than non-exclusive licenses for commercially available or off-the-shelf software or software that limits the ability of the Companyis subject to click through or shrink wrap agreements), or (B) grants to any Company Subsidiary third party any right to use or exploit any of its affiliates Purchased Intellectual Property (including Parent or any of its affiliates after the Effective Time) to own, operate, sell, transfer, pledge or otherwise dispose other than non-exclusive licenses of any businesses or assetsPurchased Intellectual Property granted in the Ordinary Course);
(xi) each Contract any Service Provider Agreement that contains any exclusivity rights (i) provides for annual base compensation in excess of $150,000 or “most favored nations” provisions(ii) is not terminable at-will, in each case, that are material in any respect to the Company has more than a sixty (60) day contractual termination notice period or its affiliates (including Parent provides for contractual severance or its affiliates after the Effective Time);change of control benefits; and
(xii) each any Contract governing any collaboration, co-promotion, strategic alliance or design project contract which, in each case, is material to the Company and the Company Subsidiaries, taken as a whole;
(xiii) each Contract evidencing or relating to outstanding Indebtedness (or commitments in respect thereof) of the Company or any Company Subsidiary (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of $1,000,000 other than Contracts solely between the Company and a wholly owned Company Subsidiary or between wholly owned Company Subsidiaries;
(xiv) each Contract pursuant to which the Company or any Company Subsidiary grants or receives any license, option, waiver, covenant not to assert or similar right with respect to Intellectual Property that is material to the businesses of the Company and the Company Subsidiaries, taken as a whole, or agrees to limit its use or exploitation of any material Company IP in any material respect, including pursuant to any settlement agreement, coexistence agreement or similar arrangement, other than (A) non-exclusive licenses granted to the Company or Company Subsidiaries for generally available Software or information technology services on substantially standardized terms, and (B) Contracts that otherwise constitute Material Contracts identified on Section 4.17 of the Company Disclosure Letter and in which the grants of rights to use Intellectual Property are incidental to performance thereunder;
(xv) each Contract between the Company or any Company Subsidiary, on the one hand, and any officer, director or affiliate (other than a wholly owned Company Subsidiary) of the Company or any Company Subsidiary, any beneficial owner, directly or indirectly, of more than five percent (5%) of the shares of Company Common Stock or any of their respective “associates” or “immediate family” members (as such terms are defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act), on the other hand, including any Contract pursuant to which the Company or any Company Subsidiary has an obligation to indemnify such officer, director, affiliate, beneficial owner or family member;
(xvi) each Contract with a Material Supplier; and
(xvii) any Contract not otherwise described in any other subsection of this Section 4.17(a) that would constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) with respect to the Company (other than those agreements and arrangements described in Item 601(b)(10)(iii) of Regulation S-K of the SEC)Collective Bargaining Agreement.
(b) True With respect to each Contract set forth on Section 3.08(a) of the Disclosure Schedules, and complete copies subject to entry of each Material the Sale Order and any other applicable Order necessary to consummate the transactions contemplated by this Agreement and the other Transaction Documents and the assumption by Buyer of the applicable Contract in effect accordance with applicable Law (including satisfaction of all applicable Cure Costs), and except (x) as a result of the date hereof have commencement of the Chapter 11 Cases or (y) with respect to any Contract that has previously expired in accordance with its terms, been made available to Parent terminated, restated, or publicly filed with replaced, (i) such Contract is in full force and effect and constitutes the SEC prior legal, valid and binding obligation of the Group Company party thereto and, to the date hereof. Neither Knowledge of Sellers, the counterparty thereto, enforceable against such Group Company nor any and, to the Knowledge of Sellers, the counterparty thereto in accordance with its terms and conditions, subject to the Bankruptcy Law; (ii) the Cure Costs set forth in the Original Contract & Cure Schedule are true and correct; (iii) except as set forth on Section 3.08(b)(iii) of the Disclosure Schedules, neither the Group Company Subsidiary party thereto nor, to the Knowledge of Sellers, the counterparty thereto is in material breach or material default thereof that would permit or give rise to a right of termination, modification or acceleration thereunder; and (iv) except as set forth on Section 3.08(b)(iv) of the Disclosure Schedules, no Group Company and, to the Knowledge of Sellers, no counterparty thereto, has commenced any Proceeding against any other party to such Contract or given or received any written notice of any breach or default under the terms of any Material Contract, except as such Contract that has not had been withdrawn or dismissed, except, in the cases of clauses (iii) and (iv), for breaches or defaults caused by or resulting from, or filings or objections made in, the Chapter 11 Cases or which would not reasonably be expected to havenot, individually or in the aggregate, a Company Material Adverse Effect. To the Company’s Knowledge, as of the date hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract where such breach or default has had or would reasonably be expected to havebe material and adverse to the Business, individually or in the aggregatePurchased Assets, a Company Material Adverse Effect. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Material Contract is a valid, binding and enforceable obligation of the Company Purchased Entities or the Company Subsidiary which is party thereto andAssumed Liabilities, to the Company’s Knowledge, of each other party thereto, and is in full force and effect, subject to the Enforceability Limitations and any expiration thereof in accordance with its terms existing taken as of the date hereof and without any material breacha whole.
Appears in 2 contracts
Sources: Asset and Equity Purchase Agreement (iMedia Brands, Inc.), Asset and Equity Purchase Agreement (iMedia Brands, Inc.)