Material Contracts. (i) None of the Core MTS Business or any of its Subsidiaries is a party to or bound by: (A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more; (B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements; (C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016; (D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business; (E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more; (F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing); (G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property); (H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right; (I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice; (J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise); (K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business; (L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents); (M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or (N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws. (ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 4 contracts
Sources: Agreement of Contribution and Sale (PF2 SpinCo, Inc.), Agreement of Contribution and Sale (Change Healthcare Inc.), Agreement of Contribution and Sale (Change Healthcare Inc.)
Material Contracts. (a) Excluding any Contract that is an Excluded Asset or Excluded Liability, Schedule 4.06(a) lists each of the following Contracts to which any Seller or the Purchased Subsidiary is a party or by which it is bound in connection with the Business or the Transferred Assets (collectively, the “Material Contracts”):
(i) None all Contracts involving aggregate consideration in excess of $150,000 and which, in each case, cannot be cancelled without penalty or without more than ninety (90) days’ notice;
(ii) all Contracts that relate to the sale of any of the Core MTS Business or any Transferred Assets for consideration in excess of its Subsidiaries is a party to or bound by:$150,000, other than customer Contracts incurred in the Ordinary Course of Business;
(iii) (A) any agreement for material licenses or other rights granted to any Person with respect to Transferred Technology, and (B) all material Intellectual Property Licenses, other than (i) shrink-wrap, click-wrap and off-the-shelf Software licenses, and other licenses of Software that is commercially available to the lease or sublease (whether of real or personal property) providing for annual payments public generally, with licenses, maintenance, support and other fees of $750,000 100,000 or moreless, and (ii) non-exclusive license agreements entered into in the Ordinary Course of Business, including Existing Contracts (as defined in the Buyer Software License Agreement);
(Biv) any agreement all Contracts that provide for exclusive rights for the benefit of any Third Party, grants “most favored nation” status, contains minimum volume or purchase commitments, or requires a Seller to provide any minimum level of materialsservice, suppliesin each case which are material to the Business, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementstaken as a whole;
(Cv) any salesother than indemnification of directors, distribution officers or other similar agreement providing employees of the Business under the applicable Law or the governing documents of Sellers and/or its Affiliates, all Contracts that provide for the sale indemnification of materials, supplies, goods, services, equipment any Person or other assets that provides for annual payments the assumption of $5.0 million or more in MCK’s fiscal year 2016any Liability of any Person;
(Dvi) any equity partnership, joint venture or other similar agreement or arrangement all Contracts that is material to the Core MTS Business;
(E) any agreement relating relate to the acquisition or disposition of any business 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) within the three last two (2) years preceding the date hereof involving aggregate consideration of $250,000 or morethat have any surviving obligations;
(Fvii) all material distributor, agency, sales promotion, market research, marketing consulting and advertising Contracts;
(viii) all Contracts with any agreement relating Governmental Authority;
(ix) all Contracts that limit or purport to indebtedness for borrowed moneylimit the ability of any Seller to compete in any line of business or with any Person or engage in any line of business within any geographic area or acquire the assets or securities of another Person, or otherwise materially restricts Sellers’ ability to solicit or hire any Person or solicit business from any Person, and each Contract that could require the deferred purchase price disposition of property any material assets or capital leases line of business of any Seller;
(in either casex) all joint venture, whether incurred, assumed, guaranteed partnership or secured by similar Contracts;
(xi) all powers of attorney with respect to the Business or any assetTransferred Asset;
(xii) involving payment obligations of $1,500,000 all Contracts between or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, a Seller on the one hand, hand and MCK or any Affiliate of its Affiliates (other than the MCK Contributed Entities), a Seller on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);and
(Gxiii) any agreement that restricts, prohibits all collective bargaining agreements or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete Contracts with any Person (includinglabor organization, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses union or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsassociation.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) Contract is a valid and binding agreement on Sellers in accordance with its terms, and except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general principles of the Core MTS Business and equity (regardless of whether enforcement is sought in a Proceeding at Law or in equity), is in full force and effect, and none of the Core MTS Business, effect in all material respects. No Seller or, to the knowledge of MCKSellers’ Knowledge, any other party thereto is in breach of or default or breach under any Material Contract in any respect under the terms material respects, or has provided or received any notice of such MTI any intention to terminate, any Material Contract. No event or circumstance has occurred that, except for with notice or lapse of time or both, would constitute an event of default under any Material Contract in any material respect or result in a termination thereof or would cause or permit the acceleration or other changes of any right or obligation or the loss of any benefit thereunder. Except as set forth on Schedule 4.06(b) which contains only Intellectual Property Licenses (such defaults or breaches which would not reasonably be expectedContracts set forth on Schedule 4.06(b), individually or in each a “Post-Signing Contract” and collectively, the aggregate“Post-Signing Contracts”), to be material to the Core MTS Business, taken as a whole. True complete and complete correct copies of each MTI Material ContractContract (including all modifications, amendments and all amendments thereto, in each case subject to the redaction of certain information, supplements thereto and waivers thereunder) have been delivered made available to MCK or its outside counselBuyer.
Appears in 4 contracts
Sources: Purchase Agreement (American Virtual Cloud Technologies, Inc.), Purchase Agreement (Ribbon Communications Inc.), Purchase Agreement (American Virtual Cloud Technologies, Inc.)
Material Contracts. (a) As of the date of this Agreement, Schedule 4.11(a) of Seller’s Disclosure Schedules lists each of the following Contracts of the Companies and the Transferred Subsidiaries (collectively, “Material Contracts”):
(i) None Any Contract relating to any Indebtedness for borrowed money in excess of $7,500,000;
(ii) Any written employment, severance, termination, employee-like consulting or retirement Contract for any Employee providing for annual compensation in excess of $375,000 (excluding discretionary bonuses) or with respect to the Core MTS Business employment of, severance, retention or payment to, any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moredirectors and executive officers;
(Biii) any agreement for Any Contract entered into within the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement last three years relating to the acquisition or disposition of any business or assets (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration contemplating an exchange of value in excess of $250,000 or more3,750,000;
(Fiv) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement Any Contract that restricts, prohibits or impairs (limits or purports to restrictlimit the manner in which, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (duration for which or the Company after the Closing), any material acquisition of property by the Core MTS Business (localities in which its business is or could be conducted or the Company after the Closing) types of business that it conducts or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to may conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) other than pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements engagement letters entered into in the ordinary course of business consistent with past practicebusiness;
(Jv) any agreement Any material Contract pursuant to which (1) the Core MTS Business has provided Companies or leased, or agreed the Transferred Subsidiaries grant a license to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property owned by the Companies or their respective Subsidiaries to a third party or (including any contingent right to receive 2) the Companies or lease source code containing or embodying any Software included in the MCK Owned Transferred Subsidiaries license Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement from a third party (other than licenses for commercial “off-the-shelf” or otherwise“shrink-wrap” software);
(Kvi) any agreement Any Contract relating to the employment, severance, retention or indemnification settlement of any service provider 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 than the Core MTS Business with a base salary Companies or base compensation the Transferred Subsidiaries) involving any amount or obligation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business1,000,000;
(Lix) Any Contract (including any so-called take-or-pay or keepwell agreements) under which (A) any agreement with 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 benefit purpose of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and collection in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreementsbusiness), equipment in any such case which, individually, is in excess of $500,000;
(x) 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 case which, individually, is in excess of $3,750,000 other assets that are generally available for purchase by business entities than any such Contract entered into in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments ordinary course of less than $1.0 million; orbusiness;
(Nxi) Any Contract providing for indemnification of any agreement person with any Governmental Authority respect to material liabilities relating to corporate integrity, deferred prosecution, any current or former business of any Company or Transferred Subsidiary;
(xii) Any Contract for any joint venture; and
(xiii) Any Contract other than as set forth above to which any Company or Transferred Subsidiary is a party or by which it or any of its assets or businesses is bound or subject that is material to its business or the Core MTS Business’ use or MCK’s material non-compliance with Health Care Lawsoperation of its assets.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 3 contracts
Sources: Stock Purchase Agreement, Stock Purchase Agreement (Raymond James Financial Inc), Stock Purchase Agreement (Regions Financial Corp)
Material Contracts. Except as disclosed in Section 5.15 of the ------------------ Source Disclosure Memorandum or otherwise reflected in the Source Financial Statements or the Joint Venture Financial Statements, none of the Source Entities, the Joint Venture nor any of their respective Assets, businesses, or operations, is a party to, or is bound or affected by, or receives benefits under, (i) None of the Core MTS Business any employment, severance, termination, or any of its Subsidiaries is a party to or bound by:
retirement Contract, (Aii) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement Contract relating to the acquisition borrowing of money by any Source Entity or disposition the guarantee by any Source Entity or the Joint Venture of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more such obligation (other than Contracts evidencing trade payables and Contracts relating to borrowings or guarantees made in the ordinary course of business), (iiii) intercompany indebtedness any Contract which prohibits or restricts any Source Entity or the Joint Venture from engaging in any business activities in any geographic area, line of business or otherwise in competition with any other Person, (iv) any Contract between or among the MCK Contributed Entities and Source Entities, or other Affiliates of Source, (iiv) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates Contract involving Intellectual Property (other than Contracts entered into in the MCK Contributed Entitiesordinary course with customers and "shrink-wrap" software licenses), on (vi) any Contract relating to the provision of data processing, network communication, or other hand; provided thattechnical services to or by any Source Entity or the Joint Venture, (vii) any Contract relating to the purchase or sale of any goods or services, including customer contracts, (viii) consulting Contracts, (ix) and all Contracts referred to in Sections 5.9 and 5.14(a) (other than Contracts in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impairiv), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closingv), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of businessvi), (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rightsvii), (IIviii) any non-competition or non-solicitation restrictionsand (ix), (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) and involving payments under any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation individual Contract not in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents100,000), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement as of the Core MTS Business date of this Agreement (collectively, the "Source Contracts"). With respect to each Source Contract and except as disclosed in Section 5.15 of the Source Disclosure Memorandum: (i) the Contract is in full force and effect, and none ; (ii) no Source Entity nor the Joint Venture is in Default thereunder; (iii) no Source Entity has repudiated or waived any material provision of the Core MTS Business, orany such Contract; (iv) no other party to any such Contract is, to the knowledge Knowledge of MCKSource, any other party thereto is in default or breach Default in any respect under the terms of such MTI Material Contractor has repudiated or waived any material provision thereunder; (v) there exists no actual, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS BusinessKnowledge of Source, taken as threatened, cancellation, termination, or limitation of, or any amendment, modification, or change to any Contract; (vi) no Source Entity has received formal notice that any party to a wholeContract will not renew such Contract at the end of its existing term; and (vi) no Source Contract requires consent for assignment in connection with the transactions contemplated by this Agreement. True and complete copies All of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction indebtedness of certain information, have been delivered to MCK any Source Entity for money borrowed is prepayable at any time by such Source Entity without penalty or its outside counselpremium.
Appears in 3 contracts
Sources: Merger Agreement (National Data Corp), Merger Agreement (National Data Corp), Merger Agreement (National Data Corp)
Material Contracts. (ia) None All Contracts required to be filed as exhibits to the Velodyne SEC Documents have been so filed in a timely manner. Section 3.16(a) of the Core MTS Business Velodyne Disclosure Schedule sets forth a true and complete list, as of the date hereof, of each of the following Contracts, excluding any Velodyne Benefit Plans, to which Velodyne or any of its Subsidiaries is a party to or by which Velodyne or any of its Subsidiaries or any of their assets or businesses are bound by:(and any amendments, supplements and modifications thereto):
(Ai) any agreement for Contract that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moreExchange Act);
(Bii) any agreement for Contract that materially limits the purchase ability of materialsVelodyne or any of its affiliates (including, suppliesfollowing the consummation of the Transactions, goods, services, equipment the Surviving Company and its affiliates) to engage or other assets providing for annual payments compete in any line of $3.0 million business or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsgeographic area;
(Ciii) any sales, distribution or other similar agreement providing for Contract required to be disclosed pursuant to Item 404 of Regulation S-K of the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016Exchange Act;
(Div) any equity partnership, joint venture Contract or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition series of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement related Contracts relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases money (A) in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations excess of $1,500,000 2,000,000 or more (other than B) that becomes due and payable as a result of the Transactions;
(iv) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK material Contract pursuant to which a third party has licensed or granted any right to Velodyne or any of its Affiliates Subsidiaries in any material Intellectual Property (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing“Velodyne In-Licenses”);
(Gvi) any agreement that restricts, prohibits Contract pursuant to which both Velodyne or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned its Subsidiaries and a third party have licensed or granted substantially portfolio-wide rights in their respective Patents or other material Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement to one another (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into granted in the ordinary course of business consistent by a customer to Velodyne or any of its Subsidiaries with past practice;
(J) any agreement pursuant respect to which the Core MTS Business has provided derivative works, improvements or leasedmodifications made by such third party to, or agreed to provide or leaseany implementations by such third party of, any source code containing product or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property technology provided to a such third party by Velodyne or any of its Subsidiaries) (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise“Velodyne IP Cross-Licenses”);
(Kvii) any agreement relating material Contract pursuant to which Velodyne or any of its Subsidiaries has granted any third party any rights or licenses, other than Ordinary Course Licenses, with respect to any Velodyne Intellectual Property or any material product or technology owned or purported to be owned by Velodyne or any of its Subsidiaries (the employment“Velodyne Out-Licenses,” and collectively with the Velodyne In-Licenses and Velodyne IP Cross-Licenses, severance, retention or indemnification of the “Velodyne IP Contracts”);
(viii) any service provider of the Core MTS Business with a base salary or base compensation Contract reasonably expected to result in payments in excess of $300,000 per year2,000,000 in any twelve (12) month period after the Closing Date;
(ix) any purchase, sale or supply contract that contains material volume requirements or commitments, exclusive or preferred purchasing, distribution or marketing arrangements for a material period of time, most favored nation status or similar provisions or promotional requirements, other than those any such Contracts that can be terminated without liability are not material to the Core MTS BusinessVelodyne and its Subsidiaries;
(Lx) any Velodyne Real Property Lease reasonably expected to result in payments in excess of $1,000,000 in any twelve (12) month period after the Closing Date;
(xi) any agreement with that grants any right of first refusal or for right of first offer or similar right or put, call or similar right or that limits or purports to limit the benefit ability of MCK Velodyne or any Affiliate of MCK with obligations that continue following the Closing its Subsidiaries to own, operate, sell, transfer, pledge or otherwise dispose of any material amount of assets or businesses (other than the Transaction Documentsin any case, in excess of $2,000,000);
(Mxii) any acquisition or divestiture agreement (A) entered into since October 1, 2020, with a purchase price in excess of $5,000,000 or (B) that contains “earn-out” provisions or other contingent payment obligations that could reasonably be expected to exceed $2,000,000 (including indemnification obligations) that have not been satisfied in full as of the date hereof;
(xiii) any agreement with that by its terms prohibits or for limits the benefit payment of MCK dividends or other distributions by Velodyne or any Affiliate of MCK with obligations that continue following the Closing its Subsidiaries;
(other than the Transaction Documents)xiv) any Contract for any joint venture, other than agreements with MCK partnership or similar arrangement, or any Affiliate Contract involving a sharing of MCK entered into on arm’s length terms and in the ordinary course revenues, profits, losses, costs or liabilities by Velodyne with any other Person or any of business for the purchase its Subsidiaries;
(xv) any “single source” supply Contract pursuant to which goods or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets materials that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms material to Velodyne or any of its Subsidiaries are supplied to Velodyne or such Subsidiary from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 millionan exclusive source; or
(Nxvi) any agreement Contract with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care LawsEntity.
(iib) Each agreement required Velodyne has heretofore made available to be disclosed pursuant to this Section 4.02(i) (eachOuster true, a “MTI Material Contract”) is a valid correct and binding agreement complete copies of the Core MTS Business Contracts set forth in Section 3.16(a).
(c) Except as has not had and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expectedexpected to have, individually or in the aggregate, a Velodyne Material Adverse Effect, (i) all Contracts set forth or required to be material set forth in Section 3.16(a) of the Velodyne Disclosure Schedule or filed or required to be filed as exhibits to the Core MTS BusinessVelodyne SEC Documents (the “Velodyne Material Contracts”) are valid, taken binding and in full force and effect and are enforceable by Velodyne or its applicable Subsidiary in accordance with their terms, except as a whole. True limited by Laws affecting the enforcement of creditors’ rights generally, by general equitable principles or by the discretion of any Governmental Entity before which any Proceeding seeking enforcement may be brought, (ii) Velodyne, or its applicable Subsidiary, has performed all obligations required to be performed by it under the Velodyne Material Contracts, and complete copies it is not (with or without notice or lapse of each MTI time, or both) in breach or default thereunder and, to the Knowledge of Velodyne, no other party to any Velodyne Material Contract is (with or without notice or lapse of time, or both) in breach or default thereunder, (iii) since October 1, 2021, neither Velodyne nor any of its Subsidiaries has received written notice of any actual, alleged, possible or potential violation of, or failure to comply with, any term or requirement of any Velodyne Material Contract, and all amendments thereto(iv) neither Velodyne nor any of its Subsidiaries has received any written notice of the intention of any party to cancel, in each case subject terminate, materially change the scope of rights under or fail to the redaction of certain information, have been delivered to MCK or its outside counselrenew any Velodyne Material Contract.
Appears in 2 contracts
Sources: Merger Agreement (Ouster, Inc.), Merger Agreement (Velodyne Lidar, Inc.)
Material Contracts. (a) Schedule 5.9(a) sets forth all the following Contracts currently in effect to which Seller is a party and that are primarily related to the Business or by which the Transferred Assets may be bound or affected (the “Material Contracts”):
(i) None any Contract requiring a capital expenditure or known commitment in excess of the Core MTS Business $50,000;
(ii) any Contract under which Seller is obligated to purchase, sell or any of its Subsidiaries is a party lease real or personal property to or bound by:from third parties and having a value in excess of $50,000 or an annual lease payment in excess of $50,000;
(iii) any Contract with respect to the Leased Real Property;
(iv) any Contract under which Seller has (A) any agreement for the lease created, incurred, assumed or sublease guaranteed (whether of real or personal propertymay create, incur, assume or guarantee) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, (B) granted a Lien on the deferred purchase price of property or capital leases (in either caseTransferred Assets, whether incurredtangible or intangible, assumed, guaranteed to secure such indebtedness for borrowed money or secured by (C) extended credit to any assetPerson;
(v) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed EntityContract between Seller, on the one hand, and MCK one or any more of its Affiliates (other than the MCK Contributed Entities)Seller’s Affiliates, on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(Gvi) any agreement material Contract establishing any joint venture, strategic alliance or other collaboration;
(vii) all Contracts providing for material payments to or by any Person based on sales, purchase or profits other than direct payments for goods or services;
(viii) any Contract that restricts, prohibits restricts or impairs limits (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have A) the effect of prohibiting, restricting or impairing, any material business practice ability of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) Seller to conduct the following activities (i) freely engage in any line of business, (ii) sell, license or otherwise distribute services or products the Business in any geographic area or (iiiB) compete with the ability of Subsidiaries of the Seller to conduct any legal line of business in any geographic area;
(ix) any Contract relating to outstanding letters of credit or performance bonds or creating any liability as guarantor, surety, co-signer, endorser, co-maker or indemnitor, in each case in respect of the obligation of any Person to make payments or perform services with a value of at least $50,000; and
(including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (IIx) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of amendment related to any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsforegoing.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(iExcept as set forth on Schedule 5.9(b), (i) (each, a “MTI Material Contract”) is a valid and binding agreement all of the Core MTS Business and is Material Contracts are in full force and effecteffect and are the legal, valid and none binding obligations of the Core MTS Business, orSeller and, to the knowledge of MCKSeller’s Knowledge, any other party thereto thereto, and (ii) Seller has performed all of its material obligations thereunder and is not in default material violation or breach of or default under any Material Contract except for breaches or defaults that will be cured in any respect accordance with the Sale Order (or that need not be cured under the terms Bankruptcy Code to permit the assumption and assignment of such MTI Material Contract). To Seller’s Knowledge, except for any the other parties to each Material Contract are not in material violation or breach of or default under such defaults or breaches which would not reasonably be expected, individually or in the aggregate, Material Contract. Seller has made available to be material to the Core MTS Business, taken as a whole. True Purchaser and true and complete copies copy of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 2 contracts
Sources: Asset Purchase and Sale Agreement, Asset Purchase and Sale Agreement
Material Contracts. Schedule 4.25 delivered to AMCON by HNWC prior to the execution of this Agreement lists all material contracts and agreements and use permits to which, as of the date hereof, HNWC is a party or by which is bound or under which HNWC has or may acquire any rights, which involve or relate to (i) None obligations of HNWC for borrowed money or other indebtedness where the amount of such obligations exceeds $50,000 individually, (ii) the lease by HNWC, as lessee or lessor, of real property for rent of more than $25,000 per annum, (iii) the purchase or sale of goods (other than raw material to be purchased by HNWC on terms that are customary and consistent with the past practice of HNWC and in amounts and at prices substantially consistent with past practices of HNWC) or services with an aggregate minimum purchase price of more than $25,000 per annum, (iv) rights to manufacture and/or distribute any product which accounted for more than $25,000 of the Core MTS Business consolidated revenues of HNWC during the fiscal year ended December 31, 1999 or any of its Subsidiaries is a party to under which HNWC received or bound by:
(A) any agreement for the lease paid license or sublease (whether of real or personal property) providing for annual payments other fees in excess of $750,000 or more;
25,000 during any year, (Bv) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant properties not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to having a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation purchase price in excess of $300,000 per year25,000, (vi) the right (whether or not currently exercisable) to use, license (including any "in-license" or "outlicense"), sublicense or otherwise exploit any intellectual property right or other than those that can be terminated without liability proprietary asset of HNWC or any other Person which, when considered together with all such other rights, is material to the Core MTS Business;
HNWC; (Lvii) any agreement material collaboration or joint venture or similar arrangement; (viii) the restriction on the right or ability of HNWC (A) to compete with any other Person, (B) to acquire any product or other asset or any services from any other Person, (C) to solicit, hire or retain any Person as an employee, consultant or independent contractor, (D) to develop, sell, supply, distribute, offer, support or service any product or any technology or other asset to or for the benefit of MCK any other Person, (E) to perform services for any other Person, or (F) to transact business or deal in any Affiliate of MCK other manner with obligations that continue following the Closing any other Person; (other than the Transaction Documents);
(Mix) any agreement with currency hedging; (x) individual capital expenditures or for the benefit commitments in excess of MCK $25,000; or (xi) any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents)license, other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materialslease, supplies, goods, services (excluding any employment agreements), equipment permit or other assets that right to use any water used by HNWC in its bottling operations. All such contracts and agreements and permits are generally available for purchase duly and validly executed by business entities in HNWC, the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers other party thereto and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any all Governmental Authority relating to corporate integrityEntities, deferred prosecutionas the case may be, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is are in full force and effecteffect in all material respects. HNWC has not violated or breached, and none of the Core MTS Businessor committed any default under, orany contract or agreement or permit, and, to the knowledge of MCKHNWC, neither HNWC or other Person has violated or breached, or committed any default under, any contract or agreement or permit, which violation, breach or default (alone or in combination with other party thereto is in violations, breaches or defaults under such contract or agreement or permit or under other contracts or agreements or permits) has had or may reasonably be expected to have a HNWC Material Adverse Effect. No event has occurred which, after notice or the passage of time or both, would constitute a default by HNWC under any contract or agreement or permit or give any Person the right to (A) declare a default or breach exercise any remedy under any contract or agreement or permit, (B) receive or require a rebate, chargeback, penalty or change in delivery schedule under any respect under contract or agreement or permit, (C) accelerate the terms maturity or performance of such MTI Material Contractany contract or agreement or permit, except for or (D) cancel, terminate or modify any such defaults contract or breaches which would not reasonably be expected, individually agreement or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments theretopermit, in each case subject which, together with all other events of the types referred to in clauses (A), (B), (C) and (D) of this sentence has had or may reasonably be expected to have a HNWC Material Adverse Effect. All such contracts and agreements and permits will continue, after the redaction of certain informationEffective Time, have been delivered to MCK or its outside counselbe binding in all material respects in accordance with their respective terms until their respective expiration dates.
Appears in 2 contracts
Sources: Merger Agreement (Amcon Distributing Co), Merger Agreement (Hawaiian Natural Water Co Inc)
Material Contracts. (a) Part 5.15(a) of the ▇▇▇▇▇▇▇▇ Disclosure Schedule sets forth, as of the date hereof, a complete and accurate list of all Contracts of the following types to which ERC or any ERC Sub that owns a Retirement Community is a party, or by which such ERC Company or such ERC Company’s properties or assets are bound (the “Material Contracts”):
(i) None of the Core MTS Business Contracts to manage any real property, business or any of its Subsidiaries is charitable activity in connection with a party to or bound by:
Retirement Community (A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed moneycollectively, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing“Management Agreements”);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license Contracts with any provider of health care products or otherwise distribute services involving expenditures or products revenue in any geographic area or excess of $250,000 anunually;
(iii) compete with Contracts under which any Person ERC Sub that owns a Retirement Community is a lessor, lessee, sublessor, sublessee, licensor or licensee of any real property (includingthe “Real Property Leases”), for stating in each case the avoidance street address or other reasonable descriptor of doubtthe land, buildings or other improvements covered thereby (the “Leased Real Property”);
(iv) Contracts relating to the development of, or the construction of any improvements on, any material agreement real property (collectively, the “Development Contracts”);
(v) Contracts under which ERC, any Transferred Landowner or other ERC Sub that includes owns a Retirement Community or, to the Knowledge of the ▇▇▇▇▇▇▇▇ Parties, any NFP, has incurred, assumed or guaranteed any indebtedness for borrowed money in excess of $250,000 individually and $1,000,000 in the aggregate (Ithe “Credit Facilities”);
(vi) grants by Contracts under which any ERC Company has the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses right or “most favored party” rights, option to purchase any real property;
(IIvii) any Contracts imposing non-competition or non-solicitation restrictionsany other restriction with respect to the geographical area, (III) any rights scope or type of first refusal or rights of first offer or (IV) any limits on the use operations of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)ERC Company;
(Hviii) Contracts containing any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant “change of control” provision with respect to which the Core MTS Business obtains the right to use, any ERC Company or a covenant not to be sued under, any Intellectual Property RightParent;
(Iix) Contracts involving an investment by any agreement pursuant to which Transferred Landowner in any Person that is authorized to usenot also an ERC Company, including any partnership, limited liability company or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practicejoint venture;
(Jx) Contracts under which any agreement pursuant revenue, profit or income of the Business is required to which the Core MTS Business has provided or leasedbe, or agreed to provide or leasemay be, shared with any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise)Person;
(Kxi) employment Contracts;
(xii) Contracts with any agreement relating to the employment, severance, retention or indemnification of Employee containing any service provider of the Core MTS Business with a base salary or base compensation restrictive covenants;
(xiii) Contracts that involve aggregate payments in excess of $300,000 250,000 per year, other than those that can be terminated without liability annum; and
(xiv) to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documentsextent not described elsewhere in this Section 5.15(a), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets Contracts that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 2 contracts
Sources: Master Purchase and Sale Agreement, Master Purchase and Sale Agreement
Material Contracts. Schedule 3.10 sets forth a true, correct and complete list of all existing contracts (ia) None involving an annual commitment or annual payment to or from the Transferred Subsidiaries of more than Fifty Thousand United States Dollars (US$50,000), (b) with respect to the Transferred Subsidiaries relating to any indebtedness for borrowed money or the deferred purchase price of property, (c) which limit or restrict in any respect any of the Core MTS Business or Transferred Subsidiaries from engaging in any line of its Subsidiaries is a party to or bound by:
business in any jurisdiction, (Ad) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business the Transferred Subsidiaries (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iiie) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into made in the ordinary course of business consistent with past practice;
(J) any agreement pursuant and that are significant to the Transferred Subsidiaries, including all amendments thereto, to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK Seller or any Affiliate of MCK its Subsidiaries is a party or by which it is bound (the “Material Contracts”). Each Material Contract is legal, valid, binding and enforceable in accordance with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement its respective terms with or for the benefit of MCK respect to Seller or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents)its Subsidiaries, other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, orand, to the knowledge of MCKSeller’s Knowledge, any each other party thereto is in default or breach in any respect under the terms of to such MTI Material Contract, except for any such as the same may be limited by bankruptcy, insolvency, reorganization, moratorium or other Laws affecting the rights of creditors generally and subject to the Laws governing (and all limitations on) specific performance, injunctive relief and other equitable remedies. There are no existing defaults or breaches by Seller or any of its Subsidiaries under any Material Contract or any other contract to which Seller or any of its Subsidiaries is party and which relates to the Transferred Subsidiaries (or events or conditions which, with notice or lapse of time or both, would constitute a default or breach) and, to Seller’s Knowledge, there are no such defaults (or events or conditions which, with notice or lapse of time or both, would constitute a default or breach) with respect to any third party to any Material Contract or any such other contract, except in each case defaults or breaches that would not reasonably be expected, individually or in expected to have a Material Adverse Effect on the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselTransferred Subsidiaries.
Appears in 2 contracts
Sources: Acquisition Agreement (Wireless Facilities Inc), Acquisition Agreement (LCC International Inc)
Material Contracts. (i) None Schedule 3.6(b) lists all of the Core MTS Business following Contracts, agreements, commitments, arrangements, undertakings or any of its Subsidiaries understandings to which a FS Tech Entity is a party or to which a FS Tech Entity is or may be bound by:or to which the Properties of a FS Tech Entity or the Assets are or may be bound or subject or to which Seller Parent is a party with respect to the Business (each a “Material Contract,” provided however, such list and the term “Material Contract” shall not include the Real Property Leases referenced in Section 3.4(b), Personal Property Leases referenced in Section 3.4(c), Intellectual Property Licenses referenced in Section 3.5(b), Debt Instruments referenced in Section 3.6(a) and Insurance Policies referenced in Section 3.6(c)):
(A) any agreement for establishing or concerning the lease operation of, a partnership or sublease (whether of real joint venture or personal property) providing for annual payments of $750,000 or moresimilar arrangement;
(B) any agreement for the purchase or sale of materials, supplies, goods, services, equipment products or other assets providing for annual payments services (excluding utilities Contracts) that has a value in excess of $3.0 million 100,000, individually, or, for a series of related Contracts with the same party, in the aggregate, or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsa remaining term of greater than twelve (12) months;
(C) any salesagreement that prohibits a FS Tech Entity or any of its Affiliates from freely engaging in business in any line of business, distribution or other similar agreement providing for anywhere in the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016world;
(D) any equity partnershipagreement that grants any exclusive marketing, joint venture distribution, Intellectual Property or other similar agreement or arrangement that is material rights to the Core MTS Businessany third party;
(E) any agreement relating to the acquisition or disposition that contains any form of most-favored pricing provision in favor of any business (whether by merger, sale customer or supplier of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or moreBusiness;
(F) any agreement relating to indebtedness for borrowed moneywith a consultant, the deferred purchase price of property distributor, lobbyist, or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing)third-party agent;
(G) any written agreement that restrictswith any Business Employee or independent contractor of the FS Tech Entities providing for wage, prohibits or impairs (or purports to restrictbonus, prohibit or impair)consulting fee, equity grants, or has similar compensation opportunities or would reasonably be expected to have the effect of prohibiting, restricting or impairing, providing for any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete employment relationship with any Person (including, for the avoidance of doubt, any material agreement Business Employee that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or is not “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)employment at will”;
(H) any material agreement (excluding licenses for commercial off that requires any performance collateral in the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to useform of payment bonds, or a covenant not to be sued underperformance bonds, any Intellectual Property Rightwarranty bonds and/or bank letters of credit;
(I) any agreement pursuant to under which any Person there is authorized to usean outstanding advance or loan, or receives a covenant not commitment to be sued undermake any advance or loan, to any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Propertyother Person, other than those contained within customer agreements entered into but in each case only to the ordinary course extent that any such advance or loan exceeds (or under the terms of business consistent with past practicethe commitment could exceed) $100,000;
(J) any agreement pursuant agreement, including but not limited to which any guarantee, obligating a FS Tech Entity to indemnify any other Person in an amount in excess of $100,000, other than in connection with the Core MTS operation of the Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise)Ordinary Course of Business;
(K) any agreement relating to agreements since January 1, 2008, for the employmentacquisition of capital stock or assets of another Person (whether by merger, severancestock or asset purchase), retention except for agreements for the acquisition of inventory or indemnification other assets in the Ordinary Course of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any written severance or termination agreement with any current Business Employee or for independent contractor of the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents)FS Tech Entities;
(M) any collective bargaining agreement with or for the benefit of MCK similar labor agreement involving any Business Employees or covering any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK Business operation or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; oractivity;
(N) any agreement with to pay or receive any Governmental Authority relating to corporate integrity, deferred prosecution, royalty or the Core MTS Business’ or MCK’s material license fee for any Intellectual Property (other than any non-compliance exclusive license for the use of any commercially available off-the-shelf software which was entered into in the Ordinary Course of Business);
(O) each outstanding power of attorney with Health Care Lawsrespect to the Business;
(P) any agreement that requires any source code to be escrowed; and
(Q) any agreement not entered into in the Ordinary Course of Business of the Business.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, The Sellers have made available to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as Buyer a whole. True true and complete copies copy of each MTI written Material ContractContract and a description of each oral Material Contract (including all amendments, modifications and all amendments supplements thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel).
Appears in 2 contracts
Sources: Asset Purchase Agreement, Asset Purchase Agreement (Federal Signal Corp /De/)
Material Contracts. (a) Schedule 3.16 of the Disclosure Schedules lists each of the following Contracts (such Contracts as described in this Section 3.16(a), subject to the provisions of Section 2.5(c), being “Material Contracts”):
(i) None all Assumed Contracts set forth on Schedule 3.16(a)(i)(1) with customers of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materialsBusiness, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than Assumed Contracts substantially in a form set forth on Schedule 3.16(a)(i)(2) of the Disclosure Schedules and made available to Buyer (i) intercompany indebtedness among the MCK Contributed Entities and “Customer Standard Forms”)
(ii) intercompany indebtedness among any all Assumed Contracts that limit or purport to limit the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice ability of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage compete in any line of business, (ii) sell, license business or otherwise distribute services with any Person or products in any geographic area or during any period of time, or that, in connection with the Business, restricts the right of Seller to sell to or purchase from any Person, or that grants the other party or any third person “most favored nation” status;
(iii) compete with all joint venture, partnership or similar Assumed Contracts regarding ownership of or investments in any Person Person, business or enterprise;
(including, for the avoidance of doubt, any material agreement iv) all Assumed Contracts that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive are inbound or outbound licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on regarding the use of any of the MCK Owned material Transferred Intellectual Property and/or MCK Licensed or Transferred Technology;
(v) all Assumed Contracts that involve the lease of equipment with remaining payments that exceed $50,000 in any 12-month period;
(vi) all Assumed Contracts that restrict any Seller Party’s ability to own, use, register, disclose or enforce any Transferred Intellectual PropertyProperty (other than non-exclusive licenses);
(Hvii) all Assumed Contracts with a Significant Customer, Significant Supplier or Governmental Authority (provided that the Seller shall have no obligation to list on Schedule 3.16(a)(vii) any material agreement (excluding licenses for commercial off purchase orders entered into with a Significant Customer on a Customer Standard Form or Significant Supplier in a form set forth on Schedule 3.16(a)(vii) of the shelf computer software that are generally Disclosure Schedules and made available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property RightBuyer);
(Iviii) all Assumed Contracts that involve an obligation to purchase a minimum quantity of goods or services;
(ix) any agreement pursuant collective bargaining agreements or other agreements with a trade union, works council or other similar labor organization to which a Seller Party is a party or otherwise bound that would affect any Person is authorized Business Employees after the Closing;
(x) any Assumed Contract relating to useany disposition or acquisition of assets or any interest in any business enterprise, except for the sale of products or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into services in the ordinary course of business consistent with past practicebusiness;
(Jxi) any agreement pursuant to all Assumed Contracts that are settlement, conciliation or similar agreements which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation would require payment in excess of $300,000 per year, other than those that can be terminated without liability to 100,000 after the Core MTS date hereof or which materially restrict or impose material obligations upon the Business;; and
(Lxii) all Assumed Contracts between or among members of the Seller Group, any agreement with or for the benefit of MCK their respective Affiliates, or any Affiliate Person with whom the Seller Parties do not deal at arms’ length or to which any executive officer or director of MCK with obligations that continue following a member of the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care LawsSeller Group is a party.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) Assumed Contract and Shared Contract is a valid and binding agreement on the applicable Seller Party and, to the Knowledge of Seller, the Core MTS Business counterparties thereto, and is in full force and effect. No Seller Party is in breach of, and none of the Core MTS Business, or, to the knowledge of MCKor default under, any other party thereto Material Contract to which it is in default or breach in any respect under the terms of such MTI Material Contracta party, except for any such breaches or defaults or breaches which that would not reasonably be expectednot, individually or in the aggregate, to be material to the Core MTS BusinessBusiness or the Transferred Assets, taken as and to Seller’s Knowledge, each of the other parties thereto has performed all obligations required to be performed by it under, and is not in breach of or default under, any Material Contract. No event has occurred that would result in a wholematerial breach by any Seller Party of, result in the loss of any material right or benefit of, cause acceleration of, or constitute a default (or an event that, with notice or lapse of time or both, would become a default) or give rise to any right to terminate, cancel, amend or accelerate under, or require any consent of or notice to any Person pursuant to, any Material Contract. True As of the date hereof, no Seller Party has received any written notice, or, to Seller’s Knowledge, oral notice, of any Person’s intent to terminate or materially amend any Material Contract. Seller has made available to Buyer correct and complete copies of each MTI all Material Contract, and all amendments thereto, in each case subject to the redaction of certain informationtogether with all amendments and supplements thereto, and no material changes have been delivered made to MCK or its outside counselany Material Contract since the date on which such Material Contract was made available to Buyer, except such changes as have been made available to Buyer.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Silicon Laboratories Inc.), Asset Purchase Agreement (Skyworks Solutions, Inc.)
Material Contracts. (ia) None Section 4.22(a) of the Core MTS Business Basic Disclosure Letter contains a list of all of the following Contracts or agreements (other than those set forth on an exhibit index in the Basic Reports filed prior to the date of this Agreement) to which Basic or any of its Subsidiaries Basic Subsidiary is a party to or by which any of them is bound by:
(A) any agreement for the lease or sublease (whether as of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more this Agreement (other than this Agreement or any Related Document): (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition agreement that purports to limit the manner in which, or non-solicitation restrictionsthe localities in which, all or any portion of their respective businesses are conducted or would purport to bind Basic, Grey Wolf or any of their Affiliates; (IIIii) any rights of first refusal or rights of first offer or (IV) any limits on the use of hedging agreements by which any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) assets of Basic or any material agreement (excluding licenses for commercial off the shelf computer software that Basic Subsidiary are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to usebound, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation aggregate amount in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
1 million; (Liii) any agreement Contract granting any Person registration or other purchase or sale rights with or for the benefit of MCK respect to any Equity Interest in Basic or any Affiliate of MCK with obligations that continue following the Closing Basic Subsidiary; (other than the Transaction Documents);
(Miv) any voting agreement with or for the benefit relating to any Equity Interest of MCK Basic or any Affiliate of MCK with obligations that continue following the Closing Basic Subsidiary; (other than the Transaction Documents), other than agreements with MCK or v) any Affiliate of MCK entered into on arm’s length terms and in Contract outside the ordinary course to which Basic or any Basic Subsidiary is a party that entitles the other party or parties thereto to receive the benefits thereof without incurring the obligation to pay for same within sixty days after services are provided; (vi) any Contract outside the ordinary course between Basic or any Basic Subsidiary and any current or former Affiliate of business Basic; (vii) any drilling rig construction or conversion Contract with respect to which the drilling rig has not been delivered and paid for; (viii) any drilling Contracts of one year or greater in remaining duration; (ix) any Contract or agreement for the purchase borrowing of money with a borrowing capacity or sale outstanding Indebtedness of materials, supplies, goods, services $2 million or more; or (excluding x) any employment agreements“material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) (all Contracts or agreements of the types described in clauses (i) through (x), equipment or other assets that are generally available for purchase by business entities regardless of whether listed in Section 4.22(a) of the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers Basic Disclosure Letter and which provide for annual payments regardless of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating whether in effect as of the date of this Agreement, being referred to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsherein as “Basic Material Contracts”).
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement As of the Core MTS Business and is date of this Agreement, each of the Basic Material Contracts is, to the knowledge of Basic, in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of . Except for such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expectedmatters that, individually or in the aggregate, have not had or caused and would not reasonably be expected to be material have or cause a Basic Material Adverse Effect, neither Basic nor any of the Basic Subsidiaries knows of, or has received written notice of, any breach or violation of, or default under (nor, to the Core MTS Businessknowledge of Basic and the Basic Subsidiaries, taken as does there exist any condition which with the passage of time or the giving of notice or both would result in such a whole. True and complete copies of each MTI violation or default under), any Basic Material Contract, and all amendments theretoor has received written notice of the desire of the other party or parties to any such Basic Material Contract to exercise any rights such party has to cancel, in each case subject to the redaction of certain information, have been delivered to MCK terminate or its outside counselrepudiate such Contract or exercise remedies thereunder.
Appears in 2 contracts
Sources: Merger Agreement (Grey Wolf Inc), Merger Agreement (Basic Energy Services Inc)
Material Contracts. (ia) None All Contracts required to be filed as exhibits to the DENTSPLY SEC Documents have been so filed in a timely manner. Section 4.16(a) of the Core MTS Business DENTSPLY Disclosure Schedule sets forth a true and complete list, as of the date hereof, of each of the following Contracts to which DENTSPLY or any of its Subsidiaries is a party to or by which DENTSPLY or any of its Subsidiaries or any of their assets or businesses are bound by:(and any amendments, supplements and modifications thereto):
(Ai) any agreement for Contract that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moreExchange Act);
(Bii) any agreement for Contract that materially limits the purchase ability of materialsDENTSPLY or any of its affiliates (including, suppliesfollowing the consummation of the Transactions, goods, services, equipment the Surviving Corporation and its affiliates) to compete or other assets providing for annual payments provide services in any line of $3.0 million business or more with any Person or in MCK’s fiscal year 2016, any geographic area or market segment or to engage in any type of business (including any independent contractor license, collaboration, agency or distribution agreements, but excluding any employment agreements);
(Ciii) any sales, distribution or other similar agreement providing for Contract required to be disclosed pursuant to Item 404 of Regulation S-K of the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016Exchange Act;
(Div) any equity partnership, joint venture Contract or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition series of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement related Contracts relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases money (in either case, whether incurred, assumed, guaranteed or secured by any assetA) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those 10 million or (B) that can be terminated without liability to becomes due and payable as a result of the Core MTS BusinessTransactions;
(Lv) any license, sublicense, option, development or collaboration agreement with or for the benefit other Contract relating to DENTSPLY Material Intellectual Property reasonably expected to result in payments in excess of MCK or $10 million in any Affiliate of MCK with obligations that continue following twelve (12) month period after the Closing Date (excluding license agreements for “shrink-wrap,” “click-wrap” or other than commercially available off-the-shelf software that is not the Transaction Documents);
(M) any agreement with subject of a negotiated agreement, and excluding agreements the primary purpose of which is to purchase tangible goods or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms procure services unrelated to Intellectual Property and in the ordinary course of business business);
(vi) any Contract reasonably expected to result in payments in excess of $10 million in any twelve (12) month period after the Closing Date that provides for any material “most favored nation” provision or equivalent preferential pricing terms or similar obligations to which DENTSPLY or any of its Subsidiaries is subject;
(vii) any distribution Contract with any of DENTSPLY’s top three distributors (measured by dollar volume of spending by the purchase distributor during the twelve (12) months ended June 30, 2015);
(viii) any purchase, sale or sale supply contract that contains volume requirements or commitments, exclusive or preferred purchasing arrangements or promotional requirements reasonably expected to result in payments in excess of materials$10 million in any twelve (12) month period after the Closing Date;
(ix) any lease, suppliessublease, goods, services (excluding any employment agreements), equipment occupancy agreement or other Contract with respect to the DENTSPLY Leased Real Property reasonably expected to result in payments in excess of $10 million in any twelve (12) month period after the Closing Date;
(x) 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 DENTSPLY or any of its Subsidiaries to own, operate, sell, transfer, pledge or otherwise dispose of any material amount of assets or businesses (in any case in excess of $10 million);
(xi) any acquisition or divestiture agreement (A) entered into since June 30, 2012 with a purchase price in excess of $20 million or (B) that contains “earn-out” provisions or other contingent payment obligations that could reasonably be expected to exceed $10 million (including indemnification obligations) that have not been satisfied in full;
(xii) any agreement that by its terms limits the payment of dividends or other distributions by DENTSPLY or any of its Subsidiaries;
(xiii) any Contract for any joint venture, partnership or similar arrangement, or any Contract involving a sharing of revenues, profits, losses, costs, or liabilities by DENTSPLY or any of its Subsidiaries with any other Person involving a potential combined commitment or payment by DENTSPLY and any of its Subsidiaries in excess of $10 million annually;
(xiv) any “single source” supply contract pursuant to which goods or materials that are generally available for purchase by business entities material to DENTSPLY or any of its Subsidiaries are supplied to DENTSPLY or such Subsidiary from an exclusive source reasonably expected to result in payments in excess of $10 million in any twelve (12) month period after the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual Closing Date;
(xv) any Contract with a Governmental Entity reasonably expected to result in payments in excess of less than $1.0 million10 million in any twelve (12) month period after the Closing Date; or
(Nxvi) any other agreement with which would prohibit or delay beyond the Outside Date the consummation of Merger or any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsother Transaction contemplated by this Agreement.
(iib) Each agreement required DENTSPLY has heretofore made available to be disclosed pursuant to this Section 4.02(i) (eachSirona true, a “MTI Material Contract”) is a valid correct and binding agreement complete copies of the Core MTS Business Contracts set forth in Section 4.16(a).
(c) Except as has not had and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expectedexpected to have, individually or in the aggregate, a DENTSPLY Material Adverse Effect, (i) all Contracts set forth or required to be material set forth in Section 4.16(a) of the DENTSPLY Disclosure Schedule or filed or required to be filed as exhibits to the Core MTS BusinessDENTSPLY SEC Documents (the “DENTSPLY Material Contracts”) are valid, taken binding and in full force and effect and are enforceable by DENTSPLY or its applicable Subsidiary in accordance with their terms, except as a whole. True limited by Laws affecting the enforcement of creditors’ rights generally, by general equitable principles or by the discretion of any Governmental Entity before which any Proceeding seeking enforcement may be brought, (ii) DENTSPLY, or its applicable Subsidiary, has performed all obligations required to be performed by it under the DENTSPLY Material Contracts, and complete copies it is not (with or without notice or lapse of each MTI time, or both) in breach or default thereunder and, to the Knowledge of DENTSPLY, no other party to any DENTSPLY Material Contract is (with or without notice or lapse of time, or both) in breach or default thereunder, (iii) since January 1, 2015, neither DENTSPLY nor any of its Subsidiaries has received written notice of any actual, alleged, possible or potential violation of, or failure to comply with, any term or requirement of any DENTSPLY Material Contract, and all amendments thereto(iv) neither DENTSPLY nor any of its Subsidiaries has received any written notice of the intention of any party to cancel, in each case subject terminate, materially change the scope of rights under or fail to the redaction of certain information, have been delivered to MCK or its outside counselrenew any DENTSPLY Material Contract.
Appears in 2 contracts
Sources: Agreement and Plan of Merger (Dentsply International Inc /De/), Merger Agreement (Sirona Dental Systems, Inc.)
Material Contracts. (a) Except as set forth on Schedule 3.12(a) and except as would constitute an Excluded Asset or Excluded Liability, as of the date hereof, neither Seller nor any Subsidiary of either Seller is a party to, nor is either Seller, any Subsidiary of a Seller or any of their respective assets bound by, any Contract (each, a "Material Contract"):
(i) None relating to (A) the employment (as an employee or consultant) or termination of employment of any Person by each Seller or any Subsidiary of either Seller which may not be terminated without penalty or other obligation (other than any severance payments required by law) by such Seller or, as the Core MTS Business case may be, such Subsidiary within twelve (12) months from the date hereof, or (B) the payment to any Person by each Seller or any Subsidiary of either Seller of any bonus award which is contingent on a sale of such Seller, any Subsidiary of such Seller or any of their respective assets;
(ii) which contains material restrictions with respect to payment of dividends or any other distribution in respect of its capital stock;
(iii) relating to Indebtedness of each Seller or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moreSubsidiaries;
(Biv) materially limiting the ability of either Seller or any agreement for Subsidiary of a Seller to manufacture, sell or distribute any product, to engage in any line of business or to compete with any Person;
(v) with any labor union or any employee organization;
(vi) pursuant to which either Seller or any Subsidiary of a Seller is entitled or obligated to acquire any assets with a value in excess of $250,000 from a third party other than the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments inventory in the ordinary course of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsbusiness;
(Cvii) in the form of a performance, payment, and other bonds issued by a Seller that are guaranteed by any sales, distribution Affiliate of such Seller (the "Bonds"); or
(viii) pursuant to which either Seller or other similar agreement providing for the sale any its Subsidiary of materials, supplies, goods, services, equipment a Seller is obligated to provide goods or other assets that provides for annual payments services to another Person with a total Contract value in excess of $5.0 million or more in MCK’s fiscal year 2016;2,000,000.
(Db) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(EExcept as set forth in Schedule 3.12(b) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or except as otherwise would not reasonably be expected to have a Material Adverse Effect on the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities Business:
(i) engage in there is no default under any line Material Contract either by a Seller or any Subsidiary of businessa Seller or, to the Knowledge of the Sellers, by any other party thereto, and no event has occurred that with the lapse of time or the giving of notice or both would constitute a default thereunder by a Seller or any Subsidiary of a Seller or, to the Knowledge of the Sellers, any other party;
(ii) sell, license no party to any Material Contract has given written notice to a Seller or otherwise distribute services any Subsidiary of a Seller of or products made a claim in writing against a Seller or any geographic area Subsidiary or a Seller with respect to any breach or default thereunder;
(iii) compete to the Knowledge of the Sellers, no party to any Material Contract intends to cancel, withdraw, modify or amend any such Material Contract;
(iv) with respect to each Material Contract or Bid, (A) each Seller or its Subsidiaries has complied in all material respects with all material terms and conditions of such Material Contract or Bid, including all clauses, provisions and requirements incorporated expressly, by reference or by operation of law therein; (B) each Seller or its Subsidiaries has complied in all material respects with all requirements of any Person statute, rule, regulation or order pertaining to such Material Contract or Bid; (C) all representations and certifications executed, acknowledged or set forth in or pertaining to such Material Contract or Bid were current, accurate and complete in all material respects as of their effective date, and each Seller or its Subsidiaries has complied in all material respects with all such representations and certifications, including, without limitation, those required by or relating to the Foreign Corrupt Practices Act, the Cost Accounting Standards, and the regulations and rules relating to the submission of progress payment requests; (D) no Governmental Authority nor any prime contractor, subcontractor or other Person has notified either Seller or their Subsidiaries in writing that either Seller or its Subsidiaries has breached or violated any statute, rule, regulation, certification, representation, clause, provision or requirement; (E) no termination for convenience, termination for default, cure notice or show cause notice has been issued (other than to the avoidance of doubtextent satisfied, any material agreement that includes cured or withdrawn); (IF) grants no cost incurred by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses either Seller or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use its Subsidiaries has been disallowed in respect of any such Material Contract (in each case, other than costs not exceeding one percent (1%) of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Propertyvalue of the respective Material Contract); and (G) no money due to either Seller or its Subsidiaries has been withheld, reduced or set-off in respect of any such Material Contract (in each case, other than monies not exceeding one percent (1%) of the value of the respective Material Contract);
(Hv) there exist (A) no financing arrangements with respect to the performance of any Client Contract; (B) to the Knowledge of the Sellers, no material agreement outstanding claims or requests for equitable or financial adjustments against the Sellers or their Subsidiaries, either by any party to a Material Contract, any Governmental Authority or by any prime contractor, subcontractor, vendor or other third party, arising under or relating to any Material Contract or Bid; (excluding licenses for commercial off C) to the shelf computer software Knowledge of the Sellers, no facts that are generally available on nondiscriminatory pricing termsknown by the Sellers upon which such a claim may be validly based in the future; and (D) pursuant to the Knowledge of the Sellers, no material disputes between either Seller or its Subsidiaries and any party to a Material Contract, any Governmental Authority or any prime contractor, subcontractor or vendor arising under or relating to any Client Contract; and
(vi) the revenues and profits associated with each of the Client Contracts have been recorded in accordance with GAAP, and there exists no uncompleted Client Contract as to which the Core MTS Business obtains the right to useCompany's estimated cost at completion (including material and labor costs, other direct costs, overheads, and engineering costs whether incurred or a covenant not yet to be sued under, any Intellectual Property Right;
(Iincurred) any agreement pursuant to which any Person is authorized to use, as of the Balance Sheet Date exceeds the aggregate contract revenue recorded or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsrecorded under such Client Contract through completion.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Tetra Tech Inc), Asset Purchase Agreement (Foster Wheeler LTD)
Material Contracts. Except for Contracts evidencing Company Loans made or otherwise acquired by the Bank in the Ordinary Course of Business, Schedule 3.16 of the 24 Company Disclosure Schedules lists or describes the following with respect to the Company and each of its Subsidiaries (each such agreement or document, a “Company Material Contract”) as of the date of this Agreement, true, complete and correct copies of each of which have been delivered or made available to Acquiror:
(a) each lease of real property to which the Company or any of its direct and indirect Subsidiaries is a party;
(b) all loan and credit agreements, conditional sales Contracts or other title retention agreements or security agreements relating to money borrowed by it in excess of $250,000, or guaranteed by the Company or any of its direct and indirect Subsidiaries, exclusive of deposit agreements with customers of the Bank entered into in the Ordinary Course of Business, agreements for the purchase of federal funds and repurchase agreements and Federal Home Loan Bank of Chicago advances;
(c) each Contract that involves performance of services or delivery of goods or materials by it of an amount or value in excess of $100,000 (other than Contracts for the sale of loans and Contracts that are Company Benefit Plans);
(d) each Contract that was not entered into in the Ordinary Course of Business and that involves expenditures or receipts by it in excess of $100,000;
(e) each Contract not referred to elsewhere in this Section 3.16 that: (i) None relates to the future purchase of goods or services that materially exceeds the requirements of its business at current levels or for normal operating purposes; or (ii) has a Material Adverse Effect on the Company or its direct and indirect Subsidiaries;
(f) each lease, rental, license, installment and conditional sale agreement and other Contract affecting the ownership of, leasing of, title to or use of, any personal property (except personal property leases and installment and conditional sales agreements having aggregate remaining payments of less than $100,000);
(g) each material licensing agreement or other Contract with respect to patents, trademarks, copyrights, or other intellectual property (other than shrink-wrap license agreements or other similar license agreements), including material agreements with current or former employees, consultants or contractors regarding the appropriation or the nondisclosure of any of its intellectual property;
(h) each collective bargaining agreement and other Contract to or with any labor union or other employee representative of a group of employees;
(i) each joint venture, partnership, shareholder, limited liability company, investor rights and other Contract (however named) involving a sharing of profits, losses, costs or liabilities by it with any other Person;
(j) each Contract containing covenants that in any way purport to restrict, in any material respect, the business activity of the Core MTS Business Company or its Subsidiaries or limit, in any material respect, the ability of the Company or its Subsidiaries to engage in any line of business or to compete with any Person including from soliciting customers, clients or employee of any Person, or provides a right of first offer, right of first refusal, option or similar right to the Company or any Subsidiary or any other Person or that would limit or purport to limit the ability of the Company or any of its Subsidiaries to own, operate, sell, transfer, pledge or otherwise dispose of any assets or business, including any (i) exclusive dealing obligation; (ii) “clawback” 25 or similar undertaking requiring the reimbursement or refund of any fees; or (iii) “most favored nation” or similar provision granted by the Company or any of its Subsidiaries;
(k) each Contract providing for payments to or by any Person based on sales, purchases or profits, other than direct payments for goods having an average annual amount in excess of $100,000;
(l) that is (i) an employment, consultancy, non-competition, non-solicitation, deferred compensation, retention, bonus, severance, retirement or other similar Contract (including any amendment to any such existing agreement or arrangement); or (ii) relating to bank-owned life insurance, in each case with any director, officer, employee or independent contractor of or consultant to, or shareholder of, the Company or any direct and indirect Subsidiary of the Company;
(m) that is with an Affiliate of the Company or any of its Subsidiaries other than loans in the Ordinary Course of Business;
(n) each current material consulting or non-competition agreement to which the Company or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moreparty;
(Bo) the name of each Person who is or would be entitled pursuant to any agreement for Contract or Company Benefit Plan to receive any payment from the purchase Company or its Subsidiaries as a result of materials, supplies, goods, services, equipment or other assets providing for annual payments the consummation of $3.0 million or more in MCK’s fiscal year 2016, the Contemplated Transactions (including any independent contractor agreements, but excluding payment that is or would be due as a result of any actual or constructive termination of a Person’s employment agreementsor position following such consummation) and the maximum amount of such payment;
(Cp) each Contract for capital expenditures for a single property, individually, or collectively with any salesother Contract for capital expenditures on such property, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments in excess of $5.0 million or more in MCK’s fiscal year 2016100,000;
(Dq) any equity partnership, joint venture each Contract that may not be terminated without payment or other similar agreement penalty equal to or arrangement that is material to the Core MTS Business;
greater than $50,000 upon notice of thirty (E30) any agreement relating to the acquisition days or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more less (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK shrink-wrap or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior similar form software license agreements with respect to the Closingoff-the-shelf computer software);
(Gr) any agreement that restrictsis a settlement agreement, prohibits other than releases immaterial in nature or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have amount entered into in the effect Ordinary Course of prohibiting, restricting or impairing, any material business practice Business with the former employees of the Core MTS Business Company or its Subsidiaries or independent contractors in connection with the routine cessation of such employee’s or independent contractor’s employment;
(or the s) each Company after the Closing)Benefit Plan; and
(t) each amendment, any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, supplement and modification in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use respect of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsforegoing.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 2 contracts
Sources: Merger Agreement (HBT Financial, Inc.), Merger Agreement (HBT Financial, Inc.)
Material Contracts. (ia) None Section 3.12(a) of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for Sellers’ Disclosure Schedule sets forth all Contracts concerning the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK or Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software Property or that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to userelated to, or a covenant not to be sued underused in or held for use in, any Intellectual Property Right;
the Business (I) any agreement pursuant to which any Person is authorized to useexcept for Contracts that are Excluded Assets, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, purchase orders for inventory and other than those contained within customer agreements entered into goods and services purchased in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leasedbusiness, or agreed to provide or leasein the case of clauses (i), any source code containing or embodying any Software included in MCK (iv), (vi)-(x), (xiii) and (xiv) below, Contracts (other than Contracts concerning the Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with that individually have a base salary or base compensation future liability not in excess of $300,000 per year150,000 annually or $1,000,000 during the term thereof, and other than those Contracts that can be terminated are cancelable by a Seller upon notice of not more than 90 calendar days without liability to the Core MTS Business;penalty or cost), including, without limitation:
(Li) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business Contracts for the purchase or sale of materialsassets, supplies, goods, services (excluding any employment agreements), equipment products or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.services;
(ii) Each agreement required to be disclosed Exclusive supply Contracts for the purchase of Inventory or other goods or services that are otherwise not generally available and that are used in connection with the Business;
(iii) Contracts pursuant to this Section 4.02(iwhich a Seller grants to any Person the right to manufacture, design, market, distribute or resell any Business product, or to represent a Seller with respect to any such product, or act as agent for any Seller in connection with the marketing, distribution or sale of any Business product;
(iv) Contracts for the lease of tangible personal property;
(eachv) Contracts containing a covenant that restricts a Seller or any Affiliate of a Seller from engaging in any line of business or competing with any Person;
(vi) Contracts providing for indemnification by a Seller, other than in connection with respect to standard terms and conditions of a Contract for the purchase or sale of assets, products or services in the ordinary course of business;
(vii) Employment, consulting or independent contractor Contracts, other than unwritten at-will employment Contracts;
(viii) Contracts relating to a joint venture of the Business;
(ix) Currency exchange, interest rate, commodity exchange or similar Contracts;
(x) Contracts for capital expenditures;
(xi) Contracts with any director, officer or employee of Seller or any of its Subsidiaries (in each case, other than (A) employment agreements covered in clause (vii) above), (B) payments of compensation for employment to employees in connection with unwritten at-will employment Contracts and (C) participation in Employee Plans by employees;
(xii) Contracts or licenses of any patents, trademarks, trade names, service marks, copyrights or other Intellectual Property received from or granted to third parties;
(xiii) Contracts for radio, television newspaper or other media advertising; and
(xiv) Contracts not made in the ordinary course of business. (such Contracts collectively, “Material Contracts”, and each a “MTI Material Contract”).
(b) Except as set forth in Section 3.12(b) of the Sellers’ Disclosure Schedule, to Sellers’ Knowledge, each Material Contract (i) is a valid and binding agreement of on the Core MTS Business applicable Seller and the counterparties thereto, and is in full force and effect, ; and none (ii) upon consummation of the Core MTS BusinessTransactions, orexcept to the extent that any consents set forth in Section 3.02 or Section 3.03 of the Sellers’ Disclosure Schedule and Bankruptcy Court approvals to transfer are not obtained or would otherwise not have a Material Adverse Effect, shall continue in full force and effect without penalty or other adverse consequence. Except as disclosed in Section 3.12(b) of the Sellers’ Disclosure Schedule, the applicable Seller and, to the knowledge of MCKSellers’ Knowledge, the counterparties thereto, are not in breach of, or default under, any other Material Contract to which any of them is a party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such breaches or defaults or breaches which that that would not reasonably be expectedhave a Material Adverse Effect or, individually upon entry or in issuance of the aggregateSale Order by the Bankruptcy Court, to be material would not preclude the Sellers from assigning such Material Contract to the Core MTS Business, taken as a whole. True Purchaser and complete copies of each MTI Material Contract, and all amendments thereto, that would be cured or rendered unenforceable in each case subject to accordance with the redaction of certain information, have been delivered to MCK or its outside counselSale Order.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Lenox Group Inc), Asset Purchase Agreement (Lenox Group Inc)
Material Contracts. (a) Except for those agreements filed as exhibits to the MLP SEC Reports and those agreements set forth on Section 4.9(a) of the MLP Disclosure Schedule (collectively, the “MLP Material Agreements”), none of the MLP Group Entities is a party to, or is bound by, any agreements, contracts or commitments (whether written or oral):
(i) None which is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Core MTS Business SEC);
(ii) which constitutes a contract or commitment relating to indebtedness for borrowed money or the deferred purchase price of property (in either case, whether incurred, assumed, guaranteed or secured by any asset) in excess of $10,000,000;
(iii) which contains any provision that prior to or following the Effective Time would materially restrict or alter the conduct of business of, or purport to materially restrict or alter the conduct of business of, whether or not binding on, MLP or any controlled Affiliate of its Subsidiaries MLP, including by materially restricting the disposition of any business or assets;
(iv) which is a party to or bound by:
(A) any agreement for the lease or sublease license (whether of real real, personal or personal intangible property) providing for annual payments rentals or fees of $750,000 5,000,000 or moremore that cannot be terminated by any MLP Group Entity on not more than 60 days’ notice without payment by such MLP Group Entity of any material penalty;
(Bv) any which is an agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for that in each case both (A) cannot be terminated by any MLP Group Entity on not more than 60 days’ notice without payment by any of MLP Group Entity of any material penalty and (B) involves annual revenues or payments in excess of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements10,000,000;
(Cvi) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity which is a partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Businessarrangement;
(Evii) any agreement which is a contract relating to the acquisition or disposition of any business or assets (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration with a purchase price of $250,000 10,000,000 or more;
(Fviii) any agreement relating contract that relates to indebtedness for borrowed moneyany commodity or interest rate swap, the deferred purchase price of property cap or capital leases (in either case, whether incurred, assumed, guaranteed collar or secured by any asset) involving payment obligations of $1,500,000 other similar hedging or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Propertyderivate transactions, other than those contained within customer agreements any contract for purchase and sale of commodities and the associated hedging instruments entered into in the ordinary course of business consistent with past practice;
(Jix) any agreement pursuant contract relating to which the Core MTS Business has provided gathering, processing, treating, transportation, storage, sale or leasedpurchase of natural gas, condensate or other liquid or gaseous hydrocarbons or the products therefrom, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party the provision of services related thereto (including any contingent right to receive operation, operation servicing or lease source code containing maintenance contract) in each case that involves annual revenues or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation payments in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million10,000,000; or
(Nx) any agreement with any Governmental Authority contract relating to corporate integrity, deferred prosecution, the construction of capital assets or the Core MTS Business’ other capital expenditures in each case that involves annual revenues or MCK’s material non-compliance with Health Care Lawspayments in excess of $10,000,000.
(iib) Each agreement required Except to the extent that enforceability thereof may be disclosed pursuant limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws relating to this Section 4.02(ior affecting creditors’ rights generally and by general principles of equity (regardless of whether such enforceability is considered in a Proceeding in equity or at law); provided, however, that any indemnity, contribution and exoneration provisions contained in any such MLP Material Agreement may be limited by applicable Law and public policy, each of the MLP Material Agreements (i) (each, a “MTI Material Contract”) is a constitutes the valid and binding agreement obligation of the Core MTS Business applicable MLP Group Entity and, to the Knowledge of the MLP Parties, constitutes the valid and binding obligation of the other parties thereto, (ii) is in full force and effect, and none effect as of the Core MTS BusinessExecution Date and (iii) will be in full force and effect upon the consummation of the transactions contemplated by this Agreement, or, in each case unless the failure to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which be so would not reasonably be expectedconstitute, individually or in the aggregate, to be material an MLP Material Adverse Effect.
(c) There is not, to the Core MTS BusinessKnowledge of any of the MLP Parties, taken as under any MLP Material Agreement, any default or event which, with notice or lapse of time or both, would constitute a whole. True and complete copies default on the part of each MTI Material Contract, and all amendments any of the parties thereto, in each case subject except such events of default and other events as to the redaction of certain information, which requisite waivers or consents have been delivered to MCK obtained or its outside counselwhich would not constitute, individually or in the aggregate, an MLP Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (Inergy L P), Merger Agreement (Inergy Midstream, L.P.)
Material Contracts. (i1) None The Company has listed on Schedule 5.2(v)(1) of the Core MTS Business Company’s Disclosure Schedule and made available to Parent complete and correct copies of the following Contracts (“Material Contracts”) to which the Company or any of its Subsidiaries is a party party, or by which the Company or any of its Subsidiaries may be bound, or to which the Company or bound byany of its Subsidiaries or the Company’s or any of its Subsidiaries’ respective assets or properties may be subject as of the date hereof:
(A) any agreement for the lease or sublease (whether of real or material personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materialspartnership, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnershiplimited liability company, joint venture or other similar agreement or arrangement that is material to the Core MTS Businessarrangement;
(EC) any agreement Contract relating to the acquisition or disposition of any business or operations (whether by merger, sale of stock, sale of assets or otherwise) within as to which there are any material ongoing obligations entered into on or after January 1, 2015;
(D) any Contract for the three years preceding the date hereof involving aggregate consideration purchase of services, materials, supplies, goods, equipment or other assets or property that provides for either (i) annual payments of $250,000 50,000 or more, or (ii) aggregate payments of $200,000 or more;
(E) any Contract that creates future payment obligations in excess of $50,000 in the aggregate and that by its terms does not terminate or is not terminable without penalty or other payment upon notice of sixty (60) days or less, or any Contract that creates or would create a Lien;
(F) any agreement relating to indebtedness Contract providing for borrowed money, a power of attorney on behalf of the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK Company or any of its Affiliates (other than Subsidiaries outside of the MCK Contributed Entities), on the other hand; provided that, in the case ordinary course of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing)business;
(G) any agreement that restrictsContract, prohibits other than this Agreement or impairs (as contemplated hereby, providing for exclusive dealing or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, limiting in any material respect, respect the freedom of the Core MTS Business (Company, its Subsidiaries or any of the current or former employees of the Company after the Closing) or any of its Subsidiaries to conduct the following activities (i) engage compete in any line of business, (ii) sell, license business or otherwise distribute services with any person or products in any geographic area area, or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)would so limit their freedom;
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant Contract, other than this Agreement, as to which there are material ongoing obligations the Core MTS Business obtains primary purpose of which is to disclose confidential information or require that the right to useCompany or any of its Subsidiaries guarantee, indemnify or a covenant not to be sued under, hold harmless any Intellectual Property Rightperson;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual PropertyContract, other than those contained within customer agreements this Agreement, with (i) any Affiliate of the Company, or (ii) any “associate” or member of the “immediate family” (as such terms are respectively defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act) of a person identified in clause (i) of this paragraph;
(J) any Contract with a Governmental Authority; and
(K) any other Contract not entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsbusiness.
(ii2) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) Contract is a valid and legally binding agreement of the Core MTS Business Company or a Subsidiary of the Company, as applicable, and, to the Company’s Knowledge, the counterparty or counterparties thereto, is enforceable in accordance with the terms of such Contract (except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and similar Laws of general applicability relating to or affecting creditors’ rights or by general equity principles) and is in full force and effect, and none . As of the Core MTS Businessdate hereof, orneither the Company nor any of its Subsidiaries, and, to the knowledge of MCKCompany’s Knowledge, any other party thereto counterparty or counterparties, is in material breach of any provision of or in material default (or, with the giving of notice or breach lapse of time or both, would be in default) under, and has not taken any respect action resulting in the termination of, acceleration of performance required by, or resulting in a right of termination or acceleration under, any Material Contract.
(3) To the extent required by GAAP, all liabilities and obligations under the terms of such MTI Material Contract, except Contracts have been fully accrued for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to books and records of the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselCompany.
Appears in 2 contracts
Sources: Merger Agreement, Merger Agreement (Byline Bancorp, Inc.)
Material Contracts. (a) Section 4.20(a) of the Disclosure Schedule sets forth a list of all Contracts, including all amendments and supplements thereto, to which any of the Purchased Assets are, or the Business is, bound or affected and to which any of the AUC Entities is a party or by which any of the AUC Entities is bound, in each case, in connection with, relating to, or arising out of the Business or the Purchased Assets, meeting any of the descriptions set forth below (collectively referred to herein as the “Material Contracts”):
(i) None all Contracts or group of related Contracts with the Core MTS Business or any of its Subsidiaries is a same party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, products or services, equipment or other assets providing for annual payments under which any of the AUC Entities reasonably may be expected to purchase $3.0 million 75,000 or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsof products or services during the twelve (12) months from the Closing Date and which cannot be terminated on less than sixty (60) days notice without penalty;
(Cii) any sales, distribution or other similar agreement providing all employment Contracts (excluding Contracts with faculty) pursuant to which the annual base salary for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of an employee is greater than $5.0 million or more in MCK’s fiscal year 2016100,000;
(Diii) any equity partnershipContracts (excluding Contracts with faculty) with employees, joint venture consultants, directors or other similar agreement independent contractors containing severance, noncompetition, or arrangement that is material to the Core MTS Businessproprietary rights provisions;
(Eiv) all Contracts with faculty of the Institution;
(v) all personal property leases involving payment obligations over the remaining term of the lease in excess of $50,000;
(vi) all capitalized leases;
(vii) all Contracts pursuant to which any of the AUC Entities has been granted a license or otherwise uses any other Person’s Intellectual Property (other than off-the-shelf software subject solely to “shrink-wrap” or non-negotiable licenses) (“Licenses”);
(viii) all Contracts with Governmental Authorities;
(ix) any Contract that creates a partnership or joint venture, or a similar agreement involving a sharing of profits, losses, costs or liabilities with any other Person;
(x) any Contract that restricts any of the AUC Entities from engaging, or competing with any Person, in any line of business in any geographic area or restricts any of the AUC Entities from soliciting certain employees;
(xi) all Contracts (or group of related Contracts) under which any of the AUC Entities has created, incurred, assumed, or guaranteed any Indebtedness;
(xii) any Contract, whether or not fully performed, relating to the any acquisition or disposition of any business (whether by mergershares of capital of any AUC Entity or any predecessor in interest of any AUC Entity, sale or any acquisition or disposition of stockany subsidiary, sale division or line of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or morebusiness;
(Fxiii) any agreement Contract with or relating to indebtedness for borrowed moneyany clinical site;
(xiv) except as contemplated in connection with this Agreement, any Contract relating to the deferred purchase price acquisition by any AUC Entity of property any operating business, assets or capital leases stock of another Person;
(xv) all Contracts for capital expenditures in either excess of $25,000;
(xvi) all Contracts with a contractor for services, sales representative, distributor, dealer, broker, sales agency, advertising agency or other Person engaged in sales, distributing or promotional activities, or any Contract to act as one of the foregoing on behalf of any Person, in each case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations over the remaining term of the Contract in excess of $1,500,000 50,000;
(xvii) except as referenced in Section 4.23, any Contract that requires the payment of royalties, commissions, finders’ fees or more similar payments involving payment obligations over the remaining term of the Contract in excess of $50,000; and
(xviii) any settlement or similar Contract under which any of the AUC Entities has remaining obligations;
(xix) all powers of attorney or agency agreements with any Person given by any of the Sellers that are currently effective and outstanding pursuant to which such Person is granted the authority to act for or on behalf of any AUC Entity or any AUC Entity is granted the authority to act for or on behalf of any Person, other than Tax powers of attorney, granted in the Ordinary Course of Business; and
(xx) any other Contract material to the Business, the Purchased Assets or any of the AUC Entities.
(b) The Sellers have made available to the Buyers in the Dataroom (i) intercompany indebtedness among the MCK Contributed Entities a true, complete and correct copy of each written Material Contract and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any a summary of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or each oral Material Contract prior to the Closing);
(G) Closing Date. None of the AUC Entities nor, to the Knowledge of the Sellers, any agreement that restrictsother party to any Material Contract, prohibits or impairs (or purports to restrict, prohibit or impair)is in breach of, or has or would reasonably be expected to have the effect of prohibiting, restricting or impairingin default under, any material business practice Material Contract. To the Knowledge of the Core MTS Business (Sellers, there is no event or the Company after the Closing)condition that with notice or lapse of time, any material acquisition of property by the Core MTS Business (or the Company after the Closing) both, would constitute such a breach or limits the freedom, in any material respect, default; and none of the Core MTS Business (AUC Entities has received any written notice of any breach or the Company after the Closing) to conduct the following activities (i) engage in any line default or event that with notice or lapse of businesstime, (ii) sellor both, license would constitute such a breach or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants default by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off AUC Entities. To the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which Knowledge of the Core MTS Business obtains the right to useSellers, there have been no threatened cancellations of, or a covenant not to be sued any dispute under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to useMaterial Contract nor, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider Knowledge of the Core MTS Business with a base salary Sellers, does there exist the basis for any such cancellation or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) dispute. Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and Contract is in full force and effect, and none is valid and enforceable in accordance with its respective terms, subject to the effect of the Core MTS Businessany applicable Laws relating to bankruptcy, orreorganization, insolvency, moratorium, fraudulent conveyance or preferential transfers, or similar Laws relating to or affecting creditors’ rights generally and subject, as to enforceability, to the knowledge effect of MCKgeneral principles of equity (regardless of whether such enforceability is considered in a Legal Proceeding in equity or at Law).
(c) Except as set forth on Section 4.20(c) of the Disclosure Schedule, any other the applicable AUC Entity has the right to assign to the Buyers each Purchased Contract without notice, modification, cancellation or consent, or if such notice or consent is required, the AUC Entities have given notices to the third parties and used commercially reasonable efforts to obtain the third party thereto is in default or breach in any respect consents set forth on Section 4.20(c) of the Disclosure Schedule, and such transfer will provide to the Buyers all of the rights of the applicable AUC Entity under the terms of such MTI Material Contract, except for free and clear of any such defaults or breaches which would not reasonably be expectedLiens, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselother than Permitted Liens.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Devry Inc), Asset Purchase Agreement (Devry Inc)
Material Contracts. (a) Section 2.12 of the Disclosure Letter contains a true, complete and accurate list of each of the following Purchased Contracts (all of the Purchased Contracts required to be listed thereon, the “Material Contracts”):
(i) None Contracts for the service of any Business Employee or Business Contractor whose base annual cash compensation is equal to or greater than $100,000, other than employment or contractor Contracts terminable at-will with no liability;
(ii) Contracts relating to the incurrence of Indebtedness or that give or may give rise to a Lien on any of the Core MTS Purchased Assets;
(iii) Contracts for the lease of any personal property primarily used in the Business or by a Business Employee;
(iv) Contracts with any of its Subsidiaries is Governmental Entity;
(v) Contracts with a party to or bound by:Material Customer;
(vi) Contracts with a Material Vendor;
(vii) Contracts (A) pursuant to which any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that party is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of granted exclusive rights, exclusive territories, exclusive licenses rights or “most favored party” rightsrights of any type or scope with respect to any of the Purchased Assets, or (IIB) containing any non-competition covenants or non-solicitation restrictions, (III) any rights of first refusal other similar restrictions relating to the Purchased Assets or rights of first offer or (IV) any limits on the use of any conduct of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)Business;
(Hviii) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) Contracts pursuant to which the Core MTS (A) any Third Party is granted rights to any Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned other Intellectual Property and/or MCK Licensed Intellectual Propertyrights, other than those contained within customer agreements entered into excluding non-exclusive licenses granted in the ordinary course of business consistent to customers in connection with past practicethe use of products and services of the Business, non-disclosure agreements and employment agreements, or (B) any Third Party grants to Seller a license to Intellectual Property rights used in the Business (“Third Party IP”), excluding generally commercially available software or software-as-a-service costing or having an annual license fee that does not exceed $20,000, licenses to Open Source Software, non-disclosure agreements and employment agreement;
(Jix) any agreement pursuant to which the Core MTS Business has provided or leaseddistribution, joint market, joint venture, partnership, limited liability company, or agreed to provide agreement for sharing of revenues, profits, losses, costs or leaseliabilities, or similar Contract used in respect of the Business;
(x) any source code containing Contract for the provision of products or embodying services to, or purchase of products or services from, both the Business and other portions of the Seller not constituting the Business;
(xi) Contracts that contain any Software included provision for indemnification of any other Person (excluding standard indemnities contained in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including agreements for the purchase, sale or license of any contingent right to receive or lease source code containing or embodying any Software included products entered into in Seller’s ordinary course operation of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwiseBusiness);
(Kxii) any settlement agreement relating with respect to the employment, severance, retention or indemnification of any service provider Action in respect of the Core MTS Business with a base salary or base compensation any Business Employee resulting in (A) monetary Liability in excess of $300,000 per year100,000 individually, other than those (B) material future obligations that can would be terminated without liability Assumed Employee Liabilities, or (C) any material ongoing obligations related to the Core MTS Business;
(Lxiii) any agreement with or Contracts for capital expenditures for the benefit Business in excess of MCK or any Affiliate of MCK with obligations that continue following $100,000 in the Closing (other than the Transaction Documents)aggregate;
(Mxiv) any agreement powers of attorney with or for respect to the benefit of MCK Business or any Affiliate Purchased Asset;
(xv) any Contract under which the consequences of MCK with obligations a default or termination would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;
(xvi) any Contract that continue following would have the effect of materially prohibiting or impairing the conduct of the Business immediately after the Closing in a manner in which it was not prohibited or impaired immediately prior to the Closing; and
(xvii) any other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and Contract not made in the ordinary course of business for that is material to the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, Business or the Core MTS Business’ or MCK’s Purchased Assets. Seller has delivered to Buyer (x) a complete and accurate copy of each written Material Contract (including all modifications, supplements and amendments thereto) and (y) a written summary of the material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI terms of each oral Material Contract”. Except for such matters that would not be material to the Business, (i) each Material Contract is a valid legal, valid, binding and binding agreement of the Core MTS Business enforceable on Seller in accordance with its terms, and is in full force and effect, and none (ii) Seller has performed all of the Core MTS Businessobligations required to be performed by it under each applicable Material Contract, (iii) Seller is not in breach of or default under (and is not alleged to be in breach of or default under) and no event has occurred, is pending or, to the knowledge Knowledge of MCKSeller, is threatened, which, after the giving of notice, with lapse of time, or otherwise, would constitute a breach or default by Seller under such agreement, (iv) within the previous six months, Seller has not received any other party thereto is in default or breach in written notice of any respect under the terms of such MTI Material Contract, except for intention to terminate any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject (v) to the redaction Knowledge of certain informationSeller, have been delivered as of the date of this Agreement, no Person is in breach of or default under (and is not alleged to MCK be in breach of or its outside counseldefault under) any such Material Contract and no event has occurred, is pending or, to the Knowledge of Seller, is threatened, which, after the giving of notice, with lapse of time, or otherwise, would constitute a breach or default by any other Person under such agreement, and (vi) for those such Material Contracts to which Seller is a party, the agreement is assignable by Seller to Buyer without the consent or approval of any Person and will continue to be legal, valid, binding and enforceable and in full force and effect immediately following the Closing in accordance with the terms thereof as in effect immediately prior to the Closing.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Marin Software Inc), Asset Purchase Agreement (SharpSpring, Inc.)
Material Contracts. (a) Section 4.07 of the Disclosure Schedules lists each of the following Contracts (x) by which any of the Purchased Assets are bound or affected as of the date hereof or (y) to which the Parent or EyeLock Sub is a party or by which it is bound as of the date hereof in connection with the Business or the Purchased Assets (such Contracts, together with all Contracts concerning the occupancy, management or operation of any Leased Real Property (including without limitation, brokerage Contracts) listed or otherwise disclosed in Section 4.10(b) of the Disclosure Schedules and all Intellectual Property Agreements set forth in Section 4.11(b) of the Disclosure Schedules, collectively, “Material Contracts”):
(i) None all Contracts under which the Seller is required to pay or is entitled to receive aggregate consideration in excess of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
Fifty Thousand Dollars & 00/100 (A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more50,000.00);
(Bii) any agreement all Contracts that provide for the purchase indemnification of materialsany Person or the assumption of any Tax, supplies, goods, services, equipment environmental or other assets providing Liability of any Person, except for annual payments standard indemnification provisions in Contracts entered into in the ordinary course, none of $3.0 million which the Seller has any Knowledge with respect to particular facts or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementscircumstances that may reasonably give rise to a claim for indemnification;
(Ciii) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
Knowledge of the Seller, all Contracts entered into during the three (E3) any agreement relating year period ending on the date hereof that relate to the acquisition or disposition of any business 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) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more);
(Fiv) any agreement all broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, research, development, marketing consulting and advertising Contracts;
(v) all employment agreements and Contracts with independent contractors, subcontractors or consultants (or similar arrangements) and which are not cancellable without material penalty or without more than thirty (30) calendar days’ notice;
(vi) except for Contracts relating to trade receivables, all Contracts relating to indebtedness for borrowed moneymoney (including, without limitation, guarantees and the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing▇▇▇▇▇ Debt Obligation);
(Gvii) all Contracts with any agreement Governmental Authority (“Government Contracts”);
(viii) all Contracts that restricts, prohibits limit or impairs (or purports purport to restrict, prohibit or impair), or has or would reasonably be expected to have limit the effect of prohibiting, restricting or impairing, any material business practice ability of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) Seller to conduct the following activities (i) engage compete in any line of business, (ii) sell, license business or otherwise distribute services with any Person or products in any geographic area or during any period of time;
(iiiix) compete with all joint venture, partnership or similar Contracts;
(x) all Contracts for the sale of any of the Purchased Assets or for the grant to any Person (includingof any option, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights right of first refusal or rights of first offer preferential or (IV) any limits on the use of similar right to purchase any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)Purchased Assets;
(Hxi) all powers of attorney with respect to the Business or any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;Purchased; Asset; and
(Ixii) any agreement pursuant to which any Person is authorized to use, all collective bargaining agreements or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement Contracts with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care LawsUnion.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) Contract is a valid and binding agreement of on the Core MTS Business and Seller in accordance with its terms and, to the Seller’s Knowledge, is in full force and effect. Except as set forth in Section 4.07 of the Disclosure Schedules, and none of the Core MTS Business, Seller or, to the knowledge of MCKSeller’s Knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach in of or default under), or has provided or received any respect under the terms notice of such MTI any intention to terminate, any Material Contract. Except as set forth in Section 4.07 of the Disclosure Schedules, except for no event or circumstance has occurred that, with notice or lapse of time or both, would constitute an event of default under any such defaults Material Contract or breaches which result in a termination thereof or would not reasonably be expected, individually cause or in permit the aggregate, to be material to acceleration or other changes of any right or obligation or the Core MTS Business, taken as a wholeloss of any benefit thereunder. True Complete and complete correct copies of each MTI Material ContractContract that is included in the Purchased Assets (including all modifications, amendments and all amendments thereto, in each case subject supplements thereto and waivers thereunder) or evidences the ▇▇▇▇▇ Debt Obligation will have been made available to the redaction of certain information, have been delivered Buyer by the Delivery Date. There are no material disputes pending or threatened with respect to MCK or its outside counselany Contract included in the Purchased Assets.
Appears in 2 contracts
Sources: Asset Purchase Agreement (VOXX International Corp), Asset Purchase Agreement (VOXX International Corp)
Material Contracts. (ia) None Section 3.16(a) of the Core MTS Business or Disclosure Schedule sets forth a true and complete list of each of the following Contracts as of the date hereof (x) to which any of its Subsidiaries Transferred Entity is a party to or by which any of the assets of such Transferred Entity or any Purchased Asset is bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than the Credit Agreements or any other documents entered into in connection therewith) or (iy) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one handwhich are Transferred Contracts, and MCK which would, in each case, following the Closing by virtue of the transactions contemplated by this Agreement and the Ancillary Agreements, bind the Purchaser or any of its Affiliates (such Contracts set forth in Section 3.16(a) of the Disclosure Schedule or of the type listed below (whether entered on or prior to, or following, the date hereof), together with all amendments, modifications, supplements, exhibits, annexes, extensions and renewals thereof or thereto, the “Material Contracts”):
(i) any Contract (A) evidencing Indebtedness of any of the Transferred Entities or the Business (B) creating any Lien (other than the MCK Contributed Entities), on the other hand; provided that, in the case Permitted Liens) upon any assets of clause any Transferred Entity or any Purchased Assets;
(ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any license agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains Transferred Entities or, with respect to the Business, the Seller or any of its Affiliates, (A) has acquired the right to use, or a covenant not to be sued under, use any material Intellectual Property Rightrelating to the Business, other than off-the-shelf software that is generally commercially available on non-discriminatory terms and not customized for use in the Business or (B) has granted to any third party any license to use any material Intellectual Property relating to the Business;
(Iiii) any agreement pursuant to which providing for capital expenditures in excess of $100,000;
(iv) any Person is authorized to use, Contract for the sale of (A) any of the assets of any Transferred Entity or receives a covenant not to be sued under, (B) any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Propertyof the Purchased Assets, other than those contained within customer agreements entered into the sale of inventory in the ordinary course of business consistent with past practice;
(Jv) any agreement pursuant Contract relating to which any acquisition by any Transferred Entity or, with respect to the Core MTS Business has provided Business, the Seller or leasedany of its Affiliates, of any operating business or the material assets, capital stock or business division of any other Person (whether through any merger, consolidation, purchase or otherwise) that was either completed during the last three (3) years or that is pending;
(vi) any Contract containing a covenant that prohibits, limits or impairs, or agreed purports to provide prohibit, limit or leaseimpair, during any source code containing period of time the ability of any Transferred Entities or, with respect to the Business, the Seller or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property of its Affiliates, to a third party (including any contingent right to receive A) compete or lease source code containing or embodying any Software included engage in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant Business or any line of business in any geographic area for any period of time; (B) solicit customers or clients; or (C) solicit or hire any employees (other than non-disclosure agreements containing such employee non-solicit or no hire provisions in the ordinary course with respect to an escrow arrangement or otherwisethe acquisition of any business);
(Kvii) any agreement relating Contract that provides for any minimum purchase obligations, “most favored nation” pricing or similar provisions or that provides for exclusive or “single source” supply, distribution, marketing, sales or similar rights to the employment, severance, retention or indemnification of by any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Businessthird party;
(Lviii) any agreement with or for Real Property Lease;
(ix) any Related Party Contract and any Contract between the benefit of MCK Seller or any Affiliate of MCK its Subsidiaries, on the one hand, and a Subsidiary of the Seller, on the other hand;
(x) any Contract pursuant to which a Transferred Entity or, with respect to the Business, the Seller or any of its Affiliates, makes or receives payments of more than $2,000,000 in any calendar year;
(xi) any Contract under which any of the Transferred Entities or, with respect to the Business, the Seller or any of its Affiliates, (A) is a lessee of, or holds or operates any tangible personal property owned by any other party, or (B) is a lessor or makes available for use of any other party, any tangible personal property owned or leased by the Transferred Entities or, with respect to the Business, the Seller or any of its Affiliates, in each case of (A) or (B), for which the annual lease payments exceeds $100,000;
(xii) any collective bargaining, shop, enterprise or recognition agreement or other Contract with any labor union, trade union or other similar association;
(xiii) any Contract (A) creating or governing a partnership, joint venture or similar arrangement (including any stockholder, operating, limited liability company, partnership or similar agreement), (B) involving a commitment of capital or the sharing of revenues, profits or losses of the Transferred Entities or the Business, or (C) setting forth any rights (including tag-along rights, preemptive rights, rights of first refusal or rights of first offer) or restrictions or obligations that continue following (including restrictions on transfer) in respect of any Equity Interests;
(xiv) any power of attorney granted to any Person to act on behalf of any of the Closing Transferred Entities or, with respect to the Business, the Seller or any of its Subsidiaries;
(xv) any Contract involving any resolution or settlement of any actual or threatened Action within the last three years (other than the Transaction Documentssettlement agreements related to Excluded Liabilities);
(Mxvi) each Transform Contract;
(xvii) all Contracts with any agreement Material Supplier;
(xviii) each Franchise Agreement;
(xix) each Contract with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing Governmental Authority; and
(xx) each Contract (other than any organizational documents) providing for indemnification, exculpation or advancement of expenses to any current or former officers, employees or directors of the Transaction Documents), other than agreements with MCK Transferred Entities or the Seller or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority its Affiliates relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) Contract is a legal, valid and binding agreement obligation of the Core MTS Business Seller or one of its Subsidiaries, enforceable against the Seller or such Subsidiary, as applicable, and, to the Seller’s Knowledge, each other counterparty thereto, except as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, and is in full force and effect, and none . None of the Core MTS BusinessSeller, any of its Subsidiaries or, to the knowledge of MCKSeller’s Knowledge, any other party thereto is to any Material Contract are in material breach, default or breach in violation of or under any respect of the Material Contracts, and no condition exists or event has occurred that (whether with or without notice or lapse of time or both) would constitute such a breach, default or violation by the Seller, any of its Subsidiaries or, to the Seller’s Knowledge, any other party thereto. Neither the Seller nor any of its Subsidiaries has received any written notice of (A) any default or event that, with notice or lapse of time, or both, would constitute a default under the terms of such MTI any Material Contract, except for or (B) the intention of any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, Person to be material terminate any Material Contract. The Seller has made available to the Core MTS Business, taken as a whole. True Purchaser true and complete copies of each MTI all Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselContracts.
Appears in 2 contracts
Sources: Equity and Asset Purchase Agreement (Liberty Tax, Inc.), Equity and Asset Purchase Agreement (Sears Hometown & Outlet Stores, Inc.)
Material Contracts. Section 3.12 of the Disclosure Schedule lists each Contract to which any Seller is a party or to which such Seller or the Purchased Assets are subject or by which such Seller or the Purchased Assets are bound that is a Material Contract. The following Contracts shall be deemed to be “Material Contracts” with respect to each Seller: any Contract that (a) after the Balance Sheet Date obligates such Seller to pay an amount of $25,000 or more, (b) has an unexpired term as of the Balance Sheet Date in excess of six months, (c) the Business is substantially dependent upon or which is otherwise material to the Business, (d) provides for an extension of credit other than credit agreements with banks having normal credit terms, (e) limits or restricts the ability of such Seller in any material respect to compete or otherwise to conduct the Business in any manner or place, (f) provides for a guaranty or indemnity by such Seller, (g) grants a power of attorney, agency or similar authority to another Person, (h) grants a right to, or obligation of, any Affiliate, officer or director or any Associate of such Seller, (i) None requires such Seller to buy or sell goods or services with respect to which there will be material losses or will be costs and expenses materially in excess of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair)expected receipts, or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closingj) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant was not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into made in the ordinary course of business consistent with past practice;
(J) any agreement pursuant business. Each Material Contract is valid and subsisting; Sellers have duly performed all their respective obligations thereunder to which the Core MTS Business has provided extent that such obligations to perform have accrued; and no breach or leaseddefault, alleged breach or default, or agreed to provide event which would (with the passage of time, notice or lease, both) constitute a breach or default thereunder by any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS BusinessSeller, or, to the best knowledge of MCKSellers, any other party thereto is in default or breach in any obligor with respect under the terms of such MTI Material Contractthereto, except for any such defaults has occurred or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a wholeresult of the Transactions will occur. True and complete copies of each MTI Material Contractthe written Contracts listed on Section 3.12 of the Disclosure Schedule, and including all amendments and supplements thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselBuyer, together with full, complete and accurate descriptions of all oral Contracts.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Seracare Life Sciences Inc), Asset Purchase Agreement (Seracare Life Sciences Inc)
Material Contracts. (ia) None of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(ASchedule 4.17(a) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement lists each Contract that is material to Verano (such Contracts, together with all Contracts concerning the Core MTS Businessoccupancy, management, or operation of any Verano Real Property and all Verano Benefit Plans of Verano or any Verano Subsidiary, being the “Verano Material Contracts”), including the following Contracts with respect to Verano or any Verano Subsidiary:
(i) all Contracts of Verano or any Verano Subsidiary involving aggregate consideration in excess of $300,000 and which, in each case, cannot be cancelled by Verano or such Verano Subsidiary without penalty or without more than 30 days’ notice;
(Eii) all Contracts that provide for the indemnification by Verano or any agreement relating to the acquisition or disposition Verano Subsidiary of any business (whether by mergerPerson or the assumption of any Tax, sale environmental, or other liability of stockany Person, sale in each case outside the ordinary course of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or morebusiness;
(Fiii) any agreement all Contracts relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more Verano Intellectual Property (other than (i) intercompany indebtedness among the MCK Contributed Entities “shrink-wrap” and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK other generally-available end-user licenses or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closingpermissions);
(Giv) all Contracts relating to Indebtedness in excess of $300,000;
(v) all Contracts that limit or purport to limit the ability of Verano or any agreement that restrictsVerano Subsidiary or any of their officers, prohibits managers or impairs (or purports directors to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage compete in any line of business, (ii) sell, license business or otherwise distribute services with any Person or products in any geographic area or during any period of time;
(iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (IIvi) any nonContract that grants any “most-competition favored nation” or non-solicitation restrictionsother preferential pricing in relation to any services, (III) products or territory or that requires Verano or any rights Verano Subsidiary to purchase a minimum quantity of goods or services or contains a right of first refusal option or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)similar right;
(Hvii) any material agreement Contract whereby Verano or any Verano Subsidiary grants exclusivity (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing termslimited or otherwise) pursuant to which the Core MTS Business obtains the right another Person, including with respect to useproducts, markets, territories, or a covenant not to be sued under, any Intellectual Property Rightcustomers;
(Iviii) any agreement pursuant to which any Person is authorized to useContract with an operating partner or concerning a partnership or joint venture, or receives any other Contract that involves a covenant not to be sued undersharing of revenues, profits, losses, costs, Taxes or liabilities by or of Verano or any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, Verano Subsidiary with any other than those contained within customer agreements entered into in the ordinary course of business consistent with past practicePerson;
(Jix) all employment-related Contracts, all consulting agreements and all Contracts for the payment of commissions or bonuses to any agreement pursuant to which the Core MTS Business has provided Person, in each case involving aggregate compensation or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation other payments in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business300,000;
(Lx) any agreement with consignment, distributor, dealer, manufacturer’s representative, and sales agency Contracts, in each case involving aggregate compensation or for the benefit other payments in excess of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents)$300,000;
(Mxi) any agreement written or unwritten communications or projections made with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment dispensaries or other assets that are generally available potential customers for purchase by business entities future supply of cannabis and related products, in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers each case which contemplates aggregate revenues or providers and which provide for annual payments expenditures in excess of less than $1.0 million; or300,000;
(Nxii) any Contract whereby Verano provides or receives management, consulting or similar administrative services that involves aggregate compensation or other payments in excess of $300,000; and
(xiii) any settlement agreement with or other similar agreement in respect of any Governmental Authority relating to corporate integrity, deferred prosecution, past or present proceeding during the Core MTS Business’ or MCK’s material non-compliance with Health Care LawsCompliance Period involving payments in excess of $300,000.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Verano Material Contract”) Contract is a valid and binding agreement of the Core MTS Business on Verano or a Verano Subsidiary, as applicable, in accordance with its terms and is in full force and effect. Neither Verano nor such Verano Subsidiary, and none of the Core MTS Businessas applicable, ornor, to the knowledge of MCKVerano’s Knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach in of or default under), or has provided or received any respect under the terms notice of such MTI any intention to terminate, any Verano Material Contract. No event has occurred during the Compliance Period or, except for to Verano’s Knowledge, is threatened, which, after the giving of notice, with lapse of time, or otherwise, would constitute any such defaults breach or breaches which would not reasonably be expected, individually default by Verano or in the aggregate, to be material to the Core MTS Business, taken as a wholeany Verano Subsidiary or any other party under such Verano Material Contract. True Complete and complete correct copies of each MTI Verano Material ContractContract (including all modifications, amendments, and all amendments thereto, in each case subject supplements thereto and waivers thereunder) have been made available to the redaction of certain information, have been delivered to MCK or its outside counselCompanies.
Appears in 2 contracts
Sources: Merger Agreement (Verano Holdings Corp.), Merger Agreement (Verano Holdings Corp.)
Material Contracts. (a) Schedule 5.12 sets forth a correct and complete list of the following Contracts to which any of the Sellers, RWD Canada or RWD Colombia is a party or by which any of them is bound, in each case, relating to the Business or by which any of the Acquired Assets are bound or subject (collectively, the “Material Contracts”):
(i) None of the Core MTS Business each Contract pursuant to which Sellers or any of its Subsidiaries is a party Subsidiary currently leases or subleases real property to or bound by:
(A) from any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or morePerson;
(Bii) each Contract (or group of related Contracts with respect to a single transaction or series of related transactions) pursuant to which the Sellers or any agreement for the purchase of materials, supplies, goods, services, equipment Subsidiary currently leases personal property to or other assets from any Person providing for annual lease payments in excess of Twenty-Five Thousand Dollars ($3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements25,000) per annum;
(Ciii) each Contract (or group of related Contracts with respect to a single transaction or series of related transactions) that cannot be terminated on less than ninety (90) days’ notice (and, in the aggregate with all such other Contracts, without a material monetary penalty) and involves future payments, performance or services or delivery of goods or materials to or by the Sellers or any sales, distribution Subsidiary of any amount or value reasonably expected to exceed One Hundred Thousand Dollars ($100,000) in any future twelve (12)-month period;
(iv) each Contract of the Sellers or any Subsidiary relating to Intellectual Property under which the Company is a licensee or otherwise is authorized to use any Intellectual Property that is used in the business of the Company as now conducted (other than shrink wrap licenses or other similar agreement providing licenses for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments commercial off-the-shelf software with a license fee of $5.0 million 25,000 or more in MCK’s fiscal year 2016less) and each Contract or form of Contract of the Sellers or any Subsidiary by which Company licenses to another Person the right to use any Intellectual Property owned by the Company;
(Dv) each Contract involving a joint venture, partnership or limited liability company involving the sharing of profits of the Sellers, any equity partnership, joint venture Subsidiary or other similar agreement or arrangement that is material to the Core MTS BusinessRWD Canada with any Person;
(Evi) any agreement relating to each Contract that contains a provision that limits the acquisition or disposition freedom of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK Seller or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior Subsidiary to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage compete in any line of business, (ii) sell, license or otherwise distribute services or products in to compete within any geographic area or (iii) compete with any Person or otherwise materially restricts the ability of any Seller or any Subsidiary to solicit or hire any Person or solicit business from any Person;
(including, for the avoidance vii) each Contract granting any exclusive rights to any Person (including any right of doubt, any material agreement first refusal or right of first negotiation);
(viii) each Contract that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses contains exclusivity or “most favored partynation” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)provisions;
(Hix) each Contract providing for discounted pricing or the provision of free products to any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property RightPerson;
(Ix) each Contract (i) that is a collective bargaining Contract or (ii) providing for any agreement pursuant employment, consulting, termination or severance arrangement with respect to which the Business of any Person is authorized current employee, former employee in connection with such former employee’s prior employment with a Seller or RWD Colombia to usethe extent there remains any Liability under such Contract, or receives a covenant other service provider of any Seller or any Subsidiary (including routine employment offer letters with respect to Potential Transferred Employees); it being understood that Contracts falling within this Section 5.12(x) shall not to be sued under, treated as falling within any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into subsection in the ordinary course of business consistent with past practicethis Section 5.12;
(Jxi) each Contract requiring the Sellers, RWD Canada or any agreement pursuant Subsidiary to which the Core MTS Business has provided or leased, or agreed to provide or lease, indemnify any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise)Person;
(Kxii) any agreement each Contract relating to the employment, severance, retention any Indebtedness or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Businessguarantees thereof;
(Lxiii) any agreement with each marketing, advertising, promotion or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents)similar Contract;
(Mxiv) any agreement with each settlement, conciliation or for similar Contract; and
(xv) each and every other Contract which is otherwise material to the benefit Business, condition (financial or other), properties or results of MCK operations of the Sellers, RWD Canada or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care LawsSubsidiary.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI written Material Contract have been made available to the Buyers. None of the Sellers, RWD Canada and RWD Colombia is a party to any oral Contract.
(c) The Sellers, RWD Canada and RWD Colombia have each performed all of their obligations required to be performed by them to date and are not in breach or default (or an event that, with notice or lapse of time or both, would become a default) under any Material Contract. To the Sellers’ Knowledge, no party with whom the Sellers, RWD Canada or RWD Colombia has such a Material Contract is in breach or default (or an event that, with notice or lapse of time or both, would become a default) thereunder. All of the Material Contracts are in full force and effect and enforceable against the Sellers, RWD Canada or RWD Colombia, as applicable, and, to the Sellers’ Knowledge, the other parties thereto in accordance with their terms, subject to the Enforceability Exceptions. None of the Sellers, RWD Canada and RWD Colombia has been the subject of any warranty claim, indemnification claim or any other claim whatsoever arising out of or relating to any Material Contract, and all amendments theretono such claims have been or, in each case subject to the redaction Sellers’ Knowledge, are threatened. None of certain informationthe Material Contracts requires or provides for the payment of any rebate, allowance or other similar payment to any such party. Each of the Sellers and each of RWD Canada and RWD Colombia has paid in full all amounts due under the Material Contracts which are due and payable or accrued in accordance with GAAP, all amounts due to others under the Material Contracts (and has recognized revenues due from others thereunder in accordance with GAAP), and has satisfied in full or provided for all of its Liabilities under the Material Contracts which are due and payable, except amounts or liabilities disputed in good faith by the Company for which adequate reserves have been delivered set aside. For purposes of this Section 5.12(c) only, “Material Contracts” shall mean all Material Contracts, as defined in Section 5.12(a) but replacing the reference to MCK “One Hundred Thousand Dollars ($100,000)” with “Fifty Thousand Dollars ($50,000).”
(d) The cost of completing performance of any customer Contract relating to the Business, including allocable overhead and general and administrative expenses that any Seller, RWD Canada or its outside counselRWD Colombia would have expected to incur had the Acquired Assets not been conveyed to the Buyers or the equity interests (cuotas sociales) in RWD Colombia not been sold to GP US, does not exceed in any material respect the remaining Backlog with respect to such Contract.
(e) Except as disclosed on Schedule 5.12(e), no outstanding Bid or proposal to a customer of any Seller, RWD Canada or RWD Colombia exists. No such outstanding Bid or proposal relating to the Business exists in connection with which (i) a Seller, RWD Canada or RWD Colombia has commenced performance or made a commitment to commence performance prior to the award of a Contract in connection with such Bid or proposal or (ii) the revenues to be earned under the terms of such Bid or proposal are less than the cost to perform, including overhead and general and administrative costs that any Seller, RWD Canada or RWD Colombia would have expected to incur had the Acquired Assets not been conveyed to the Buyers or the equity interests (cuotas sociales) in RWD Colombia not been sold to GP US.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Gp Strategies Corp), Asset Purchase Agreement (Gp Strategies Corp)
Material Contracts. (i) None There have been made available to Parent and ------------------ its representatives true, correct and complete copies of all of the Core MTS Business following contracts to which Company or any of its Subsidiaries is a party or by which any of them is bound (collectively, the "Material Contracts"): (i) contracts with any current officer or director of Company or any of its Subsidiaries; (ii) contracts pursuant to which Company or bound by:
any of its Subsidiaries licenses other persons to use the Software and pursuant to which other persons license Company or any of its Subsidiaries to use the Licensed Software; (iii) contracts (A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other any of the assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK Company or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual PropertySubsidiaries, other than those contained within customer agreements contracts entered into in the ordinary course of business consistent or (B) for the grant to any person of any preferential rights to purchase any of its assets; (iv) contracts which restrict Company or any of its Subsidiaries from competing in any line of business or with past practice;
any person in any geographical area or which restrict any other person from competing with Company or any of its Subsidiaries in any line of business or in any geographical area; (Jv) contracts which restrict Company or any agreement pursuant to of its Subsidiaries from disclosing any information concerning or obtained from any other person or which the Core MTS Business has provided restrict any other person from disclosing any information concerning or leasedobtained from Company or any of its Subsidiaries; (vi) indentures, or agreed to provide or leasecredit agreements, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Propertysecurity agreements, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement mortgages, guarantees, promissory notes and other contracts relating to the employmentborrowing of money; and (vii) all other agreements, severance, retention contracts or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK instruments entered into on arm’s length terms and in outside of the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that which are generally available for purchase by business entities material to Company. Except as specified in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(NSection 4.1(l) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is Disclosure Schedule, all of the Material Contracts are in full force and effecteffect and are the legal, valid and none binding obligation of Company and/or its Subsidiaries, enforceable against them in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors' rights and remedies generally and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). Except as specified in Section 4.1(l) of the Core MTS BusinessDisclosure Schedule, orneither Company nor any of its Subsidiaries is in breach or default in any material respect under any Material Contract nor, to the knowledge of MCKCompany, is any other party thereto is to any Material Contract in breach or default or breach thereunder in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselrespect.
Appears in 2 contracts
Sources: Merger Agreement (Sterling Software Inc), Merger Agreement (Cayenne Software Inc)
Material Contracts. (i) None The Company Benefit Plans, the Contracts filed as exhibits to the Filed SEC Documents and those agreements listed in Section 3.01(j) in the Company Disclosure Letter (such contracts, collectively, the “Company Material Contracts”), together constitute a complete and accurate list of each of the Core MTS Business following Contracts (without duplication) of the Company or of any of its Subsidiaries is a party Subsidiaries, including without limitation oral contracts within the Knowledge of the Company, that are in effect or as to which any rights or bound byobligations are outstanding:
(A) any agreement for all Contracts that constitute a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K under the lease or sublease (whether of real or personal propertySecurities Act) providing for annual payments of $750,000 or moreto the Company;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment all Contracts that constitute a contract committing to or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement otherwise relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness Indebtedness for borrowed money, money or the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any an asset) involving payment obligations ), in each case in excess of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing)5,000,000;
(GC) any agreement all Contracts containing provisions that restricts, prohibits limit or impairs (or purports purport to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedomlimit, in any material respect, the ability of the Core MTS Business Company or any of its Subsidiaries or Affiliates, including, upon consummation of the Merger, the Surviving Corporation, or any of their respective employees to: (x) sell any products, commodities or the Company after the Closing) services of or to conduct the following activities any other Person, (iy) engage in any line of businessbusiness or (z) compete with or obtain products, (ii) sellcommodities or services from any other Person or limit the ability of any Person to provide products, license commodities or otherwise distribute services to the Company or products any of its Subsidiaries, in each case, in any geographic area or (iii) compete with during any Person (including, for the avoidance period of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)time;
(HD) all Contracts that by their terms call for aggregate payments or consideration or other performance by the Company or any of its Subsidiaries of more than $5,000,000 over the remaining term of such Contract, except for any such Contract that may be canceled, pursuant to its terms or applicable Law, without any material agreement (excluding licenses for commercial off penalty, acceleration or other liability to the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to useCompany or any of its Subsidiaries, upon notice of 180 days or a covenant not to be sued under, any Intellectual Property Rightfewer;
(IE) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in all Contracts that concern the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a distribution by third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale parties of materials, supplies, goods, services or other commodities or equipment involving commitment for sales of more than $5,000,000 in the aggregate in any calendar year;
(excluding F) all Contracts that contain any employment agreementsprovision providing for an “earn-out,” contingent purchase price or similar contingent payment obligation on the part of any Company or Subsidiary, in each case in an amount in excess of $5,000,000;
(G) all Contracts involving future payment obligations by any party in excess of $5,000,000 that would be terminable other than by the Company or its Subsidiaries or under which a payment obligation would arise or be accelerated (whether of severance pay or otherwise), equipment in each case as a result of the consummation of the transactions contemplated by this Agreement (either alone or upon the passage of time or occurrence of any additional acts or events);
(H) all Contracts (including without limitation with respect to employment) between the Company or any of its Subsidiaries, on the one hand, and any Affiliate, director or officer (or, to the Knowledge of the Company, any of their respective Affiliates), on the other hand, other than: (x) contracts between the Company and any of its Subsidiaries and (y) contracts among Subsidiaries of the Company;
(I) all Real Property Leases, and all leases of personal property providing for annual rentals of $2,500,000 or more or aggregate future payments of $5,000,000 or more that cannot be terminated on not more than 180 days’ notice without payment by any Company or Subsidiary of any penalty of more than $1,000,000;
(J) all licenses (inbound and outbound), sublicenses, development agreements, material transfer agreements and other agreements under which the Company or any of its Subsidiaries has granted or received the right to use any Intellectual Property (other than licenses for readily available commercial software), in each case that are material to the business of the Company and its Subsidiaries;
(K) all partnership, joint venture, profit sharing, agreement of alliance or cooperation or other assets similar agreements or arrangements or agreements providing for the formation of any such relationship or involving an equity investment by or in any other entity, in each case involving an investment by the Company of $5,000,000 or more;
(L) all Contracts that were entered into for the acquisition of the securities of any other Person or entity or that relate to the past or future disposition or acquisition of any assets, properties or the operating business of the Company, its Subsidiaries or any other Person or entity, in each case valued in excess of $5,000,000; and
(M) all other Contracts, whether or not made in the ordinary course of business, that are generally available for purchase by business entities in material to the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers Company and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrityits Subsidiaries, deferred prosecutiontaken as a whole, or the Core MTS Business’ conduct of the business of the Company and its Subsidiaries, taken as a whole, or MCK’s material non-compliance with Health Care Lawsthe absence of which would, in the aggregate, have a Material Adverse Effect.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which Except as would not reasonably be expectednot, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (A) neither the Company nor any Subsidiary of the Company is in breach, default or violation of the terms of any Company Material Contract and 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 of its Subsidiaries; (B) the Company and each of its Subsidiaries has in all respects performed all obligations required to be material performed by it to date under each Company Material Contract; and (C) each Company Material Contract is a valid and binding obligation of the Company or the Subsidiaries of the Company party thereto, is in full force and effect and is enforceable against the Company and its Subsidiaries and, to the Core MTS BusinessKnowledge of the Company, taken as a whole. True the other parties thereto in accordance with its terms, except that (x) 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 complete copies (y) equitable remedies of each MTI Material Contractspecific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought, and all amendments thereto, in each case subject except to the redaction of certain information, have been delivered to MCK or extent that any such Company Material Contract has previously expired in accordance with its outside counselterms.
Appears in 2 contracts
Sources: Merger Agreement (Paxar Corp), Merger Agreement (Avery Dennison Corporation)
Material Contracts. (ia) None Except for this Agreement, Contracts terminable by the other party or parties thereto on ninety days’ or less notice (without penalty; provided that any requirement to pay costs and expenses in connection with the termination of any such Contract consisting of reimbursement of expenses incurred and reasonable wind-down costs shall not constitute a penalty, and including, for the avoidance of doubt, Company Benefit Plans), as of the Core MTS Business or date of this Agreement, neither the Company nor any of its Subsidiaries is a party to or bound by, without duplication:
(Ai) any agreement for the lease Contract with a Top Customer or sublease (whether of real or personal property) providing for annual payments of $750,000 or moreTop Supplier;
(Bii) any agreement for the purchase of materialsContract with any agent, supplies, goods, services, equipment distributor or other assets providing for sales representative (including “authorized dealers”) involving annual payments aggregate consideration in excess of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements400 thousand;
(Ciii) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016Company Government Contract;
(Div) any equity partnership, joint venture Contract (other than those solely between or other similar agreement or arrangement that is material to among the Core MTS Business;
(ECompany and any of its Wholly Owned Subsidiaries) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness Indebtedness for borrowed money, money or the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations in excess of $1,500,000 250 thousand;
(v) any Contract evidencing financial or more commodity hedging or similar trading activities, including any interest rate swaps, financial derivatives master agreements or confirmations, or futures account opening agreements and/or brokerage statements or similar Contract;
(vi) any Contract for any Leased Real Property or the lease of personal property providing, in each case, for annual payments thereunder of $750 thousand or more;
(vii) any Contract pursuant to which the Company or any of its Subsidiaries (i) grants or receives any license, sublicense, covenant not to s▇▇, release, or option in or to any Intellectual Property Rights that are material to the business of the Company or any of its Subsidiaries, other than (iA) intercompany indebtedness among nonexclusive licenses or sublicenses granted to the MCK Contributed Entities Company or its Subsidiaries with respect to off-the-shelf Software or information technology services that have been granted on standardized, generally available terms, and (B) Customer and Vendor Licenses, in the case of clauses (A) and (B), that are granted or acquired in the Ordinary Course of Business, (ii) intercompany indebtedness assigns or agrees to assign any Company IP that is material to the business of the Company or any of its Subsidiaries taken as a whole or (iii) otherwise agrees to limit its use or exploitation of any Trademarks owned by the Company (including, as applicable, pursuant to any co-existence or consent agreement);
(viii) any Contract related to a collective bargaining arrangement or with a labor union, labor organization, works council or similar organization;
(ix) any Contract related to any settlement of any Proceeding;
(x) any Contract outside the Ordinary Course of Business providing for indemnification or any guarantee by the Company or any of its Subsidiaries of any Person or pursuant to which any indemnification or guarantee obligations of the Company or any of its Subsidiaries remain outstanding or otherwise survive as of the date of this Agreement;
(xi) any Contract between the Company and a labor union, labor organization, works council or similar organization;
(xii) any partnership, limited liability company, joint venture or other similar agreement or arrangement relating to the formation, creation, operation, management or control of any partnership, limited liability company or joint venture, except for any such agreements or arrangements solely between the Company and its Wholly Owned Subsidiaries or solely among the Company’s Wholly Owned Subsidiaries;
(xiii) relating to the, direct or indirect, acquisition or disposition of any capital stock or other securities, assets or business (whether by merger, sale of stock, sale of assets or otherwise) pursuant to which the MCK Contributed EntityCompany or any of its Subsidiaries reasonably expects to be required to pay or receive any earn-out, deferred or other contingent payments;
(xiv) any Contract that contains a put, call, right of first refusal, right of first offer or similar right or obligation or any other obligation pursuant to which the Company or any of its Subsidiaries could be required to, directly or indirectly, purchase or sell, as applicable, any securities, capital stock or other interests, assets or business reasonably expected to result in payments with a value in excess of $750 thousand in any twelve-month period;
(xv) any Contract that (A) purports to restrict the ability of the Company or any of its Subsidiaries or, at or after the Effective Time, Parent or any of its Affiliates from in a material way (1) directly or indirectly, engaging in any business or competing in any business with any Person (including soliciting clients or customers), (2) operating its business in any manner or location or (3) enforcing any of its rights with respect to any of its material assets, (B) by its terms could require the, direct or indirect, disposition of any material assets or line of business of the Company or any of its Subsidiaries or, at or after the Effective Time, Parent or any of its Affiliates, or, direct or indirect, acquisition by the Company or any of its Subsidiaries or, at or after the Effective Time, Parent or any of its Affiliates, of any material assets or line of business of any other Person, (C) grants “most favored nation” status to any other Person that, including those that, at or after the Effective Time, would purport to apply to Parent or any of its Affiliates or (D) includes “take or pay” requirements or similar provisions obligating a Person to obtain a minimum quantity of goods or services from another Person or would constitute a “requirements” contract, including those that, at or after the Effective Time, would purport to apply to Parent or any of its Affiliates;
(xvi) any Contract containing a standstill or similar agreement pursuant to which the Company or any of its Affiliates has agreed not to acquire assets or securities of the other party or any of its Affiliates;
(xvii) any Contract that prohibits the payment of dividends or distributions in respect of the capital stock or other equity interests of the Company or any of its Subsidiaries, the pledging of the capital stock or other equity interests of the Company or any of its Subsidiaries or the incurrence of Indebtedness by the Company or any of its Subsidiaries;
(xviii) any Contract between the Company or any of its Subsidiaries, on the one hand, and MCK any director or officer of the Company or any Person beneficially owning five percent or more of its Affiliates (other than the MCK Contributed Entities)outstanding Shares or shares of common stock of any of their respective Affiliates, on the other hand; provided that, and
(xix) any other Contract or group of related Contracts not otherwise described in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities foregoing clauses (i) engage through (xviii) of this Section 5.11(a) that is material to the Company and its Subsidiaries, taken as a whole, or would prevent, materially delay or materially impair the ability of the Company to consummate the Transactions (together with each Contract constituting any of the foregoing types of Contracts described in clauses (i) through (xviii) of this Section 5.11(a) and together with any line of businessContract that has been or would be required to be filed by the Company as a “material contract” pursuant to Item 601(b)(10)(i), (ii) sell, license or otherwise distribute services or products in any geographic area or (iiiiv) compete with any Person of Regulation S-K under the Securities Act or disclosed as a “material contract” on a Current Report on Form 8-K, a “Material Contract”).
(b) A correct and complete copy of each Material Contract (including, for the avoidance of doubt, any material agreement that includes amendments or supplements thereto) has been made available to Parent, except the Contracts set forth in Section 5.11(a)(i) and Section 5.11(a)(ii) (Iand the related schedule for purposes of Section 5.11(a)(i) grants by and Section 5.11(a)(ii)), which shall be provided as promptly as practicable following the Core MTS date of this Agreement and in no event later than fifteen Business Days following the date of exclusive rightsthis Agreement.
(c) Except for expirations, exclusive territories, exclusive licenses or “most favored party” rights, (II) including any non-competition or non-solicitation restrictionsrenewals, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course Ordinary Course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in accordance with the ordinary course terms of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI such Material Contract”) is a valid and binding agreement of the Core MTS Business and , each Material Contract is in full force and effect, valid and none binding on, and enforceable against, the Company and/or one or more of its Subsidiaries, as the Core MTS Businesscase may be, orand, to the knowledge Knowledge of MCKthe Company, any each other party thereto is in default or breach in any respect under thereto, subject to the terms of such MTI Material ContractBankruptcy and Equity Exception, except for any such defaults or breaches which as would not reasonably be expectednot, individually or in the aggregate, reasonably be expected to be material result in a Material Adverse Effect.
(d) There is no breach or violation of, or default under, any Material Contract by the Company or any of its Subsidiaries or, to the Core MTS BusinessKnowledge of the Company, taken as any other party thereto, and, subject to Sections 5.4(b)(iii) and 5.17(c) of the Company Disclosure Schedule, no event has occurred that with or without notice, lapse of time or both, would constitute or result in a whole. True and complete copies breach or violation of, or default under, any such Contract by the Company or any of each MTI Material Contractits Subsidiaries or, and all amendments theretoto the Knowledge of the Company, any other party thereto or would permit or cause the termination, non-renewal or modification thereof or acceleration or creation of any right or obligation thereunder, in each case subject case, except as would not, individually or in the aggregate, reasonably be expected to the redaction of certain information, have been delivered to MCK or its outside counselresult in a Material Adverse Effect.
Appears in 2 contracts
Sources: Agreement and Plan of Merger (Collectors Universe Inc), Merger Agreement (Collectors Universe Inc)
Material Contracts. (i) None of All contracts, licences, leases, agreements, commitments, entitlements or engagements to which the Core MTS Business Corporation or any of its Subsidiaries subsidiaries is a party to or by which any of them is bound by:
(A) any agreement for the lease or sublease (whether written or oral): (i) which involve aggregate future payments by or to any of them in excess of $1,000,000 in any 12-month period or which extend for a period of more than two years and are not terminable without penalty of less than $1,000,000; (ii) which are leases of real property; (iii) with any Governmental Entity (including licences); (iv) which, if terminated without the consent of the Corporation or personal propertyany of the subsidiaries, would have, or reasonably be expected to have, a Material Adverse Effect; (v) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materialssecurities or assets of the Corporation or any of its subsidiaries, suppliesor for the acquisition of securities, goodsassets or businesses of others (by merger, servicesamalgamation, equipment reorganization, arrangement or otherwise) and related agreements (other assets that provides than contracts entered into in the ordinary and regular course of business) or for annual payments the grant to any Person of $5.0 million any preferential rights to purchase any of its assets; (vi) licences to or more in MCK’s fiscal year 2016;
(D) from any equity partnership, joint venture or other similar agreement or arrangement third parties of any Intellectual Property that is material to the Core MTS Business;
businesses of the Corporation and its subsidiaries; (Evii) any agreement relating which relate to management service, distribution, or relationships material to the acquisition or disposition business of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK Corporation or any of its Affiliates subsidiaries taken as a whole; (viii) which are indentures, credit agreements, security agreements, mortgages, hypothecs, guarantees, promissory notes and other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement contracts relating to the employmentborrowing of money; (ix) which constitute or relate to related party transactions; (x) which are with material suppliers of products or services to the Corporation or any of its subsidiaries; and (xi) which are otherwise material and outside the ordinary and regular course of business; (collectively, severance“Material Contracts”) are, retention or indemnification of any service provider if required by applicable Securities Laws, properly disclosed in the Corporation Public Disclosure Record. Each of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and Contracts is in full force and effect, is valid, binding and none enforceable against the parties thereto, and has not been modified by any agreement (written or oral), has not been assigned, transferred or hypothecated, nor has any notice of termination been given thereunder. Neither the Core MTS Business, or, to the knowledge Corporation nor any of MCK, any other party thereto its subsidiaries is in breach or default under any Material Contract or is aware of any condition that with the passage of time or the giving of notice or both would result in such a breach in any respect under the terms of such MTI Material Contractor default, except for in each case where any such breaches or defaults or breaches which would not reasonably be expectednot, individually or in the aggregate, to be constitute a material default thereunder. Neither the Corporation nor any subsidiary of the Corporation knows of, or has received written notice of, any breach or default under (nor, to the Core MTS Businessknowledge of the Corporation, taken as does there exist any condition which with the passage of time or the giving of notice or both would result in such a whole. True and complete copies of each MTI breach or default under) any Material Contract, and all amendments Contract by any other party thereto, except where any such violation or default would not, individually or in each case subject to the redaction of certain informationaggregate, have been delivered to MCK or its outside counselconstitute a material default thereunder.
Appears in 2 contracts
Sources: Support Agreement (7293411 Canada Inc.), Support Agreement (Optimal Group Inc)
Material Contracts. (ia) None Except for the Contracts disclosed in Schedule 3.11 (and referenced to the applicable subsection below), as of the Core MTS Business date of this Agreement, and, in each case, with respect to, or any of its Subsidiaries relation to the Business, Seller is not a party to or bound bysubject to any:
(Ai) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement contract for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of by Seller of, or pursuant to which in the last year Seller paid, in the aggregate $3.0 million 10,000 or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsmore;
(Cii) any sales, distribution or other similar agreement providing for the sale or license by Seller of materials, supplies, goods, services, equipment or other assets that provides provide for annual payments of to Seller of, or pursuant to which in the last year Seller received, in the aggregate $5.0 million 10,000 or more in MCK’s fiscal year 2016more;
(Diii) maintenance agreements (“Maintenance Agreements”), except as set forth on Schedule 3.11(a)(iii), which schedule lists all customer names, invoice dates, renewal dates, value of maintenance contracts, and any equity non-standard terms;
(iv) partnership, joint venture or other similar agreement contract arrangement or arrangement that is material to the Core MTS Businessagreement;
(Ev) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement contract relating to indebtedness for borrowed money, money or the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such except contracts relating to indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into incurred in the ordinary course of business consistent with past practicein an amount not exceeding $10,000;
(Jvi) any agreement pursuant to which the Core MTS Business has provided employment or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise)consulting agreement;
(Kvii) any license, technology transfer, franchise, source code escrow or other agreement relating to the employment, severance, retention or indemnification in respect of any service provider of the Core MTS Business with a base salary Intellectual Property or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Businessproperty owned or used by Seller;
(Lviii) agency, dealer, sales representative or other similar agreement;
(ix) contract or other document that limits the freedom of Seller to compete in any agreement line of business or with any Person or in any area to own, operate, sell, transfer, pledge or otherwise dispose of or encumber any Purchased Asset and that would so limit the freedom of Buyer after the Closing Date;
(x) contract or commitment with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);Interested Person; or
(Mxi) any agreement with other contract or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and commitment not made in the ordinary course of business for that is material to the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care LawsBusiness taken as a whole.
(iib) Each agreement Contract disclosed in any Schedule to this Agreement or required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”3.11(a) is a valid and binding agreement of the Core MTS Business Seller and is in full force and effect, and none of the Core MTS Business, orneither Seller nor, to the knowledge of MCKSeller’s Knowledge, any other party thereto is in default or breach in any material respect under the terms of any such MTI Material Contract, nor, to Seller’s Knowledge, has any event or circumstance occurred that, with notice or lapse of time or both, would constitute an event of default thereunder.
(c) Each Contract disclosed in any Schedule to this agreement is not subject to any amendments, side letters, modifications or other agreements relating thereto, except for written amendments, modifications or other agreements as so disclosed in any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselSchedule.
Appears in 2 contracts
Sources: Asset Purchase Agreement (ClearStory Systems, Inc.), Asset Purchase Agreement (Datawatch Corp)
Material Contracts. (iSet forth in Schedule 3.1(n) None of the Core MTS Business Company Disclosure Schedule is a true and complete list of each of the following contracts and agreements of the Company or any of its Subsidiaries is a party to as in effect on the date of this Agreement, whether written or bound by:oral (such contracts or agreements, "MATERIAL CONTRACTS"):
(Aa) material contracts and agreements (and any agreement for material modifications and amendments thereto) with any of the lease or sublease 19 Persons set forth on Section (whether a) of real or personal propertySchedule 3.1(n) providing for annual payments of $750,000 or morethe Company Disclosure Schedule;
(Bb) material contracts and agreements (and any agreement for material modifications and amendments thereto) with any singer, musician, publisher or producer (each, an "ARTIST") who renders services or otherwise participates in the purchase preparation or production of materialsany sound recordings in which the Company or a Subsidiary owns, supplieslicenses or otherwise controls the copyright under federal, goodsforeign or common copyright law ("MASTER RECORDINGS"), serviceswhich contain any "change of control" provisions or any provisions that would be triggered upon a sale of the Company or, equipment with respect to material contracts or other assets providing for annual payments agreements with any of $3.0 million or more in MCK’s fiscal year 2016the Persons set forth on Section (a) of Schedule 3.1(n) of the Company Disclosure Schedule, including upon a sale of any independent contractor agreements, but excluding any employment agreementsSubsidiaries of the Company;
(Cc) material contracts and agreements (and any material modifications and amendments thereto) with the songwriters listed on Section (c) of Schedule 3.1(n) of the Company Disclosure Schedule; 29 22
(d) material contracts and agreements containing material covenants limiting the freedom of the Company or any Subsidiary after the date hereof (i) to engage in any line of business in any geographic area or to compete with any Person that impairs in any material respect the operation of the business of the Company and the Subsidiaries, taken as a whole, including limitations on the Company's freedom to enter into other contracts, in each case except for any sales, distribution distribution, licensing and similar agreements made in the ordinary course of business, or (ii) to incur indebtedness for borrowed money (other than pursuant to joint venture, partnership or similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016agreements);
(De) key-man" contracts or agreements which give rise to any right of termination or the loss of any benefit or increase in liability of the Company or any Subsidiary, if a specified individual shall cease to be an Employee of the Company or any Subsidiary of the Company or shall cease to be employed in a specified capacity by the Company or such Subsidiary;
(f) contracts and agreements (and any material modifications and amendments thereto) with, or on behalf of, any Artist, production company, songwriter or publishing company in respect of whom or which the Company and its Subsidiaries are committed to pay advances after the date hereof which exceed $50 million, other than any immaterial contract or agreement that is ancillary to the principal contract(s) or agreement(s) (or to any material modifications or amendments thereto) relating to the foregoing;
(g) contracts and agreements (and any material modifications and amendments thereto) pursuant to which the Company or any of its Subsidiaries has engaged a third party as a distributor in any territory, or agrees to act as a distributor for a third party in any territory, and pursuant to which the Company or such Subsidiary is obligated to make, or is entitled to receive, payments which are reasonably likely to exceed $100 million per year, other than any immaterial contract or agreement that is ancillary to the principal contract(s) or agreement(s) (or to any material modifications or amendments thereto) relating to the foregoing;
(h) contracts and agreements (and any material modifications and amendments thereto) to which any of the Master Recordings, music videos or video clips, films or other products or services of Purchaser or any of its Subsidiaries (other than, following the Closing, the Company and its Subsidiaries) would become subject upon consummation of any of the transactions contemplated by this Agreement;
(i) employment contracts or agreements with any of the individuals set forth on Section (i) of Schedule 3.1(n) of the Company Disclosure Schedule; 30 23
(j) contracts or instruments under which the Company or any of its Subsidiaries has directly or indirectly guaranteed indebtedness, liabilities or obligations of any Person (other than the Company or a Subsidiary), in each case, which guarantee obligation is reasonably likely to exceed $20 million, or the aggregate of which guarantee obligations are reasonably likely to exceed $40 million; or
(k) any equity partnership, joint venture or other similar contract or agreement or arrangement that is material to the Core MTS Business;
(E) with any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more Person (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK Company or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing termsSubsidiaries) pursuant to which the Core MTS Business obtains the right Company or such Subsidiary has an existing commitment to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation pay in excess of $300,000 per year, other than those that can be terminated without liability to 100 million after the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsdate hereof.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 2 contracts
Sources: Offer Agreement (Seagram Co LTD), Offer Agreement (Seagram Co LTD)
Material Contracts. (a) Section 4.10(a) of the Disclosure Schedules sets forth each of the following Contracts (x) by which any of the Purchased Assets are bound or affected or (y) to which Seller is a party or by which it is bound in connection with the Business or the Purchased Assets (such Contracts, together with all Contracts concerning the occupancy, management or operation of any Leased Real Property (including, brokerage contracts) listed or otherwise disclosed in Section 4.13(a) of the Disclosure Schedules and all Intellectual Property Agreements listed in Section 2.01(d) of the Disclosure Schedules, being “Material Contracts”):
(i) None of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments all Contracts involving aggregate consideration in excess of $750,000 10,000 and which, in each case, cannot be cancelled without penalty or morewithout more than ten (10) days’ notice;
(Bii) any agreement for all Contracts that require Seller to purchase or sell a stated portion of the purchase requirements or outputs of materials, supplies, goods, services, equipment the Business or other assets providing for annual payments of $3.0 million that contain “take or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementspay” provisions;
(Ciii) all Contracts that provide for the indemnification of any salesPerson or the assumption of any Tax, distribution environmental or other similar agreement providing for the sale Liability of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016any Person;
(Div) any equity partnership, joint venture or other similar agreement or arrangement all Contracts that is material to the Core MTS Business;
(E) any agreement relating relate to the acquisition or disposition of any business 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) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(Gv) any agreement that restrictsall broker, prohibits distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting and advertising Contracts;
(vi) all employment agreements and Contracts with independent contractors or impairs consultants (or purports similar arrangements) which are not cancellable without material penalty or without more than ten (10) days’ notice and all non-competition, non-solicitation and confidentiality agreements from current and former independent contractors, consultants and employees of Seller that are currently in effect;
(vii) except for Contracts relating to restricttrade receivables, prohibit all Contracts relating to indebtedness (including guarantees);
(viii) all Contracts with any Governmental Authority (“Government Contracts”);
(ix) all Contracts that limit or impair), or has or would reasonably be expected purport to have limit the effect ability of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) Seller to conduct the following activities (i) engage compete in any line of business, (ii) sell, license business or otherwise distribute services with any Person or products in any geographic area or during any period of time;
(iiix) compete with all joint venture, partnership or similar Contracts;
(xi) all Contracts for the sale of any of the Purchased Assets or for the grant to any Person (includingof any option, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights right of first refusal or rights of first offer preferential or (IV) any limits on the use of similar right to purchase any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)Purchased Assets;
(Hxii) all powers of attorney with respect to the Business or any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property RightPurchased Asset;
(Ixiii) all collective bargaining agreements or Contracts with any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;Union; and
(Jxiv) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating all other Contracts that are material to the employment, severance, retention Purchased Assets or indemnification of any service provider the operation of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be not previously disclosed pursuant to this Section 4.02(i4.10.
(b) (each, a “MTI Each Material Contract”) Contract is a valid and binding agreement of the Core MTS Business on Seller in accordance with its terms and is in full force and effect, and none . None of the Core MTS Business, or, to the knowledge of MCK, Seller or any other party thereto is in breach of or default under (or is alleged to be in breach of or default under) in any respect under the terms material respect, or has provided or received any notice of such MTI any intention to terminate, any Material Contract. No event or circumstance has occurred that, except for with notice or lapse of time or both, would constitute an event of default under any such defaults Material Contract or breaches which result in a termination thereof or would not reasonably be expected, individually cause or in permit the aggregate, to be material to acceleration or other changes of any right or obligation or the Core MTS Business, taken as a wholeloss of any benefit thereunder. True Complete and complete correct copies of each MTI Material ContractContract (including all modifications, amendments and all amendments thereto, in each case subject to the redaction of certain information, supplements thereto and waivers thereunder) have been delivered made available to MCK Buyer. There are no material disputes pending or its outside counselthreatened under any Contract included in the Purchased Assets.
Appears in 2 contracts
Sources: Asset Purchase Agreement (P&f Industries Inc), Asset Purchase Agreement (P&f Industries Inc)
Material Contracts. (a) Set forth on Schedule 3.10, which incorporates by reference EXHIBITS B-1, ▇-▇, ▇-▇ ▇▇▇ B-4 and EXHI▇▇▇▇ ▇-▇, ▇-▇, ▇-▇ ▇▇▇ D-4 (to the extent Contracts are specifically listed therein), is a complete list of all of the following Contracts to which the Company, the Subsidiary or the Practice is a party or by which any of them is bound, used in, related to or necessary for the operation of the Acquired Businesses or the Practice, provided, however, with respect to the Practice except as set forth herein, only those Contracts relating to the operations of the Practice managed by the Company pursuant to and including the Business Management Agreement are required to be set forth on Schedule 3.10:
(i) None all Contracts relating to the employment of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moreperson, and all bonus, deferred compensation, pension, profit sharing, stock option, employee stock purchase, phantom stock, retirement and other employee benefit plans;
(Bii) all Contracts which contain restrictions with respect to payment of dividends or any agreement for the purchase other distribution in respect of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsits capital stock;
(Ciii) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments all Contracts relating to capital expenditures in excess of $5.0 million or more in MCK’s fiscal year 201615,000;
(Div) all loans, advances to, and investments in, any equity partnershipother Person, joint venture and all Contracts relating to the making of any such loan, advance or investment;
(v) all guarantees and other contingent liabilities with respect to any indebtedness or obligation of any other Person (other than the endorsement of negotiable instruments for collection in the Ordinary Course of Business);
(vi) all management services, consulting and any other similar agreement type contracts;
(vii) all leases of personal property providing for lease payments in excess of $5,000 per annum and a term of more than two years;
(viii) all Contracts materially limiting the freedom of the Company to engage in any line of business or arrangement that is material to compete with any other Person;
(ix) all Contracts not entered into in the Core MTS Ordinary Course of Business;
(Ex) any agreement all Contracts (other than contracts relating to capital expenditures) which involve the acquisition expenditure by the Company or disposition the Subsidiary, as the case may be, of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of more than $250,000 or more10,000;
(Fxi) any agreement relating to indebtedness for borrowed moneyContract with any director, officer or employee of either of the deferred purchase price Sellers or Contract with any Related Person of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing)Sellers;
(Gxii) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would all Contracts which might reasonably be expected to have a potential Material Adverse Effect on the effect business or operations of prohibiting, restricting or impairing, any material business practice either of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)Sellers;
(Hxiii) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant all Contracts with Payors or contracts to which the Core MTS Business obtains the right to use, provide optometric services or a covenant not to be sued under, any Intellectual Property Righthealth care services;
(Ixiv) any agreement pursuant all Contracts engaging a person to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property perform services as an independent contractor and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;consultant; and
(Jxv) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating all other Contracts material to the employmentbusiness, severance, retention or indemnification of any service provider operations and assets of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, Sellers or the Core MTS Business’ or MCK’s material non-compliance with Health Care LawsPractice.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (eachExcept as set forth on Schedule 3.10, a “MTI Material Contract”) each Contract set forth on Schedule 3.10 is a valid and binding agreement of the Core MTS Business Company, the Subsidiary or the Practice, as the case may be, and is in full force and effecteffect and enforceable in accordance with its terms. Subject to obtaining the requisite consents set forth on Schedule 3.11(a), 3.11(b) or 3.23(b) hereto, the enforceability of such Contracts will not be affected in any manner by the execution and delivery of this Agreement and the consummation of the Subject Transactions. None of the Company, the Subsidiary or the Practice has violated any of the material terms or conditions of any of the Contracts set forth on Schedule 3.10 to which it is a party and none of the Core MTS BusinessCompany, orthe Subsidiary or the Practice is otherwise in material default thereof, and, to the knowledge Knowledge of MCKthe Sellers, except as set forth on Schedule 3.10, all of the material terms and conditions to be performed by any party thereto other than the Company, the Subsidiary and the Practice have been fully performed and each such Contract is free from any right of termination on the part of any party thereto. There exists no default or event of default under any of the Contracts set forth on Schedule 3.10 or event, occurrence, condition or act (including the purchase of the Assets hereunder, subject to obtaining the requisite consents set forth on Schedule 3.11(a), 3.11(b) or 3.23(b) hereto) which, with the giving of notice, the lapse of time or the happening of any other event or condition, would become a default or event of default thereunder. None of the parties to any of the Contracts has given notice (written or oral) of its intent to terminate such Contract and neither the Company nor the Subsidiary has Knowledge that any party thereto is in default intends to terminate any Contract prior to or breach in any respect under following the terms consummation of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a wholeSubject Transactions. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, There have been delivered no amendments or modifications to MCK or its outside counselany of the Contracts except as set forth on Schedule 3.10.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Vision Twenty One Inc), Asset Purchase Agreement (Eye Care Centers of America Inc)
Material Contracts. (a) Schedule 4.12 of the Company Disclosure Schedule sets forth a true, correct and complete list, as of the date hereof, of all contracts, commitments, licenses, agreements, obligations or arrangements, whether oral or written, formal or informal, to which the Company or any Company Subsidiary is a party (or intends to become a party) or to which any of their respective assets or properties is bound:
(i) None under which the Company or a Company Subsidiary leases personal property from or to third parties under operating leases which involve payments in excess of $25,000 per annum;
(ii) for the Core MTS Business purchase or any sale of its Subsidiaries is a party to products or bound by:
other personal property or for the furnishing or receipt of services (A) any agreement which calls for the lease or sublease performance over a period of more than one (whether of real or personal property1) providing for annual year, (B) which involves payments of more than $750,000 50,000 in the aggregate or more(C) in which the Company or any Company Subsidiary has agreed to purchase a minimum quantity of goods or services or has agreed to purchase goods or services exclusively from any Person which involves payments in excess of $50,000, but excluding purchase orders or sales contracts which are revocable without penalty by the Company or any Company Subsidiary;
(iii) (A) granting representation, marketing or distribution rights or (B) any agreement for the purchase of materialsrelating to Intellectual Property (including, supplieswithout limitation, goodslicense, services, equipment franchise or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor similar agreements, but excluding any employment agreements);
(Civ) establishing or maintaining any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or strategic alliance or pursuant to which the Company or any Company Subsidiary has purchased the assets, business or Equity Interests of any other similar agreement or arrangement that is material to Person during the Core MTS Businesslast three (3) years;
(Ev) any agreement relating to the acquisition under which there is or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, may be imposed a Lien on the one hand, and MCK or any of its Affiliates assets, whether tangible or intangible (other than the MCK Contributed Entities), on the other hand; provided that, Liens granted in the case favor of clause (ii) any such indebtedness shall be paid off in full at or prior to the ClosingParent);
(Gvi) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) concerning any non-competition or non-solicitation restrictions, (III) any rights obligations entered into outside the ordinary course of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)business;
(Hvii) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to under which the Core MTS Business obtains the right to useCompany or any Company Subsidiary is or would be restricted from carrying on its business or any part thereof, or a covenant not to be sued under, from competing in any Intellectual Property Rightline of business or with any Person;
(Iviii) with officers, directors, employees or consultants of the Company or any agreement pursuant to which Company Subsidiary;
(ix) resulting in or providing for the creation of any Person is authorized to use, or receives a covenant not to be sued under, Lien (including any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, lease notifications) other than those contained within customer agreements any Liens granted in favor of Parent;
(x) involving any Affiliates of the Company or any Company Subsidiary;
(xi) under which the consequences of a default or termination could reasonably be likely to have a Company Material Adverse Effect; and
(xii) not entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider and not otherwise disclosed on Schedule 4.12 of the Core MTS Business with a base salary or base compensation Company Disclosure Schedule in excess response to any of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsforegoing clauses.
(iib) All of the contracts, commitments, licenses, agreements, obligations or arrangements described in clauses (i) through (xii) of Section 4.12(a), together with the real property leases, subleases, licenses and other interests described in Section 4.22, whether entered into prior to, on or after the Effective Time, are each referred to herein as a “Material Contract” and are collectively referred to herein as the “Material Contracts.”
(c) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) Contract existing as of the date hereof is a legal, valid and binding agreement obligation of each of the Core MTS Business Company or any Company Subsidiary that is a party thereto, on the one hand, and to the Knowledge of the Company or any Company Subsidiary, the other parties thereto, on the other hand, enforceable against each of them in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or conveyance or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability and is in full force and effect. The parties to each Material Contract are in substantial compliance with the terms thereof, and none no default or event of default by any of the Core MTS Business, Company or any Company Subsidiary or, to the knowledge Knowledge of MCKthe Company or any Company Subsidiary, any other party thereto exists thereunder.
(d) None of the Company or any Company Subsidiary is in default a party to any contract, commitment, license, agreement, obligation or breach arrangement that restricts it from carrying on its business or any part thereof, or from competing in any respect under the terms line of such MTI Material Contract, except for business or with any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselother Person.
Appears in 2 contracts
Sources: Merger Agreement (Caprius Inc), Merger Agreement (Vintage Capital Group, LLC)
Material Contracts. (a) Except as set forth in Section 3.10(a) of the Seller Disclosure Schedule, as of the Closing Date, neither Parent nor any of its Affiliates is a party to any currently effective Contract related primarily to the Business, and none of the Purchased Assets or Business Licensed Intellectual Property are subject to any Contract, that involve (each, a “Material Contract”):
(i) None of the Core MTS Business any Top Customer;
(ii) any Top Supplier;
(iii) obligations (contingent or otherwise) of, or payments by, Parent or any of its Subsidiaries is a party Affiliates related primarily to the Business in excess of $50,000 in any one calendar year or $100,000 over the current term of such agreement (other than those written agreements with employees or individual consultants);
(iv) payments to Parent or any of its Affiliates related primarily to the Business in excess of $50,000 in any one calendar year or $100,000 over the current term of such agreement;
(v) the license, assignment or transfer of any material Intellectual Property right to or bound by:from Parent or any of its Affiliates used or held for use exclusively in connection with the Business or the Products, including without limitation the Licensed Intellectual Property Agreements (in each case, other than non-exclusive licenses to Parent or its Affiliates arising from the purchase of “off-the-shelf” or other standard products, non-exclusive licenses from Parent or its Affiliates to persons solely for the purpose of such person providing services or products to Parent or its Affiliates, or non-disclosure agreements or agreements in the form(s) previously provided to Buyer relating to proprietary information and inventions executed in favor of Parent and its Affiliates by employees that are not key officers or key employees of Parent and its Affiliates (collectively, “Excluded Contracts”));
(vi) any restriction on the right or ability of Parent or any of its Affiliates to do any of the following in each case, with respect to the Business: (A) to solicit any agreement for customer of any other person; (B) to acquire any product or other asset or any services from any other person; (C) to solicit, hire or retain any person as an employee, consultant or independent contractor; or (D) to engage in the lease Business in any geographic area or sublease (whether market segment or during any period of real or personal property) providing for annual payments of $750,000 or moretime;
(Bvii) the design, development, or testing of the Products, or clinical trials (including pre- and post-marketing trials) relating to the Products;
(viii) the manufacture, marketing, sale or distribution of any agreement for Products in any jurisdiction, or any restrictions on Parent’s or any of its Affiliates’ exclusive rights to develop, manufacture, assemble, distribute, market and sell the Products;
(ix) indemnification by Parent or any of its Affiliates with respect to infringements of Intellectual Property rights primarily used in or primarily related to the Products or the Business;
(x) the purchase of materials, supplies, goods, services, supplies or equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material primarily related to the Core MTS Business;
(Exi) any agreement relating to the acquisition joint ventures, partnerships or disposition teaming arrangements, or involving a sharing of any business (whether by mergerprofits, sale losses, costs or Liabilities of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK Parent or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior primarily related to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(Lxii) any agreement with Indebtedness or for Encumbrances on the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (Business other than the Transaction Documents)would not result in any material Liability to Buyer;
(Mxiii) any agreement settlement related to the Products or the Business;
(xiv) any other Contract with or for material obligations primarily related to the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 millionBusiness; or
(Nxv) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or other Contract that would otherwise be a “material contract” for the Core MTS Business’ or MCK’s material nonBusiness considered collectively on a stand-compliance with Health Care Lawsalone basis (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC).
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and Material Contracts is in full force and effecteffect and is the legal, valid and none binding obligation of Parent or any of its Affiliates which is party thereto, and, to the Knowledge of Parent, of the Core MTS Businessother parties thereto enforceable against each of them in accordance with its terms and, upon consummation of the transactions contemplated by this Agreement, shall, except as otherwise stated in Section 3.10(b) of the Seller Disclosure Schedule, continue in full force and effect. Neither Parent nor any of its Affiliates nor, to the Knowledge of Parent, the other party or parties thereto, is in material breach or material non-compliance of the term of any Material Contract. Neither Parent nor any of its Affiliates has received written notice of any default or, to the knowledge Knowledge of MCKParent, any other party thereto is in oral notice of default or breach threat thereof with respect to any Material Contract.
(c) Parent has made available to Buyer complete and correct copies of all Material Contracts, together with all amendments, modifications or supplements thereto.
(d) Except as set forth in Section 3.10(d) of the Seller Disclosure Schedule, no consent of any third party is required under any Material Contract as a result of or in connection with, and the enforceability of any Material Contract will not be affected in any respect under manner by, the terms execution, delivery and performance of such MTI Material Contractthis Agreement, any of the Ancillary Agreements or the consummation of the transactions contemplated hereby or thereby, except for any where the failure to obtain such defaults consent or breaches which would not reasonably be expectedthe effect on enforceability, individually or in the aggregate, would not reasonably be expected to be material to the Core MTS Business. Subject to obtaining the consents set forth in Section 3.10(d) of the Seller Disclosure Schedule, taken as a whole. True the execution, delivery and complete copies performance of each MTI this Agreement, the Ancillary Agreements and the consummation of the transactions contemplated hereby or thereby will not cause an increase or acceleration of any obligations of Parent or any of its Affiliates pursuant to any contract, agreement or other arrangement listed in Section 3.10(b) of the Seller Disclosure Schedule or give additional rights to any other party thereto nor will any such Material ContractContract in any other way be materially adversely affected by, and all amendments theretoor terminated or lapse by reason of, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counseltransactions contemplated by this Agreement.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Minerva Surgical Inc), Asset Purchase Agreement (Minerva Surgical Inc)
Material Contracts. (ia) None Section 3.16(a) of the Core MTS Business Company Disclosure Schedule sets forth a true and complete list, as of the date hereof, of each of the following Contracts (other than any Company Benefit Plans and excluding purchase orders, statements of work and similar commercial documents issued in the ordinary course under and not amending the applicable Contract) to which the Company is a party or by which the Company or any of its Subsidiaries is a party to respective assets or businesses are bound by:(and any material amendments, supplements and modifications thereto):
(Ai) Contracts with any agreement for of the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moretop 15 largest suppliers by purchases made by the Company during the six-month period ended March 31, 2024;
(Bii) Contracts with any agreement for of the purchase of materialstop 15 largest non-government customers by purchases made by such customer during the six-month period ended March 31, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements2024;
(Ciii) any sales, distribution Contracts concerning the establishment or other similar agreement providing for the sale operation of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity a partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Businesslimited liability company;
(Eiv) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) Contracts pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
Company licenses (IA) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Company Licensed Intellectual Property, other than those contained within customer (i) nonexclusive licenses for shrink-wrap, click-wrap or off-the-shelf software or other generally commercially available software, (ii) licenses granted pursuant to stock, boilerplate, or other generally non-negotiable terms, such as, for example, website and mobile application terms and conditions or terms of use, stock photography licenses, and similar Contracts, or (iii) licenses that are implied by or incidental to the sale or purchase of products or services in the ordinary course of business, or (B) to a third party any material Company Owned Intellectual Property, other than non-exclusive licenses (x) granted in the ordinary course of business, (y) granted by the Company to current and former employees, contractors or other services providers in order to enable such Persons to provide services to the Company, or (z) granted to end users of the Company’s products or services in the ordinary course of business;
(v) the lease agreements of the Company that pertain to any parcel of Company Leased Real Property for which the annual rent exceeds $500,000 individually (each, a “Company Lease Agreement”);
(vi) any Contract that (A) by its terms limits in any material respect the ability of the Company (including, following the Closing, Parent and its Subsidiaries) to engage in any line of business or compete with, or provide any product or service to, any other Person or in any geographic area; or (B) contains any “most favored nation,” exclusivity or similar provision in favor of the counterparty for a product that is material to the Company’s business following the Effective Time;
(vii) any Contract governing the development or ownership of any Intellectual Property, Software or Company Product developed by or jointly with any other Person, in each case at the request or direction of the Company, and which Intellectual Property, Software or Company Product is material to the Company’s business, but excluding employment, consulting, services or invention assignment or similar agreements entered into in the ordinary course of business consistent with past practiceemployees, contractors or consultants of the Company;
(Jviii) any agreement Contract that provides for the disposition or acquisition by the Company of any business or other material assets of the Company or (whether by merger, sale or purchase of assets, sale or purchase of stock or equity ownership interests or otherwise) with (A) continuing material indemnification obligations of the Company that could result in the receipt or making by the Company of future payments in excess of $250,000 or (B) any material remaining “earn out” or other contingent payment or consideration of the Company that has not been substantially satisfied prior to the date of this Agreement;
(ix) any material Contract with any Governmental Entity that require annual payments to the Company of more than $1,500,000;
(x) any settlement or similar Contract arising out of a Proceeding or threatened Proceeding: (A) that materially restricts or imposes any material obligation on the Company or materially disrupts the business of the Company as currently conducted; (B) that would require the Company to pay consideration valued at more than $500,000 individually or $1,500,000 in the aggregate following the date of this Agreement; and (C) pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, Company will have any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in outstanding material obligation after the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise)date hereof;
(Kxi) Indentures, credit agreements, loan agreements and similar instruments pursuant to which the Company or any agreement relating to the employment, severance, retention of its Subsidiaries has or indemnification will incur or assume any indebtedness or has or will guarantee or otherwise become liable for any indebtedness of any service provider of the Core MTS Business with a base salary or base compensation other Person for borrowed money in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business250,000;
(Lxii) any agreement with or for the benefit of MCK or Labor Contract;
(xiii) any Affiliate of MCK with obligations that continue following the Closing Contract;
(xiv) material Contracts under which there has been imposed a Lien (other than a Permitted Lien) on any of the Transaction Documents)assets, tangible or intangible, of the Company;
(Mxv) any agreement with or Contracts that are for the benefit employment or engagement of MCK any individual on a full-time, part-time or any Affiliate personal services consulting basis and which (x) provide for the payment of MCK compensation and/or benefits upon or in connection with obligations that continue following the Closing consummation of the transactions contemplated hereby, and/or (y) provide for severance, termination or notice payments or benefits in an amount in excess of $250,000 individually or $1,000,000 in the aggregate (other than payments or benefits required under applicable Law) upon a termination of the Transaction Documents), other than agreements with MCK applicable individual’s employment or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 millionengagement; or
(Nxvi) any agreement with Contract not otherwise described in any Governmental Authority relating other subsection of this Section 3.16(a) that would be required to corporate integrity, deferred prosecution, or be filed by the Core MTS Business’ or MCK’s Company as a “material noncontract” (as such term is defined in Item 601(b)(10) of Regulation S-compliance with Health Care LawsK of the SEC).
(iib) Each agreement The Company has delivered or made available to Parent true, correct and complete copies of all written Contracts or other agreements of the type that are required to be disclosed pursuant to this set forth on Section 4.02(i3.16(a) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effectCompany Disclosure Schedule, and none of the Core MTS Business, or, or filed as exhibits to the knowledge of MCKCompany SEC Documents (collectively, any other party thereto is in default or breach in any respect under the terms of such MTI “Company Material ContractContracts”), except for any such defaults or breaches which together with all material amendments thereto.
(c) Except as has not had and would not reasonably be expectedexpected to have, individually or in the aggregate, a Company Material Adverse Effect, (i) Company Material Contracts are valid, binding and in full force and effect and are enforceable by the Company in accordance with their terms, except as limited by Laws affecting the enforcement of creditors’ rights generally, by general equitable principles or by the discretion of any Governmental Entity before which any Proceeding seeking enforcement may be brought, (ii) the Company has performed all obligations required to be performed by it under the Company Material Contracts, and it is not (with or without notice or lapse of time, or both) in material breach or default thereunder and, to the Core MTS BusinessKnowledge of the Company, taken as a whole. True no other party to any Company Material Contract is (with or without notice or lapse of time, or both) in breach or default thereunder and complete copies (iii) since January 1, 2023, neither the Company has not received written notice of each MTI any actual, alleged, possible or potential violation of, or material failure to comply with, any material term or requirement of, or intention to cancel any Company Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 2 contracts
Sources: Merger Agreement (Iteris, Inc.), Merger Agreement (Iteris, Inc.)
Material Contracts. Schedule 2.11 hereto contains a complete and correct listing of all Contracts relating to MII Life’s Spending Account Business or SamCo of the types described below to which MII Life or SamCo, is a party, or by which MII Life or SamCo is otherwise bound (such Contracts, the “Material Contracts”):
(a) that gave rise to revenues or Liabilities related to the Acquired Assets or SamCo in excess of $100,000 during the 2020 calendar year;
(b) the top 50 Employer Agreements by total Account assets, all Health Plan Agreements, all distribution partner agreements, each unique form of MII Life or SamCo’s HSA custodial agreement and any other form of agreement between MII Life or SamCo on one hand, and an Account holder on the other hand;
(c) joint venture, partnership and similar Contracts involving a sharing of profits or expenses relating to the Purchased Accounts or SamCo;
(d) each Intellectual Property License, but excluding (i) None any “ shrink wrap” or similar license for Software that is all of the Core MTS Business following: (A) generally commercially available, (B) licensed to MII Life or, in the case of Aware, SamCo (including on a “software-as-a-service” basis) pursuant to a non-exclusive license for a total annual cost of $50,000 or less, and (C) not included in or necessary for the use, development, or maintenance of any Products and Services or the Owned Intellectual Property, and (ii) non-exclusive licenses granted to customers or resellers in the Ordinary Course of Business;
(e) relating to Indebtedness or to the mortgaging, pledging or otherwise placing an Encumbrance on any Acquired Assets;
(f) that limits or purports to limit the ability of MII Life or SamCo or any of its Subsidiaries is a party their respective Affiliates to (i) solicit or hire any Person, (ii) acquire any product or other asset or any service from any other Person, (iii) develop, sell, supply, distribute, offer support to or bound by:
service any product or any technology or other asset to or for any other Person, (Aiv) charge certain prices pursuant to a “most-favored nation” or similar clause or (v) operate in any agreement for the lease or sublease market (whether of real based on geography, industry or personal propertyotherwise) providing for annual payments of $750,000 or morethrough any distribution channel;
(Bg) which prohibits MII Life or SamCo or any agreement for of their respective Affiliates from freely engaging in business anywhere in the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsworld;
(Ch) with any Affiliate of either Seller; or
(i) any sales, distribution other Contract (or other similar agreement providing for the sale group of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(Drelated Contracts) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating operation of MII Life’s Spending Account Business or SamCo. Sellers have made available to the acquisition or disposition Buyer a correct and complete copy of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases each written Material Contract and Assumed Contract (in either each case, whether incurredas amended to date) and a complete description of each oral Material Contract and Assumed Contract or, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, where multiple Material Contracts and/or Assumed Contracts are on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (eachsame form, a “MTI copy of each separate form of Material Contract and/or Assumed Contract”) . Each Material Contract and Assumed Contract is a valid legal, valid, binding, enforceable and binding agreement of the Core MTS Business and is in full force and effect, and none will continue to be legal, valid, binding, enforceable and in full force and effect on identical terms following the consummation of the Core MTS Businesstransactions contemplated hereby. MII Life, orand in the case of Aware, SamCo, is not in default under any Material Contract or Assumed Contract, and no event has occurred that with notice or lapse of time or both would constitute a breach or default, or permit termination, modification or acceleration, thereunder by MII Life or SamCo, to the knowledge Knowledge of MCKSellers, by any other party thereto is thereto. Except as set forth in default Schedule 2.3(c), no consent or breach in any respect under approval to assignment of the terms of such MTI Material ContractPurchased Accounts or the Assumed Contracts, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Businesstransactions contemplated hereby is required. To the Knowledge of Sellers, taken as a whole. True and complete copies no other party has repudiated any provision of each MTI any Material Contract or Assumed Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 2 contracts
Sources: Asset and Unit Purchase Agreement (Healthequity, Inc.), Asset and Unit Purchase Agreement (Healthequity, Inc.)
Material Contracts. (a) Section 5.11(a) of the CGI Disclosure Schedule sets forth a complete list of each currently effective Contract to the extent relating to the Purchased Assets or the BioPharma Business and to which CGI is a party or by which it or its assets are bound (each, a “BP Material Contract”):
(i) None the top ten (10) Contracts as measured in terms of aggregate annual obligations of CGI in the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement last year, for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016(collectively, including any independent contractor agreements, but excluding any employment agreementsthe “Top Suppliers”);
(Cii) any sales, distribution or other similar agreement providing the top ten (10) Contracts as measured in terms of aggregate annual revenue earned by CGI in the last year for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016(collectively, the “Top Customers”);
(Diii) (i) any equity pledge, security agreement, deed of trust or other Contracts that impose an Encumbrance on any of the Purchased Assets, (ii) loan or credit agreement, indenture, debenture, note or other Contracts that create, incur or guarantee any Indebtedness secured by the Purchased Assets, except for those relating to less than $100,000, or (iii) Contracts under which CGI assumes, or otherwise becomes liable for, the obligations of any other Person;
(iv) that relates to any partnership, joint venture venture, strategic alliance or other similar agreement or arrangement that is material to Contract affecting the Core MTS BioPharma Business;
(Ev) which by its terms limits in any material respect (i) the localities, market or business in which all or any significant portion of the BioPharma Business, following the consummation of the transactions contemplated hereby is or would be conducted, (ii) the Persons CGI, may hire (other than Contracts with contract research organizations or other contractors or vendors that provide services to CGI in the ordinary course of CGI’s business and that contain provisions that prevent CGI from soliciting or hiring any personnel of such contract research organizations or such other contractors or vendors), (iii) the Persons to whom CGI may sell products or deliver services, or (iv) the scope of the BioPharma Business;
(vi) providing for the grant by or to CGI of any license to or under any Intellectual Property used in the BioPharma Business, other than (i) Contracts where the grant by or to CGI of any such license pursuant to such Contract is not material to CGI or the BioPharma Business, (ii) Contracts where the Intellectual Property licensed thereunder are licensed on a non-exclusive basis by or to a contractor, service provider or collaborator of CGI in the context of such contractor, service provider or collaborator rendering research and development services to CGI or for the benefit of CGI, and (iii) Contracts where the Intellectual Property material to the BioPharma Business licensed thereunder are licensed on a non-exclusive basis for research and the scope of the license to such Intellectual Property does not include the right to practice or use such Intellectual Property to sell or commercialize any product;
(vii) containing any grant by CGI to any Person of any express license to market or commercialize any product material to the BioPharma Business, including under any Patents (including any covenants not to s▇▇);
(viii) containing any royalty, dividend or similar arrangement with respect to a product material to the BioPharma Business based on the revenues or profits of CGI;
(ix) with any Governmental Authority or a subcontractor to any Governmental Authority in connection with such BP Material Contract;
(x) any agreement that gives rise to any material payment or benefit as a result of the performance of this Agreement or any of the other transaction contemplated hereby;
(xi) relating to the acquisition or disposition of any business (whether by mergermaterial interest in, sale or any material amount of, property or assets of stockCGI or any other Person, sale or for the grant to any Person of assets any preferential rights to purchase any such property or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or moreassets;
(Fxii) any other agreement (or group of related agreements) the performance of which requires aggregate payments to or from CGI in excess of $100,000;
(xiii) establishing powers of attorney or agency agreements;
(xiv) all real property Leases used by the BioPharma Business;
(xv) any agreement relating to indebtedness for borrowed money, the deferred purchase price leasing of property or capital leases equipment used in the BioPharma Business; and
(in either case, whether incurred, assumed, guaranteed or secured by any assetxvi) involving payment obligations of $1,500,000 or more (other than (ias set forth elsewhere in Section 5.11(a) intercompany indebtedness among of the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one handCGI Disclosure Schedule, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any excluding confidentiality and non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer disclosure agreements entered into in the ordinary course of business consistent connection with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leaseda sale process, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating all other Contracts that are material to the employment, severance, retention BioPharma Business of CGI and commitments or indemnification of agreements to enter into any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsforegoing.
(iib) Each agreement required CGI has delivered or made available accurate and complete copies of all BP Material Contracts, including all amendments thereto. There are no BP Material Contracts that are not in written form. Other than payment defaults with respect to be disclosed pursuant the Old Accounts Payable, CGI has not, nor to this Section 4.02(i) (eachCGI’s Knowledge, has any other party to a “MTI BP Material Contract materially breached, violated or defaulted under, or received notice that it has materially breached, violated or defaulted under, any of the terms or conditions of any BP Material Contract”) . As to CGI, each BP Material Contract is a valid valid, binding, enforceable and binding agreement of the Core MTS Business and is in full force and effect, and none subject to Bankruptcy Exceptions. The consummation of the Core MTS Business, or, transactions contemplated hereby will not (either alone or upon the occurrence of additional acts or events) result in any material payment or payments becoming due from CGI or the Seller to any Person under any BP Material Contract or give any Person the knowledge right to terminate or alter the provisions of MCK, any BP Material Contract. No Person is renegotiating any material amount paid or payable to CGI under any BP Material Contract or any other party thereto is in default material term or breach in provision of any respect under the terms of such MTI BP Material Contract. No Person is renegotiating any material amount paid or payable to CGI under any BP Material Contract or any other material term or provision of any BP Material Contract. For purposes of this Section 5.11(b) (other than the first sentence), except for any such defaults or breaches which would not reasonably “BP Material Contract” shall be expecteddeemed to include the Assumed BP Material Contracts, individually or the Equipment Leases and the Undisclosed BP Material Contracts.
(c) The Top Customers collectively represent approximately fifty percent (50%) of the revenues the BioPharma Business received in the aggregatetwelve (12) months ending December 31, to be material to 2018.
(d) The Top Suppliers collectively represent approximately sixty-nine percent (69%) of the Core MTS Businessspend the BioPharma Business incurred in the twelve (12) months ending December 31, taken as a whole. True 2018.
(e) Other than the Equipment Leases, there are no Contracts or equipment which are used, or held for use, by or service both the BioPharma Business and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK one or its outside counselmore Other Business Unit.
Appears in 2 contracts
Sources: Secured Creditor Asset Purchase Agreement (Interpace Diagnostics Group, Inc.), Secured Creditor Asset Purchase Agreement (Cancer Genetics, Inc)
Material Contracts. (ia) None Section 3.15(a) of the Core MTS Business Disclosure Schedule sets forth, as of the date of this Agreement, a true and complete list of each of the following types of Contracts to which the Company or any of its Subsidiaries is a party or by which any of their respective properties or assets is bound and that relate primarily to the Purchased Assets, the Assumed Liabilities or bound by:the Business (each, a “Company Material Contract”):
(i) each Contract pursuant to which any material Third Party Intellectual Property Rights that are used, or held for use by the Company or any of its Subsidiaries in connection with the Business is, or is required to be, licensed, sublicensed, sold, assigned or otherwise conveyed or provided to the Company or any of its Subsidiaries in connection with the Business (other than (A) Contracts for Standard Software, (B) non-disclosure agreements entered into in the ordinary course of business (each, an “NDA”), (C) customary invention assignment agreements with employees and independent contractors entered into in the ordinary course of business and (D) Contracts related to membership in any agreement Standards Body);
(ii) each Contract pursuant to which any material Transferred Business Intellectual Property Rights or any other material right included in the Purchased Assets (whether or not currently exercisable) or interest in any material Transferred Business Intellectual Property Rights is, or is required to be, licensed (whether or not such license is currently exercisable), sublicensed, sold, assigned or otherwise conveyed or provided to a Third Party by the Company or any of its Subsidiaries in connection with the Business (other than (A) NDAs and (B) Contracts for the lease purchase, sale or sublease (whether non-exclusive license of real Data Center Products or personal property) providing for annual payments Intellectual Property Rights used with such Data Center Products entered into in the ordinary course of $750,000 or morebusiness);
(iii) each (A) Contract that includes a covenant not to ▇▇▇ that is material to the Business, other than Contracts which are licenses to Intellectual Property Rights or Contracts relating to membership in any Standards Body or (B) any settlement agreement imposing material restrictions on the operation of the Business as currently conducted;
(iv) each Contract (including any government contract) that has not been fully performed for the purchase sale or distribution by the Company or any of its Subsidiaries in connection with the Business of materials, supplies, goods, services, equipment or other assets providing for annual assets, in connection with which the Business has received payments from the applicable counterparty of $3.0 million 5,000,000 or more in MCK’s fiscal year the 12 month period ending October 29, 2016, including except any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing Contract that is a purchase order for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments entered into by the Company or any Subsidiary in the ordinary course of $5.0 million or more in MCK’s fiscal year 2016business;
(Dv) each Contract that is a master purchase agreement with a Significant Customer or a master purchase agreement with a Significant Supplier (excluding, for clarity, purchase orders and similar transaction documents issued in the ordinary course of business);
(vi) each Contract providing for any equity partnershipother Person with “most-favored-nation” terms, joint venture including such terms for pricing;
(vii) each Contract that contains any provisions requiring the Company or any of its Subsidiaries to indemnify any other similar agreement party (excluding indemnities contained in agreements for the purchase, sale or arrangement license of products of the Business or indemnities in connection with the licensing of Intellectual Property Rights in the ordinary course of business), which indemnity is material to the Business, taken as a whole;
(viii) each Contract that limits or restricts in any material respect the Company or any of its Subsidiaries from (A) engaging or competing in any line of business in any location or with any Person, (B) selling any products or services of or to any other Person or in any geographic region or (C) obtaining products or services from any Person, in each case of subclauses (A), (B) and (C), that is material to the Core MTS Business, taken as a whole;
(Eix) each material partnership or joint venture agreement;
(x) each Contract that includes any agreement arrangement whereby the Company or any of its Subsidiaries grants any right of first refusal or right of first offer or similar right to a Third Party, which right is material to the Business, taken as a whole;
(xi) each Contract that is a loan, guarantee of Indebtedness or credit agreement, note, bond, mortgage, indenture or other binding commitment (other than letters of credit and those between the Company and its wholly owned Subsidiaries) relating to Indebtedness for borrowed money in an amount in excess of $5,000,000 individually;
(xii) each Contract relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within Person pursuant to which the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK Company or any of its Affiliates (Subsidiaries has any continuing and unpaid payment obligations, excluding acquisitions or dispositions of supplies, inventory, merchandise or products in connection with the conduct of the Company’s or any of its Subsidiaries’ business or of supplies, inventory, merchandise, products, equipment, properties or other than the MCK Contributed Entities)assets that are obsolete, on the other hand; provided thatworn out, surplus or no longer used or useful in the case conduct of clause (ii) business of the Company or any such indebtedness shall be paid off in full at or prior to the Closing)of its Subsidiaries;
(Gxiii) each Contract that is a settlement or similar agreement with any Governmental Authority (including any corporate integrity agreement, monitoring agreement that restricts, prohibits or impairs deferred prosecution agreement) or order or consent of a Governmental Authority (including any consent decree or purports settlement order) to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or which the Company after the Closing), or any material acquisition of property its Subsidiaries is subject involving future performance by the Core MTS Business (Company or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)its Subsidiaries;
(Hxiv) any material agreement each Contract (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing termsor series of related Contracts) pursuant to which the Core MTS Business obtains the right to use, Company or a covenant not to be sued under, any Intellectual Property Right;of its Subsidiaries has continuing “earnout” or similar obligations; and
(Ixv) each Contract (or series of related Contracts) that obligates the Company or any agreement pursuant of its Subsidiaries to which make any Person is authorized to usecapital commitment, loan or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into capital expenditure in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation amount in excess of $300,000 per year, other than those 2,500,000 in the aggregate in any one year period after the date of this Agreement that can cannot be terminated without liability to by the Core MTS Business;
(L) any agreement with or for the benefit of MCK Company or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into its Subsidiaries on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, 60 days’ notice without material payment or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawspenalty.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Except for any Company Material Contract”) is a valid and binding agreement of the Core MTS Business and is Contract that has terminated or expired in full force and effectaccordance with its terms or as has not had, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expectedexpected to have, individually or in the aggregate, a Company Material Adverse Effect, each Company Material Contract is valid and binding and in full force and effect and enforceable against the other party or parties thereto in accordance with its terms. The Company or any of its Subsidiaries party thereto, as applicable, and, to the knowledge of the Company, each other party thereto, has performed its obligations required to be material performed by it, as and when required, under each Company Material Contract, except for failures to perform that have not had, and will not have, individually or in the aggregate, a Company Material Adverse Effect. Except for breaches, violations or defaults that 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 Core MTS Businessknowledge of the Company, taken as any other party to a wholeCompany Material Contract, is in violation of or in default under any provision of such Company Material Contract. True and complete copies of each MTI the Company Material Contract, Contracts and all any material amendments thereto, in each case subject thereto have been made available to Purchaser prior to the redaction date of certain information, have been delivered to MCK or its outside counselthis Agreement.
Appears in 2 contracts
Sources: Asset Purchase Agreement, Asset Purchase Agreement (Extreme Networks Inc)
Material Contracts. (a) Section 3.15 of the Seller Disclosure Schedule sets forth as of the date of this Agreement a true and complete list of the following Contracts including purchase orders and invoices and all amendments related thereto to which any of Seller (to the extent applicable to the Business), AER and AER’s Subsidiaries is a party or any of their respective assets are bound (the “Material Contracts”), true and correct copies of which have been made available to IPH:
(i) None that would be reasonably expected to involve the payment of or receipt by the Transferred Company or one of its Subsidiaries in excess of $1,000,000 for each individual Contract or series of related Contracts or $2,500,000 in the aggregate for all such Contracts;
(ii) any futures, forward, swap, collar, put, call, floor, cap, option or other similar Contract (collectively, “Derivative Products”), including with respect to electricity (including capacity and ancillary services products related thereto), natural gas, fuel oil, coal, emissions allowances and offsets, and other commodities, currencies, interest rates and indices;
(iii) (x) that are Contracts for the future purchase, exchange or sale of physical electric power in any form, including electricity, capacity or any ancillary services products related thereto, or an obligation of the Core MTS Business Transferred Company or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, deliver electric power in any material respect, of the Core MTS Business form pursuant to physical load obligations (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (includingwhich, for the avoidance of doubt, any material agreement Seller and IPH agree are types of Derivative Products for purposes of this Agreement), (y) tolling agreements relating to the generation and sale of electricity or (z) that includes (I) grants relates to the acquisition or disposition of a business or facility by the Core MTS Business Transferred Company or any of exclusive rights, exclusive territories, exclusive licenses its Subsidiaries or “most favored party” rights, by Seller (IIto the extent applicable to the Business) that impose material ongoing obligations on the Transferred Company or any of its Subsidiaries;
(iv) that is any non-competition Contract or non-solicitation restrictions, (III) other Contract that purports to limit in any rights material respect either the type of first refusal business in which the Transferred Company or rights of first offer its Subsidiaries may engage or (IV) any limits on the use of geographic area in which any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)them may so engage;
(Hv) that is any material indenture, credit agreement, letter of credit, reimbursement agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant related to a letter of credit, loan agreement, security agreement, guarantee, note, mortgage or other evidence of Debt under which the Core MTS Business obtains the right to useTransferred Company or any of its Subsidiaries has created, incurred, assumed or a covenant not to be sued underguaranteed (or may create, any Intellectual Property Rightincur, assume or guarantee) Debt in each case in excess of $1,000,000;
(Ivi) any agreement pursuant to which any Person (x) that is authorized to usea guarantee or Credit Support instrument issued by, or receives on behalf of, the Transferred Company or any of its Subsidiaries or otherwise in support of or for the benefit of the Transferred Company or its Subsidiaries or (y) that provides a covenant counterparty of the Transferred Company or any of its Subsidiaries the right, whether or not conditional, to require collateral posting or some other form of Credit Support to be sued underprovided by, or on behalf of, the Transferred Company or its Subsidiary party thereto;
(vii) that provides for any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Propertysale leaseback arrangement with payments in excess of $1,000,000;
(viii) that is a Contract for the acquisition of capital equipment containing any future capital expenditure obligations of the Transferred Company or its Subsidiaries (or otherwise relating to the Business) in excess of $1,000,000;
(ix) that is a joint venture, partnership or other similar agreement or that is a stockholders, registration rights or similar agreement;
(x) that is a collective bargaining agreement or other Contract with a labor union or other labor organization;
(xi) that are Contracts for the purchase, exchange or sale of coal, natural gas, fuel oil or other fuels, water or other commodities used for generation of electricity that provide for the payment by or to the Transferred Company or one of the Transferred Company’s Subsidiaries in excess of $1,000,000 during the remaining life of the Contract;
(xii) Contracts for the future transportation or transmission of coal, natural gas, fuel oil or other fuels, electric power, water or any other commodity, that involve the payment by or to the Transferred Company or one of the Transferred Company’s Subsidiaries in excess of $1,000,000 during the remaining life of the Contract;
(xiii) Contracts with respect to storage, parking, loaning, distribution, wheeling, facility or meter construction, unloading, delivery or balancing of natural gas that involve the payment by or to the Transferred Company or one of the Transferred Company’s Subsidiaries in excess of $2,500,000 during the remaining life of the Contract;
(xiv) except as described in any other clause of this Section 3.15(a), all other Contracts (A) for the future sale or acquisition of any asset or (B) that grant a right or option to purchase any asset, other than those contained within customer agreements in each case Contracts entered into in the ordinary course of business consistent relating to any asset with past practicerespect to which the Transferred Company or one of the Transferred Company’s Subsidiaries is entitled to receive or is required to pay less than $100,000 for each individual Contract or $250,000 in the aggregate for all such Contracts;
(Jxv) Leased Real Property leases;
(xvi) Contracts granting a Lien (other than a Permitted Lien) on any agreement pursuant of the assets of the Transferred Company or one of the Transferred Company’s Subsidiaries;
(xvii) except as described in any other clause of this Section 3.15(a), all Contracts for the provision of operation, maintenance or management (including administration, energy management, dispatch, scheduling or market participant services) of any material asset or business activity of the Transferred Company or one of the Transferred Company’s Subsidiaries, other than in each case Contracts with respect to which the Core MTS Business has provided Transferred Company or leased, or agreed a Subsidiary of the Transferred Company is entitled is required to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise)pay less than $1,000,000;
(Kxviii) the Put Option Agreement and the Put Option Asset Purchase Agreement; and
(xix) any agreement relating Contract not otherwise described in clauses (i) through (xvii) above the breach, termination, or expiration of which would have a material adverse effect to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK Transferred Company or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents)its Subsidiaries, other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawstaken as a whole.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) Contract is a legal, valid and binding agreement obligation of Seller (to the extent applicable to the Business), the Transferred Company or one of the Core MTS Business Transferred Company’s Subsidiaries, as applicable, and, to the Knowledge of Seller, on each counterparty and is in full force and effect, and none neither the Transferred Company nor any of its Subsidiaries, nor to the Core MTS BusinessKnowledge of Seller, any other party thereto, is in breach of, or in 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 Transferred Company or its Subsidiaries, or, to the knowledge Knowledge of MCKSeller, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contractthereto, except for any such failures to be valid, binding or in full force and effect and such breaches and defaults or breaches which would not reasonably be expectedthat, individually or in the aggregate, have not had and would not reasonably be expected to be have, individually or in the aggregate, a material to effect on the Core MTS BusinessTransferred Company and its Subsidiaries, taken as a whole. True As of the date of this Agreement, none of Seller, the Transferred Company or any of its Subsidiaries has received written notice from any other party to any Material Contract that such other party intends to terminate, cancel or not renew any such Material Contract. Neither the execution of this Agreement nor the consummation of the transactions contemplated hereby will result in any breach or other violation of any Material Contract.
(c) Section 3.15(c) of the Seller Disclosure Schedule sets forth as of the date of this Agreement a true and complete copies list of each MTI Material Contract, the Contracts (the “Affiliate Agency Contracts”) under which Seller or any of its Subsidiaries (including the Transferred Company and its Subsidiaries) has the authorization to act as agent (an “Affiliate Agent”) for the Transferred Company or any of its Subsidiaries as principal (the “Principal”). Each Affiliate Agent has all amendments thereto, in each case subject required authority from the applicable Principal to act as agent under the redaction applicable Affiliate Agency Contract and has no liability with respect to any obligation of certain information, have been delivered to MCK or its outside counselthe Principal thereunder.
Appears in 2 contracts
Sources: Transaction Agreement (Ameren Energy Generating Co), Transaction Agreement (Dynegy Inc.)
Material Contracts. (a) Schedule 3.18 of the Disclosure Schedules contains a true, complete and correct list of the contracts and agreements to which any member of the Transferred Group is a party or by which any member of the Transferred Group or any of the Assets is bound, or (other than insurance policies of Seller and its Affiliates other than the members of the Transferred Group) pursuant to which a member of the Transferred Group participates or receives services which services are not contemplated by the Transition Services Agreement, and that fall within any of the following categories (such contracts and agreements as described in this Section 3.18(a) being “Material Contracts”):
(i) None all contracts or agreements that provide for, or could reasonably be expected to result in, payment or receipt by the Transferred Group of the Core MTS Business more than $300,000 in any year, including any such contracts and agreements with customers or any of its Subsidiaries is a party clients;
(ii) all contracts and agreements relating to or bound by:
(A) any agreement for the lease Indebtedness or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (B) conditional sale arrangements;
(iii) all contracts and agreements that (A) limit or purport to limit the ability of any member of the Transferred Group to engage or compete in either caseany line of business or with any Person or in any geographic area or during any period of time or (B) grant to the other party or any third Person “most favored nation” status;
(iv) all contracts and agreements (A) granting to any member of the Transferred Group any right to use, whether incurredobtain, assumedenforce, guaranteed or secured by register any assetmaterial Intellectual Property that is used, or held for use, in the business of such member of the Transferred Group (but not including commercially available “off-the-shelf” software having a replacement cost and annual license fee of less than $250,000 in the aggregate for all such related contracts), (B) involving payment obligations under which a member of $1,500,000 the Transferred Group grants to a third party any rights to use, obtain, enforce, or more (register any material Intellectual Property, other than standard non-exclusive internal use licenses granted to customers in the ordinary course of business, or (iC) intercompany indebtedness among the MCK Contributed Entities other than contracts and agreements already described in subsection (A) and (iiB), restricting any member of the Transferred Group's right to use, enforce, or register any material Intellectual Property that is used, or held for use, in the business of such member of the Transferred Group;
(v) intercompany indebtedness among any all contracts and agreements with the MCK Contributed Entity, on the one hand, and MCK Seller or any of its Affiliates or any other Affiliate of the Transferred Group (other than the MCK Contributed Entities), on the other hand; provided thatthan, in each case, another member of the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the ClosingTransferred Group);
(Gvi) any agreement all contracts and agreements that restricts, prohibits or impairs create (or purports govern the operation of) a joint venture, partnership, alliance or any similar arrangement, in each case, that is material to restrictthe operation of the Transferred Group, prohibit taken as a whole;
(vii) all Control Documents;
(viii) all acquisition agreements, asset purchase agreements, stock purchase agreements or impair)other similar agreements, relating to transactions which have not yet been consummated, or has or would pursuant to which the Transferred Group could reasonably be expected to have the effect pay total consideration (including assumption of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company debt) after the Closing), any material acquisition date of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation this Agreement in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business200,000;
(Lix) all contracts and agreements that obligate the Transferred Group to provide indemnification or a guarantee that could reasonably be expected to result in payments in excess of $200,000 individually or $1,000,000 in the aggregate; and
(x) any other contract or agreement with or for that could reasonably be expected to be material to the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents)Transferred Group, other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawstaken as a whole.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which Except as would not reasonably be expectednot, individually or in the aggregate, reasonably be expected to be material to the Core MTS BusinessTransferred Group, taken as a whole, each Material Contract (i) is valid and binding on the applicable member(s) of the Transferred Group, as the case may be, and, to the Knowledge of the Seller, the counterparties thereto, and is in full force and effect and (ii) shall continue in full force and effect upon consummation of the transactions contemplated by this Agreement, except to the extent that any consents set forth in Schedule 3.3(a) of the Disclosure Schedules are not obtained. True and complete copies Except as would not, individually or in the aggregate, reasonably be expected to be materially adverse to any member of each MTI the Transferred Group that is a party to such Agreement, none of the members of the Transferred Group is in breach of, or default under (nor to the Knowledge of the Seller is there any condition or event which, with notice or lapse of time or both, would constitute such a breach or default), any Material Contract to which it is a party. To the Knowledge of the Seller, no other party to any Material Contract is in material breach of or default under (nor to the Knowledge of the Seller is there any condition or event which, with notice or lapse of time or both, would constitute such a breach or default) the terms of any Material Contract. No member of the Transferred Group, nor, to the Knowledge of the Seller, any counterparty thereto, has sent or received any communication regarding termination of, or intention not to renew, any Material Contract, and all amendments no such termination or non-renewal has been threatened by any of the parties thereto. All Material Contracts have been provided to, in each case subject to the redaction of certain informationor, if they are oral contracts, have been delivered to MCK or its outside counselsummarized in writing for, the Buyer.
Appears in 1 contract
Sources: Stock and Asset Purchase Agreement (Conversant, Inc.)
Material Contracts. (a) Section 3.10(a) of the Disclosure Schedule lists each of the following contracts, mortgages, indentures, notes, commitments, understandings or other agreements, whether written or oral (“Contracts”), of any of Sellers in existence as of the date of the Agreement (such Contracts being the “Material Contracts”):
(i) None of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
all Contracts (Aincluding, invoices, and purchase orders) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materialsInventory, supplies, goods, services, equipment other materials or other assets providing for annual payments of $3.0 million personal property with any supplier or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale furnishing of materialsservices to Sellers, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating extent related to the acquisition or disposition Business, under the terms of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or which any of its Affiliates Sellers: (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (iiA) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has must or would reasonably be expected to have be required to pay or otherwise give consideration of more than One Hundred Thousand U.S. Dollars (US $100,000) during the effect calendar year ended 31 December 2004, or (B) must or would reasonably be expected to be required to pay or otherwise give consideration of prohibiting, restricting or impairing, any material business practice more than Two Hundred Fifty Thousand U.S. Dollars (US $250,000) over the remaining term of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, such Contract;
(ii) sellall Contracts (including invoices and sales orders) for the sale of Inventory or other personal property or for the furnishing of services by any of Sellers, license to the extent related to the Business, under the terms of which any of Sellers is or otherwise distribute services would reasonably be expected to be entitled to receive: (A) consideration of more than One Hundred Thousand U.S. Dollars (US $100,000) during the calendar year ended 31 December 2004, or products in any geographic area or (B) consideration of more than Two Hundred Fifty Thousand U.S. Dollars (US $250,000) over the remaining term of the Contract;
(iii) compete with any Person all material Seller IP Agreements (including, for the avoidance other than shrink-wrap licenses of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Propertycommercially available computer software);
(Hiv) all material Contracts with any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant Governmental Authority to which any of Sellers is a party to the Core MTS Business obtains extent related to the right to use, or a covenant not to be sued under, any Intellectual Property RightBusiness;
(Iv) all Assumed Shared Contracts;
(vi) any Contract that materially restricts any of Sellers’ ability to conduct the Business in any geographic area;
(vii) any Contract relating to any joint venture, partnership or similar arrangement of the Business;
(viii) any Contract that is an employment or consulting agreement between any of Sellers and any Business Employee which is not otherwise terminable by one of Sellers upon written notice, given at any time, of not more than sixty (60) days, and without material penalty;
(ix) any collective bargaining agreement or any other material Contract with any labor union covering any Business Employees;
(x) any Contract pursuant to which any Person is authorized of Sellers has granted any exclusive marketing, distribution or other similar right to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating with respect to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(Lxi) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents)all Assumed Real Property Leases;
(Mxii) all Contracts relating to Indebtedness of any Seller relating to the Business or imposing any Encumbrance on any of the Transferred Assets;
(xiii) all Contracts between any Seller and any of their respective Affiliates (including any other Seller); and
(xiv) any agreement with Contract that, if terminated prior to its term, would reasonably be expected to result in payments, penalties or for damages to the benefit of MCK or any Affiliate of MCK with obligations Business that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and would reasonably be expected to result in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsa Material Adverse Effect.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) Material Contract (each, a “MTI Material Contract”i) is a as of the date hereof valid and binding agreement in all material respects on the relevant one of Sellers and, to the Core MTS Business Knowledge of Seller, the counterparties thereto, and is in full force and effect, and none (ii) upon consummation of the Core MTS Businesstransactions contemplated by this Agreement, except to the extent that any consents set forth in Section 3.03(iii) of the Disclosure Schedule are not obtained and subject to the provisions of Section 5.03(d) and (e) hereof, shall continue in full force and effect without penalty or other adverse consequence. None of Sellers or, to the knowledge Knowledge of MCKSeller, any other party thereto thereto, is in material breach of, or default under, any Material Contract. There exists no default or breach in any respect event which, with the giving of notice, lapse of time, or both, would constitute a default on the part of the relevant one of Sellers or, to the Knowledge of Seller, any other party thereto, under any of the terms of such MTI Material ContractContracts, except for any such defaults or breaches which as would not reasonably be expected, individually or expected to result in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselAdverse Effect.
Appears in 1 contract
Sources: Purchase and Sale Agreement (Commercial Vehicle Group, Inc.)
Material Contracts. (a) Section 4.06(a) of the Disclosure Schedules lists each of the following Contracts (x) by which any of the Purchased Assets are bound or affected or (y) to which Seller is a party or by which it is bound in connection with the Business or the Purchased Assets (together with all Leases listed in Section 4.09(b) of the Disclosure Schedules and all Intellectual Property Licenses listed in Section 4.10(a) of the Disclosure Schedules, collectively, the “Material Contracts”):
(i) None all material vendor contracts of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(Eii) any agreement relating to the acquisition or disposition top fifteen (15) monitoring Contracts of any business the Business measured by annual revenue for fiscal year 2012, and the top ten (whether 10) servicing Contracts of the Business measured by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or moreannual revenue for fiscal year 2012;
(Fiii) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior all Contracts that relate to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use sale of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual PropertyPurchased Assets, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leasedbusiness, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation for consideration in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business20,000;
(Liv) all employment agreements with any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents)Transferred Employee;
(Mv) all Contracts that contain noncompetition provisions or restrictive covenants that would in any agreement way limit the ability of the Business to compete with or for the benefit of MCK or any Affiliate of MCK with obligations other Person;
(vi) all Contracts that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 millionan exclusive relationship with any customer or supplier; orand
(Nvii) any agreement with any Governmental Authority all joint venture, partnership or similar agreements of Seller relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(b) Except as set forth on Section 4.06(b) of the Disclosure Schedules: (i) Seller is not in material breach of, or default under, any Material Contract; (ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (eachthe Seller’s Knowledge, a “MTI no third party is in material breach or default under any Material Contract”; and (iii) is there exists no event or condition which, with the giving of notice, the lapse of time, or both, would (W) become a valid and binding agreement material breach or default under any Material Contract on the part of Seller, (X) to Seller’s Knowledge, on the Core MTS Business and is in full force and effect, and none part of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in thereto, give any person the right to declare a default or breach in any respect under the terms of such MTI a Material Contract, except for (Y) give any such defaults person the right to accelerate the maturity or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as performance of a whole. True and complete copies of each MTI Material Contract, and all amendments theretoor (Z) give any person the right to cancel, in each case subject to the redaction of certain information, have been delivered to MCK terminate or its outside counselmodify any Material Contract.
Appears in 1 contract
Material Contracts. (ia) None Section 3.10(a) of the Core MTS Business Disclosure Schedule lists or any of its Subsidiaries is a party to or bound by:
(A) any agreement for describes the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement --------------- following agreements relating to the acquisition or disposition Business and the Purchased Assets (including leases of any business (whether by mergerpersonal property, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities contracts and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (commitments but excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements purchase orders entered into in the ordinary course of business consistent with past practice;business) to which Seller is a party or by which it is bound, or by which the Business or any of the Purchased Assets may be bound:
(Ji) any agreement pursuant to all contracts involving future obligations on the part of Seller in an amount which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expectedare, individually or in the aggregate, reasonably expected to be exceed One Hundred Thousand Dollars ($100,000);
(ii) all partnerships and joint ventures;
(iii) all Leases;
(iv) all notes, bonds, mortgages, security agreements, guarantees and other agreements and instruments for or relating to any lending by Seller of any amount (exclusive of advances to employees for expenses in the ordinary course of business) or any borrowing (including assumed debt but excluding Excluded Liabilities) by Seller, which is reasonably expected to exceed One Hundred Thousand Dollars ($100,000) or more and which relates to the Business;
(v) all forms of Contracts used with dealers, together with a list of any dealers who are not parties to such form Contracts;
(vi) all distributor, manufacturers representative and sales agency Contracts, together with a list of any distributors, manufacturers representatives or sales agents of the Business who are not parties to written Contracts;
(vii) all material advertising representative or advertising or public relations Contracts;
(viii) all guarantees by Seller or any Subsidiary of the obligations of any of its customers, suppliers, officers, directors, employees, Affiliates or others (including Global and its Affiliates);
(ix) all Contracts which limit or restrict where Seller may conduct the Business or the type or line of business in which Seller may engage;
(x) all Contracts not made in the ordinary course; and
(xi) all other contracts, agreements, commitments, understandings or instrument which are material to the Core MTS BusinessBusiness or the Purchased Assets.
(b) Except as set forth in Section 3.10(b) of the Disclosure Schedule, taken --------------- AFSI is not a party to, or bound by, any contract of the type referred to in Section 3.10(a). ---------------
(c) Except as a whole. True set forth in Section 3.10(c) of the Disclosure Schedule: (i) --------------- each agreement referred to in subsection (a) or (b) above, Section 3.7(a) of the -------------- Disclosure Schedule and complete copies Section 3.11 of each MTI Material Contractthe Disclosure Schedule (the "Business ------------ -------- Agreements") is valid, binding and all amendments theretoenforceable in accordance with its terms, in each case ---------- subject to the redaction Bankruptcy Exceptions; (ii) Seller (or the Former Owner) or AFSI, as the case may be, has fulfilled and performed its obligations under each of certain informationthe Business Agreements; (iii) to Seller's and Global's knowledge, have no other party to any such agreement is in material breach or default of the terms of such instrument; and (iv) there does not exist under any provision thereof, any event that, with the giving of notice or the passage of time or both, would constitute a breach or default thereunder. A true complete copy of each Business Agreement has been delivered made available to MCK or its outside counselBuyer by Seller.
Appears in 1 contract
Material Contracts. (a) Schedule 4.20(a) contains a complete and correct list, as of the date of this Agreement, of the following Contracts to which Seller is a party or by which the Seller is bound (collectively, the “Material Contracts”):
(i) None all Contracts between Seller and an end-user or a distributor, reseller or similar arrangement in relation to an end-user of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement Seller’s products for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to over the Core MTS Businesslife of the contract;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required all Contracts for the future purchase of goods or the provision of services involving a remaining obligation in excess of $100,000;
(iii) all notes, bonds, indentures and other instruments and agreements evidencing, creating or otherwise relating to be disclosed pursuant obligations for borrowed money and guarantees of obligations for borrowed money;
(iv) all executory Contracts for capital expenditures with remaining obligations in excess of $300,000 each;
(v) all joint venture, partnership, and other Contracts involving a sharing of profits, losses, costs or liabilities by the Seller with any other Person;
(vi) all Contracts containing covenants that in any way purport to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement limit the freedom of the Core MTS Seller to engage or to compete with any Person in the business of providing wireless and mobile data solutions to governmental and public safety agencies;
(vii) any other agreement material to the Business, the performance of which involves aggregate payments in excess of $300,000; and
(viii) all Contracts involving obligations of the Business to the Seller or its Affiliates.
(b) Except as set forth on Schedule 4.20(b), each of the Material Contracts is (assuming due authorization and is execution by the other party or parties thereto) valid, binding and in full force and effecteffect and enforceable by Seller in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, receivership and similar laws affecting the enforcement of creditor’s rights generally and general equitable principles. Neither Seller, nor, to Seller’s Knowledge, any other party, is in default under any Material Contract, and none to Seller’s Knowledge there are no existing disputes or written claims of default relating thereto, or any facts or conditions Known to Seller which, if continued, are reasonably likely to result in a default or claim of default thereunder. To Seller’s Knowledge, no party to any Material Contract has notified Seller that it intends to cancel, withdraw, modify or amend such Material Contract.
(c) With respect to each Material Contract relating to a Governmental Authority, through either a subcontract or distributor, reseller or similar type of arrangement (a “Material Government Contract”), except as set forth on Schedule 4.20(c):
(i) No material termination or default, cure notice or show cause notice is, or since January 1, 2003, has been, in effect with respect to any Material Government Contract;
(ii) To Seller’s Knowledge, all material representations and certifications executed, acknowledged or set forth in each Material Government Contract were complete and correct in all material respects as of their effective date;
(iii) Since January 1, 2003, no contracting officer of a Governmental Authority has informed Seller in writing that Seller has breached or violated in any material respect any material statute or regulation pertaining to any Material Government Contract;
(iv) Since January 1, 2003, there has been no known governmental investigation (other than routine investigations and audit proceedings) of Seller regarding an alleged or potential material violation of law by Seller with respect to any Material Government Contract; and
(v) Seller is not debarred or suspended from participation in the Core MTS Business, oraward of any Material Government Contract nor, to the knowledge of MCKSeller, is any other party thereto is in default debarment or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselsuspension proceeding pending against Seller.
Appears in 1 contract
Sources: Asset Purchase Agreement (Bio Key International Inc)
Material Contracts. (a) With respect to the Company and its Subsidiaries, Schedule 4.22 of the Disclosure Schedule sets forth a complete and correct list, categorized to correspond to the subparagraphs of this Section 4.22(a), of each Contract that is in effect as of the date of this Agreement and related to the continued operation of the Nitrogen Business:
(i) None that creates a right to lease, use or occupy real estate;
(ii) that is a lease or agreement under which the Company or any Subsidiary is lessor of or permits any third party to hold or operate any real property, or material personal property (other than office equipment), owned or controlled by the Company or any Subsidiary;
(iii) that contemplates or involves the performance of services or sales of products by any of the Core MTS Business Company or any of its Subsidiaries having a value in excess of $250,000 in the aggregate during the twelve (12) month period preceding the date of this Agreement, and which is a party not terminable by the Company or its Subsidiaries without material penalty or on not more than ninety (90) days’ prior notice;
(iv) that relates to the purchase or bound by:
lease of personal property from any supplier or the furnishing of services to the Company or its Subsidiaries and involves payments in excess of $100,000 during the twelve (12) month period preceding the date of this Agreement or commitments for such purchase or lease following such period, other than (A) any agreement short-term purchase orders entered into in the Ordinary Course of Business, (B) those Contracts of the type subject to Section 4.22(a)(v) (without regard to amounts) or (C) Contracts for legal, accounting or other professional services approved by the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moreBankruptcy Court;
(Bv) any agreement other than for sales of product or the purchase of materialsraw materials or inventory in the Ordinary Course of Business, suppliespursuant to which the Company or its Subsidiaries received (or were entitled to receive) or paid (or were obligated to pay) more than $250,000 in the twelve (12) months preceding the date of this Agreement, goodsother than Contracts for legal, services, equipment accounting or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsprofessional services approved by the Bankruptcy Court;
(Cvi) any salesrelating to, distribution or other similar agreement providing for the sale of materialsand evidences of, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness Indebtedness for borrowed money, any mortgage, pledge security agreement, or the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations asset in excess of $1,500,000 50,000);
(vii) containing covenants of any of the Company or more its Subsidiaries not to compete in any line of business or with any other Person in any geographical area;
(viii) that is an assignment, license, indemnification or agreement with respect to any material intangible property (including, without limitation, any material Intellectual Property rights);
(ix) is a material distribution or franchise agreement;
(x) other than those subject to Section 4.22(a)(xiii), that is a Contract, agreement or other arrangement with any officer, director, stockholder, or Affiliate, or any Affiliate of any officer, director, stockholder, or any individual related by blood, marriage or adoption to any such individual or any entity in which any such Person or individual owns more than one percent (i1%) intercompany indebtedness among of the MCK Contributed Entities and equity interest;
(iixi) intercompany indebtedness among that is a collective bargaining agreement;
(xii) that is a settlement, conciliation or similar agreement entered into prior to the date of this Agreement pursuant to which the Company or any of its Subsidiaries will be required following execution of this Agreement to pay consideration in any form in excess of $100,000;
(xiii) that is between the MCK Contributed EntityCompany or any Subsidiary, on the one hand, and MCK any Transferred Subsidiary or any of its Affiliates (other than the MCK Contributed Entities)Non-Controlled Subsidiary, on the other hand; provided thator
(xiv) that is otherwise material to the Nitrogen Business (the “Material Contracts”).
(b) There are no Contracts that would constitute Material Contracts if related to the Nitrogen Business that are not so related and that will be binding on the Company as of Closing.
(c) Other than as set forth on Schedule 4.22 of the Disclosure Schedule, (i) each of the Company and its Subsidiaries have performed all material obligations required to be performed by it through the date of this Agreement under each Material Contract and is not (with or without the lapse of time or the giving of notice, or both) in breach or default thereunder, other than any breach or default that would not enable the case of clause counterparty to terminate such Material Contract or assess a material penalty or assessment against the Company following the Closing, and (ii) any such indebtedness shall be paid off in full at or prior no party to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);Material Contracts has commenced any action against the Company or its Subsidiaries or given any written notice of any material default or violation under any Material Contract that was not withdrawn or dismissed. Each of the Material Contracts is, or will be at Closing, valid, binding and in full force and effect against the Company and its Subsidiaries, except as otherwise set forth on Schedule 4.22 of the Disclosure Schedule or except to the extent a Material Contract will expire or is not renewed by the counterparty thereto in accordance with its terms.
(Hd) As of the date of this Agreement, the Company has no Knowledge of any material agreement breach or anticipated material breach by the other parties to any Material Contract. The Company has no Knowledge of any breach or anticipated breach by the other parties to any Material Contract reasonably likely to result in any Material Adverse Effect.
(excluding licenses for commercial off e) Except as set forth on Schedule 4.22 of the shelf computer software that are generally available on nondiscriminatory pricing termsDisclosure Schedule, neither the Company nor any Subsidiary has assigned any rights or obligations under any Material Contract to any other Person.
(f) pursuant To the Knowledge of the Company, Schedule 4.22 of the Disclosure Schedule also contains a complete list of all executory Contracts to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK Company or any Affiliate of MCK with obligations that continue following the Closing its Subsidiaries (other than the Transaction Documents);
(MNon-Controlled Subsidiaries) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsa party.
(iig) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid True and binding agreement correct copies of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI each Material Contract, except for any such defaults together with all amendments, waivers or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments other changes thereto, in each case subject to the redaction of certain information, have been delivered made available to MCK or its outside counselParent.
Appears in 1 contract
Material Contracts. (ia) None Except as filed as an exhibit to the Company SEC Reports filed before the date of this Agreement or as set forth in SECTION 2.14 of the Core MTS Business or Company Disclosure Schedule, neither the Company nor any of its Subsidiaries subsidiaries is a party to or bound byby any:
(Ai) any employment agreement for the lease or sublease (whether of real or personal property) providing for annual payments pursuant to which an employee is entitled to receive a base salary in excess of $750,000 100,000 per year (other than those that are terminable at will by the Company or moresuch subsidiary without cost, payment or penalty);
(Bii) any agreement contract, whether as licensor or licensee, for the purchase license of materialsany patent, suppliesknow-how, goodstrademark, servicestrade name, equipment service mark, copyright or other assets providing intangible asset that provides for annual payments paym▇▇▇▇ by or to the Company or such subsidiary in excess of $3.0 million or more in MCK’s fiscal 100,000 per year 2016, including any independent contractor agreements, but excluding any employment agreements(other than licenses of commercial off-the-shelf computer software);
(Ciii) any salesloan or guaranty agreement, distribution indenture or other similar instrument, contract or agreement providing for the sale under which in excess of materials$100,000 has been borrowed or loaned or any note, supplies, goods, services, equipment bond or other assets that provides for annual payments evidence of indebtedness in excess of $5.0 million or more in MCK’s fiscal year 2016100,000 has been issued, other than guarantees by the Company of real property leases of certain of its subsidiaries;
(Div) any equity partnershipmortgage, joint venture security agreement, conditional sales contract, capital lease or other similar agreement with total payments in excess of $100,000 per year or arrangement that is effectively creates a lien, encumbrance or security interest on any material to assets of the Core MTS BusinessCompany or any of its subsidiaries;
(Ev) contract restricting the Company or any of its subsidiaries in any material respect from engaging in business or from competing with any other parties, including, but not limited to, geographic limitations on the Company's or any of its subsidiaries' activities;
(vi) written agreement relating to the acquisition reorganization or disposition merger of the Company or any business (whether by merger, sale subsidiary that has not been consummated as of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or morehereof;
(Fvii) any agreement relating to indebtedness for borrowed money, material partnership or joint venture agreement;
(viii) collective bargaining agreement;
(ix) contract that is a "material contract" (as defined in Item 601(b)(10) of Regulation S-K under the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the ClosingSecurities Act);
(Gx) any restaurant services, management, royalty or similar agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or with total payments by the Company after the Closing), or any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation subsidiary in excess of $300,000 100,000 per year, other than those that can be terminated without liability to intercompany agreements among the Core MTS BusinessCompany and/or one or more of its subsidiaries;
(Lxi) agreements relating to the acquisition of any agreement with material assets or for relating to the benefit merger or consolidation of MCK the Company or any Affiliate of MCK its subsidiaries with any other entity that have (A) not been consummated as of the date hereof or (B) that, if consummated as of the date hereof, have any remaining outstanding monetary obligations that continue following the Closing in excess of $100,000;
(xii) investment banking agreement of any kind or nature whatsoever;
(xiii) other contracts (other than the Transaction Documentsthose listed in CLAUSES (i) through (xii) above);
(MA) with a term longer than one (1) year from the date hereof that involve payments by the Company and/or any agreement with or for the benefit of MCK or any Affiliate its subsidiaries in excess of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million100,000 per year; or
(NB) with a term less than one (1) year from the date hereof that involve payments by the Company and/or any agreement with any Governmental Authority relating to corporate integrityof its subsidiaries in excess of $200,000, deferred prosecution, that are not terminable without premium or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.penalty on less than 30 days' notice;
(iixiv) Each agreement required agreements or insurance policies providing for indemnification of any officer or director of the Company or any of its subsidiaries, other than the existing directors' and officers' insurance policy and the Certificate of Incorporation and Bylaws or other organizational documents, as currently in effect, of the Company and each of its subsidiaries; or
(xv) agreements evidencing a loan to be disclosed any officer or director of the Company or any of its subsidiaries, other than advances for expenses pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement the Company's standard expense reimbursement policies. All of the Core MTS Business foregoing, together with the Company Leases, any material agreements related to Company Intellectual Property, and is the Franchise Agreements, are collectively called "COMPANY MATERIAL CONTRACTS."
(b) All such Company Material Contracts are in full force and effect, effect and none are valid and binding obligations of the Core MTS BusinessCompany or its subsidiaries and enforceable against the Company or its subsidiaries in accordance with their respective terms, orsubject to the Enforceability Exceptions. Neither the Company nor any of its subsidiaries nor, to the knowledge of MCKthe Company, any other party thereto to any Company Material Contract is in breach of or in default or breach in under any respect under of the terms of such MTI Company Material ContractContracts, except for any such breaches or defaults or breaches which would that have not had and could not reasonably be expectedexpected to have, individually or in the aggregate, to be material to the Core MTS Business, taken as a wholeCompany Material Adverse Effect. True and complete copies of each MTI all written Company Material Contract, Contracts and true and correct summaries of all amendments thereto, in each case subject to the redaction of certain information, oral Company Material Contracts have been delivered or made available to MCK or its outside counselPurchaser.
Appears in 1 contract
Sources: Merger Agreement (Lone Star Steakhouse & Saloon Inc)
Material Contracts. (i) None of i. Other than the Core MTS Business Ancillary Agreements, there is no, written or oral, legally binding contract, agreement, instrument or other arrangement to which the Company or any of its Subsidiaries is a party to or bound bythat:
(A) contains covenants (I) that prohibit or materially restrain the ability of the Company or any agreement for of its Subsidiaries or Subscriber or any of its affiliates to compete, to conduct any business or line of business, to provide services or products to any Person in any geographic area, or (II) with “most favored nation” terms and conditions (including with respect to pricing and discounts) granted by the lease Company that would materially affect the Company or sublease (whether any of real its Subsidiaries or personal property) providing for annual payments Subscriber or any of $750,000 or moreits affiliates;
(B) requires or restricts the payment of dividends, distributions in respect of any agreement for capital stock of the purchase Company or the repurchase or redemption of materials, supplies, goods, services, equipment or other assets providing for annual payments any capital stock of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsthe Company;
(C) any sales, distribution or other similar agreement providing provides for the sale incurrence, guarantee or assumption of materials, supplies, goods, services, equipment or other assets that provides third party indebtedness for annual payments borrowed money in excess of $5.0 million 10,000,000, other than advancement of expenses to directors, officers or more employees in MCK’s fiscal year 2016the ordinary course of business;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to provides for the acquisition or disposition of any business (whether by mergerassets of the Company that are material to the Company and its Subsidiaries, sale of stocktaken as a whole, sale of assets or otherwise) except within the three years preceding ordinary course of business;
(E) provides for any strategic alliance, joint venture or similar profit-sharing relationship with any Person that is material to the date hereof involving aggregate consideration of $250,000 or moreCompany and its Subsidiaries, taken as a whole;
(F) is with any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior Governmental Authority that is material to the Closing)Company and its Subsidiaries, taken as a whole;
(G) is with any agreement that restrictsrecord or, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice knowledge of the Core MTS Business Company, director or beneficial owner of five percent (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing5%) or limits the freedom, in any material respect, more of the Core MTS Business voting securities of the Company, or, to the knowledge of the Company, “affiliate” (as such term is defined in Rule 12b-2 promulgated under the Exchange Act) or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use members of any of their “immediate family” (as such terms are respectively defined in Rule 12b-2 and Rule 16a-1 of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)Exchange Act) of any such director or beneficial owner, and is material to the Company and its Subsidiaries, taken as a whole;
(H) any material agreement (excluding licenses provides for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which lease for real or personal property with aggregate annual rental payments in excess of $10,000,000 in the Core MTS Business obtains the right to usefiscal year ending December 31, or a covenant not to be sued under, any Intellectual Property Right2024;
(I) involves the settlement of any agreement pursuant to which any Person is authorized to useclaim, action or receives a covenant not to be sued underproceeding or threatened claim, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into action or proceeding involving payments after the date of this Subscription Agreement in the ordinary course excess of business consistent with past practice;$10,000,000; or
(J) any agreement pursuant is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K promulgated under the Securities Act) (each such contract referred to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each6(k)i, a “MTI Material Contract”) ).
ii. Each Material Contract is a valid and binding agreement on the Company or its Subsidiaries, as the case may be, and, to the knowledge of the Core MTS Business Company, each other party thereto, and is in full force and effect, and none . None of the Core MTS BusinessCompany or any of its Subsidiaries, or, to the knowledge of MCKthe Company, any the other party thereto parties thereto, is in default or material breach in any respect under the terms of any Material Contract to which it is a party or by which it may be bound where such MTI Material Contract, except for any such defaults default or breaches which material breach would not reasonably be expectedexpected to have, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Company Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselAdverse Effect.
Appears in 1 contract
Sources: Subscription Agreement (Gogoro Inc.)
Material Contracts. (a) With the exception of the Excluded Contracts, Schedule 1.1(f) includes a list of those contracts and agreements with respect to the ownership of the Acquired Assets and the operation of the Facilities which:
(i) None of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) require the payment by the Sellers during the remaining term of such instrument in excess of Twenty-Five Thousand Dollars ($25,000) on an annualized basis, and (B) either (1) have remaining terms of more than 12 months or (2) cannot be terminated by the applicable Seller (prior to Closing) or Purchaser (after Closing) at any agreement for the lease time without cause and without obligation to pay a termination fee or sublease penalty upon notice of ninety (whether of real 90) calendar days or personal property) providing for annual payments of $750,000 or moreless;
(Bii) are with any agreement for of the purchase of materialsFacilities’ referral sources (as determined by applicable health care laws, suppliesrules and regulations), goodsincluding, serviceswithout limitation, equipment or other assets providing for annual payments of $3.0 million or more in MCKany physicians on any Hospital’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsmedical staff;
(Ciii) relate to joint ventures (in the form of partnerships, limited liability companies or corporations) in which any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;Seller has any investment interest which is an Acquired Asset as set forth herein; or
(Div) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or contain a covenant not to be sued under, compete or restrictive covenant which is binding upon any Intellectual Property Right;
(I) Seller with respect to any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation Acquired Assets. Contracts described in excess of $300,000 per year, other than those that can be terminated without liability this Section 4.4(a) are referred to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsherein as “Material Contracts”.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and Contract is in full force and effect, effect and none is the valid and binding obligation of the Core MTS Business, orSeller party to it and, to the knowledge of MCKSellers, any of each other party thereto is in default or breach in any respect under the terms of such MTI Material Contractthereto, except for any such defaults or breaches which would where a failure of the Material Contract to be in full force and effect is not reasonably be expectedmaterial, individually or in the aggregate, to be material the operation of the Facilities. The consummation of the transactions contemplated by this Agreement will not result in a breach of any term or provision of, or constitute (with or without notice or lapse of time or both) a default under, any Material Contract to which any Seller is a party, or which is binding on any Seller, or to which the Core MTS BusinessAcquired Assets are subject. The consummation of the transactions contemplated by this Agreement will not give any other party to any such Material Contract a right to cancel or terminate the same, taken as a wholeright to modify or amend the terms thereof, or result in an acceleration of the maturity or performance of any obligation under any such contract. True and complete copies No such breach, default, cancellation, termination, modification or amendment or acceleration described in this Section 4.4 would prevent the Sellers from consummating the transactions contemplated by this Agreement, or would result in the creation of each MTI Material Contract, and all amendments thereto, in each case subject to any lien or liability on the redaction of certain information, have been delivered to MCK or its outside counselAcquired Assets.
Appears in 1 contract
Sources: Asset Purchase Agreement (Vanguard Health Systems Inc)
Material Contracts. (iExcept for the Contracts set out in Section 4.16(a) None of the Core MTS Seller Disclosure Letter (the “Material Contracts”), the Leases, the Employee Contracts and the Contracts forming part of the Purchased Business or any of its Subsidiaries IP, the Seller is not a party to or bound byby any Contract material to the Purchased Business or the ownership of the Purchased Assets and there are no ongoing contractual negotiations that if they were completed would result in a Material Contract. The list of Material Contracts includes:
(Aa) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business Contract for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available services for purchase by business entities the Purchased Business:
(i) involving in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers case of any such Contract or providers and which provide for annual payments group of less related Contracts, the payment or receipt by the Seller of more than $1.0 million200,000 in aggregate per year during the remaining term thereof or that required such payments in the 12-month period prior to the Reference Date; or
(Nii) which contains minimum purchase commitments or other terms that restrict or limit the purchasing or selling ability of the Seller;
(b) any agreement Contract relating to the Purchased Business containing most favoured nations pricing provisions, or that grants exclusivity rights;
(c) any confidentiality, secrecy or non-disclosure Contract relating to the Purchased Business or any Contract relating to the Purchased Business limiting the freedom of the Seller to engage in any line of business, compete with any Governmental Authority Person, solicit any Person, operate its assets at maximum production capacity or otherwise restricting its ability to carry on the Purchased Business;
(d) any Contract relating to corporate integritythe Purchased Business, deferred prosecutionexcept for Contracts with customers of the Purchased Business, that expires, or that may be renewed at the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.option of any Person other than the Seller so as to expire, more than one year after the date of this Agreement;
(iie) Each any Contract with customers of the Purchased Business that generated gross monthly recurring revenue in excess of $5,000;
(f) any trust indenture, deed of hypothec, mortgage, promissory note, loan agreement or other Contract relating to the Purchased Business or affecting the Purchased Assets for the borrowing of money, any currency exchange, swaps, commodities or other hedging or derivative arrangement, or any leasing transaction of the type required to be disclosed capitalized in accordance with IFRS;
(g) any Contract relating to grants or other forms of assistance received by the Seller in respect of the Purchased Business from any Governmental Authority;
(h) any Contract pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) which the Seller is a valid and binding agreement lessor of any equipment, motor vehicles, furniture, fixtures or other personal property included in the Purchased Assets;
(i) any Contract relating to the Purchased Business involving any continuing representation, warranty or indemnification obligation of the Core MTS Business and is Seller to any other Person, other than in full force and effectthe Ordinary Course;
(j) any Contract of guarantee, and none support, indemnification, assumption of, or any similar commitment of the Core MTS BusinessSeller with respect to, orthe Purchased Business with respect to, the obligations, liabilities (whether accrued, absolute, contingent or otherwise) or indebtedness of any other Person;
(k) any partnership, joint venture or alliance Contract in respect of the Purchased Business with any Person;
(l) any other Contract that is otherwise material to the knowledge Purchased Business or by which any of MCK, the material Purchased Assets are bound or affected;
(m) any other Contract made out of the Ordinary Course; or
(n) any Contract relating to the Purchased Business with a related party thereto is in default or breach in any respect under of the terms Seller. A true and complete copy of such MTI each Material Contract, except for any such defaults or breaches which would not reasonably be expectedincluding all amendments and supplements thereto, individually or has been included in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselData Room.
Appears in 1 contract
Material Contracts. (ia) None Section 3.1.21(a) of the Core MTS Business Seller Disclosure Schedules contains a complete and correct list, as of the date of this Agreement, of each Contract described below in this Section 3.1.21(a) to which Sellers or any of its their Subsidiaries is a party to and under which Sellers or bound by:
any of their Subsidiaries have any current or future rights, responsibilities, obligations or liabilities in connection with the Business, other than (A) any agreement stand-alone purchase order not made pursuant to a separate Contract (as long as such purchase order does not impose future obligations on Sellers or their Subsidiaries outside of the Ordinary Course for the lease or sublease (whether purchase orders of real or personal property) providing for annual payments of $750,000 or more;
such products), (B) any agreement for the purchase of materials, supplies, goods, services, equipment Plan or other assets providing for annual payments of $3.0 million confidentiality agreements to which Sellers or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
their Subsidiaries is a party and (C) any salesExcluded Contracts (all Contracts of the type described in this Section 3.1.21(a), distribution being referred to herein as the “Material Contracts”), each such Contract that:
(i) is or other similar agreement providing for would be required to be filed as an exhibit to Sellers’ Annual Report on Form 10-K pursuant to Item 601(b)(10) of Regulation S-K under the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016Securities Act;
(Dii) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Businesswith a Top Customer;
(Eiii) is with a Top Supplier;
(iv) requires expenditures by Sellers or payments to be received by Sellers in excess of $100,000 in the previous twelve (12) month period and/or in the next twelve (12) month period, in each case, as measured from the date hereof;
(v) relates to the incurrence by Sellers of any agreement relating indebtedness for borrowed money or any capitalized lease obligations;
(vi) relates to the acquisition or disposition outside the Ordinary Course of any business material assets or any material business, or any capital stock or equity interests of any Person (whether by merger, sale or purchase of stock, sale or purchase of assets or otherwise) within entered into during the three years preceding two (2) year period prior the date hereof involving aggregate consideration of $250,000 or morehereof;
(Fvii) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any assetA) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (limits or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedomlimit, in any material respect, the freedom of the Core MTS Business (to engage or the Company after the Closing) to conduct the following activities (i) engage compete in any line of businessbusiness or with any Person or in any geographic area, (B) contains exclusivity or “most favored nation” obligations to which the Business is subject in favor of any Person or (C) contains any other provisions restricting or purporting to restrict the ability of the Business to Research, Commercialize or otherwise Exploit the Products in any material respect, directly or indirectly through third parties (in the case of clauses (A), (B) and (C), other than any such restriction or purported restrictions that have a de minimis effect on the Business);
(viii) is a Contract pursuant to which Sellers (A) receives any license to any Intellectual Property material to the Business or the development or Exploitation of any Product (other than (w) non-exclusive licenses to use commercially available software, (x) non-disclosure agreements, (y) licenses for open source software, and (z) licenses which are merely incidental to the primary transactions contemplated by the Contract) or (B) grants or licenses to a third party any rights to use any material Owned Intellectual Property (other than Intellectual Property licensed in the Ordinary Course on a non-exclusive basis);
(ix) is a Collective Bargaining Agreement;
(x) relates to any settlement, conciliation or stipulation of any Litigation against Sellers or any of their Subsidiaries relating to any of the Purchased Assets, the Assumed Liabilities or the Business that contains any material outstanding or unsatisfied requirements (excluding confidentiality, non-disparagement, and other similar customary provisions), other than settlements of penalties in the Ordinary Course pursuant to a manufacturing agreement, distribution agreement or other Ordinary Course agreement for any Product; and
(xi) is a lease agreement pursuant to which Sellers or their applicable Subsidiaries use or occupy the Leased Real Property.
(b) Sellers have made available to Buyer correct and complete copies of all Material Contracts in effect as of the date hereof. Except for those arising out of the Chapter 11 Cases and payment of the Cure Costs set forth in the Cure Cost Certificate, as of the date hereof, (i) Sellers are not in material breach or default of its obligations under any Material Contract, (ii) sellto Sellers’ Knowledge, license no condition exists that with notice or otherwise distribute services lapse of time or products in any geographic area both would constitute a material default by Sellers or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect their applicable Subsidiary under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto(iii) to Sellers’ Knowledge, no other party to any such Material Contract is in each case subject to the redaction of certain information, have been delivered to MCK material breach or its outside counseldefault thereunder.
Appears in 1 contract
Sources: Asset Purchase Agreement (Accelerate Diagnostics, Inc)
Material Contracts. (a) Schedule 3.15 of the Disclosure Schedules lists each of the following written Contracts (such Contracts as described in this Section 3.15(a) being “Material Contracts”):
(i) None of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement The top 50 partner/publisher Contracts for the lease or sublease (whether US Media Business, based on revenues for the month of real or personal property) providing for annual payments of $750,000 or moreDecember, 2008;
(Bii) any agreement The top 50 advertiser Contracts for the purchase US Media Business, based on revenues for the month of materialsDecember, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements2008;
(Ciii) any sales, distribution or other similar agreement providing The top 50 partner/publisher Contracts for the sale of materialsEU Media Business, suppliesbased on revenues for the calendar quarter ended December 31, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 20162008;
(Div) any equity partnershipThe top 50 advertiser Contracts for the EU Media Business, joint venture or other similar agreement or arrangement that is material to based on revenues for the Core MTS Businessmonth of December, 2008;
(Ev) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement all Contracts relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(Gvi) any agreement all Contracts that restricts, prohibits limit or impairs (or purports purport to restrict, prohibit or impair), or has or would reasonably be expected to have limit the effect of prohibiting, restricting or impairing, any material business practice ability of the Core MTS Media Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage compete in any line of business, (ii) sell, license business or otherwise distribute services with any Person or products in any geographic area or (iii) compete with during any Person (including, for the avoidance period of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)time;
(Hvii) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, Contract with any Intellectual Property RightGovernmental Authority;
(Iviii) any agreement pursuant Contract relating to which the Media Business that involves a Related Party of a Seller or any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practiceits Subsidiaries;
(Jix) any agreement pursuant to which the Core MTS Business has provided all joint venture, legal partnership or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise)similar Contracts;
(Kx) any agreement Contract relating to the employmentlease, severance, retention sale or indemnification purchase of any service provider of real property used or intended to be used in the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Media Business;
(Lxi) any agreement with Contract relating to settlement of any administrative or for judicial proceedings within the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents)past five years;
(Mxii) any commercial agency agreement with or for within the benefit meaning of MCK or any Affiliate of MCK with obligations that continue following the Closing UK Commercial Agents (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 millionCouncil Directive) Regulations 1993; or
(Nxiii) other than in respect of any agreement partner/publisher or advertiser Contract, any other Contract potentially involving $50,000 payments per annum either to any of the Sellers or owed by any of the Sellers in relation to the Media Business. [***] = Confidential treatment requested for redacted portion; redacted portion has been filed separately with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care LawsSecurities and Exchange Commission.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) Contract is a valid and binding agreement on a Seller and, to the Knowledge of the Core MTS Business Sellers, the counterparties thereto, and is in full force and effect, and none . None of the Core MTS BusinessSellers is in breach of, or, to the knowledge of MCKor default under, any other party thereto Material Contract to which it is in default or breach in any respect under the terms of such MTI Material Contracta party, except for any such breaches or defaults or breaches which that would not reasonably be expectednot, individually or in the aggregate, reasonably be expected to be material have a Material Adverse Effect. The Sellers have delivered or made available to the Core MTS Business, taken as a whole. True Buyers true and complete copies of each MTI all Material ContractContracts, and all including any amendments thereto. There are no guaranteed minimum payments, in each case subject orders or volume requirements imposed upon any of the Sellers or that will be imposed upon any of the Buyers immediately after Closing under any Material Contact specified by clause (i), (ii), (iii) or (iv) of the foregoing Section 3.15(a). Sellers represent and warrant that the Collocation Service Agreement effective December 27, 2005 by and between NTT America, Inc. and MIVA Direct, as amended to date, will not terminate sooner than that date which is 30 days from the redaction of certain information, have been delivered to MCK or its outside counseldate hereof.
Appears in 1 contract
Material Contracts. (a) Except for this Agreement, Section 4.21 of the First Majestic Disclosure Letter contains a complete and correct list, as of the date of this Agreement, of each Contract described below in this Section 4.21(a) to which First Majestic or a First Majestic Subsidiary is a party or by which their respective properties or assets are bound (all Contracts of the type described in this Section 4.21(a) being referred to herein as the “First Majestic Material Contracts”):
(i) None of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for material joint venture, partnership or other similar Contract relating to the lease formation, creation, operation, management or sublease (whether control of real any joint venture, partnership or personal property) providing for annual payments of $750,000 limited liability company or more;
any research and development project Contract, and (B) any agreement for the purchase of materialsstockholders, suppliesinvestors rights, goods, services, equipment registration rights or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementssimilar agreement;
(Cii) any salesContract expressly limiting or restricting the ability of First Majestic, distribution Merger Sub or other similar agreement providing for the sale of materials, supplies, goods, services, equipment First Majestic Subsidiaries to make distributions or other assets that provides for annual payments of $5.0 million declare or more in MCK’s fiscal year 2016pay dividends to its stockholders;
(Diii) any equity partnership, joint venture or other similar agreement or arrangement Contract that is material to the Core MTS Business;
(EA) any agreement relating to provides for the acquisition or disposition divestiture of any material asset (other than Contracts covered by clause (x) below and other than acquisitions or dispositions of inventory in the ordinary course of business) or business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration ), in each case, in excess of $250,000 or more1,000,000 and (B) contains outstanding obligations that are material to First Majestic and the First Majestic Subsidiaries, taken as a whole;
(Fiv) any agreement relating Contract (excluding non-exclusive licenses for uncustomized, commercially available “off the shelf” Software or IT Systems licensed pursuant to indebtedness for borrowed moneystandard terms and conditions) under which First Majestic or any First Majestic Subsidiary is granted any license or other rights with respect to any Intellectual Property or IT Systems of a third party (including by means of covenants not to sue or software-as-a-service agreements), which Contract or Intellectual Property is material to the deferred purchase price business of property First Majestic or capital leases the First Majestic Subsidiaries, taken as a whole;
(v) any Contract with any Governmental Entity involving annual aggregate payments in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations excess of $1,500,000 1,000,000 in fiscal year 2023;
(vi) each Contract that limits in any material respect the freedom of Gatos to compete in any line of business or more geographic region;
(vii) any Contract with (A) any Person that, by itself or together with its affiliates or those acting in concert with it, beneficially owns, or has the right to acquire beneficial ownership of, at least five percent (5%) of the First Majestic Shares or (B) any affiliates of First Majestic (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the ClosingFirst Majestic Subsidiaries);
(Gviii) any agreement that restrictsContract entered into since December 31, prohibits 2022, involving the settlement of any Action or impairs threatened Action (or purports to restrict, prohibit series of related Actions) (A) which (x) will involve payments after the Effective Time in excess of $1,000,000 or impair)(y) will impose, or imposed, monitoring or reporting obligations after the Effective Time to any other Person outside the ordinary course of business or material restrictions after the Effective Time on First Majestic or any First Majestic Subsidiary or (B) with respect to which material conditions precedent to the settlement have not been satisfied;
(ix) (A) any loan Contracts, notes, letters of credit and other evidences of Indebtedness in excess of $4,000,000, (B) any mortgages, pledges and other evidences of liens securing such obligations or any material real or other property and (C) any guarantees supporting such obligations and financing Contracts including change of control provisions, in each case, other than (X) Contracts solely among First Majestic and any wholly owned First Majestic Subsidiary, and (Y) any Contracts relating to Indebtedness explicitly included in the consolidated financial statements in the First Majestic SEDAR+ Documents and which are publicly available prior to the date hereof in unredacted form;
(x) any Contract that is a contractual royalty, production payment, net profits, earn-out, streaming agreement, metal prepayment or similar Contract that has a value or potential value in excess of $10,000,000;
(xi) any Contract that is a collective bargaining or union agreement or any other material Contract with any labor union; and
(xii) any Contract pursuant to which First Majestic or any First Majestic Subsidiary spent or received, in the aggregate, more than $10,000,000 during the twelve (12) months prior to the date hereof or could reasonably be expected to spend or receive, in the aggregate, more than $10,000,000 during the twelve (12) months immediately after the date hereof (including any Contract relating to any future capital expenditures by First Majestic or any of the First Majestic Subsidiaries).
(b) First Majestic has provided to Gatos prior to the date of this Agreement a true, correct and complete copy of each written First Majestic Material Contract as in effect on the date of this Agreement. Neither First Majestic nor any First Majestic Subsidiary is in breach of or default under the terms of any First Majestic Material Contract where such breach or default has had or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expectedhave, individually or in the aggregate, a First Majestic Material Adverse Effect. To the knowledge of First Majestic no other party to any First Majestic Material Contract is in, or is alleged to be in, breach of or default under the terms of any First Majestic Material Contract where such breach or default has had or would reasonably be expected to have, individually or in the aggregate, a First Majestic Material Adverse Effect. Except (i) to the extent that any First Majestic Material Contract expires in accordance with its terms or (ii) as such expiration or termination has not been, and would not reasonably be expected to be, individually or in the aggregate, material to First Majestic and the Core MTS BusinessFirst Majestic Subsidiaries, taken take as a whole. True , each First Majestic Material Contract has not been terminated and complete copies is a valid and binding obligation of First Majestic or the First Majestic Subsidiary which is party thereto and, to the knowledge of First Majestic, of each MTI Material Contract, and all amendments other party thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselEnforceability Exceptions.
Appears in 1 contract
Sources: Agreement and Plan of Merger (First Majestic Silver Corp)
Material Contracts. (ia) None Except as set forth on Section 3.09 of the Core MTS Business or Disclosure Schedule, with respect to the Business, neither Seller nor any of its Subsidiaries is a are party to or bound by:
(Ai) any agreement for the lease or sublease (whether of real or personal property) providing for requiring (A) annual payments rentals of $750,000 25,000 or more or (B) aggregate payments by Seller and its Subsidiaries of $25,000 or more, in the case of each of clauses (A) and (B) that cannot be terminated on not more than 120 days’ notice without payment by Seller or any of its Subsidiaries of any material penalty;
(Bii) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing requiring for either (A) annual payments by Seller or any of its Subsidiaries of $3.0 million 25,000 or more or (B) aggregate payments by Seller or any of its Subsidiaries of $25,000 or more, in MCK’s fiscal year 2016, including each case that cannot be terminated on not more than 120 days’ notice without payment by Seller or any independent contractor agreements, but excluding of its Subsidiaries of any employment agreementsmaterial penalty;
(Ciii) any sales, distribution or other similar agreement providing for the sale by Seller or any of its Subsidiaries of materials, supplies, goods, services, equipment or other assets that provides for requires annual payments to Seller or any of its Subsidiaries of $5.0 million 25,000 or more in MCK’s fiscal year 2016more;
(Div) any equity material partnership, joint venture venture, license, participation or other similar agreement or arrangement that is material (other than licenses to the Core MTS Businesscommercially available off-the-shelf software);
(Ev) any agreement relating to the acquisition or disposition of any material business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(Gvi) any agreement that restricts, prohibits lease of Real Property or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);personal property; or
(Hvii) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations Seller that continue following will not be terminated at or prior to the Closing (other than the Transaction Documents);
(M) without creation of any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations liability that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawswould be an Assumed Liability.
(iib) Each agreement required to be disclosed pursuant to this of the Contracts identified on Section 4.02(i3.09(a) of the Disclosure Schedule (each, a the “MTI Material ContractContracts”) is a valid and binding agreement of the Core MTS Business has been provided or made available (in an electronic data room to which Buyer has access) to Buyer and is in full force and effecteffect and is the legal, valid and none binding obligation of the Core MTS BusinessSeller or the applicable Subsidiary of Seller that is a party thereto, enforceable against such party in accordance with such its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors’ rights generally and by equitable principles (regardless of whether enforcement is sought in a proceeding at law or in equity). Seller and each applicable Subsidiary of Seller is in compliance with and has performed, in all material respects all obligations required to be performed by it in connection with each such Material Contract. Since the Emergence Date, neither the Seller nor any Subsidiary of Seller has received any written notice or claim (or, to the knowledge of MCKSeller, any oral notice or claim) that it has breached, violated or defaulted in any material respect under any of the terms or conditions of any Material Contract, that remains pending or unresolved, and there exists no material breach, material violation, default or event of default under any Material Contract, nor, to Seller’s knowledge, any event, occurrence, condition or act, with respect to the Seller, any Subsidiary of Seller or any other contracting party, which with the giving of notice, the lapse of time or the happening of any other event or condition, would reasonably be expected to become a material breach, default or event of default under any Material Contract.
(c) There is no outstanding written notice (or, to the knowledge of Seller, any oral notice) of acceleration, cancellation or termination in connection with any Material Contract and neither the Seller nor any Subsidiary of Seller, nor to Seller’s knowledge, any other party thereto is in default currently contemplates any acceleration, termination or breach in amendment of any respect Material Contract outside the ordinary course of the Business.
(d) Neither Seller nor any Subsidiary of Seller has a material payment dispute with any third party under the terms of such MTI any Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 1 contract
Material Contracts. (a) Schedule 2.1(e) contains a complete list, as of the date hereof, of all of the Contracts which are material to the business and operations of the Station (the "Material Contracts"), including, without limitation:
(i) None of the Core MTS Business Each partnership or any of its Subsidiaries joint venture agreement to which Seller is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moreparty;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required limiting the right of Seller to be disclosed engage in or compete with any Person in any business or in any geographical area;
(iii) Each agreement or other arrangement of or involving Seller with respect to indebtedness for money borrowed, including letters of credit, guaranties, indentures, swaps and similar agreement;
(iv) Each management, consulting, severance or similar agreement, and each employment agreement to which Seller is a party;
(v) Each collective bargaining agreement to which Seller is a party;
(vi) Each operating contract and agreement to which the Seller is a party or by which Seller is bound, including, without limitation, each broadcast time sales agreement (which has a remaining term of more than six (6) months), each network affiliation agreement, national representation agreement, national and local marketing agreement, each lease and sublease relating to leased Real Property, each employment agreement and talent contract, and each agreement relating to any motor vehicles;
(vii) Each film and programming license and agreement (syndicated or otherwise) and Contract under which Seller is authorized to broadcast film product or programs on the Station including, without limitation, each cash and non-cash (barter) program contract and sports broadcasting agreement ("Program Contracts"); each Contract pursuant to this Section 4.02(i) which Seller has sold, traded or bartered commercial air time on the Station in consideration for any property or services in lieu of or in addition to cash, including, without limitation, contracts under which commercial air time availability within a particular program are exchanged for the provision of such program (each, a “MTI Material Contract”) "Trade-out Agreements"); and each rebroadcasting or retransmission agreement to which Seller is a valid party;
(viii) Each Contract which imposes a remaining Liability on Seller in excess of $25,000; and
(ix) Each other Contract that is material to Seller or the business and binding agreement operations of the Core MTS Business and Station.
(b) Except as set forth in Schedule 3.12(b), each Material Contract is in full force and effect, and none constitutes a legal, valid and binding obligation of, and is legally enforceable against Seller and each other party thereto. There are no Contracts other than those listed on Schedule 2.1(e) which represent material Liabilities of Seller or are material to the Core MTS Business, orbusiness or operations of Seller or to the Elcom Assets. Seller and, to the knowledge best of MCKSeller's Knowledge, any the other party thereto is parties thereto, have complied with all of the material provisions of such Material Contracts and are not in breach or default or breach thereunder in any respect material respect, and there has not occurred any event which (whether with or without notice or lapse of time) would constitute such a material breach or default by any of the parties thereunder. To Seller's Knowledge, there has not been any threatened cancellation of any Material Contract or any outstanding dispute thereunder. Subject to obtaining the Consents listed in Schedule 3.4(a), Seller has full legal power and authority to assign Seller's rights under the terms Material Contracts to Buyer in accordance with this Agreement, and the assignment of such MTI the Material ContractContracts to Buyer will not affect the validity, except for enforceability or continuation of any such defaults of the Material Contracts.
(c) Except as set forth in Schedule 3.12(c), Seller is not now, or breaches which would during the past two (2) years has not reasonably be expectedbeen, individually a party, directly or in the aggregateindirectly, to be material to any contract, lease, arrangement or transaction, whether for the Core MTS Businesspurchase, taken as a whole. True and complete copies lease or sale of each MTI Material Contractproperty, and all amendments theretofor the rendition of services or otherwise, in each case subject to the redaction with any Affiliate of certain informationSeller, have been delivered to MCK or its outside counselany officer, director, employee, proprietor, partner or shareholder of Seller.
Appears in 1 contract
Material Contracts. (a) Schedule 2.12(a) sets forth, as of the date hereof, each Contract (w) to which either Seller or the Company is a party, (x) which is not an Excluded Asset (as defined under the Contribution Agreement), (y) under which there are continuing rights or obligations and (z) to which any of the descriptions set forth below apply (collectively, the “Material Contracts”):
(i) None any Contract related to the Business which is a lease or sublease of real property;
(ii) any Contract for the Core MTS acquisition or sale of any material asset related to the Business (other than, in each case, purchases or sales of Inventory in the ordinary course), in each case, involving assets the aggregate annual value of which exceeds $150,000;
(iii) any Contract for the purchase of products, materials, supplies, equipment or services related to the Business (excluding purchase orders issued or executed in the ordinary course of business) with a total annual payment or financial commitment exceeding $150,000;
(iv) any Contract that provides for the sale or distribution of any product with a total annual payment or financial commitment exceeding $150,000;
(v) any Contract covering the Business that contains any non-compete provision that restricts Seller or any of its Subsidiaries is a party to Affiliates in any material respect from engaging or bound by:
(A) competing in any agreement for line of business or in any geographic area, or from developing, manufacturing, marketing, distributing or selling any products or services, or that contains any standstill or customer non-solicitation obligations binding on Seller or the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moreCompany;
(Bvi) any agreement Contract related to the Business involving aggregate consideration in excess of $250,000 that provides indemnification for or the purchase assumption of materialsany Tax, supplies, goods, services, equipment environmental or other assets providing for annual payments material liability of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsthird party;
(Cvii) any sales, distribution or other similar agreement providing for Contract related to a capital expenditure of the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments Business involving aggregate consideration in excess of $5.0 million or more in MCK’s fiscal year 2016250,000;
(Dviii) any equity Contract related to the Business not otherwise described in this Section 2.12(a) involving an annual aggregate consideration in excess of $150,000;
(ix) any Contract evidencing Indebtedness with respect to which Seller is an obligor and that imposes a Lien, other than a Permitted Lien, on any of the Transferred Assets;
(x) any Contract related to the Business to which any Governmental Authority is a party;
(xi) collective bargaining agreements or similar Contracts with any union, works council or other labor organization that applies to any of the Transferred Employees or independent contractors;
(xii) any partnership, joint venture venture, strategic alliance or other similar agreement or arrangement that is material Contract related to the Core MTS BusinessBusiness with an aggregate value in excess of $150,000;
(Exiii) any agreement relating to the acquisition written license, sublicense or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more similar Contract (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed EntityContract granting rights with respect to any databases, on the one hand, and MCK licenses to off-the-shelf software or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license Intellectual Property licensed or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) delivered pursuant to which the Core MTS Business obtains the right to usea click-wrap, shrink-wrap or a covenant not to be sued under, any Intellectual Property Right;
(I) any similar agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into granted by third parties in the ordinary course of business consistent with past practice;
an aggregate annual cost of less than $200,000 and (Jii) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and Contracts granting non-exclusive licenses in the ordinary course of business such as agreements with suppliers, advertising agencies, marketing companies, distributors and other vendors in which the license to Intellectual Property is incidental to the agreement) pursuant to which Seller (A) is granted any license, sublicense, option for the purchase a license, or sale of materials, supplies, goods, services (excluding similar right from a third party with respect to any employment agreements), equipment or other assets Intellectual Property that are generally available for purchase by business entities is currently used in the healthcare information technology industry on substantially conduct of the Business or (B) has granted any license, sublicense, option for a license or similar terms from non-Affiliated suppliers or providers and which provide for annual payments right to a third party with respect to any Intellectual Property that is currently used in the conduct of less than $1.0 millionthe Business; orand
(Nxiv) any agreement with Contract outside the ordinary course of business that contains an express grant of any Governmental Authority relating to corporate integrityright of first refusal, deferred prosecution, right of first offer or right of first negotiation in favor of any Person in respect of the Core MTS Business’ acquisition of the Business or MCK’s material non-compliance with Health Care Lawsany of the Transferred Assets.
(iib) Each agreement required Copies of the Material Contracts (including all amendments and modifications thereto), which are true and complete, have been made available to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Purchaser. All Material Contract”) is a Contracts are valid and binding agreement of the Core MTS Business and is are in full force and effecteffect and constitute legal, valid and binding obligations of Seller (and following the Contribution, as applicable, the Company), and, to the knowledge of the Company and Seller, of the other parties thereto, and none of are enforceable in accordance with their respective terms, except as enforceability may be limited by the Core MTS Business, Enforceability Exceptions. Seller has not received any written or, to the knowledge of MCKSeller, oral notice during the past twelve (12) months from any other party to any Material Contract terminating, or threatening to terminate, such Material Contract. Except as disclosed in Schedule 2.12(b),
(i) neither Seller nor, to the knowledge of Seller, any other party to any Material Contract is in material default in complying with, or otherwise in material breach of, any provision of such Material Contract and (ii) to the knowledge of Seller, no condition or event or fact exists which, with notice, lapse of time or both, (A) would be likely to constitute a material default thereunder or material breach of any Material Contract on the part of Seller or, to the knowledge of Seller, any other party thereto is in default or breach (B) would be reasonably likely to create in any respect under other party to any Material Contract the right to terminate (whether for cause or otherwise), modify or cancel (as distinct from any right to terminate, modify or cancel at will without cause pursuant to the terms of thereof) such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 1 contract
Sources: Equity Securities Purchase Agreement (Homology Medicines, Inc.)
Material Contracts. (a) Schedule 5.14(a) sets forth all of the following Contracts to which any of the Companies is a party or by which it is bound (collectively, the “Material Contracts”):
(i) None Contracts with the Selling Stockholder or any current officer or director of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moreCompanies;
(Bii) any agreement Contracts for the purchase sale of any of the assets of the Companies other than in the Ordinary Course of Business;
(iii) Contracts relating to any acquisition to be made by the Companies of any operating business or the capital stock of any other Person;
(iv) Contracts relating to the incurrence of Indebtedness of the Companies;
(v) Contracts relating to the lending of money by the Companies (but excluding trade accounts receivable);
(vi) Contracts relating to the Companies’ granting to any Person a Lien on any of the assets of the Companies, in whole or in part (other than Permitted Exceptions);
(vii) Contracts relating to the Companies’ capital expenditures, capitalized lease obligations, or its acquisition or construction of fixed assets for or in respect of any real property, involving payments in excess of $100,000 individually or $500,000 in the aggregate;
(viii) Contracts relating to the Companies’ purchase, lease or maintenance of equipment, vehicles, inventory, materials, supplies, goodsmachinery, servicesequipment, equipment parts or any other assets providing for annual payments of $3.0 million property or more in MCK’s fiscal year 2016, including any independent contractor agreements, but services (excluding any employment agreementssuch Contract (i) made in the Ordinary Course of Business, or (ii) which involves expenditures of less than $25,000, or less than $100,000 annually, or that is terminable by the Companies without penalty on notice of thirty (30) days or less);
(Cix) any sales, distribution Contracts under which the Companies has granted or received a material license or sublicense (other similar agreement providing for than generally available off-the-shelf software licenses) under which the sale of materials, supplies, goods, services, equipment Companies is obligated to pay or other assets that provides for annual payments has the right to receive a royalty or license fee in excess of $5.0 million 25,000 per annum (excluding any such Contract that is terminable by the Companies without penalty on notice of thirty (30) days or more in MCK’s fiscal year 2016less);
(Dx) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement Contracts relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any Companies’ obligation for employment, compensation for employment or severance of employment, or consulting services with the MCK Contributed EntityCompanies’ officers or directors, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at other employee or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice consultant of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) Companies who is entitled to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation thereunder in excess of $300,000 100,000 per year, other than those that can be terminated without liability to the Core MTS Businessannum;
(Lxi) any agreement Contract that obligates the Companies not to compete with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents)business;
(Mxii) any agreement with Contract or for commitment that requires any of the benefit Companies to provide advertising privileges or exposure to any third party sponsor that involves the payment of MCK cash, services or other consideration by such third party sponsor; and;
(xiii) any Affiliate Contract that is a joint venture or partnership contract or a limited liability company operating agreement; and
(xiv) any Contract which requires the expenditure by the Companies of MCK with obligations that continue following the Closing (other more than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and $75,000 in the ordinary course aggregate after the date of business for the purchase or sale of materials, supplies, goods, services this Agreement (excluding any employment agreementssuch Contract that is terminable by the Companies without penalty on notice of thirty (30) days or less), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (eachExcept as set forth on Schedule 5.14(b), a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS BusinessCompanies has received any written notice of any material default, oror event that with notice or lapse of time, to or both, would constitute a material default, by the knowledge Companies under any Material Contract. To the Knowledge of MCKthe Selling Stockholder, any no other party thereto to a Material Contract is in default of its obligations thereunder and no event that with notice or breach in any respect under the terms lapse of such MTI Material Contracttime, except for any such defaults or breaches both, has occurred which would not reasonably be expected, individually constitute a default by such other party. Selling Stockholder has provided or in the aggregate, made available to be material to the Core MTS Business, taken as a whole. True Purchaser true and complete correct copies of each MTI all Material ContractContracts, and including all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 1 contract
Material Contracts. (a) Schedule 3.10 sets forth a list, as of the date hereof, of all of the following contracts and agreements to which the Seller is a party with respect to the Business, or by which any of the Assets are subject, whether written or unwritten (collectively, the “Material Contracts”):
(i) None of any purchase order, agreement, or commitment involving more than $25,000 entered into by the Core MTS Business or to sell any of its Subsidiaries is a party to or bound by:products under which the Business has unfulfilled obligations;
(Aii) any purchase order, agreement, or commitment involving more than $25,000 entered into by the Business to purchase any products or services that calls for performance over a period of more than one year (other than those that are terminable at will or upon not more than 90 days’ notice by the Business without any liability to the Business, except liability with respect to any supply or product purchased before the termination thereof);
(iii) any agreement for the lease deferred purchase of any Assets (excluding normal trade payables) or sublease any agreement that subjects any of the Assets to any Lien (whether of real or personal property) providing for annual payments of $750,000 or moreother than a Permitted Lien);
(Biv) any joint venture, partnership, business affiliation or other arrangement involving a sharing of profits;
(v) any material sales agency, advertising, promotional, brokerage or distribution agreement;
(vi) any agreement that includes provisions regarding minimum requirements or volume discounts or that contains most favored nation pricing provisions;
(vii) any employment, consulting, independent contractor, severance, deferred compensation, retention or change of control agreement or arrangement;
(viii) any collective bargaining agreement;
(ix) any non-competition, non-solicitation or similar limitation that restricts or purports to restrict the Business, Seller or their Affiliates from competing in any line of business or with any Person or in any geographic area or during any period of time;
(x) any agreement with any Affiliates of Seller;
(xi) any agreement for the purchase sale or lease of materialsany material Assets, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing than for the sale of materials, supplies, goods, services, obsolete equipment or other assets that provides for annual payments in the Ordinary Course of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(Exii) any agreement relating to for the sale, purchase, acquisition or disposition development of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or moreIntellectual Property;
(Fxiii) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property license (either as licensor or capital leases (in either case, whether incurred, assumed, guaranteed or secured by licensee) any asset) involving payment obligations of $1,500,000 or more Intellectual Property (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any customary non-negotiated licenses of its Affiliates (other off-the-shelf computer software with annual fees of less than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing$1,000);
(Gxiv) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation capital expenditures in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business25,000;
(Lxv) any agreement with obligating the Business to make any rebates, discounts, promotional allowances or for the benefit of MCK similar payments or arrangements or that include any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents)deferred payment or similar arrangement;
(Mxvi) any agreement outstanding power of attorney with respect to only the Business or for the benefit Assets granted by Seller in favor of MCK a third Person whether or not an Affiliate;
(xvii) any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents)agreement, other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materialsincluding Quality Agreements, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated requiring suppliers or providers vendors to provide only those components or services to the Business that meet the Business’s specifications and which provide for annual payments of less than $1.0 millionmanufacturing quality requirements; orand
(Nxviii) any other agreement with any Governmental Authority relating material to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(iii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is All Assumed Contracts are in full force and effecteffect and are valid, binding, and none of enforceable against Seller in accordance with their terms and will continue to be in full force and effect after the Core MTS BusinessClosing, or, except to the knowledge extent such enforcement may be limited by the Enforcement Exceptions; (ii) Seller is not in material breach of MCKany Assumed Contract; (iii) no event has occurred that constitutes, or after the giving of notice or passage of time or both, would constitute, a default or event of default under any Assumed Contract by or in respect of Seller or the Business; (iv) to the Knowledge of Seller, no other party to an Assumed Contract is in breach of any material provision of any Assumed Contract; and (v) to the Seller’s Knowledge, no event has occurred that constitutes, or after the giving of notice or passage of time or both would constitute, a default or event of default under an Assumed Contract by or in respect of any other party thereto is to the Assumed Contract. Seller has not received any written or oral notice from any counterparties in default connection with any of the Assumed Contracts (x) that any such party intends to terminate, not renew, cancel or breach in any respect under the terms of such MTI Material Contractmaterially decrease its business with Seller, except or (y) for any such defaults claim for damages or breaches which would not reasonably be expected, individually or in the aggregate, to be material indemnification with respect to the Core MTS Business, taken as a whole. True products or performance of services pursuant to any Assumed Contract.
(c) Correct and complete copies of each MTI written Material Contract, Contract and all any amendments thereto, in thereto and summaries of each case subject to the redaction of certain information, unwritten Material Contract have been delivered made available to MCK or its outside counselBuyer.
Appears in 1 contract
Sources: Asset Purchase Agreement (Tactile Systems Technology Inc)
Material Contracts. (a) Section 4.06(a) of the Seller Disclosure Schedules lists (i) None of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities each Assigned Contract and (ii) intercompany indebtedness among any each of the MCK Contributed Entity, on other Contracts of the one hand, and MCK or following types (x) by which any of its Affiliates the Purchased Assets are bound or affected or (other than y) to which Seller is bound in specifically in connection with the MCK Contributed Entities), on Business (the other hand; provided that“Material Contracts”):
(i) all Contracts involving aggregate consideration in excess of $25,000 in any twelve (12) month period and which, in the case of clause each case, cannot be cancelled without penalty or without more than ninety (90) days’ notice;
(ii) all Contracts that require Seller to purchase or sell a stated portion of the requirements or outputs of the Business or that contain “take or pay” provisions;
(iii) all Contracts that provide for the indemnification of any such Person or the assumption of any Tax, environmental or other Liability of any Person;
(iv) all broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting, and advertising Contracts;
(v) except for Contracts relating to trade payables, all Contracts relating to indebtedness shall be paid off in full at or prior to the Closing(including, without limitation, guarantees);
(Gvi) all Contracts with any agreement Governmental Authority;
(vii) all Contracts that restricts, prohibits limit or impairs (or purports purport to restrict, prohibit or impair), or has or would reasonably be expected limit the ability of Seller to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage compete in any line of business, (ii) sell, license business or otherwise distribute services with any Person or products in any geographic area or during any period of time;
(iiiviii) compete with all joint venture, partnership or similar Contracts;
(ix) all Contracts for the sale of any of the Purchased Assets or for the grant to any Person (includingof any option, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights right of first refusal or rights of first offer preferential or (IV) any limits on the use of similar right to purchase any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)Purchased Assets;
(Hx) all powers of attorney with respect to the Business or any material agreement Purchased Asset; and
(excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing termsxi) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any all Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent Agreements with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating respect to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) Contract is in full force and effect and is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, orenforceable against Seller and, to Seller’s Knowledge, the knowledge of MCKother party or parties thereto, in accordance with its terms. Neither Seller nor, to Seller’s Knowledge, any other party thereto is in material breach of or default under (or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, is alleged to be in material breach of or default under) or has been provided or received any written notice of any intention to terminate, any Assigned Contract. To Seller’s Knowledge, no event or circumstance has occurred that, with notice or lapse of time or both, would constitute an event of default under any Material Contract or result in a termination thereof or would cause or permit the Core MTS Business, taken as a wholeacceleration or other changes of any right or obligation or the loss of any benefit thereunder. True Complete and complete correct copies of each MTI Material ContractContract (including all modifications, amendments, and all amendments thereto, in each case subject to the redaction of certain information, supplements thereto and waivers thereunder) have been delivered made available to MCK or its outside counselBuyer. There are no material disputes pending or, to Seller’s Knowledge threatened under any Assigned Contract.
Appears in 1 contract
Material Contracts. (i) None Schedule 3.8 sets forth a list of the Core MTS Business following commitments, contracts, leases and agreements of Sellers, in each case relating to the Seller Facilities: (a) contracts involving the lease of equipment or any personal property that require payments by a Seller of its Subsidiaries is a party greater than $50,000 during the remaining term or on an annual basis; (b) leases or subleases with respect to or bound by:
the Owned Real Property; (Ac) any agreement for the employment of any individual on a full time, part time, consulting or other basis; (d) contracts with respect to patents, trademarks, trade names or service names; (e) collective bargaining agreements; (f) partnership or joint venture agreements; (g) contracts containing a covenant on the part of the Seller not to compete with respect to the operation of the Seller Facilities; (h) contracts with any hospitals, ambulatory surgery centers or other healthcare facilities; (i) contracts with any physicians or other providers of healthcare services; (j) contracts with recipients of referrals from the Seller Facilities and contracts with sources of referrals to the Seller Facilities; (k) any contract (or group of related contracts) under which any indebtedness for borrowed money or capitalized lease obligation has been created, incurred, assumed or sublease guaranteed; (whether of real or personal propertyl) contracts (i) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materialsexclusivity, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK preferred treatment or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of businesssimilar requirement, (ii) sellcontaining a “requirements” obligation requiring any Seller to purchase a designated portion of any type of material, license product or otherwise distribute services or products in any geographic area or other supplies, (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or a “most favored partynations” rightsclause or other similar provision or (iv) with take-or-pay obligations; (m) reserved; and (n) any other contracts, commitments, leases or agreements that involve payments, performance of services or provision of items in an amount exceeding $50,000 or that cannot be canceled by the applicable Seller, without penalty on 90 days’ notice or less (II) the “Material Contracts”). Sellers have made available to Buyers copies of all of the Material Contracts. The Sellers are not in any non-competition monetary default or non-solicitation restrictionsalleged to be in any non- monetary default under any Proposed Tenant Lease, (III) and to the Knowledge of the Sellers, there exists no event, condition or occurrence which, after notice or lapse of time, or both, would constitute a mon- monetary default under any rights of first refusal Proposed Tenant Lease. Except as set forth on Schedule 3.8, the transactions contemplated by this Agreement do not require any notice to or rights of first offer or (IV) any limits on the use consent of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsparty.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 1 contract
Sources: Asset Purchase Agreement
Material Contracts. (ia) None Schedule 4.9 contains a complete list of all of the Core MTS Business or any of its Subsidiaries is a party to or bound by:following agreements (collectively, “Material Contracts”):
(Aa) contracts and other agreements with any agreement for the lease current or sublease (whether former officer, director, employee, consultant, agent, or member of real or personal property) providing for annual payments of $750,000 or moreSeller;
(Bb) any agreement contracts and other agreements for the sale, lease or license of products or other materials, supplies, equipment, merchandise, Intellectual Property or services where the value may be equal to or greater than $500
(c) contracts and other agreements for the purchase or acquisition of materials, supplies, goodsequipment, servicesmerchandise, equipment Intellectual Property or services where the obligation of the Seller is or may be greater than $500
(d) agreements with Service Providers (defined herein);
(e) contracts and other agreements for the sale of any of Seller's assets providing or properties other than in the Ordinary Course of Business or for annual payments the grant to any Person (defined below) of $3.0 million any preferential rights to purchase any of Seller’s equity, assets or more in MCK’s fiscal year 2016properties;
(f) joint venture, including any independent contractor agreementsco-venture, but excluding any employment co-development or collaboration agreements;
(Cg) any sales, distribution contracts or other similar agreement providing for agreements under which Seller agrees to indemnify any party where the sale obligation of materialsthe Seller is or may be greater than $500, suppliesto share Tax liability of any party, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016to refrain from competing with any party;
(Dh) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;financing agreements
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities contracts and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any other agreements containing covenants of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior Seller not to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage compete in any line of business, (ii) sell, license business or otherwise distribute services or products in any geographic area or (iii) compete with any Person (includingin any geographical area, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use covenants of any other Person not to compete with Seller in any line of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)business or in any geographical area;
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(Ij) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a between Seller and third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement parties relating to the employment, severance, retention or indemnification exploitation by third parties of any service provider of the Core MTS Business with a base salary or base compensation rights in excess of $300,000 per year, other than those that can be terminated without liability and to the Core MTS Business;Assets; and
(Lk) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment material contract or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effectSeller, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default whether or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or made in the aggregate, Ordinary Course of Business. Seller has heretofore delivered or made available to be material to the Core MTS Business, taken as Buyer a whole. True true and complete copies copy of each MTI written Material Contract, Contract and all amendments thereto, and a summary of the terms of any oral Material Contract. Seller has, as of the Closing Date, performed or otherwise complied in each case subject all material respects with its material obligations due to be performed prior to the redaction of certain informationClosing Date under each Material Contract. Each Material Contract is valid, have been delivered binding and in full force and effect with respect to MCK or its outside counselSeller and each other party thereto. No other party is in material default under any such Material Contract.
Appears in 1 contract
Sources: Asset Purchase Agreement (Applied Energetics, Inc.)
Material Contracts. (a) Schedules 2.10(i) through (xiii) of the Seller Disclosure Letter set forth a true and correct list of each of the following Contracts to which Seller is a party as of the Agreement Date ("Material Contracts"):
(i) None of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) Contract providing for annual payments by or to Seller in the twelve-month period ending on the Agreement Date in an aggregate amount of $750,000 100,000 or more;
(ii) (i) any joint venture Contract, (ii) any Contract that involves a sharing of revenues or profits with other Persons or (iii) any Contract that involves the payment of royalties to any other Person;
(iii) any Contract pursuant to which Seller is subject to (A) any covenant limiting the freedom of Seller to engage in any line of business or compete with any Person, (B) any agreement most-favored pricing arrangement, or (C) any exclusivity provision;
(iv) other than "shrink wrap" and similar generally available commercial end-user licenses to software that have an individual annual cost of $50,000 or less, any Intellectual Property Rights licensed on a non-exclusive basis ancillary to the purchase or use of equipment, reagents or other materials, any confidentiality agreements, clinical trial agreements, sponsored research agreements and material transfer agreements entered into in the ordinary course of business, all licenses, sublicenses and other Contracts to which Seller is a party and pursuant to which Seller acquired or is authorized to use any material Third Party Intellectual Property Rights;
(v) any license, sublicense or other Contract to which Seller is a party and pursuant to which any Person is authorized to use any Seller-Owned IP Rights (other than (i) by employees and contractors for the purchase sole purpose of materialsfulfilling their job functions or providing services for Seller's benefit, supplies(ii) any confidential information provided under confidentiality agreements and (iii) any non-exclusive licenses to Seller-Owned IP Rights granted by Seller in the ordinary course of its business, goodsincluding to academic collaborators, servicessuppliers or service providers (including contract manufacturers) for the purpose of enabling such academic collaborator, equipment supplier or service providers to provide services for Seller's benefit);
(vi) any Contract to license or authorize, or with any third party, to manufacture, develop, formulate, and/or test any of the Seller Antiviral Products or Materials, or granting to any third party a "Right of Reference", as that term is defined in 21 C.F.R. § 314.3(b) (or its foreign equivalent) to the Regulatory Information and Documents with respect to the Seller Antiviral Products;
(vii) any Contract with respect to the settlement of any litigation, proceeding or claim, to which Seller is a party;
(viii) any Contract pursuant to which Seller is a lessor or lessee of any real property or any machinery, equipment, motor vehicles, office furniture, fixtures or other assets providing for personal property involving annual payments of $3.0 million 100,000 or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsmore;
(Cix) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016Contract with any Governmental Entity;
(Dx) any equity partnershipContract pursuant to which rights of any third party are triggered or become exercisable, joint venture or under which any other consequence, result or effect arises, in connection with or as a result of the execution of this Agreement or the consummation of the Asset Purchase or other similar agreement Transactions, either alone or arrangement that is material to the Core MTS Businessin combination with any other event;
(Exi) any agreement relating power of attorney with respect to the Business or any Purchased Asset;
(xii) any Contract that relates to the acquisition or disposition of any business 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) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;); and
(Fxiii) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (all other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior Contracts that are material to the Closing);
(G) any agreement that restricts, prohibits Purchased Assets or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice operation of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant and not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be previously disclosed pursuant to this Section 4.02(i2.10.
(b) (each, a “MTI Each Material Contract”) Contract is a valid and binding agreement of the Core MTS Business on Seller in accordance with its terms and is in full force and effect, and none . None of the Core MTS Business, Seller or, to the knowledge of MCKSeller'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 respect under the terms material respect, or has provided or received any notice of such MTI any intention to terminate, any Material Contract. No event or circumstance has occurred that, except for with notice or lapse of time or both, would constitute an event of default under any such defaults Material Contract or breaches which result in a termination thereof or would not reasonably be expected, individually cause or in permit the aggregate, to be material to acceleration or other changes of any right or obligation or the Core MTS Business, taken as a wholeloss of any benefit thereunder. True Complete and complete correct copies of each MTI Material ContractContract (including all modifications, amendments and all amendments thereto, in each case subject to the redaction of certain information, supplements thereto and waivers thereunder) have been delivered made available to MCK Purchaser. There are no material disputes pending or its outside counselthreatened in writing under any Contract included in the Purchased Assets.
Appears in 1 contract
Material Contracts. (a) Schedule 3.8 of the Disclosure Letter sets forth a categorized list as of the date hereof of each of the following Contracts of the Company and its Affiliates (such Contracts, together with all leases of any Real Property and including brokerage Contracts required to be disclosed in Schedule 3.9(b) of the Disclosure Letter, “Material Contracts”):
(i) None each Contract involving aggregate consideration in excess of $25,000 and which, in each case, cannot be cancelled by the Core MTS Business Company without penalty or without more than ninety (90) days’ notice;
(ii) all Contracts that require the Company to purchase its total requirements of any product or service from a third party, that include minimum purchase provisions or that contain “take or pay” provisions;
(iii) all Contracts evidencing outstanding Indebtedness, including notes, debentures, guarantees, loans, credit or financing agreements or instruments or other Contracts for money borrowed by the Company;
(iv) all Contracts requiring capital expenditures after the date of its Subsidiaries this Agreement in excess of $25,000;
(v) Contracts pursuant to which any Intellectual Property Right or Technology is a party licensed, sold, assigned or otherwise conveyed or provided to the Company or bound by:
pursuant to which any Person has agreed not to enforce any Intellectual Property Right against the Company, other than (A) any Standard Software, (B) offer letters, employment agreements, invention assignment agreements, individual consulting agreements, and individual contracting agreements, in each case, entered into in the ordinary course of business on a form previously provided to the Buyer (together with Standard Software, the “Standard Inbound Licenses”), and (C) permitted use rights to confidential information in a non-disclosure agreement for granting a limited right to use confidential information subject to customary protections to preserve confidentiality and proprietary rights, entered into in the lease or sublease (whether ordinary course of real or personal property) providing for annual payments of $750,000 or morebusiness;
(vi) Contracts pursuant to which any Intellectual Property Right or Technology is or has been licensed (whether or not such license is currently exercisable), sold, assigned or otherwise conveyed or provided to a third party by the Company, or pursuant to which the Company has agreed not to enforce any Intellectual Property Right against any third party, other than (A) offer letters, employment agreements, invention assignment agreements, individual consulting agreements, and individual contracting agreements, in each case, entered into in the ordinary course of business on a form previously provided to the Buyer, and (B) any permitted use rights to confidential information in a non-disclosure agreement for granting a limited right to use confidential information subject to customary protections to preserve confidentiality and proprietary rights, entered into in the purchase ordinary course of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsbusiness;
(Cvii) any sales, distribution or other similar agreement Contracts providing for the sale development of materialsany Technology or Intellectual Property Rights, suppliesindependently or jointly, goodsby or for the Company, services, equipment other than Contracts entered into pursuant to the Company’s form employee invention assignment agreements (copies of which have been made available to the Buyer) between the Company and an employee of the Company regarding the development of Technology or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016Intellectual Property Rights by such employee;
(Dviii) any equity partnership, joint venture or other similar agreement or arrangement that is material to all Contracts between the Core MTS BusinessCompany and an Affiliate;
(Eix) all Contracts that provide for the indemnification by the Company of any agreement relating Person or the assumption of any Tax, environmental or other Liability of any Person, except for Contracts entered into the ordinary and usual course of business;
(x) all Contracts that relate to the acquisition or disposition of any business 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) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(Gxi) all broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting and advertising Contracts;
(xii) all Contracts with any agreement that restrictsofficer, prohibits director, consultant or impairs employee of the Company, other than any employment letter that: (1) sets forth the terms of an “at will” employment arrangement and (2) does not obligate the Company to make payments to or purports for the benefit of such Person following termination of employment;
(xiii) except for Contracts relating to restricttrade receivables, prohibit or impairall Contracts relating to Indebtedness (including guarantees);
(xiv) all Contracts with, or has relating to any grant, incentive, benefit, qualification or would reasonably be expected to have the effect of prohibiting, restricting or impairingsubsidy from, any material business practice Governmental Entity;
(xv) all Contracts that limit or purport to limit the ability of the Core MTS Business Company or its Affiliates to (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (iA) engage or compete in any line of businessbusiness or market, (ii) sellor with any Person, license or otherwise distribute services or products in any geographic area or during any period of time (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of including granting exclusive rights, exclusive territories, exclusive licenses rights or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal to license, market, sell or rights of first offer deliver any Company Products or any related Intellectual Property Rights or Technology); (B) compete with, or solicit any customer of, any other person; (C) acquire any product or other asset or any services from any other Person; (D) solicit, hire or retain any Person as an employee, consultant or independent contractor; (E) develop, sell, supply, distribute, offer, support or service any product or any Intellectual Property Rights or Technology or other asset to or for any other Person; (F) perform services for any other Person; (G) transact business or deal in any other manner with any other Person; or (IVH) use, assert, enforce, or otherwise exploit any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual PropertyRights anywhere in the world;
(xvi) Contracts which provide for “most favored customer” or similar terms (including with respect to pricing);
(Hxvii) Contracts which grant to any material agreement Person a right of first refusal, right of first negotiation, right of exclusivity or any other similar right;
(excluding licenses for commercial off the shelf computer software xviii) Contracts that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or include a covenant not to be sued under, sue or any Intellectual Property Rightsettlement agreements or co-existence agreements;
(Ixix) any agreement pursuant to which any Person is authorized to useContracts that provide for a royalty, milestone or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into similar payments by the Company that has or could result in such obligations outstanding after the ordinary course of business consistent with past practiceClosing;
(Jxx) any agreement pursuant Contracts that provide for any joint venture, partnership or similar arrangement; and
(xxi) all Contracts that relate to which the Core MTS Business has provided or leasedresearch, or agreed to provide or leaseclinical trial, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party testing, design, development, distribution, sale, supply, license, marketing, promotion (including any contingent right to receive co-promotion), commercialization, use, exploitation or lease source code containing manufacturing of products (currently or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(Kunder development) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care LawsCompany.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) Contract is a valid and binding agreement on and enforceable against the Company in accordance with its terms and, to the Knowledge of the Core MTS Business Company, each other party thereto (in each case, except as limited by laws of general application relating to bankruptcy, insolvency and the relief of debtors and as limited by rules of law governing specific performance, injunctive relief or other equitable remedies and by general principles of equity) and is in full force and effect. The Company is not, and none of the Core MTS Business, orand, to the knowledge of MCKCompany’s Knowledge, any no other party thereto is in breach of or default under (or is alleged to be in breach in of or default under) or has provided or received any respect under the terms written notice of such MTI any intention to terminate, any Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregateand, to be material to the Core MTS BusinessKnowledge of the Company, taken as no event has occurred that, with or without notice or lapse of time or both, would constitute a wholebreach or default under or permit termination or modification of such Material Contract. True Complete and complete correct copies of each MTI Material Contract, Contract (including all modifications and all amendments thereto, in each case subject thereto and written waivers thereunder) have been made available to the redaction of certain information, have been delivered to MCK or its outside counselBuyer.
Appears in 1 contract
Material Contracts. (ia) None Part 2.12 of the Core MTS Business Disclosure Schedule lists the following Contracts to which Seller is currently a party or is subject to in connection with the Solar Facility (“Material Contracts”):
(1) any Contract for the sale of Seller’s products or services to any Person for $5,000.00 or more;
(2) any Contract involving consideration in excess of $5,000.00 over any twelve (12) month period;
(3) any Contract (or group of related Contracts) under which it has created, incurred, assumed or guaranteed any Indebtedness;
(4) any Contract which prohibits Seller from developing and operating the Solar Facility or requiring it to exclusively sell or purchase to or from any Person;
(5) any Contract with any of its Subsidiaries is a party to Affiliates or bound by:the Owners (including Affiliates of Seller);
(A6) any agreement for the lease employment of any individual on a full- time, part-time, consulting or sublease (whether of real or personal property) other basis providing for an annual payments compensation in excess of $750,000 30,000.00 or moreproviding severance benefits or payments upon the sale of Seller;
(B7) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments Contract that cannot be terminated by Seller without liability in excess of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements5,000 upon less than sixty (60) days’ notice;
(C8) any Contract that governs any joint venture, partnership or other cooperative arrangement or any other relationship involving a sharing of profits;
(9) any sales, distribution Contract that would result in the merger with or other similar agreement providing for the sale of materials, supplies, goods, services, equipment into or other assets consolidation into another Person;
(10) any Contract that provides for annual payments the provision of $5.0 million or more in MCK’s fiscal year 2016material services to Seller by third party personnel;
(D11) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS BusinessLicense Agreement;
(E12) any agreement Contract relating to any lease, lease guaranty, sublease or for the acquisition leasing, use or disposition occupancy of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or moreLeased Real Property;
(F13) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement Contract that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements was entered into in outside the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary Seller or base compensation in excess of $300,000 per year, other than those that can be terminated without liability is otherwise material to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 millionSeller; or
(N14) any agreement with commitment to do any Governmental Authority relating to corporate integrityof the foregoing described in clauses (1) through (13) or material amendment, deferred prosecution, modification or supplement in respect of any of the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsforegoing.
(iib) Each agreement required With respect to be disclosed pursuant to this Section 4.02(i) (each, a “MTI each Material Contract”) is a valid and binding agreement Contract listed in Part 2.12 of the Core MTS Business Disclosure Schedule: (A) the agreement is, with respect to the applicable Seller, legal, valid, binding, enforceable and is in full force and effecteffect in all material respects; (B) Seller is not in, and none of the Core MTS Business, orand, to the knowledge Knowledge of MCKSeller, any the other party thereto is in default not in, material breach or default, and no event has occurred which with notice or lapse of time would constitute a material breach in any respect or default, or permit termination, modification or acceleration under the terms agreement; and (C) Seller has not, and to the Knowledge of such MTI Seller the other party thereto has not, repudiated in writing any material provision of a Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or .
(c) The Material Contracts collectively constitute all of the Contracts necessary to enable Buyer to operate the Solar Facility in the aggregate, manner in which such Solar Facility is contemplated to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counseloperated.
Appears in 1 contract
Material Contracts. (a) Schedule 4.07(a) of the Disclosure Schedules lists each of the following Contracts (x) by which any of the Purchased Assets are bound or (y) to which Seller is a party or by which it is bound in connection with the Business or the Purchased Assets (such Contracts, together with all Contracts concerning the occupancy, management or operation of any Leased Real Property (including brokerage contracts) listed or otherwise disclosed in Schedule 4.10(a) of the Disclosure Schedules and all Intellectual Property Agreements set forth in Schedule 4.11(b) of the Disclosure Schedules, being “Material Contracts”):
(i) None all Contracts with suppliers or vendors of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments Seller involving aggregate consideration in excess of $750,000 500,000 and which, in each case, cannot be cancelled by Seller without penalty or morewithout more than 90 days’ notice;
(Bii) any agreement for all Contracts that require Seller to purchase or sell a stated portion of the purchase requirements or outputs of materials, supplies, goods, services, equipment the Business or other assets providing for annual payments of $3.0 million that contain “take or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementspay” provisions;
(Ciii) all Contracts that provide for the indemnification of any salesPerson or the assumption of any Tax (other than Contracts the principal purpose of which is not Taxes), distribution environmental or other similar agreement providing for the sale Liability of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016any Person;
(Div) any equity partnership, joint venture or other similar agreement or arrangement all Contracts that is material to the Core MTS Business;
(E) any agreement relating relate to the acquisition or disposition of any business business, a material amount of equity or assets of any other Person or any real property (whether by merger, sale of stockequity, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(Gv) any agreement all employment agreements that restricts, prohibits cannot be terminated on an at-will basis;
(vi) all Contracts with independent contractors or impairs consultants (or purports similar arrangements) and which are not cancellable without material penalty or without more than 90 days’ notice;
(vii) except for Contracts relating to restricttrade receivables, prohibit all Contracts relating to Indebtedness (including guarantees);
(viii) all Contracts that limit or impair), or has or would reasonably be expected purport to have limit the effect ability of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) Seller to conduct the following activities (i) engage compete in any line of business, (ii) sell, license business or otherwise distribute services with any Person or products in any geographic area or during any period of time;
(iiiix) compete with all joint venture, partnership or similar Contract, but excluding the Seller’s Operating Agreement;
(x) all Contracts for the sale of any of the Purchased Assets or for the grant to any Person (includingof any option, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights right of first refusal or rights of first offer preferential or (IV) any limits on the use of similar right to purchase any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)Purchased Assets;
(Hxi) all powers of attorney with respect to the Business or any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property RightPurchased Asset;
(Ixii) all collective bargaining agreements or Contracts with any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practiceUnion;
(Jxiii) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification all Contracts with customers of any service provider of the Core MTS Business with a base salary or base compensation Seller involving aggregate consideration in excess of $300,000 per year500,000 and which, other than those that in each case, can be terminated cancelled by the customer without liability penalty upon less than 90 days’ notice; and
(xiv) all other Contracts that are material to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, Purchased Assets or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be operation of the Business and not previously disclosed pursuant to this Section 4.02(iSection 4.07.
(b) (each, a “MTI Each Material Contract”) Contract is a valid and binding agreement of the Core MTS Business and on Seller in accordance with its terms and, to Seller’s Knowledge, is in full force and effect. Except as set forth on Schedule 4.07(b), and none of the Core MTS Business, Seller or, to the knowledge of MCKSeller’s Knowledge, any other party thereto is in breach of or default under (or is alleged in writing to be in breach of or default under) in any respect under the terms material respect, or has provided or received any written notice of such MTI any intention to terminate, any Material Contract. Except as set forth on Schedule 4.07(b), except for no event or circumstance has occurred that, with notice or lapse of time or both, would constitute an event of default under any such defaults Material Contract or breaches which result in a termination thereof or would not reasonably be expected, individually cause or in permit the aggregate, to be material to acceleration or other changes of any right or obligation or the Core MTS Business, taken as a wholeloss of any benefit thereunder. True Complete and complete correct copies of each MTI Material ContractContract (including all modifications, amendments and all amendments thereto, in each case subject to the redaction of certain information, supplements thereto and waivers thereunder) have been delivered made available to MCK Buyer. To Sellers’ Knowledge, except as set forth on Schedule 4.07(b), there are no material disputes pending or its outside counselthreatened in writing under any Contract included in the Purchased Assets.
Appears in 1 contract
Material Contracts. (a) Section 3.21(a) of the Disclosure Schedule sets forth a complete and accurate list of the following contracts, agreements or commitments to which the Company is a party or by which the Company is bound or, solely as it relates to the Business or any Company IP/IT Assets, to or by which Seller or its Affiliate is a party or is bound, as applicable (each, a “Company Material Contract”):
(i) None of the Core MTS Business All agreements which by their terms require or any of its Subsidiaries is a party to or bound by:
(A) any agreement call for the lease or sublease (whether of real or personal property) providing for annual aggregate payments in excess of $750,000 or more100,000 per year, other than policies of insurance issued in the ordinary course of business;
(Bii) any agreement for All agreements relating to the purchase sale of materials, supplies, goods, services, equipment a business or other the sale of material assets providing for annual payments outside the ordinary course of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsbusiness;
(Ciii) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement All agreements relating to the acquisition or disposition of any business (whether by merger, sale or material assets outside of stock, sale the ordinary course of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or morebusiness;
(Fiv) any agreement All agreements relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases Indebtedness (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations having an outstanding principal amount in excess of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among 50,000, including any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing)trust preferred securities;
(Gv) All agreements involving any agreement that restricts, prohibits director or impairs officer of the Company;
(vi) All agreements restricting the declaration or purports to restrict, prohibit payment of any dividends or impair)distributions on, or has or would reasonably be expected to have the effect of prohibiting, restricting or impairingin respect of, any material business practice capital stock or equity interest of the Core MTS Business Company;
(vii) All collective bargaining agreements or agreements with any labor organization, union or association;
(viii) All employment or consulting agreements which cannot be terminated without payment of severance or other monetary obligation,
(ix) All agreements that contain covenants that materially limit the ability of the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the ClosingA) to conduct the following activities (i) engage compete in any line of business, (ii) sell, license business or otherwise distribute services with any Person or products in any geographic area or (iii) compete with to sell, supply, price, develop or distribute any Person (includingservice, for the avoidance of doubtproduct or asset, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) including any non-competition or non-solicitation covenants, exclusivity restrictions, (III) any rights of first refusal or rights of first offer most-favored pricing clauses or (IVB) to purchase or acquire an interest in any limits on other entity;
(x) All agreements with respect to any joint venture, partnership, limited liability or other similar agreement or arrangement relating to the use formation, creation, operation, management or control of any of partnership or joint venture;
(xi) All agreements obligating the MCK Owned Intellectual Property and/or MCK Licensed Intellectual PropertyCompany to make any capital commitment or expenditure (including pursuant to any joint venture);
(Hxii) All agreements relating to or involving any material agreement exchange traded, over-the-counter or other swap, cap, floor, collar, futures contract, forward contract, option or other derivative financial instrument or contract, based on any commodity, security, instrument, asset, rate or index of any kind or nature whatsoever, whether tangible or intangible, including currencies, interest rates, foreign currency and indices;
(excluding licenses for commercial off xiii) All agreements obligating the shelf computer software that are generally available on nondiscriminatory pricing termsCompany to provide indemnification, collateral, or a guarantee;
(xiv) All agreements pursuant to which the Core MTS Business Company (or, with respect to Company IP/IT Assets, Seller or its Affiliate, as applicable) (a) is granted or obtains the or agrees to grant or obtain any right to use, or a covenant not to be sued under, use any Company Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with standard form contracts granting rights to use readily available shrink wrap or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms click wrap Software having a replacement cost and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments license fee of less than $1.0 million10,000 in the aggregate for all such related contracts), (b) is restricted in its right to use or register any Intellectual Property, or (c) permits or agrees to permit any other Person, to use, enforce, or register any Company Intellectual Property, including any license agreements, coexistence agreements, and covenants not to ▇▇▇;
(xv) All material agreements relating to Company IT Assets;
(xvi) All agreements providing for any confidentiality or standstill arrangements; or
(Nxvii) any agreement with any Governmental Authority relating Any other agreements that are material to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care LawsCompany not covered by the foregoing.
(iib) Each agreement required With respect to be disclosed pursuant to this Section 4.02(i) (each, a “MTI each Company Material Contract”, except as set forth in Section 3.21(b) is a valid and binding agreement of the Core MTS Business Disclosure Schedule: (i) the Company Material Contract is legal, valid, binding and enforceable against the Company, Seller and/or its Affiliates, as applicable, and, to the Knowledge of Seller, the other party thereto, and is in full force and effect; (ii) the Company Material Contract will continue to be legal, valid, binding and none of enforceable against the Core MTS Business, orCompany and, to the knowledge Knowledge of MCKSeller, any the other party thereto thereto, and remain in full force and effect following the consummation of the transactions contemplated by this Agreement; (iii) the Company is not in breach or default in any material respect, and no event has occurred that with the passage of time or provision of notice or both would constitute such a breach or default by the Company, or permit termination or acceleration by the other party, under the Company Material Contract; and (iv) to the Knowledge of Seller, no other party to the Company Material Contract is in breach or default or breach in any respect material respect, and no event has occurred that with the passage of time or provision of notice or both would constitute such a breach or default by such other party, or permit termination or acceleration by the Company, under the terms of such MTI Company Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 1 contract
Sources: Stock Purchase Agreement (Montpelier Re Holdings LTD)
Material Contracts. (ia) None All Contracts required to be filed as exhibits to the Sarg SEC Documents have been so filed in a timely manner. Section 3.16(a) of the Core MTS Business Sarg Disclosure Schedule sets forth a true and complete list, as of the date hereof, of each of the following Contracts, excluding any Sarg Benefit Plans, to which Sarg or any of its Subsidiaries is a party to or by which Sarg or any of its Subsidiaries or any of their assets or businesses are bound by:(and any amendments, supplements and modifications thereto):
(Ai) any agreement for Contract that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moreExchange Act);
(Bii) any agreement for Contract that materially limits the purchase ability of materialsSarg or any of its affiliates (including, suppliesfollowing the consummation of the Transactions, goods, services, equipment the Surviving Corporation and its affiliates) to compete or other assets providing for annual payments provide services in any line of $3.0 million business or more with any Person or in MCK’s fiscal year 2016, any geographic area or market segment or to engage in any type of business (including any independent contractor license, collaboration, agency or distribution agreements), but excluding or that provides for exclusivity in connection with any employment agreementsof the foregoing;
(Ciii) any sales, distribution or other similar agreement providing for Contract required to be disclosed pursuant to Item 404 of Regulation S-K of the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016Exchange Act;
(Div) any equity partnership, joint venture Contract or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition series of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement related Contracts relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases money (A) in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations excess of $1,500,000 1,000,000 or more (B) that becomes due and payable as a result of the Transactions;
(v) any license (including sublicense), option, development or collaboration agreement or other than Contract relating to Sarg Material Intellectual Property (iexcluding (A) intercompany indebtedness among license agreements for “shrink-wrap,” “click-wrap” or other commercially available off-the-shelf software that is not the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one handsubject of a negotiated agreement, and MCK for which any one-time amounts and the aggregate annual amounts paid or payable to or by Sarg or any of its Affiliates (other Subsidiaries related to such agreement are less than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business$1,000,000, (iiB) sell, license excluding agreements the primary purpose of which is to purchase tangible goods or otherwise distribute procure services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned unrelated to Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business business, and (C) non-exclusive licenses granted to customers in the ordinary course of business);
(vi) any Contract reasonably expected to result in payments in excess of $1,000,000 in any twelve (12) month period after the Closing Date that provides for any material “most favored nation” provision or equivalent preferential pricing terms or similar obligations to which Sarg or any of its Subsidiaries is subject;
(vii) any Contract with any of Sarg’s suppliers involving a dollar volume of purchases by Sarg in excess of $1,000,000 during the purchase or sale of materialstwelve (12) months ended June 30, supplies, goods, services 2017 (excluding any employment including purchasing agreements and group purchasing agreements);
(viii) any Contract with any of Sarg’s customers involving a dollar volume of spending by the customer in excess of $1,000,000 during the twelve (12) months ended June 30, equipment 2017;
(ix) any purchase, sale or supply contract that contains volume requirements or commitments, exclusive or preferred purchasing arrangements or promotional requirements reasonably expected to result in payments in excess of $1,000,000 in any twelve (12) month period after the Closing Date;
(x) any material lease, sublease, occupancy agreement or other Contract with respect to the Sarg Leased Real Property reasonably expected to result in payments in excess of $2,000,000 in any twelve (12) month period after the Closing Date,
(xi) 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 Sarg or any of its Subsidiaries to own, operate, sell, transfer, pledge or otherwise dispose of any material amount of assets that are generally available for purchase by business entities or businesses (in any case, in excess of $1,000,000);
(xii) any acquisition or divestiture agreement (A) entered into in the healthcare information technology industry on substantially past five years with a purchase price in excess of $1,000,000 or (B) that contains “earn-out” provisions or other contingent payment obligations that could reasonably be expected to exceed $1,000,000 (including indemnification obligations) that have not been satisfied in full;
(xiii) any agreement that by its terms limits the payment of dividends or other distributions by Sarg or any of its Subsidiaries;
(xiv) any Contract for any joint venture, partnership or similar terms from non-Affiliated suppliers arrangement, or providers any Contract involving a sharing of revenues, profits, losses, costs, or liabilities by Sarg or any of its Subsidiaries with any other Person involving a potential combined commitment or payment by Sarg and any of its Subsidiaries in excess of $1,000,000 annually;
(xv) any Contract with any Governmental Entity or Educational Agency reasonably expected to result in payments in excess of $1,000,000 in any twelve (12) month period after the Closing Date;
(xvi) any other agreement which provide for annual payments would prohibit or delay beyond the Outside Date the consummation of less than $1.0 millionMerger or any other Transaction contemplated by this Agreement;
(xvii) any Contract with a labor union, works council or labor organization; or
(Nxviii) any agreement with Contract that is for the employment or engagement of any Governmental Authority relating to corporate integrityperson on a full-time or part-time basis, deferred prosecutionincluding directors, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsemployees and independent contractors and employees at annual compensation in excess of $750,000.
(iib) Each agreement required Sarg has heretofore made available to be disclosed pursuant to this Section 4.02(i) (eachCardinal true, a “MTI Material Contract”) is a valid correct and binding agreement complete copies of the Core MTS Business Contracts set forth in Section 3.16(a).
(c) Except as has not had and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expectedexpected to have, individually or in the aggregate, a Sarg Material Adverse Effect, (i) all Contracts set forth or required to be material set forth in Section 3.16(a) of the Sarg Disclosure Schedule or filed or required to be filed as exhibits to the Core MTS BusinessSarg SEC Documents (the “Sarg Material Contracts”) are valid, taken binding and in full force and effect and are enforceable by Sarg or its applicable Subsidiary in accordance with their terms, except as a whole. True limited by Laws affecting the enforcement of creditors’ rights generally, by general equitable principles or by the discretion of any Governmental Entity before which any Proceeding seeking enforcement may be brought, (ii) Sarg, or its applicable Subsidiary, has performed all obligations required to be performed by it under the Sarg Material Contracts, and complete copies it is not (with or without notice or lapse of each MTI time, or both) in breach or default thereunder and, to the Knowledge of Sarg, no other party to any Sarg Material Contract is (with or without notice or lapse of time, or both) in breach or default thereunder, (iii) since January 1, 2017, neither Sarg nor any of its Subsidiaries has received written notice of any actual, alleged, possible or potential violation of, or failure to comply with, any term or requirement of any Sarg Material Contract, and all amendments thereto(iv) neither Sarg nor any of its Subsidiaries has received any written notice of the intention of any party to cancel, in each case subject terminate, materially change the scope of rights under or fail to the redaction of certain information, have been delivered to MCK or its outside counselrenew any Sarg Material Contract.
Appears in 1 contract
Material Contracts. (i) None 4.12.1 Except as set forth on Schedule 4.12.1, as of the Core MTS Business or date of this Agreement, neither the Company nor any of its Subsidiaries is a party to or bound byto:
(Aa) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement contract relating to the acquisition or disposition of all or a substantially all of the assets, rights, properties or equity of any corporation, partnership, or other business (whether by merger, sale of stock, sale of assets organization or otherwise) within division thereof under which the three years preceding the date hereof involving aggregate consideration of $250,000 Company and its Subsidiaries have continuing obligations or moreliabilities;
(Fb) any agreement relating contract creating a partnership, limited liability company, joint venture or other similar arrangement;
(c) any contract pursuant to indebtedness for borrowed money, which the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK Company or any of its Affiliates (other than the MCK Contributed Entities)Subsidiaries has incurred, on the other hand; provided that, assumed or guaranteed any Debt in the case excess of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing)$25,000;
(Gd) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any contract containing non-competition or similar restrictions that restrict the conduct of business by the Company or any of its Subsidiaries (other than confidentiality and employee non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practicebusiness);
(Je) any agreement pursuant to which the Core MTS Business has provided or leasedcontract that (i) grants, or agreed agrees to provide or leasegrant, any source code containing Person (other than the Company or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property of its Subsidiaries) a right to “most favored nation” terms or (ii) obligates the Company or any of its Subsidiaries to sell, buy, lease or distribute products or services on an exclusive basis with any Person (other than the Company or any of its Subsidiaries);
(f) any contract granting to a third party (including any contingent a license or other right in, under or to receive or lease source code containing or embodying any Software included in use the MCK Owned Company Intellectual Property and/or MCK Licensed Intellectual Propertyor the Company’s IT Assets or data, whether pursuant excluding non-exclusive licenses granted to an escrow arrangement customers or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and end users in the ordinary course of business for business;
(g) any contract granting to the purchase Company or sale any Subsidiary of materialsthe Company a license or other right in, suppliesunder or to use third party Intellectual Property, goodsdata or IT Assets, services in each case that is material to the Company and its Subsidiaries (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers exclusive licenses for commercially available “off-the-shelf” software licensed to the Company and which provide its Subsidiaries for annual payments a one-time fee of less than $1.0 million25,000 or an annual fee of less than $25,000);
(h) any contract that requires or that contains minimum purchase or minimum sale obligations on the part of the Company or any of its Subsidiaries for amounts in excess of $25,000 of spend or revenue, respectively, per year;
(i) any contract that creates a Lien (other than Permitted Liens) upon any material properties, rights or assets that would be material to the Company and its Subsidiaries, taken as a whole;
(j) any contract with a Governmental Authority;
(k) any contract pursuant to which the Company or any of its Subsidiaries has agreed to settle, waive, or otherwise compromise any actual, pending or threatened Action and under which the Company or any of its Subsidiaries has material continuing obligations; or
(Nl) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement other contract not required to be disclosed pursuant to any other subsection of this Section 4.02(i4.12.1 (other than an Employee Plan) (eachi) under which the Company or any of its Subsidiaries has made payments in excess of $50,000 during the fiscal year ended December 31, a “MTI 2020, (ii) which is reasonably expected to involve aggregate payments by the Company or any of its Subsidiaries in excess of $50,000 during the fiscal year ending December 31, 2021, (iii) under which the Company or any of its Subsidiaries has received payments in excess of $200,000 during the fiscal year ended December 31, 2020 or (iv) which is reasonably expected to involve aggregate payments to the Company or any of its Subsidiaries in excess of $200,000 during the fiscal year ending December 31, 2021.
4.12.2 The Company has made available to Parent true, complete and correct copies of each Material Contract, including any amendments or supplements thereto. Except as would not reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole, each contract required to be disclosed on Schedule 4.12.1 or Schedule 4.18 and each of the Real Property Leases (all such contracts, collectively, the “Material Contracts”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none is a legal, valid and binding obligation of the Core MTS BusinessCompany or the Subsidiary of the Company which is party thereto, and to the Knowledge of the Company, of the other parties thereto, enforceable against each of them in accordance with its terms (except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar Laws relating to creditors’ rights generally or by general principles of equity, whether such enforceability is considered in a proceeding in equity or at law). Neither the Company nor any of its Subsidiaries nor, to the Knowledge of the Company, any other party to any Material Contract is, or is alleged to be, in material breach or material violation thereof, or material default thereunder and there does not exist under any Material Contract any event which, with the giving of notice or the lapse of time or both, would constitute such a material breach or material violation thereof, or material default thereunder, by the Company, any of its Subsidiaries or, to the knowledge Knowledge of MCKthe Company, any other party thereto is thereto. Neither the Company nor any of its Subsidiaries has received any written notice to terminate, in default whole or breach in part, materially amend or not renew any respect under the terms obligation of such MTI a counterparty to a Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 1 contract
Sources: Merger Agreement (Certara, Inc.)
Material Contracts. (a) Schedule 4.8(a) lists each Purchased Contract as of the date hereof that falls within one or more categories listed below (the “Material Contracts”):
(i) None any Purchased Customer Contract that has a contract value in excess of $200,000 for 2018;
(ii) any Contract that is reasonably expected to involve payment by the Core MTS Business Seller of total consideration in excess of $250,000 in the calendar year ending December 31, 2018;
(iii) any Contract for the license of any Intellectual Property, whether licensed out by the Seller to any other Person or licensed in to the Seller by any of its Subsidiaries is a party to or bound by:
other Person (excluding any (A) “off-the-shelf” or other software that is readily available pursuant to a commercial license agreement (regardless of whether negotiated or modified) that have a purchase price or annual license fee of less than $2,000, (B) software licenses that have a purchase price or annual license fee of less than $100,000, (C) non-exclusive licenses granted in the ordinary course of business, (D) licenses to or from any agreement for Governmental Entity granted in the lease or sublease ordinary course of business, and (whether of real or personal propertyE) providing for annual payments of $750,000 or moreopen source licenses);
(Biv) any agreement for Contract pursuant to which the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments Seller is committed to make capital expenditures in excess of $3.0 million or more 250,000 in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsthe aggregate that are not subject to reimbursement by the counterparty under a Purchased Contract;
(Cv) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016each Lease;
(Dvi) any equity Contract that creates a partnership, joint venture or other similar agreement or arrangement that is material to in respect of the Core MTS Business;
(Evii) any agreement relating to Contract that contains a non-compete provision restricting the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, Seller from competing with another Person in any material respect;
(viii) any Contract that contains a provision granting most-favored-nation rights to any Person;
(ix) any employment, consulting, severance, retention or change of control Contract providing for payments in excess of $100,000 in any fiscal year; or
(x) any personal property leases involving payment obligations over the remaining term of the lease in excess of $50,000 and all capitalized leases; or
(xi) any Contract relating to the disposition or acquisition of all or substantially all of the assets of, or any equity interest in, any business enterprise.
(b) The Seller has made available to the Buyer a correct and complete copy of each Material Contract.
(c) Each Material Contract is a valid, binding and enforceable obligation of the Seller (assuming such Material Contract is a valid and binding obligation of the other party or parties thereto) and, to the Seller’s Knowledge, of the Core MTS Business (other party or parties thereto, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and similar Laws of general applicability relating to or affecting creditors’ rights, or by general equity principles, including principles of commercial reasonableness, good faith and fair dealing. Since January 1, 2018, the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, Seller has not expressly waived any material agreement that includes (I) grants by the Core MTS Business of exclusive rightsrights under any Material Contract, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into except in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(iid) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of Neither the Core MTS Business and is in full force and effect, and none of the Core MTS Business, orSeller nor, to the knowledge of MCKSeller’s Knowledge, any other party thereto to any Material Contract is in material breach of or material default under any Material Contract or breach in has repudiated any respect under the terms term of such MTI Material Contract and, to the Seller’s Knowledge, no event has occurred which (whether with or without notice, lapse of time or both or the happening or occurrence of any other event) would constitute a default under such Material Contract, except for .
(e) The Seller has not received any such defaults written notice of termination or breaches which would not reasonably be expected, individually or cancellation that is currently in the aggregate, effect with respect to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI any Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 1 contract
Material Contracts. (a) Schedule 4.10(a) of the Disclosure Schedules sets forth each of the following Contracts (x) by which any of the Purchased Assets are bound or affected or (y) to which Seller is a party or by which it is bound in connection with the Business or the Purchased Assets (such Contracts, together with all Contracts concerning the occupancy, management or operation of any Real Property (including, brokerage contracts) listed or otherwise disclosed on Schedule 4.14(a) of the Disclosure Schedules and all Intellectual Property Agreements listed on Schedule 4.15(b) of the Disclosure Schedules, being “Material Contracts”):
(i) None of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments all Contracts involving aggregate consideration in excess of $750,000 10,000 and which, in each case, cannot be cancelled without penalty or morewithout more than ten (10) days’ notice;
(Bii) any agreement for all Contracts that require Seller to purchase or sell a stated portion of the purchase requirements or outputs of materials, supplies, goods, services, equipment the Business or other assets providing for annual payments of $3.0 million that contain “take or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementspay” provisions;
(Ciii) all Contracts that provide for the indemnification of any salesPerson or the assumption of any Tax, distribution environmental or other similar agreement providing for the sale Liability of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016any Person;
(Div) any equity partnership, joint venture or other similar agreement or arrangement all Contracts that is material to the Core MTS Business;
(E) any agreement relating relate to the acquisition or disposition of any business 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) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(Gv) any agreement that restrictsall broker, prohibits distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting and advertising Contracts;
(vi) all employment agreements and Contracts with independent contractors or impairs consultants (or purports similar arrangements) which are not cancellable without material penalty or without more than ten (10) days’ notice and all non-competition, non-solicitation and confidentiality agreements from current and former independent contractors, consultants and employees of Seller that are currently in effect;
(vii) except for Contracts relating to restricttrade receivables, prohibit all Contracts relating to Indebtedness (including guarantees);
(viii) all Contracts with any Governmental Authority (“Government Contracts”);
(ix) all Contracts that limit or impair), or has or would reasonably be expected purport to have limit the effect ability of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) Seller to conduct the following activities (i) engage compete in any line of business, (ii) sell, license business or otherwise distribute services with any Person or products in any geographic area or during any period of time;
(iiix) compete with all joint venture, partnership or similar Contracts;
(xi) all Contracts for the sale of any of the Purchased Assets or for the grant to any Person (includingof any option, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights right of first refusal or rights of first offer preferential or (IV) any limits on the use of similar right to purchase any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)Purchased Assets;
(Hxii) all powers of attorney with respect to the Business or any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property RightPurchased Asset;
(Ixiii) all collective bargaining agreements or Contracts with any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;Union; and
(Jxiv) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating all other Contracts that are material to the employment, severance, retention Purchased Assets or indemnification of any service provider the operation of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be not previously disclosed pursuant to this Section 4.02(i4.10.
(b) (each, a “MTI Each Material Contract”) Contract is a valid and binding agreement of the Core MTS Business on Seller in accordance with its terms and is in full force and effect, and none . None of the Core MTS Business, or, to the knowledge of MCK, Seller or any other party thereto is in breach of or default under (or is alleged to be in breach of or default under) in any respect under the terms material respect, or has provided or received any notice of such MTI any intention to terminate, any Material Contract. No event or circumstance has occurred that, except for with notice or lapse of time or both, would constitute an event of default under any such defaults Material Contract or breaches which result in a termination thereof or would not reasonably be expected, individually cause or in permit the aggregate, to be material to acceleration or other changes of any right or obligation or the Core MTS Business, taken as a wholeloss of any benefit thereunder. True Complete and complete correct copies of each MTI Material ContractContract (including all modifications, amendments and all amendments thereto, in each case subject to the redaction of certain information, supplements thereto and waivers thereunder) have been delivered made available to MCK Buyer. There are no material disputes pending or its outside counselthreatened under any Contract included in the Purchased Assets.
Appears in 1 contract
Material Contracts. (a) Stockholder Disclosure Schedule 2.11(a) identifies each of the following material agreements, contracts, documents and other items (whether written or oral) as to which the Company is a party or otherwise is bound (and all such contracts, or samples or summaries thereof, have been made available to Buyer) as of the date of the execution of this Agreement: (i) None all contracts between the Company and third parties relating to the provision of foreign exchange student programs and solicitation of students for such instruction and programs other than contracts with individual students ("Exchange Contracts") (ii) all documents relating to indebtedness for money borrowed, including guarantees; (iii) all agreements or plans relating to employment, compensation of or benefits for officers, employees or consultants of the Core MTS Business or Company, including without limitation, any of its Subsidiaries is a party to or bound by:
collective bargaining arrangements; (Aiv) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement all contracts for the purchase of materials, supplies, goods, services, merchandise or equipment involving consideration of more than $5,000 annually or other assets providing for annual payments involving purchases in excess of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
normal operating requirements; (Cv) any salescontract, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair)agreement, or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant instrument not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of the business consistent with past practice;
of the Company; (Jvi) any agreement pursuant contract containing material restrictions on the operations of the Company or any restrictions on its ability to which the Core MTS Business has provided compete in any geographic region or leased, or agreed to provide or lease, in any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party line of business; (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(Kvii) any agreement relating to the employment, severance, retention or indemnification lease of any service provider of the Core MTS Business with a base salary or base compensation real property and all personal property leases calling for annual lease payments in excess of $300,000 per year10,000; and (viii) all licenses and accreditations received in connection with instruction and foreign exchange student programs conducted by the Company. The contracts and agreements identified in Stockholder Disclosure Schedule 2.11(a), other than those that can be terminated without liability including each of the Exchange Contracts, are collectively referred to herein as the Core MTS Business;"Contracts."
(Lb) Except as set forth in Section 2.11(b) of the Stockholder Disclosure Schedule:
(i) Neither the execution, delivery and performance of this Agreement nor the consummation of the transactions contemplated hereby will conflict in any agreement material respect with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and result in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecutiona material breach of, or give rise to a right of termination of, or accelerate the Core MTS Business’ performance required by, any terms of any Contract, or MCK’s constitute a default in any material non-compliance with Health Care Lawsrespect thereunder.
(ii) The Company is not under any liability or obligation to refund any material amount previously paid to the Company for services provided by the Company under the Contracts, and the Company has paid or has made adequate provision to pay when due all accounts payable, payroll, payroll taxes and other amounts due on account of the Contracts;
(iii) The Company has not entered into any of the Contracts other than in compliance with all applicable laws, rules and regulations; and the terms of payment and/or compensation for each of the Contracts complies with all applicable laws, rules and regulations relating to competitive bidding; each of the Contracts not obtained through competitive bidding was secured in an arms' length transaction.
(iv) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) of the Contracts is a valid and binding agreement of the Core MTS Business existing and is in full force and effect, true and none complete copies of each Contract have been heretofore provided to the Buyer; the Company has, in all material respects, performed all obligations required to be performed by it under, and is not in material default in any respect underany of the Core MTS BusinessContracts; and the Company has not received notice of non-compliance or alleged non-compliance with any of the Contracts; to the knowledge of the Stockholder, each other party to any Contract has, in all material respects, performed all obligations required to be performed by it under, and is not in material default in any respect under, any of the Contracts;
(v) The Stockholder has no knowledge of any current intention on the part of any of the parties to the Contracts to cancel the same or not to renew the same with the Company at the end of the current term thereof;
(vi) The Company is (a) duly licensed in the appropriate jurisdiction to provide language instruction at all sites where the Company currently provides language instruction and (b) accredited by an accrediting body that is recognized by, and satisfactory to both the regulating agency or institution in the jurisdiction where the language instruction is provided and the agency or institution that regulates or administers the distribution of visas in the country where the language instruction is provided;
(vii) The Company has received ACCET approval for all schools operated by the Company and the Stockholder after reasonable inquiry, is not aware of any threatened termination of such ACCET approval or any set of facts which may negatively affect ACCET approval.
(viii) The Company has not received any claim of material overpayment or alleged material overpayment by any other party to any of the Contracts, and except as described in Stockholder Disclosure Schedule 2.11(b), there have been no audits or other reviews of the costs, billing methods or performance of the Company under any of the Contracts, and no such audits or other reviews are in progress or, to the knowledge of MCKthe Stockholder, contemplated; and
(ix) Except as set forth in Stockholder Disclosure Schedule 2.11(b), no consent, approval or authorization of, notice to or declaration, filing or registration with, any other third party thereto is required in default connection with the Stock Exchange or breach in any respect under the terms execution, delivery and performance of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in this Agreement and the aggregate, to be material to Closing Documents and the Core MTS Business, taken as a whole. True consummation of the transactions contemplated hereby and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselthereby.
Appears in 1 contract
Sources: Stock Purchase Agreement (Sylvan Learning Systems Inc)
Material Contracts. (a) The applicable subsections of Section 4.07(a) of the Disclosure Schedules (as may be updated by Seller prior to Closing solely to reflect any Contracts that are signed in the Ordinary Course of Business after the date of this Agreement) lists each of the following Contracts (it being understood that some Contracts may need to be listed in more than one subsection) (x) by which any of the Purchased Assets are bound or affected or (y) to which Seller is a party or by which it is bound in connection with the Business as currently conducted at or on the Acquired Facilities or the Purchased Assets (such Contracts, together with all Contracts concerning the occupancy, management or operation of any Leased Real Property (including without limitation, brokerage contracts) listed or otherwise disclosed in Section 4.10(b) of the Disclosure Schedules and all Intellectual Property Agreements set forth in Section 4.11(b) of the Disclosure Schedules, being “Material Contracts”):
(i) None of all Contracts included in the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or morePurchased Assets;
(Bii) any agreement for all Contracts that require Seller to purchase or sell a stated portion of the purchase requirements or outputs of materials, supplies, goods, services, equipment the Business or other assets providing for annual payments of $3.0 million that contain “take or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementspay” provisions;
(Ciii) any sales, distribution or other similar agreement providing all Contracts that provide for the sale indemnification of materials, supplies, goods, services, equipment or any Person other assets that provides for annual payments than as part of $5.0 million or more in MCK’s fiscal year 2016an ordinary course commercial Contract;
(Div) any equity partnership, joint venture or other similar agreement or arrangement all Contracts that is material to the Core MTS Business;
(E) any agreement relating relate to the acquisition or disposition of any business 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) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(Gv) any agreement that restrictsall broker, prohibits distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting and advertising Contracts;
(vi) all employment agreements and Contracts with independent contractors or impairs consultants (or purports similar arrangements) and which are not cancellable without material penalty or without more than 30 days’ notice;
(vii) all Contracts with any Governmental Authority;
(viii) all Contracts that limit or purport to restrict, prohibit or impair), or has or would reasonably be expected limit the ability of Seller to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage compete in any line of business, (ii) sell, license business or otherwise distribute services with any Person or products in any geographic area or during any period of time;
(iiiix) compete with all Contracts for the sale of any of the Purchased Assets or for the grant to any Person (includingof any option, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights right of first refusal or rights of first offer preferential or (IV) any limits on the use of similar right to purchase any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)Purchased Assets;
(Hx) all powers of attorney with respect to the Business or any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property RightPurchased Asset;
(Ixi) all collective bargaining agreements or Contracts with any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;Union; and
(Jxii) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating all other Contracts that are material to the employment, severance, retention Purchased Assets or indemnification of any service provider the operation of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be not previously disclosed pursuant to this Section 4.02(i4.07.
(b) (each, a “MTI Each Material Contract”) Contract is a valid and binding agreement of the Core MTS Business on Seller in accordance with its terms and is in full force and effect, and none . None of the Core MTS Business, Seller or, to the knowledge Knowledge of MCKSeller, any other party thereto is in breach of or default under (or is alleged to be in breach in of or default under), or has provided or received any respect under the terms notice of such MTI any intention to terminate, any Material Contract. To the Knowledge of Seller, except for no event or circumstance has occurred that, with notice or lapse of time or both, would constitute an event of default under any such defaults Material Contract or breaches which result in a termination thereof or would not reasonably be expected, individually cause or in permit the aggregateacceleration or other changes of any right or obligation or the loss of any benefit thereunder. There are no material disputes pending or, to be material to the Core MTS BusinessKnowledge of Seller, taken as a wholethreatened under any Material Contract. True Seller has delivered complete and complete correct copies of each MTI Material ContractContract that are written Contracts (including all modifications, amendments and supplements thereto and waivers thereunder) to Buyer and has provided complete and accurate written descriptions of all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselMaterial Contracts that are oral Contracts.
Appears in 1 contract
Material Contracts. (ia) None of Except for the Core MTS Business or contracts specifically identified in Schedule 7.17(a), neither the Company nor any of its Subsidiaries Subsidiary is a party to or bound by:by any of the following written contracts, other than contracts which have already been fully performed (vollständig erfüllt) in relation to the main obligations (Hauptleistungspflichten) by all parties thereto (each, a Material Contract):
(i) agreements relating to the acquisition or sale of interests in other companies, businesses or real estate;
(ii) any distributor, original equipment manufacturer, reseller, sales, advertising, agency or manufacturer’s representative contract involving in the case of any such contract a minimum annual payment obligation of the Company or any Subsidiary in excess of EUR 100,000;
(iii) agreements that require shareholder or supervisory board approval under applicable law or the rules of procedure of any Group Company;
(iv) any contract for the purchase, sale or license of materials, supplies, equipment, services, software, IP Rights or other assets involving in the case of any such contract a consideration of more than EUR 100,000 over the life of the contract;
(v) any mortgage, promissory note, factoring agreement, 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 IFRS and all other agreements for the incurrence of any long term or short term financial indebtedness and obligations (and incurrence of any obligation to that effect);
(vi) rental- or lease agreements relating to fixed or current assets and real property and any contract pursuant to which the Company or any Subsidiary is a lessor or lessee of any machinery, equipment, motor vehicles, office furniture, fixtures or other personal property involving in the case of any such contract a minimum annual payment obligation or claim of the respective Group Company in excess of EUR 100,000;
(vii) agreements providing for the purchase or sale of fixed assets with a value of EUR 100,000 or more;
(viii) any guarantees, suretyships (Bürgschaften), letters of comfort (Patronatserklärungen), indemnification obligations (Freistellungsverpflichtungen), assumption of debt (Schuldübernahme), or any similar commitment with respect to, the liabilities or indebtedness of another Group Company or any third party;
(A) any agreement for the lease joint venture contract, partnership- or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
shareholder agreement, (B) any agreement for the purchase contract that involves a sharing of materialsrevenues, suppliesprofits, goodscash flows, services, equipment expenses or other assets providing for annual payments of $3.0 million losses with another Group Company or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
third party or (C) any sales, distribution contract that involves the payment of royalties to another Group Company or other similar agreement providing for the sale any third party in excess of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016EUR 100,000 per annum;
(Dx) any equity partnership, joint venture agreements that limit or other similar agreement or arrangement that is material purport to limit the Core MTS Business;
(E) any agreement relating to the acquisition or disposition freedom of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating Group Company to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage compete in any line of business, (ii) sellwith any third party, license or otherwise distribute services or products in any geographic area or during any period of time;
(iiixi) compete with any Person (including, agreements which provide for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)following in connection with any change of control of any Group Company: (a) any consent requirement, (b) the termination or modification of the agreement or a right of the other party to terminate, modify or renegotiate the agreement, (c) any option or similar
(xii) any in-license agreement or out-license agreements with third parties;
(Hxiii) any material agreement agreements with sales representatives (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing termsHandelsvertreter), distributors (Eigenhändler), commission agents (Kommissionäre) pursuant to which the Core MTS Business obtains the right to use, and other sales representatives or a covenant not to be sued under, any Intellectual Property Rightconsultancy agreements;
(Ixiv) any agreement pursuant to which any Person is authorized to use, agreements or receives a covenant commitments not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into made in the ordinary course of business consistent with past practice;business; and
(Jxv) any agreement pursuant to which the Core MTS Business has provided other agreements providing for a minimum annual payment obligation or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider claim of the Core MTS Business with a base salary or base compensation respective Group Company in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care LawsEUR 100,000.
(iib) Each agreement required True and complete copies of all Material Contracts have been delivered to be disclosed pursuant the Purchaser prior to this Section 4.02(i) (each, a “MTI the Signing Date. All Material Contract”) is a valid and binding agreement of the Core MTS Business and is Contracts are in full force and effecteffect (and to the Sellers' Knowledge comply with applicable law and regulation and all conditions precedent provided for their effectiveness have been satisfied). No notice of termination has been received by any Group Company with respect to any Material Contract, and and, except as disclosed in Schedule 7.17(a), none of the Core MTS Business, orother parties to any Material Agreement has indicated to a Seller or any Group Company that it intends to terminate a Material Contract or terminate or reduce its business dealings with any Group Company. Neither any Group Company nor, to the knowledge of MCKSellers’ Knowledge, any other party thereto to any Material Contract is in default or breach under any such agreement. Neither the execution of this Agreement nor the consummation of the transactions contemplated hereby will constitute a breach or default under, or result in the termination or modification of, any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 1 contract
Material Contracts. Section 3.12(a) of the Seller Disclosure Schedule is a true and complete list, of all of the following Contracts (the “Material Contracts”):
(i) None of the Core MTS Business or any of its Subsidiaries is Contract with a party to or bound by:
(A) Top Customer and any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete Contract with any Person (includingother customer or client with material non-standard terms, except for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements disclosure Contract entered into by Seller in the ordinary course of business consistent with past practice;
(Jii) any agreement pursuant contract with a Top Supplier, except for any non-disclosure Contract entered into by Seller in the ordinary course of Business consistent with past practice;
(iii) any In-License;
(iv) any Out-License;
(v) any Contract relating to which any transactions between the Core MTS Business has provided or leasedSeller and any its managers, members, officers, or agreed Affiliates, or any immediate family member or Affiliate of any of the foregoing, other than employee benefits generally made available to provide all employees;
(vi) any Contract (other than a Seller Plan or leasean Agency Agreement) providing for payments to Seller in excess of $50,000 during the calendar year 2020, or that are reasonably expected to exceed $50,000 during the calendar year 2021;
(vii) any source code containing Contract with any distributor, reseller, value added reseller, dealer or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property sales agent of the Seller Products involving payments to a third party or from Seller that exceeded $37,000 during the calendar year 2020, or that are reasonably expected to exceed $40,000 during the calendar year 2021 (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Propertyeach, whether pursuant to an escrow arrangement or otherwise“Agency Agreement”);
(Kviii) any agreement joint marketing, strategic alliance or similar Contract (excluding, for the avoidance of doubt, comarketing activities performed by the Seller in the ordinary course of Seller’s business not under written Contract), or any Contract pursuant to which Seller has any obligations to jointly develop any Intellectual Property;
(ix) any Contract with any Governmental Authority;
(x) any Contract for which the primary purpose of such Contract is addressing privacy, data protection, or information security obligations;
(xi) any Contract containing indemnification obligations of the Seller to any manager, member, officer, employee or agent of the Seller;
(xii) any Contract providing for or relating to the employmentany merger, severanceacquisition, retention consolidation, sale or indemnification other business combination or divestiture transaction;
(xiii) any Contract pursuant to which (a) any other party is granted exclusive rights or “most favored party” rights of any service provider type or scope with respect to any of the Core MTS Business Seller Products, Intellectual Property or the Business, (b) containing any non-competition covenants or other restrictions other than nonsolicitation of the employees of parties to the Contract consistent with a base salary industry practices, and entered into in the ordinary course of Seller’s business, or base compensation (c) that limits the freedom of Seller to engage or participate, or compete with any other Person, in excess any line of $300,000 per yearbusiness, market or geographic area, or to make use of any Intellectual Property other than limitations to the scope of non-exclusive licenses granted to Seller under Intellectual Property Rights of third parties;
(xiv) any Contracts containing covenants of Seller not to solicit or hire any Person with respect to employment, other than those that can be terminated without liability to nonsolicitation of employees consistent with industry practices and entered into in the Core MTS normal course of the Seller’s Business;
(Lxv) any agreement with Contract providing for the development of any Intellectual Property, independently or jointly, by or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (Seller, other than customization, data retrieval or other similar services provided by the Transaction Documents)Seller to third parties in connection with the sale or licensing of Seller Products, where the customization, data retrieval and any Intellectual Property developed under such Contract in connection with that customization was not material to the operation of the Business;
(Mxvi) any Contract creating or relating to any partnership or joint venture or any sharing of revenues, profits, losses, costs or liabilities involving payments to or from Seller;
(xvii) any settlement agreement with or for the benefit of MCK or respect to any Affiliate of MCK with obligations that continue following the Closing Litigation;
(xviii) other than as listed at Section 3.16(g) of the Transaction Documents)Seller Disclosure Schedule, any Contract pursuant to which material rights of any third party are triggered or become exercisable, or under which any other material consequence, result or effect arises, in connection with or as a result of the execution of this Agreement or the Ancillary Documents or the consummation of the Contemplated Transactions;
(xix) any confidentiality, secrecy or non-disclosure Contract other than agreements with MCK or any Affiliate of MCK such Contract entered into on arm’s length terms and by the Seller in the ordinary course of business consistent with past practice;
(xx) any Contract with any labor union, works council or similar labor organization, or any collective bargaining agreement or similar Contract with or regarding employees;
(xxi) other than as listed at Section 3.16(k) of the Seller Disclosure Schedule, any Contract for or relating to the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment by or other assets service to Seller of any manager, member, officer, employee, consultant, or contractor or any other type of Contract with any of its managers, members, officers, employees, contractors or consultants that are generally available is not terminable at-will by Seller without notice or any Liability therefor;
(xxii) any Contract for purchase by business entities capital expenditures in excess of $20,000, in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; oraggregate;
(Nxxiii) any separation agreement or severance agreement with any Governmental Authority relating current or former employees of Seller under which Seller has any actual or potential current Liability;
(xxiv) any Contract pursuant to corporate integritywhich Seller is a lessor or lessee of any machinery, deferred prosecutionequipment, motor vehicles, office furniture, fixtures or other personal property involving expenditures in excess of $5,000 per annum;
(xxv) any Real Property Leases;
(xxvi) any Contract pursuant to which Seller receives data (for example via an application programming interface (API)), where such Contract is material to the Business as of the Closing, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, likely to be material to the Core MTS BusinessBusiness following Closing if the Business is operated as presently conducted by Seller; and
(xxvii) any other Contract that is material to Seller, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 1 contract
Sources: Asset Purchase Agreement (BigCommerce Holdings, Inc.)
Material Contracts. (a) Section 4.07(a) of the Disclosure Schedules lists each of the following Contracts (x) by which any of the Purchased Assets are bound or affected or (y) to which Seller is a party or by which it is bound in connection with the Business or the Purchased Assets (such Contracts, together with all Contracts concerning the occupancy, management or operation of any Real Property (including without limitation, brokerage contracts) listed or otherwise disclosed in Section 4.10(a) of the Disclosure Schedules and all Intellectual Property Agreements set forth in Section 4.11(b) of the Disclosure Schedules, being "Material Contracts"):
(i) None of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments all Contracts involving aggregate consideration in excess of $750,000 25,000 and which, in each case, cannot be cancelled without penalty or morewithout more than 90 days' notice;
(Bii) any agreement for all Contracts that require Seller to purchase or sell a stated portion of the purchase requirements or outputs of materials, supplies, goods, services, equipment the Business or other assets providing for annual payments of $3.0 million that contain "take or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementspay" provisions;
(Ciii) all Contracts that provide for the indemnification of any salesPerson or the assumption of any Tax, distribution environmental or other similar agreement providing for the sale Liability of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016any Person;
(Div) any equity partnership, joint venture or other similar agreement or arrangement all Contracts that is material to the Core MTS Business;
(E) any agreement relating relate to the acquisition or disposition of any business 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) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(Gv) any agreement that restrictsall broker, prohibits distributor, dealer, manufacturer's representative, franchise, agency, sales promotion, market research, marketing consulting and advertising Contracts;
(vi) all employment agreements and Contracts with independent contractors or impairs consultants (or purports similar arrangements) and which are not cancellable without material penalty or without more than 90 days' notice;
(vii) except for Contracts relating to restricttrade receivables, prohibit all Contracts relating to indebtedness (including, without limitation, guarantees);
(viii) all Contracts with any Governmental Authority ("Government Contracts");
(ix) all Contracts that limit or impair), or has or would reasonably be expected purport to have limit the effect ability of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) Seller to conduct the following activities (i) engage compete in any line of business, (ii) sell, license business or otherwise distribute services with any Person or products in any geographic area or during any period of time;
(iiix) compete with all joint venture, partnership or similar Contracts;
(xi) all Contracts for the sale of any of the Purchased Assets or for the grant to any Person (includingof any option, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights right of first refusal or rights of first offer preferential or (IV) any limits on the use of similar right to purchase any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)Purchased Assets;
(Hxii) all powers of attorney with respect to the Business or any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property RightPurchased Asset;
(Ixiii) all collective bargaining agreements or Contracts with any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;Union; and
(Jxiv) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating all other Contracts that are material to the employment, severance, retention Purchased Assets or indemnification of any service provider the operation of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be not previously disclosed pursuant to this Section 4.02(i4.07.
(b) (each, a “MTI Each Material Contract”) Contract is a valid and binding agreement of the Core MTS Business on Seller in accordance with its terms and is in full force and effect, and none . None of the Core MTS Business, Seller or, to the knowledge of MCKSeller's Knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach in of or default under), or has provided or received any respect under the terms notice of such MTI any intention to terminate, any Material Contract. No event or circumstance has occurred that, except for with notice or lapse of time or both, would constitute an event of default under any such defaults Material Contract or breaches which result in a termination thereof or would not reasonably be expected, individually cause or in permit the aggregate, to be material to acceleration or other changes of any right or obligation or the Core MTS Business, taken as a wholeloss of any benefit thereunder. True Complete and complete correct copies of each MTI Material ContractContract (including all modifications, amendments and all amendments thereto, in each case subject to the redaction of certain information, supplements thereto and waivers thereunder) have been delivered made available to MCK Buyer. There are no disputes pending or its outside counselthreatened under any Contract included in the Purchased Assets.
Appears in 1 contract
Material Contracts. (a) Section 3.13(a) of the Seller Disclosure Schedule lists all Contracts described in clauses (i) None of through (viii) below that relate primarily to the Core MTS Business or any of its Subsidiaries Aerospace Business, to which Seller is a party or by which it is bound ("Material Contracts"). True, correct and complete copies of such Material Contracts have been made available to Buyer.
(i) Contracts relating to employment, commitments for employment, offers of employment, or bound by:independent contractor or consulting services that provide for payments at any one time or in any one year in excess of Eighty Thousand Dollars ($80,000);
(ii) Contracts containing any provision or covenant prohibiting or materially limiting the ability of Seller to engage in any business activity or compete with any Person;
(iii) Contracts prohibiting Seller from disclosing, or requiring any Person to maintain the confidentiality of, any Intellectual Property Rights;
(iv) Contracts that (A) involve the payment, pursuant to the terms of any agreement for such Contract, by or to Seller of more than Fifty Thousand Dollars ($50,000) annually or One Hundred Fifty Thousand Dollars ($150,000) during the lease term of such Contract or sublease (whether B) that cannot be terminated within ninety (90) days after giving notice of real termination without resulting in any material cost or personal propertypenalty to Seller;
(v) providing for annual payments Contracts relating to goods, services or research with a backlog of $750,000 150,000 or more;
(Bvi) Contracts evidencing Indebtedness of Seller and relating to any agreement for the purchase of materials, supplies, goods, services, equipment Transferred Asset or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsAssumed Liability;
(Cvii) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement Contracts relating to the acquisition license or disposition use of Business Intellectual Property Rights; and
(viii) Contracts between or among Seller and any current or former officer, director, stockholder, manager, member, employee or Affiliate thereof (including without limitation all understandings and agreements relating to club dues, housing and other perquisites).
(b) Each Material Contract is in full force and effect and is legal, valid and binding and enforceable by and against Seller and, to Seller's Knowledge, each other party thereto, in accordance with its terms, except as limited by bankruptcy, insolvency and similar laws affecting creditor's rights generally. Neither Seller, nor to Seller's Knowledge, any other party to any Material Contract is currently in breach of, or in default in any material respect under, or has improperly terminated, any Material Contract, and to Seller's Knowledge, there exists no condition or event which, after notice or lapse of time or both, would constitute any such breach, default or termination. There are no Material Contracts that were not negotiated on an arm's length basis.
(c) Except as set forth on Section 3.5(b) of the Seller Disclosure Schedule, no consents, waivers or approvals from any Persons are (i) required in connection with the transfer from Seller to Buyer of any business Material Contract or the consummation by Seller of the transactions contemplated herein, in each case without giving rise to a Seller Material Adverse Effect or (whether by mergerii) necessary in order that any Material Contract remains in effect without modification after the transactions contemplated hereby and not give rise to any right to termination, sale cancellation or acceleration or loss of stock, sale of assets any right or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;benefit thereunder.
(Fd) Except as set forth on Section 3.13(d) of the Seller Disclosure Schedule, Seller is not a party to any agreement relating Material Contract, with any of the current or former officers, directors, stockholders, managers, members or employees of Seller or, to indebtedness for borrowed moneythe Knowledge of Seller, the deferred purchase price any current or former Affiliate of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more such Persons (other than (i) intercompany indebtedness among the MCK Contributed Entities employment, compensation and (ii) intercompany indebtedness among any the MCK Contributed Entitybenefit agreements with officers, on the one hand, directors and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements employees entered into in the ordinary course of business consistent with past practice;business).
(Je) any agreement pursuant to which Except as set forth on Section 3.13(e)(i) of the Core MTS Business has provided or leasedSeller Disclosure Schedule, or agreed to provide or leaseall Government Bids and all other quotes, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement bids and proposals relating to the employmentAerospace Business (collectively, severance, retention "Proposals") outstanding or indemnification of any service provider being worked on as of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and have been prepared in the ordinary course of business for based on customary pricing and margin criteria not materially different than the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase criteria historically used by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement Seller with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, respect to the knowledge Assumed Contracts. Section 3.13(e)(ii) of MCKSeller the Disclosure Schedule sets forth a true, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True accurate and complete copies list of each MTI Material Contract, and all amendments thereto, in each case subject written Proposals that would involve the payment by or to the redaction Seller of certain information, have been delivered to MCK or its outside counselmore than One Hundred Fifty Thousand Dollars ($150,000).
Appears in 1 contract
Material Contracts. (i) None Section 3.9 of the Core MTS Business Disclosure Letter lists:
(a) all Contracts applicable to the Company or any of its Subsidiaries is a party or any of their respective properties or assets that are reasonably expected to or bound by:
(A) any agreement for require the lease or sublease payment (whether by or to the Company or any of real or personal propertyits Subsidiaries) providing for annual payments of $750,000 200,000 or more in the aggregate or payments in any twelve-month period aggregating $100,000 or more;
(Bb) any agreement all Contracts calling for the purchase of materials, supplies, goods, services, equipment products or other assets providing for annual payments services of the Company or any of its Subsidiaries that generate or are reasonably expected to generate $3.0 million 100,000 or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsof annualized revenues;
(c) all Contracts pursuant to which any Person has a right to market, distribute, resell or sublicense any product or service of the Company or its Subsidiaries that generate or are reasonably expected to generate $75,000 or more of annualized revenues;
(d) except for non-exclusive rights to distribute software products of the Company and its Subsidiaries and non-exclusive licenses to use trademarks of the Company or a Subsidiary granted by the Company or a Subsidiary to a distributor of products of the Company and its Subsidiaries, all Contracts pursuant to which the Company or its Subsidiaries have (A) granted any Person any right or interest in any Intellectual Property owned or licensed by the Company or its Subsidiaries, (B) agreed to any restriction on the right of the Company or its Subsidiaries to use or enforce any such Intellectual Property or (C) agreed to encumber, transfer or sell rights in or with respect to any salessuch Intellectual Property;
(e) (other than end-user licenses to generally commercially available software that have an individual acquisition cost of $50,000 or less, distribution all Contracts pursuant to which the Company or other similar agreement any of its Subsidiaries acquired or are authorized to exercise rights in any Intellectual Property owned by a third party;
(f) all Contracts providing for the sale development of materialsany Intellectual Property, suppliesindependently or jointly, goodsby or for the Company or any of its Subsidiaries, servicesincluding, equipment but not limited to, any proof-of-concept, collaboration, development or other assets that provides for annual payments co-development agreement but excluding all Contracts entered into by the Company and its Subsidiaries in the ordinary course of $5.0 million business with employees or more in MCK’s fiscal year 2016consultants pursuant to which the Company or its Subsidiaries secured unencumbered and unrestricted exclusive ownership of all Intellectual Property developed under the Contract and the employee or consultant retained no rights or licenses with respect thereto;
(Dg) all Contracts to license or authorize any equity partnership, joint venture third party to manufacture any products of the Company or other similar agreement any of its Subsidiaries and all Contracts pursuant to which the Company purchases components included in the products of the Company or arrangement that is material to the Core MTS Businessany of its Subsidiaries;
(Eh) all Contracts between the Company and any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entityits Subsidiaries, on the one hand, and MCK any Company Shareholder or any an Affiliate of its Affiliates (other than the MCK Contributed Entities)a Company Shareholder, on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(Gi) all Contracts applicable to the Company or any agreement of its Subsidiaries or any of their respective properties or assets that restrictscontain covenants that, prohibits or impairs (or purports to restrictfollowing the consummation of the Merger, prohibit or impair), or has or would reasonably be expected to have restrict the effect of prohibiting, restricting or impairing, any material business practice ability of the Core MTS Business (Surviving Corporation to compete or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, operate in any material respect, of the Core MTS Business (business or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person or in any field, industry or geographic area, or to sell, supply or distribute any service or product or to otherwise operate or expand its current businesses, or that restricts the rights of the Company and its Subsidiaries (includingor, for following the avoidance consummation of doubtthe transactions contemplated by this Agreement, would limit the ability of Parent or any material agreement of its Subsidiaries, including the Surviving Corporation) to sell to or purchase from any Person or to hire any Person, or that includes (I) grants by the Core MTS Business other party or any third Person “most favored nation” status or any type of special discount rights, exclusive sales, distribution, marketing or other exclusive rights, exclusive territoriesrights of refusal, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal negotiation or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)similar rights;
(Hj) any all Contracts which are “material agreement contracts” (excluding licenses for commercial off as such term is defined in Item 601(b)(10) of Regulation S-K promulgated by the shelf computer software that are generally available on nondiscriminatory pricing termsSEC) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Rightperformed after the date of this Agreement and have not been filed or incorporated by reference in the Company SEC Reports;
(Ik) any agreement pursuant all Contracts which require a consent to which any Person is authorized or otherwise contain a provision relating to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course “change of business consistent with past practice;control”; and
(Jl) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating all Contracts applicable to the employmentCompany or any of its Subsidiaries that relate to the formation, severancecreation, retention operation, management or indemnification control of any service provider a joint venture, partnership, limited liability or other similar agreement or arrangement (the Contracts described in clauses (a) through (l) being collectively referred to herein as the “Material Contracts”). Each of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and Contracts is in full force and effecteffect and enforceable against the Company and its Subsidiaries, and none of the Core MTS Businessas applicable, orand, to the knowledge Knowledge of MCKthe Company, any against the other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments parties thereto, in each case subject in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and similar laws relating to or affecting creditors generally or by general equity principles (regardless of whether such enforceability is considered in a proceeding in equity or at law). None of the Company or any of its Subsidiaries has received any written notice of cancellation or termination of any of the Material Contracts. With respect to any Material Contract which by its terms will terminate as of a certain date unless renewed or unless an option to extend such Material Contract is exercised, neither the Company nor any of its Subsidiaries has received any written notice that any such Material Contract will not be so renewed or that any such extension option will not be exercised. There exists no event of default or occurrence, condition or act on the part of the Company or any of its Subsidiaries or, to the redaction Knowledge of certain informationthe Company, have been delivered on the part of the other parties to MCK the Material Contracts, that constitutes or its outside counselwould constitute (with notice, lapse of time or both) a material breach of or material default under any of the Material Contracts. Since November 30, 2006, no event has occurred that would be required to be reported as a “Certain Relationship” or “Transaction with a Related Person” pursuant to Statement of Financial Accounting Standards No. 57 or Item 404 of Regulation S-K promulgated by the SEC.
Appears in 1 contract
Sources: Merger Agreement (Cardiodynamics International Corp)
Material Contracts. h) Section 2.13(a) of the Company Disclosure Schedule sets forth an accurate and complete list (arranged in paragraphs corresponding to the numbered paragraphs contained in this Section 2.13(a)) of the following Contracts (each such Contract required to be set forth, a “Material Contract”) to which the Company or is a party:
(i) None of all customer Contracts, including, without limitation, all license, development, maintenance, support and professional services, and reseller Contracts, that (i) the Core MTS Business or any of its Subsidiaries is a party Company reasonably expects will provide payments to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments Company of $750,000 100,000 or moremore in 2014, or (ii) was executed in 2012 or 2013 and is still in effect;
(Bii) all Contracts under which the Company is obligated to provide any agreement for maintenance, support or professional services with respect to any Company Products that are no longer marketed by the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsCompany;
(Ciii) any salesall Contracts with suppliers and service providers of the Company that involve the performance of services for, distribution or other similar agreement providing for delivery of goods or materials to, the sale of materials, supplies, goods, services, equipment or other assets that provides for annual Company under which the Company is obligated to make payments of more than $5.0 million or more in MCK’s fiscal year 201650,000, excluding Contracts with any employees and independent contractors engaged on a full-time basis;
(Div) any equity partnership, joint venture all Contracts involving a loan (other than accounts receivable owing from trade debtors in the ordinary course of business) or advance to (other similar agreement or arrangement that is material than travel and entertainment advances to the Core MTS BusinessEmployees extended in the ordinary course of business), or investment in, any Person or any Contract relating to the making of any such loan, advance or investment;
(Ev) all Contracts involving Company Indebtedness or granting or evidencing a Lien on any agreement relating to property or asset of the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or moreCompany;
(Fvi) all Contracts under which any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates Person (other than the MCK Contributed Entities)Company) has directly or indirectly guaranteed Company Indebtedness;
(vii) all Contracts with any Governmental Entity, on including all Government Contracts;
(viii) all Contracts involving the other hand; provided that, in the case lease of clause real property (ii) any such indebtedness shall be paid off in full at or prior to the Closing“Lease Agreements”);
(Gix) all Contracts for the lease of any agreement that restrictsmachinery, prohibits equipment, motor vehicles, office furniture, fixtures or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have other personal property involving the effect payment of prohibiting, restricting or impairing, any material business practice more than $25,000 over the term of the Core MTS Business Contract;
(x) all financial advisory or any other similar type Contract and all Contracts with investment or commercial banks;
(xi) all Contracts (A) limiting or purporting to limit the ability of the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license business or otherwise distribute services or products in any geographic area or (iii) to compete with any Person or in any geographical area, (B) granting or purporting to grant any exclusive rights to any Person or limiting in any respect the right of the Company to make use of any Company Intellectual Property, including any "covenant not to ▇▇▇" clauses, (C) containing any exclusive licensing obligations, (D) containing any future royalty payments, or (E) containing any “most favored nation” or “most favored customer” terms;
(xii) other than employment Contracts, all Contracts between the Company and any shareholder, officer, director, Affiliate of the Company or any family member thereof on the other hand;
(xiii) all Contracts (including letters of intent) relating to or involving the disposition or acquisition of assets, properties, capital stock or other equity interests of any other Person, or any merger, consolidation or similar business combination transaction, whether or not enforceable, but excluding the purchase of assets in the ordinary course of business for less than $25,000;
(xiv) all Contracts involving any joint venture, partnership, strategic alliance, shareholders’ agreement or joint development;
(xv) all Contracts with distributors or representatives of the Company that have generated or expected to generate annual revenues in excess of $50,000 (excluding Contracts with Employees and independent contractors engaged on a full time basis, in sales on behalf of the Company);
(xvi) all Contracts involving any resolution or settlement of any actual or threatened litigation or arbitration in the past three (3) years;
(xvii) all Collective Bargaining Agreements;
(xviii) all Contracts (including, for the avoidance sake of doubtclarity, any material agreement that includes (Idevelopment Contracts) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains Company is a party or by which it is bound and under which the right to useCompany is granted or provided any rights, or a covenant not to be sued underpermitted any uses, any of Intellectual Property Right;or Intellectual Property Rights by a third party, other than: (i) Contracts for licenses to Shrink-Wrapped Code that are not royalty bearing; and (ii) Open Source Licenses or CopyLeft Software licenses.
(Ixix) all Contracts (i) containing a grant by the Company to a Person of any agreement pursuant right relating to which or under the Company Intellectual Property or any grant to the Company of any right relating to or under the Intellectual Property or Intellectual Property Rights of any Person is authorized to use, involving anticipated annual gross revenue or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Propertyexpense in excess of $20,000, other than those contained within customer agreements with customers for the sale and/or licensing of Products entered into in the ordinary course of business consistent with past practice;
(Jincluding Contracts for “off-the-shelf” software) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned and (ii) regarding development of Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in Technology for the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation Company in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;5,000; and
(Lxx) All Contracts containing any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that provisions which are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contracttriggered by, and all amendments theretoContracts entitling any Person to any right of notice, novation, waiver, authorization, consent or approval, as the case may be, in each case subject to connection with, a change-in-control of the redaction Company or the consummation of certain information, have been delivered to MCK or its outside counselthe transactions contemplated by this Agreement.
Appears in 1 contract
Material Contracts. (ia) None Except for agreements entered into after the date hereof in accordance with Section 7.2 or as set forth on Schedule 5.12 (the "Material Contracts"), none of the Core MTS Business Conveyed Subsidiaries (or a Subsidiary of a Conveyed Subsidiary) nor any of its Subsidiaries Asset Selling Corporation is a party to or bound by:
(Ai) any contract, agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) any agreement other arrangement for the purchase of materialsInventories, supplies, goods, services, equipment or other assets providing personal property with any supplier or for annual payments the furnishing of services to the Business extending beyond one year from the date hereof or the terms of which provide for financial commitments in excess of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements1,000,000;
(Cii) any salescontract, distribution or agreement and other similar agreement providing arrangement for the sale of materials, supplies, goods, services, equipment Inventories or for the furnishing of services by the Business with firm commitments in excess of one year from the date hereof (in the case of the United States) and three years from the date hereof (in the case of all other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016locations);
(Diii) any equity partnershipbroker, joint venture or other similar agreement or arrangement distributor, dealer, manufacturer's representative, franchise and agency agreements related to the Business that is material to the Core MTS Businessnot cancelable on 60 days' notice or less without financial penalty;
(Eiv) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement contracts and agreements relating to indebtedness for borrowed money, the factoring arrangements, sale and leaseback transactions and deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow similar financial arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention Business with respect to which a Conveyed Subsidiary (or indemnification of any service provider a Subsidiary of the Core MTS Business with a base salary Conveyed Subsidiary) or base compensation Asset Selling Corporation is an obligor in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business1,000,000;
(Lv) any agreement with patent or for technology or trademark licenses or agreements or research and development or design agreements relating to the benefit Business the terms of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments aggregate commitments to be paid by or to a Conveyed Subsidiary (or a Subsidiary of less than the Conveyed Subsidiary) or Asset Selling Corporation in excess of $1.0 million100,000; orand
(Nvi) any agreement with any Governmental Authority relating other than intercompany agreements that are not being assigned to corporate integrityor assumed by Purchaser, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.all
Appears in 1 contract
Material Contracts. (a) Schedule 3.08(a) lists each of the following Contracts, in each case solely to the extent still effective, related to the Neonatal Technology (such Contracts, together with all Contracts relating to Assigned Intellectual Property set forth on Schedule 3.07(c), being “Material Contracts”):
(i) None of all consulting, commercialization and product testing Contracts and Contracts with independent contractors, consultants or Persons (or similar arrangements) to which the Core MTS Business or Seller is a party;
(ii) each Contract granting any Person any preferential right to purchase any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moreassets;
(Biii) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement each Contract relating to the acquisition or disposition of any business (whether by merger, sale purchase of stock, sale of stock or assets or otherwise) within by the three years preceding the date hereof involving aggregate consideration Seller of $250,000 any business, equity or moreassets of any other Person or any real property;
(Fiv) any agreement each Contract relating to the incurrence, assumption or guarantee of any indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, imposing a Lien on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities)assets of the Seller, on including indentures, guarantees, loan or credit agreements, sale and leaseback agreements, purchase money obligations incurred in connection with the other hand; provided thatacquisition of property, in the case of clause (ii) any such indebtedness shall be paid off in full at mortgages, pledge agreements, security agreements, or prior to the Closing)conditional sale or title retention agreements;
(Gv) any agreement that restrictseach Contract providing for the exclusive right to develop, prohibits test or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice distribute products of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products Seller in any geographic area region or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)distribution channel;
(Hvi) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) each Contract pursuant to which the Core MTS Business obtains the right Seller may be obligated to use, or a covenant not pay for goods and services to be sued under, any Intellectual Property Rightdelivered or performed;
(Ivii) all Contracts involving any agreement pursuant to which lease by the Seller (as lessor or lessee) of any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Personal Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(Jviii) all Contracts that require the Seller to purchase its total requirements of any agreement pursuant to which the Core MTS Business has provided product or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to service from a third party (including any contingent right to receive or lease source code containing that contain “take or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise)pay” provisions;
(Kix) all IP Licenses; and
(x) any agreement relating other Contract that is material to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms Seller and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be not previously disclosed pursuant to this Section 4.02(i3.08.
(b) (eachThe Seller has heretofore made available to the Purchaser a true, a “MTI complete and correct copy of each Material Contract”) is a valid Contract and binding agreement all amendments and supplements thereto and all waivers thereunder. None of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, Seller or, to the knowledge Knowledge of MCKthe Seller, any other party thereto is in breach of or default under (or is alleged to be in breach of or default under) in any respect under the terms material respect, or has provided or received any notice of such MTI Material Contractany intention to terminate, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments theretono event has occurred that (with or without notice, in each case subject lapse of time or both) would constitute such a breach or default by the Seller or, to the redaction Knowledge of certain informationthe Seller, have been delivered any other party thereto. Each Material Contract is in full force and effect and is a legal, valid and binding agreement of the Seller, enforceable in accordance with its terms against the Seller and, to MCK the Knowledge of the Seller, the other parties thereto. No event or its outside counselcircumstance has occurred that, solely with notice or lapse of time or both, would constitute an event of default under any Material Contract or result in a termination thereof or would cause or permit the acceleration or other changes of any right or obligation or the loss of any benefit thereunder.
(c) No Contract included in the Acquired Assets requires any notice to, or consent of, any third party with respect to the transfer or assignment by the Seller to the Purchaser of such Contract.
Appears in 1 contract
Material Contracts. (ia) None Excluding the Transaction Agreements, no member of the Core MTS Business or any of its Subsidiaries Company Group is a party to or bound by, or will be a party to or bound by after giving effect to the Restructuring, any Contract that is in effect as of the date of this Agreement:
(Ai) any agreement for that is required by its terms or is currently expected to result in the lease or sublease (whether payment by the Company Group of real or personal property) providing for annual payments more than $1,000,000 in the current fiscal year, in each case other than purchase orders entered into in the ordinary course of $750,000 or morebusiness;
(Bii) any that is a note, debenture, bond, trust agreement, letter of credit agreement, loan agreement or other Contract for the purchase borrowing or lending of materialsmoney or agreement or arrangement for a line of credit or guarantee, supplies, goods, services, equipment pledge or other assets providing for annual payments undertaking of $3.0 million or more in MCK’s fiscal year 2016, including the indebtedness of any independent contractor agreements, but excluding any employment agreementsthird party;
(Ciii) relating to (A) the acquisition or disposition of any salesbusiness, distribution properties, assets or capital stock of any member of the Company Group or any other similar agreement providing for the Person, whether by merger, purchase or sale of materialsstock or assets or otherwise, supplies, goods, services, equipment or other assets that provides for annual payments contains material ongoing obligations of $5.0 million or more any member of the Company Group (in MCK’s fiscal year 2016;
(D) each case excluding any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement Contracts relating to the acquisition or disposition of any business assets in the ordinary course of business), or (whether by merger, sale B) the grant to any Person of stock, sale any preferential rights to purchase any properties or assets of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or moreCompany Group;
(Fiv) that (A) limits, curtails or restricts the ability of any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice member of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, Group to compete in any material respectgeographical area, of the Core MTS Business (market or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (iiB) sell, license restricts the Persons to whom any member of the Company Group may sell products or otherwise distribute deliver services or products in any geographic area (C) restricts the Company or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)its Subsidiaries from soliciting or hiring any Person;
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing termsv) pursuant to which (A) the Core MTS Business obtains the right to useCompany Group receives, or Parent receives for the exclusive benefit of the Company Group, a license or covenant not to be sued under, ▇▇▇ with respect to any Intellectual Property Right;
(I) any agreement pursuant to which any Person that is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider operation of the Core MTS Business with a base salary or base compensation in excess business of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services Company Group as currently conducted (excluding any employment agreements), equipment Contracts for the use of commercially-available software or other assets that are generally data available on commercially-available terms for purchase by business entities in the healthcare information technology industry on substantially similar terms from nonan annual or up-Affiliated suppliers or providers and which provide for annual payments front license fee (whichever is higher) of less than $1.0 million; or
100,000) (N“Inbound Intellectual Property License”), (B) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, Parent or the Core MTS Business’ Company Group grants a license to or MCK’s material non-compliance covenant not to ▇▇▇ with Health Care Laws.
(ii) Each agreement required respect to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default Parent Intellectual Property or breach in any respect under the terms of such MTI Material ContractCompany Group Intellectual Property, except for any such defaults or breaches which non-exclusive rights that would not reasonably be expected, individually or in the aggregate, to be materially adverse to the business of the Company Group as currently conducted, (C) the Company Group has acquired any material Company Group Intellectual Property from, or Parent has acquired on behalf of the Company Group any material Parent Intellectual Property from, any third party (excluding employees and independent contractors), or (D) the Company Group retains a third party (other than employees or independent contractors) to perform development of Intellectual Property relating to the business of the Company Group or performs joint development with a third party relating to the business of the Company Group, in each case excluding any Contracts with annual or up-front (whichever is higher) payments of less than 1,000,000; excluding in each case any Transaction Agreements and any Intercompany Agreements;
(vi) covering real property; or
(vii) relating to the employment by any Company Group member of any of its or their employees that provides for payment of base salary or base wage rate in excess of $250,000 per year (other than offer letters to “at will” employees issued in the ordinary course of business). Each Contract set forth in Section 3.9(a) of the Disclosure Letter, together with each contract of the type described in subclauses (i)–(vii) above that is entered into after the date of this Agreement and prior to the Closing Date, is referred to herein as a “Material Contract”.
(b) Parent has made available to Buyer a true, correct and complete copy of each Material Contract as of the date of this Agreement. As of the date of this Agreement, each Material Contract is valid and binding on the applicable member of the Company Group (subject, in each case, to applicable bankruptcy, fraudulent transfer, insolvency, moratorium or similar Laws of general application relating to or affecting creditors’ rights generally and except for the limitations imposed by general principles of equity) and in full force and effect with respect to the applicable member of Company Group and, to the Knowledge of Parent, the other parties thereto, except for any such failure to be valid or binding or in full force and effect as is not and would not reasonably be expected to, individually or in the aggregate, material to the Core MTS BusinessCompany Group, taken as a whole. True and complete copies As of each MTI the date of this Agreement, no member of the Company Group nor, to the Knowledge of Parent, any other party to a Material Contract is in breach of or default under a Material Contract, except for such breaches or defaults that are not and all amendments theretowould not reasonably be expected to be, individually or in each case subject the aggregate, material to the redaction Company Group, taken as a whole. As of certain informationthe date of this Agreement, have been delivered to MCK no member of the Company Group has received any notice of termination or its outside counselcancellation under any Material Contract.
Appears in 1 contract
Material Contracts. (a) Schedule 3.17(a) of the Disclosure Schedules lists each of the following Contracts of the Company and its Subsidiaries (such Contracts and agreements as described in this Section 3.17(a) being “Material Contracts”):
(i) None of Contracts that provide for payment or receipt by the Core MTS Business Company or any of its Subsidiaries is a party to or bound by:
of more than $2,500,000 per year, including any Contracts with the Top Customers (A) any agreement provided, that for the lease or sublease (whether purposes of real or personal property) providing for annual payments this Section 3.17(a)(i), the references to “50” in the definition of $750,000 or more“Top Customer” shall be deemed references to “20”), and the Top Suppliers;
(Bii) any agreement Contracts for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business assets (other than acquisitions or dispositions of assets in the ordinary course of business) or businesses (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding and with any outstanding obligations (including indemnification, guarantee, “earn-out” or other similar contingent obligations) as of the date hereof involving aggregate consideration of $250,000 or morethis Agreement;
(Fiii) any agreement Contracts (A) relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases any Indebtedness (in either case, whether incurred, assumed, guaranteed or secured by any asset), other than Indebtedness for an amount less than $1,000,000, (B) involving payment obligations of $1,500,000 relating to any Retained Indebtedness, or more (C) mortgaging, pledging or otherwise placing an Encumbrance (other than a Permitted Encumbrance) on any material assets of the Company or its Subsidiaries;
(iiv) intercompany indebtedness among Contracts that limit in any material respect, or purport to limit in any material respect, the MCK Contributed Entities ability of the Company or any of its Subsidiaries to compete in any line of business or with any Person or in any geographic area or during any period of time or containing a right of first refusal, right of first negotiation, right of first offer or option, most-favored-nation provision, non-solicit restrictions or exclusive right in favor of any other Person;
(v) Contracts with any Governmental Authority;
(vi) Contracts that require the Company or any of its Subsidiaries to purchase or utilize all or a specified amount of their requirements for a specified good or service;
(vii) Joint venture, or any material partnership or similar agreements or arrangements;
(viii) Contracts for the employment of any officer, individual employee or other Person on a full-time or consulting basis providing for fixed compensation in excess of $250,000 per annum;
(ix) written bonus, pension, profit sharing, retirement or other form of deferred compensation plans, other than as described in Section 3.10 or the related Disclosure Schedule;
(x) Settlements or similar Contracts that impose obligations on the Company or any of its Subsidiaries after the date of this Agreement that are material to the operation of the businesses of the Company and its Subsidiaries, taken as a whole;
(iixi) intercompany indebtedness among Contracts under which the Company or any of its Subsidiaries is lessee of, or holds or operates, any personal property owned by any other party, for which the MCK Contributed Entityannual rent exceeds $200,000;
(xii) Contracts between (A) the Company or any of its Subsidiaries, on the one hand, and MCK or (B) any of its Affiliates (other than the MCK Contributed Entities)▇▇▇▇▇▇▇▇▇▇ Party, on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, but excluding for the avoidance of doubt, (1) any Contracts between the Company and any of its Subsidiaries or between two or more of its Subsidiaries or (2) Contracts that relate to the employment of any ▇▇▇▇▇▇▇▇▇▇ Party; and
(xiii) Contracts that relate to the future disposition or acquisition of stock or material agreement that includes (I) grants assets by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses Company or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to useits Subsidiaries, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, merger or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent combination with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating respect to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK Company or any Affiliate of MCK with obligations that continue following the Closing its Subsidiaries (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK this Agreement or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction DocumentsAncillary Agreement), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) Contract is a valid and binding agreement on the Company or the applicable Subsidiary, as the case may be, and, to the Knowledge of the Core MTS Business Company, the counterparties thereto, and is in full force and effect, and none in each case, in all material respects. None of the Core MTS Business, orCompany nor any of its Subsidiaries nor, to the knowledge Knowledge of MCKthe Company, the counterparties thereto, is in material breach of, or default under, any other Material Contract to which it is a party thereto is in default or breach in any respect under the terms material respect. Copies of such MTI all Material ContractContracts, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and together with all amendments thereto, in each case subject to the redaction thereto and related statements of certain informationwork or similar documents, have been delivered provided to MCK or its outside counselthe Acquiror and are accurate and complete in all material respects.
Appears in 1 contract
Material Contracts. (a) Disclosure Schedule 3.16(a) sets forth a list of all Contracts that:
(i) None provide for the employment for any period of time whatsoever, or are in regard to the employment, or restrict the employment, of any employee of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moreCompany;
(Bii) are consulting agreements;
(iii) are collective bargaining agreements;
(iv) provide for the payment by the Company of severance benefits, retention bonuses or sale bonuses to any agreement employee;
(v) relate to a plan or contract or arrangement with respect to Benefit Plans;
(vi) are for the purchase of materials, supplies, goods, services, equipment or other tangible assets providing for annual payments that cannot be terminated on not more than 120 days’ notice or without payment of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementspenalty;
(Cvii) any salesare leases or subleases, distribution either as lessee or other similar agreement providing for sublessee, lessor or sublessor, of personal property or intangibles, where the sale of materials, supplies, goods, services, equipment lease or other assets that sublease provides for an annual payments rental amount in excess of USD $5.0 million 100,000 or more has an unexpired term as of the Closing Date in MCK’s fiscal year 2016excess of one year;
(Dviii) restrict in any equity partnershipmanner the Company’s right to compete with any other Person, joint venture restricting the Company’s right to sell to or purchase from any other similar agreement Person, restricting the right of any other party to compete with the Company or arrangement that is material the ability of such Person to employ any of the Core MTS BusinessCompany’s employees;
(Eix) any agreement relating to are between the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed EntityCompany, on the one hand, and MCK Manitex or Liftking Parent or any of its Affiliates (other than the MCK Contributed Entities)their Affiliates, on the other hand; provided that;
(x) contract for the advertisement, display or promotion of any products or services, which cannot be cancelled by the Company without payment or penalty upon notice of thirty (30) days or less;
(xi) relate to any borrowing of money or full or partial guarantee for the borrowing of money or any other Liability or which evidence any Indebtedness;
(xii) are options or commitments to acquire any securities of any corporation or to acquire or lease any real property or assets other than, in the case of clause (ii) any such indebtedness shall latter case, those assets that are to be paid off used in full at or prior to the Closing)Ordinary Course;
(Gxiii) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice are outside of the Core MTS Business Ordinary Course or which provide for the receipt or expenditure of more than USD $100,000; and
(xiv) are continuing contracts or sales orders with customers for the delivery, sale or supply of products of the Company after the Closing), any material acquisition with an aggregate value in excess of property by the Core MTS Business USD $50,000.
(or the Company after the Closingb) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities Except as set forth on Disclosure Schedule 3.16(b): (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI each Material Contract”) Contract is a legal, valid and binding agreement obligation of the Core MTS Business Company and is in full force and effect, ; and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under (ii) the terms of all Material Contracts have been complied with in all material respects by the Company and, to Manitex’s Knowledge, by the other parties to such MTI Material Contracts. To Manitex’s Knowledge, no event has occurred or circumstance exists that (with or without notice or lapse of time) may contravene, conflict with or result in a violation or breach of, or give the Company or any other Person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate or modify any Material Contract.
(c) Except as set forth on Disclosure Schedule 3.16(c), the Company is not a party to, subject to or bound by any Material Contract, except that would require the consent of a third party, be breached or violated or its obligations thereunder accelerated or increased (whether or not with notice or lapse of time or both) by the execution or delivery by Manitex or Liftking Parent of this Agreement or the performance by Manitex or Liftking Parent of the transactions contemplated by this Agreement.
(d) The Company is not a party to, subject to or bound by any Contract, or any right or privilege capable of becoming an agreement, for the purchase from the Company of the Business or any such defaults or breaches which would not reasonably be expected, individually or of its assets other than in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material ContractOrdinary Course.
(e) The Company has not received any written notice of, and all amendments theretoto Manitex’s Knowledge there is not, in each case subject any intention to the redaction of certain informationterminate, have been delivered repudiate or disclaim any Material Contract to MCK or its outside counselwhich it is a party.
Appears in 1 contract
Sources: Share Purchase Agreement
Material Contracts. Section 3.12 of the Disclosure Schedules sets forth a true, complete and correct list of all of the following Contracts (excluding open purchase or sales orders entered into in the ordinary course of business) to which a Transferred Entity is a party or by which any of them is 44 bound as of the date hereof (each Contract listed or required to be listed on Section 3.12 of the Disclosure Schedules, collectively, the "Material Contracts"): (i) None any Contract with a Material Customer; (ii) any Contract with a Material Supplier; (iii) any Contract containing any capital expenditure obligations of the Core MTS Business or in excess of $3,000,000; (iv) any of its Subsidiaries Contract that is a party strategic alliance, an equity joint venture, partnership or other similar agreements or other agreements that involve sharing of revenues, profits, losses, costs, royalty in excess of $100,000, damages or liabilities, in each case, between a Transferred Entity and a third party; (v) any Contract pursuant to or bound by:
which (A) any agreement for the lease Transferred Entity licenses from a third party Intellectual Property Rights (other than any COTS Software), or sublease (whether of real or personal property) providing for annual payments of $750,000 or more;
(B) a third party licenses from any agreement for Transferred Entity any Business Intellectual Property Rights (other than licenses granted in the purchase ordinary course of materialsbusiness, suppliesincluding in connection with the sale or licensing of any products or services), goods, services, equipment or other assets providing for in each case of clauses (A) and (B) that involve annual aggregate payments in excess of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
1,000,000; (Cvi) any salesContract relating to Indebtedness, distribution other than any Indebtedness to the extent owing from any of the Transferred Entities to any of the other Transferred Entities or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
released pursuant to Section 5.11; (Dvii) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement Contract relating to the acquisition or disposition of any business or assets (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (A) acquisitions or dispositions of inventory, or assets of no or de minimis value, in the ordinary course of business, or (B) Personnel IP Assignments; (viii) any Contract that (A) prohibits or purports to prohibit a Transferred Entity from competing in a particular geographic area during any time period or from soliciting or hiring any Person, (B) contains "most favored nation" pricing terms, exclusivity, or grants any right of first offer or right of first refusal, or (C) contains "take or pay" or "requirements" terms; (ix) any Contract, other than a Transaction Document, (i) intercompany indebtedness among relating to the MCK Contributed Entities sharing or allocation of Intellectual Property Rights by and (ii) intercompany indebtedness among any between the MCK Contributed EntityTransferred Entities, on the one hand, and MCK or any of Seller and its Affiliates (other than the MCK Contributed Transferred Entities), on the other hand; provided that, in the case of clause or (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) restricts or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Business Intellectual Property and/or MCK Licensed Intellectual PropertyRights that are owned or exclusively licensed to any Transferred Entity (including consent to use and co-existence agreements);
; (Hx) any material agreement (excluding licenses Contract for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS development or escrow of any Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property RightRight that is owned or exclusively licensed to any Transferred Entity or Business Product;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 1 contract
Material Contracts. (1) Schedules 3.1(f)(1)(i), (ii), (iv), (vi), (vii), (viii), (ix), (x), (xii), (xiii) and (xiv) contain lists, as of the date of this Agreement, of the following Seller Contracts (collectively, the "MATERIAL CONTRACTS"):
(i) None each Seller Contract that involves the performance of services or the Core MTS Business delivery of goods or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments materials by Seller in an amount in excess of $750,000 or more10,000 during any year;
(Bii) any agreement for each Seller Contract that involves the purchase performance of materials, supplies, goods, services, equipment services or other assets providing for annual payments the delivery of goods or materials to Seller in an amount in excess of $3.0 million or more in MCK’s fiscal year 2016, including 10,000 during any independent contractor agreements, but excluding any employment agreementsyear;
(Ciii) each Seller Contract that was not entered into in the Ordinary Course of Business and involves the payment or receipt by Seller of more than $10,000 during any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016year;
(Div) any equity partnership, joint venture each Lease with respect to real property leased or other similar agreement or arrangement that is material to the Core MTS Businesssubleased by Seller;
(Ev) any agreement relating each Seller Contract that creates a partnership, limited liability company or joint venture with respect to which Buyer will become obligated or in which Buyer will hold an equity interest after the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or moreClosing;
(Fvi) each Seller Contract with any agreement relating physician, hospital, nursing facility, or other provider or supplier of health care services or products to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing)patients;
(Gvii) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete each Seller Contract with any Person consultant;
(including, for the avoidance of doubt, viii) each Seller Contract with any material agreement vendor that includes provides services relating to billing and reimbursement;
(Iix) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) each Seller Contract that contains any non-competition or non-solicitation restrictions, (III) provision applicable to Seller or that otherwise restricts Seller's business activity or limits Seller's freedom to conduct the Business or to compete with any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)Person;
(Hx) each Seller Contract that contains any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, confidentiality or a covenant not to be sued under, any Intellectual Property Rightnon-disclosure provision;
(Ixi) each Seller Contract that is terminable by any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in party thereto upon the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider sale of the Core MTS Business with a base salary Purchased Assets or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(Lxii) each Seller Contract that is not terminable by Seller upon ninety (90) days or less notice;
(xiii) each Seller Contract with any agreement "business associates" as such term is defined in the Health Insurance Portability and Accountability Act of 1996; and
(xiv) each Seller Contract with or for the benefit of MCK or any Affiliate of MCK with obligations Seller. There are no Material Contracts that continue following fit the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documentsdescriptions set forth in Sections 3.1(f)(1)(iii), other than agreements with MCK or any Affiliate (v) and (xi). The Material Contracts expressly do not include the Excluded Contracts. True and complete copies of MCK entered into on arm’s length terms the Material Contracts, including all substantive amendments and in the ordinary course of business for the purchase or sale of materialsmodifications thereto, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally have been made available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care LawsBuyer.
(ii2) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and Contracts is in full force and effecteffect and is valid and enforceable by Seller in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium and none other similar Laws and equitable principles relating to or limiting creditors' rights generally and except for the unavailability of the Core MTS Business, or, to the knowledge equitable remedies.
(3) Seller has performed all of MCK, any other party thereto is in default or breach in any respect its accrued obligations under the terms of such MTI each Material Contract, except for any such defaults or breaches which would not reasonably be expectednon-performance that, individually or in the aggregate, has not had and is not reasonably expected to be material to the Core MTS Businesshave a Material Adverse Effect.
(4) Seller is not in Breach, taken as a whole. True and complete copies has not received any written notice from any other party thereto that Seller is in Breach, of each MTI any Material Contract, except for any such Breach that, individually or in the aggregate, has not had and all amendments theretois not reasonably expected to have a Material Adverse Effect.
(5) To the Knowledge of Seller, no other party to any Material Contract is in each case subject Breach thereof, except for any such Breach that, individually or in the aggregate, has not had and is not reasonably expected to have a Material Adverse Effect.
(6) The consummation of the redaction Transactions will not cause or result in a Breach of certain informationany Material Contract, except for any such Breach that, individually or in the aggregate, is not reasonably expected to have been delivered to MCK or its outside counsela Material Adverse Effect.
Appears in 1 contract
Material Contracts. Except as set forth on Schedule 2.1(N) hereto or listed on any other Schedule hereto (i) None collectively the "Material Contracts"), there are none of the Core MTS Business following, whether oral or written, to which Stitch is a party relating to Stitch's business or any of its Subsidiaries is a party to properties or bound byassets:
(Ai) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moreproperty leases;
(Bii) personal property leases;
(iii) agreements with customers in excess of $50,000;
(iv) agreements with the supplier of any agreement services in excess of $50,000;
(v) arrangements with the supplier of any goods in excess of $50,000;
(vi) agreements with any franchiser, sales agent or representative in excess of $50,000;
(vii) discounts or allowances from manufacturers, suppliers or customers;
(viii) borrowing or lending of money, on a secured or unsecured basis, or guaranteeing, indemnifying or otherwise becoming liable for the purchase obligations or liabilities of materials, supplies, goods, services, equipment another in excess of $50,000;
(ix) financing of accounts receivable or other assets providing for annual payments extensions of $3.0 million credit;
(x) non-competition, non-solicitation or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment similar agreements;
(Cxi) any salesthe construction, distribution modification or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition improvement of any business (whether by merger, sale of stock, sale of assets building or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (structure or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use incurrance of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation capital expenditure in excess of $300,000 per year50,000; and
(xii) any other contract that Stitch deems to be material. Correct and complete copies of all Material Contracts (or where they are oral, other than those that can be terminated without liability true and complete written summaries thereof) have been delivered to USTT prior to the Core MTS Business;
(L) any agreement with or for date hereof. To the benefit knowledge of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents)Stitch, other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement each of the Core MTS Business and Material Contracts is valid, in full force and effect, and none binding upon each of the Core MTS Businessparties thereto and enforceable in accordance with its terms, orsubject to laws of general application relating to bankruptcy, to insolvency and the knowledge relief of MCKdebtors and other similar laws affecting the rights of creditors generally, general equitable principles and the discretion of the equity tribunal having jurisdiction, and there has not been any actual or contemplated termination, cancellation or limitation of, or any modification or change in, any of the Material Contracts. There has not occurred any default, or any event which, with the lapse of time or the election of any party other than the Stitch, or any combination thereof, will become a default, by Stitch or any other party thereto is in default or breach in under any respect under of the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselContracts.
Appears in 1 contract
Material Contracts. (a) Schedule 5.9(a) sets forth an accurate and complete list all of the following Contracts to which Seller is a party or by which Seller is bound and that are primarily related to the Business or by which the Purchased Assets may be bound or affected and that are Purchased Contracts and the terms of each such Contract have been disclosed in writing to Purchaser (collectively, the “Material Contracts”):
(i) None of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments Contracts involving an amount in excess of $750,000 25,000 to sell or more;
(B) any agreement for the purchase of materials, supplies, goods, services, equipment supply products or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more perform services (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK sale of Inventory pursuant to customer or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, distributor purchase orders in the case Ordinary Course of clause (ii) any such indebtedness shall be paid off in full at or prior to the ClosingBusiness consistent with past practice);
(Gii) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair)Contracts involving an amount in excess of $25,000 for the future purchase of, or has payment for, supplies, products or would reasonably be expected to have services (other than purchases of Inventory in the effect Ordinary Course of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete consistent with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Propertypast practice);
(Hiii) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, All employment or a covenant not to be sued under, any Intellectual Property Rightconsulting Contracts or offer letters;
(Iiv) any agreement pursuant to which any Person is authorized to use, Partnership or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practicejoint venture Contracts;
(Jv) any agreement pursuant Contracts relating to which the Core MTS Business has provided or leasedincurrence of Indebtedness, or agreed to provide or lease, the making of any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise)loans;
(Kvi) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation Other Contracts involving an amount in excess of $300,000 per year, other than those that can 25,000 and which cannot be terminated within one year without liability to the Core MTS Business;material cost; and
(Lvii) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK Contracts which have been entered into outside of the Ordinary Course of Business or otherwise than on arm’s arms’ length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsterms.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (eachExcept as set forth on Schedule 5.9(b), a “MTI Seller is, and has been at all times, in compliance in all respects with all applicable terms and requirements of each Material Contract”. Seller has not received any notice (orally or in writing) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in event that with notice or lapse of time or both would constitute a default by Seller or counterparty under any respect under the terms of such MTI Material Contract, except for nor, the Knowledge of Seller, are there any circumstances which are likely to give rise to such defaults default.
(c) Except as set forth on Schedule 5.9(c), Seller is not party to, or breaches which would not reasonably be expectedotherwise bound by, individually any oral contract, agreement or in the aggregate, to be material understanding whether express or implied that primarily relates to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to Business or by which the redaction of certain information, have been delivered to MCK Purchased Assets or its outside counselAssumed Liabilities may be bound or affected.
Appears in 1 contract
Sources: Asset Purchase Agreement (Strategic Diagnostics Inc/De/)
Material Contracts. (a) Schedule 3.21(a) sets forth a true, correct and complete list of the following types of Contracts to which any Seller is a party or by which any Seller is bound or by which the Purchased Assets may be bound or affected (the “Material Contracts”):
(i) None Assumed Contracts with any Affiliate or current or former officer or director of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moreSeller;
(Bii) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsLicense Agreements;
(Ciii) any salesContract, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition Knowledge of any business (whether by mergerSellers, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK containing a covenant that restricts a Seller or any Affiliate of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage a Seller from engaging in any line of business, (ii) sell, license or otherwise distribute services or products conducting the Business in any geographic area or (iii) compete area, competing with any Person or hiring any Person;
(including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (IIiv) any non-competition Assumed Contract, to the Knowledge of Sellers, granting to any Person an option or non-solicitation restrictions, (III) any rights of a first refusal or rights similar preferential right to purchase or acquire any material Purchased Assets of first offer or the Sellers;
(IVv) any limits on Contract relating to incurrence of indebtedness or the use making of any loans, in each case involving amounts in excess of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual PropertyOne Hundred Thousand Dollars ($100,000);
(Hvi) any material agreement (excluding licenses for commercial off Assumed Contract, to the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant Knowledge of Sellers, granting any “most favored nation” pricing, discounts or benefits to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;Person; and
(Ivii) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property Contracts relating to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider joint venture of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care LawsSeller.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and Material Contracts that is an Assumed Contracts is in full force and effecteffect and is the legal, valid and none binding obligation of the Core MTS Businessa Seller, orenforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally and subject, as to enforceability, to the knowledge general principles of MCK, any other party thereto equity (regardless of whether enforcement is sought in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually a proceeding at law or in the aggregate, to be material equity).
(c) Prior to the Core MTS Businessdate of this Agreement, taken as Sellers used reasonable best efforts to deliver to Purchaser a whole. True true, complete and complete copies accurate copy of (i) each MTI Material Contract, and Contract (including all amendments thereto, ) and (ii) each other Contract (including all amendments thereto) that involves amounts in each case subject to the redaction excess of certain information, have been delivered to MCK or its outside counsel$10,000.
Appears in 1 contract
Sources: Asset Purchase Agreement
Material Contracts. (i) None Set forth on Schedule 3.8, is a complete list of all of the Core MTS Business or any of its Subsidiaries following Contracts to which Seller is a party to or bound byby which it is bound:
(Aa) all Contracts relating to the employment of any agreement for person, and all bonus, deferred compensation, pension, profit sharing, stock option, employee stock purchase, phantom stock, retirement, severance benefits retirement, stock appreciation and other employee benefit plans;
(b) all Contracts with Suppliers or otherwise relating to the lease sale or sublease distribution of inventory or goods or relating to the representation by Seller of Suppliers or manufacturers or distributors;
(whether of real or personal propertyc) providing all Contracts with customers (including all hospitals and medical facilities) that provide for annual payments in excess of $750,000 25,000, including any written terms and conditions which are included in purchase orders or moregovern or apply to purchases by any customer;
(Bd) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsall Contracts relating to capital expenditures;
(Ce) all guarantees and other contingent liabilities with respect to any sales, distribution indebtedness or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition obligation of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates Person (other than the MCK Contributed Entities), on the other hand; provided that, endorsement of negotiable instruments for collection in the case ordinary course of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closingbusiness);
(Gf) all management services, consulting and any agreement other similar type Contracts;
(g) all leases of personal property that restricts, prohibits or impairs provide for annual payments in excess of $10,000;
(or purports h) all Contracts limiting the freedom of Seller to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license business or otherwise distribute services or products in any geographic area or (iii) to compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)other Person;
(Hi) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant all Contracts not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practicebusiness;
(Jj) all Contracts which involve the receipt of or expenditure by Seller of more than $25,000 in any one year;
(k) any license agreement pursuant to which the Core MTS Business has provided (as licensor or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwiselicensee);
(Kl) any agreement relating Contract with any shareholder, manager, director, officer or employee of Seller; and
(m) all other Contracts material to the employment, severance, retention Business or indemnification of any service provider operation of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into Purchased Assets. Each Contract set forth on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) Schedule 3.8 is a valid and binding agreement of the Core MTS Business Seller and, to Seller's Knowledge, of all other parties thereto and is in full force and effecteffect and enforceable in accordance with its terms. Except as set forth on Schedule 3.8, and none Seller has no written Contracts with Suppliers or customers. Seller has not violated any of the Core MTS Businessterms or conditions of any of the Contracts set forth on Schedule 3.8, orand, to the knowledge Knowledge of MCKSeller, all of the terms and conditions to be performed by any party thereto other than Seller have been fully performed. Except as set forth on Schedule 3.8, there exists no default or event of default under any of the Contracts set forth on Schedule 3.8 or event, occurrence, condition or act (including the purchase of the Purchased Assets hereunder) which, with the giving of notice, the lapse of time or the happening of any other party thereto is in event or condition, would become a default or breach in any respect under the terms event of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counseldefault thereunder.
Appears in 1 contract
Sources: Asset Purchase Agreement (Horizon Medical Products Inc)
Material Contracts. (a) Section 4.07(a) of the Disclosure Schedules lists each of the following Contracts (x) by which any of the Purchased Assets are bound or affected or (y) to which Seller is a party and by which it is bound in connection with the Business or the Purchased Assets (such Contracts, together with all Contracts concerning the occupancy, management or operation of any Leased Real Property (including without limitation, brokerage contracts) listed or otherwise disclosed in the Disclosure Schedules and all Contracts relating to Intellectual Property set forth in Section 4.11(b) of the Disclosure Schedules, being “Material Contracts”):
(i) None of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments all Contracts involving aggregate consideration in excess of $750,000 10,000.00 and which, in each case, cannot be cancelled without penalty or morewithout more than 90 days' notice;
(Bii) any agreement for all Contracts that require Seller to purchase or sell a stated portion of the purchase requirements or outputs of materials, supplies, goods, services, equipment the Business or other assets providing for annual payments of $3.0 million that contain “take or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementspay” provisions;
(Ciii) all Contracts that provide for the indemnification of any salesPerson or the assumption of any Tax, distribution environmental or other similar agreement providing for Liability of any Person other than contracts entered into with third parties substantially in the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCKSeller’s fiscal year 2016standard form provided to the Buyer;
(Div) any equity partnership, joint venture or other similar agreement or arrangement all Contracts that is material to the Core MTS Business;
(E) any agreement relating relate to the acquisition or disposition of any business 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) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(Gv) any agreement that restrictsall broker, prohibits distributor, dealer, manufacturer's representative, franchise, agency, sales promotion, market research, marketing consulting and advertising Contracts other than contracts entered into with third parties substantially in the Seller’s standard form provided to the Buyer;
(vi) all employment agreements and Contracts with independent contractors or impairs consultants (or purports similar arrangements) and which are not cancellable without material penalty or without more than 90 days' notice;
(vii) except for Contracts relating to restricttrade receivables, prohibit all Contracts relating to indebtedness (including, without limitation, guarantees);
(viii) all Contracts with any Governmental Authority;
(ix) all Contracts that limit or impair), or has or would reasonably be expected purport to have limit the effect ability of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) Seller to conduct the following activities (i) engage compete in any line of business, (ii) sell, license business or otherwise distribute services with any Person or products in any geographic area or during any period of time;
(iiix) compete with all joint venture, partnership or similar Contracts;
(xi) all Contracts for the sale of any of the Purchased Assets or for the grant to any Person (includingof any option, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights right of first refusal or rights of first offer preferential or (IV) any limits on the use of similar right to purchase any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)Purchased Assets other than contracts entered into with third parties substantially in the Seller’s standard form provided to the Buyer;
(Hxii) all powers of attorney with respect to the Business or any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property RightPurchased Asset;
(Ixiii) all collective bargaining agreements or Contracts with any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;Union; and
(Jxiv) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating all other Contracts that are material to the employment, severance, retention Purchased Assets or indemnification of any service provider the operation of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be not previously disclosed pursuant to this Section 4.02(i4.07.
(b) (each, a “MTI Each Material Contract”) Contract is a valid and binding agreement of the Core MTS Business on Seller in accordance with its terms and is in full force and effect, and none . None of the Core MTS Business, Seller or, to the knowledge of MCKSeller'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 respect under the terms material respect, or has provided or received any notice of such MTI any intention to terminate, any Material Contract. No event or circumstance has occurred that, except for with notice or lapse of time or both, would constitute an event of default under any such defaults Material Contract or breaches which result in a termination thereof or would not reasonably be expected, individually cause or in permit the aggregate, to be acceleration or other material to changes of any right or obligation or the Core MTS Business, taken as a wholeloss of any benefit thereunder). True Complete and complete correct copies of each MTI Material ContractContract (including all modifications, amendments and all amendments thereto, in each case subject to the redaction of certain information, supplements thereto and waivers thereunder) have been delivered made available to MCK Buyer. There are no material disputes pending or its outside counselthreatened under any Contract included in the Purchased Assets.
Appears in 1 contract
Material Contracts. (i) None Schedule 4.12 lists the following Contracts to which the Seller is a party or may be bound (each, a “Material Contract” and, collectively, the “Material Contracts”):
(a) written notes, debentures, guarantees, loans, credit or financing agreements or instruments, or other written Contracts for indebtedness, including any agreements or commitments for future loans, credit or financing other than any of the Core MTS Business foregoing relating to any intercompany indebtedness of the Seller;
(b) any written Contract for or relating to the employment, severance or retention of any officer, employee or consultant of the Seller or any other type of written Contract with any of its Subsidiaries is a party to officers, employees or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for consultants, involving individual annual payments in excess of $750,000 100,000 and which may not be terminated at will, or moreby giving notice of 30 days or less, without cost or penalty;
(Bc) any agreement for written leases, rental or occupancy agreements, installment and conditional sale agreements, and other written Contracts affecting the purchase of materialsownership of, suppliesleasing of, goods, services, equipment title to or other assets providing for interest in, any tangible personal property or real property involving individual annual payments in excess of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements250,000;
(Cd) any saleswritten Contract involving any joint venture, distribution partnership, strategic alliance, co-marketing, joint development or other similar agreement providing for the sale arrangement involving a share of materialsprofits, supplieslosses, goods, services, equipment costs or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016liabilities;
(De) any equity partnership, joint venture written license agreement or other similar agreement written Contract relating to Intellectual Property under which the Seller pays or arrangement that is material to the Core MTS Businessreceives amounts in excess of $250,000 annually;
(Ef) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding written Contracts explicitly requiring payments after the date hereof involving aggregate consideration in an amount in excess of $250,000 or more250,000;
(Fg) any agreement relating written Contract to indebtedness for borrowed moneyprovide commercial printing services to third parties, including to media publishers and to commercial paper product designers, involving payments to the deferred purchase price of property or capital leases (Seller in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations excess of $1,500,000 or more 250,000;
(other than (ih) intercompany indebtedness among written Contracts between the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed EntitySeller, on the one hand, and MCK any director, officer or any Affiliate of its Affiliates (other than the MCK Contributed Entities)Seller, on the other hand; provided that, in the case of clause hand (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements employment arrangements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwisebusiness);
(Ki) written Contracts containing covenants presently limiting the ability of the Seller to compete with any Person in any line of business or in any area or territory;
(j) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation written advertising Contract which generated revenues in an amount in excess of $300,000 per year250,000 during the calendar year ended December 31, other than those that can be terminated without liability to the Core MTS Business;2005; and
(Lk) any agreement with or for oral Contracts covering any of the benefit matters listed and described above involving an aggregate annual amount in excess of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that $100,000 which are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsnot terminable at will.
(ii) Each agreement required True, correct and complete copies of each Material Contract have been made available to be disclosed pursuant to this Section 4.02(i) (eachBuyer. Except as set forth on Schedule 4.12, a “MTI each Material Contract”) is a valid and binding agreement of the Core MTS Business and Contract is in full force and effect, effect and none represents a legally valid and binding obligation of the Core MTS Business, or, to the knowledge of MCK, any other Seller which is a party thereto is in default or breach in any respect under the terms of thereto. Except for such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expectedexceptions as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (A) the Seller (and to the knowledge of the Seller, each other party thereto) has performed all obligations required to be material performed by it under each of the Material Contracts to which it is a party and (B) the Seller (and to the Core MTS Businessknowledge of the Seller, taken as each other party thereto) is not in breach or violation of, or default under, any of the Material Contracts to which it is a whole. True and complete copies party, nor has the Seller received any written notice that it has breached or violated any of each MTI the Material Contract, and all amendments thereto, in each case subject Contracts to the redaction of certain information, have been delivered to MCK or its outside counselwhich it is a party.
Appears in 1 contract
Material Contracts. (a) Except as set forth in Section 5.11 of the Partnership Disclosure Schedule, as of the date hereof the Partnership has not entered into or is bound by any of the following types of Material Contracts that are in effect as of the date of this Agreement and have not been fully performed:
(i) None any Contracts with any Affiliate of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or morePartnership;
(Bii) any agreement Contracts relating to any Indebtedness;
(iii) any Contracts under which the Partnership is obligated to make, directly or indirectly, any capital contribution to, or other investment in, any Person in any amount;
(iv) any Contracts prohibiting or restricting in any material respect the ability of the Partnership to conduct business in any geographical area, to solicit clients or to compete with any Person;
(v) any Contracts that provide for earn-outs or other similar contingent obligations to be paid by the Partnership;
(vi) any Contracts for the Partnership’s purchase of materials, supplies, goods, products or services, equipment or other assets providing for involving annual payments in excess of $3.0 million or more 25,000 in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsyear;
(Cvii) any salesjoint venture, distribution strategic alliance, partnership or other similar agreement providing for Contract involving a sharing of profits or expenses or payments based on revenues or profits of the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016Partnership;
(Dviii) any equity partnership, joint venture or other similar agreement or arrangement Contract with any Governmental Authority;
(ix) any Contract under which (A) the Partnership is granted rights by others in any Intellectual Property that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any Partnership’s business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (ix) intercompany indebtedness among commercial off-the-shelf software or (y) agreements with the MCK Contributed Entities and Partnership’s employees or contractors entered into in the ordinary course of business) or (iiB) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates Partnership has granted rights to others in Intellectual Property (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practicebusiness);
(Jx) any agreement Contracts between or among the Partnership or any Subsidiary and a third party, including joint and several undertakings and/or guarantees for the benefit of a third party, pursuant to which the Core MTS Business Partnership or any Subsidiary has provided guaranteed or leased, may otherwise be primarily or agreed secondarily liable in respect to provide any obligation or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property liability owed to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK a third party;
(xi) any Contracts between the Partnership, on the one hand, and any Limited Partner or any Affiliate of MCK any Limited Partner or any officer of the Partnership, on the other hand; 40
(xii) (i) any Contract with obligations any third party administrator and any Contract pursuant to which the Company or any of its Subsidiaries provides services to a third party and (ii) any Contract with any other service provider that continue following the Closing (other than the Transaction Documents)involves annual service fees in excess of $25,000;
(Mxiii) any agreement with Contract (or series of related Contracts) since the Applicable Date that has not been fully performed providing for the benefit acquisition or disposition of MCK any material lines of business, business enterprise or material assets of or by the Company or any Affiliate of MCK with obligations that continue following its Subsidiaries;
(xiv) Contracts relating to any Proceeding or settlement agreement to which the Closing (other than the Transaction Documents)Company or any of its Subsidiaries is a party, other than agreements with MCK or any Affiliate of MCK claim related settlements within policy limits entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; orbusiness;
(Nxv) indemnification agreements, undertakings and obligations of the type described at Section 6.11(a);
(xvi) any management, consulting, independent contractor, employment, severance, bonus or similar agreement with any Governmental Authority relating Partnership employees or current independent contractors providing services to corporate integritythe Partnership;
(xvii) any Contract that involves annual payments in excess of $25,000 that is not terminable on notice of ninety (90) or fewer calendar days without penalty or premium;
(xviii) any real property lease, deferred prosecutionsublease or similar Contract; and
(xix) any Contract that contains any “change of control” or similar term or provision that may be triggered, breached or violated by the Core MTS Business’ or MCKPartnership’s material non-compliance with Health Care Lawsentering into this Agreement and consummating the Transactions.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (eachMaterial Contract is valid, a “MTI Material Contract”) is a valid binding and binding agreement of the Core MTS Business and is in full force and effect, and none of is enforceable against the Core MTS BusinessPartnership, orand, to the knowledge Knowledge of MCKthe Partnership, each other party thereto in accordance with its terms, except as such enforcement may be limited by (i) the effect of bankruptcy, insolvency, reorganization, receivership, conservatorship, arrangement, moratorium or other laws affecting or relating to the rights of creditors generally, or (ii) the rules governing the availability of specific performance, injunctive relief or other equitable remedies and general principles of equity, regardless of whether considered in a proceeding in equity or at law. The Partnership has duly performed all of its material obligations under each such Material Contract to the extent that such obligations have accrued. There are no existing material defaults (or events or acts that, with the giving of notice or lapse of time or both that would reasonably be expected to become material defaults) of the Partnership or any other party thereto is in default or breach in thereto, under any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material . The Partnership has made available to the Core MTS Business, taken as a whole. True and Company prior to the date hereof complete copies of each MTI all Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselContracts.
Appears in 1 contract
Sources: Securities Exchange Agreement (Arcadia Biosciences, Inc.)
Material Contracts. (a) Section 6.8(a) of the Seller Disclosure Schedule identifies the following Contracts in effect as of the date of this Agreement and to which any Seller is a party and relating to the Business and identifies whether such Contracts are Assumed Pre-Petition Contracts, Assumption-Pending Pre-Petition Contracts, Post-Petition Contracts or Non-Debtor Contracts, as applicable (collectively, the “Material Contracts”): (i) None all leases, subleases, licenses or other Contracts relating to the occupancy of the Core MTS Business Leasehold Property that are necessary to the operation of the Business; (ii) all leases, subleases, licenses or other Contracts relating to the Purchased Real Property under which any of its Subsidiaries Seller is a party to or bound by:
lessor and (A) any agreement for during the lease or sublease (whether of real or personal property) providing for annual twelve months ended December 31, 2008, received rental payments in excess of $750,000 200,000, or more;
(B) any agreement for the purchase that have a non-cancelable term in excess of materials, supplies, goods, services, 12 months; (iii) all leases of equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets tangible personal property that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material are necessary to the Core MTS operation of the Business;
; (Eiv) any agreement relating to the acquisition or disposition of any business all Contracts with Suppliers; (whether by merger, sale of stock, sale of assets or otherwisev) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, all Contracts included in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement Purchased Assets pursuant to which any Person is authorized Seller retains the right to use, or receives receive a covenant not royalty for production from a parcel of real property; (vi) all settlement agreements for the settlement of any Environmental Claims to be sued under, any the extent related to the Real Property; (vii) all agreements with trade vendors providing services material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in to the ordinary course operation of business consistent with past practice;
(J) any agreement pursuant the Business to which any Seller paid more than $3,000,000 during the Core MTS Business has provided or leasedtwelve month period ended December 31, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to 2008; and (viii) all Contracts granting a third party (including an option or right of first refusal to purchase any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Purchased Real Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 1 contract
Material Contracts. (a) Schedule 5.11(a) contains a list, as of the Effective Date, of all Contracts (the “Material Contracts”) pursuant to which any Seller has any rights or benefits or undertakes any obligations or liabilities with respect to the Business, that:
(i) None has a duration of one year or more and is not terminable without cause or penalty upon 90 days or less prior written notice by any party;
(ii) requires or could reasonably be expected to require any party thereto to pay $100,000 or more in any 12 month period;
(iii) contains any non-competition covenant or exclusivity arrangement binding against any Seller;
(iv) involves any Contract (A) granting or obtaining any right to use any material Purchased Intellectual Property (including, without limitation, any Franchise Agreements) or (B) restricting the Sellers’ rights to the use of any Purchased Intellectual Property;
(v) regards the employment, services, consulting, termination or severance from employment relating to or for the material benefit of any director, officer, employee, independent contractor or consultant of any Seller;
(vi) constitutes joint venture, partnership and similar Contracts involving a sharing of profits or expenses;
(vii) provides for the supply or distribution of products and that is material to the operation of the Core MTS Business or any of its Subsidiaries is a party to or bound by:as currently conducted;
(Aviii) is an IP License Agreement;
(ix) any agreement for the lease disposition of any significant portion of the assets, properties or sublease (whether rights of real any Seller or personal property) providing for annual payments of $750,000 or more;
(B) any agreement for the purchase acquisition by any Seller of materialsthe assets, supplies, goods, services, equipment properties or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition rights of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more other Person (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any purchases of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any items normally held out for sale by such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwisebusiness);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(Nx) any agreement (or group of related agreements) under which any Seller has assumed or guaranteed (or may assume or guarantee) any Liability of a third party, other than pursuant to a sublease with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsa Franchisee.
(iib) Each agreement required The Sellers have delivered to be disclosed pursuant or made available to this Section 4.02(i) (each, the Purchaser a “MTI complete and accurate copy of each Material Contract”. With respect to each Material Contract, except as set forth in Schedule 5.11(b): (i) such Material Contract is a valid legal, valid, binding and binding agreement enforceable against the Seller and, to the Knowledge of the Core MTS Business Sellers, each other party thereto, and is in full force and effecteffect except as such enforceability may be subject to general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity); and (ii) except for breaches and defaults of the type referred to in Section 365(b)(2) of the Bankruptcy Code, none of the Core MTS Business, Sellers or, to the knowledge Knowledge of MCKthe Sellers, any other party thereto is of the counterparties to such Material Contract, are in material default or breach in under any respect under of the terms of such MTI Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 1 contract
Sources: Asset Purchase Agreement (Lubys Inc)
Material Contracts. (i) None Schedule 3.15 hereto contains a list of the Core MTS Business or any following contracts (the "Material Contracts"), in effect as of its Subsidiaries is a party to or bound bythe date hereof, of the Acquired Companies:
(Aa) any agreement all commitments and agreements for the lease purchase or sublease sale of any equipment, materials or supplies that involve in excess of $50,000 for any one contract, other than purchase orders (whether issued or received) in the ordinary course of real or personal property) providing for annual payments of $750,000 or morebusiness;
(Bb) all agreements with customers that involve a payment to any agreement of the Acquired Companies of more than $50,000 for any one contract, other than purchase orders (whether issued or received) in the purchase ordinary course of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementsbusiness;
(Cc) all contracts for the employment or compensation of any employee of any of the Acquired Companies individually in excess of $100,000 per year or which contain a provision relating to a change of control of any of the Acquired Companies;
(d) all partnership, joint venture contracts, or other agreements involving a sharing of profits;
(e) all contracts (other than of the type described in clause (c) of this Section 3.15) with sales representatives, manufacturer's representatives, distributors, dealers, brokers, sales agents, advertising agencies or other Persons engaged in sales, distribution or other similar agreement providing for promotional activities, which obligates any Acquired Company to pay an amount in the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments aggregate of $5.0 million 50,000 or more more, other than purchase orders (whether or issued or received) in MCK’s fiscal year 2016the ordinary course of business;
(Df) all contracts pursuant to which the geographical area in which any equity partnership, joint venture of the Acquired Companies or any other similar agreement Person may conduct business or arrangement that the type or scope of business which may be conducted by any of them is material to the Core MTS Businessrestricted;
(Eg) any agreement relating to the acquisition all powers of attorney or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more agency agreements (other than of the type described in clause (ie) intercompany indebtedness among of this Section 3.15, without regard to the MCK Contributed Entities and materiality thereof) with any Persons (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or excepting employees of any of its Affiliates (other than the MCK Contributed Entities), on Acquired Companies) pursuant to which such Persons are granted the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior authority to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedomact, in any material respect, of the Core MTS Business (for or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use behalf of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)Acquired Companies, or any of the Acquired Companies is granted the authority to act, in any material respect, for or on behalf of any other Persons;
(Hh) all contracts between any material agreement of the Acquired Companies and any of their Affiliates;
(excluding licenses for commercial off i) all Tax sharing agreements or Tax assumption agreements;
(j) all contracts containing a right of first refusal with respect to any assets with a fair market value in excess of $50,000;
(k) all agreements involving the shelf computer software that are generally available on nondiscriminatory pricing terms) acquisition or disposition, whether by merger, consolidation, purchase of assets or otherwise, of a substantial equity interest in or substantial portion of the assets of any business or any Person or division thereof, pursuant to which the Core MTS Business obtains the right there are executory obligations owing to use, or a covenant not to be sued under, by any Intellectual Property RightAcquired Company;
(Il) all agreements providing for the indemnification by any agreement pursuant to which Acquired Company of any Person is authorized to useofficer, director, or receives a covenant employee of any Acquired Company or of ▇▇▇▇▇▇▇/Equity Partnership No. 4, L.P. or any Affiliate thereof; and
(m) all other leases, commitments, agreements and instruments (including, but not limited to, mortgages, indentures and other agreements and instruments relating to be sued underindebtedness for borrowed money or guarantees or undertakings to answer for the debts or defaults of another, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into but excluding purchase orders and sales orders in the ordinary course of business consistent with past practice;
(J) any agreement pursuant not otherwise referred to herein), that individually are material to the Acquired Companies as a whole or involve an anticipated receipt or expenditure of $50,000 or more, to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with Acquired Companies is a base salary party or base compensation in excess by which any of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets their respective properties are bound that are generally not otherwise disclosed in this Agreement or in a Schedule hereto. The Company has made available for purchase by business entities to Parent, Maska and Sub true and complete copies of all written contracts and summaries of all oral contracts set forth in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integritySchedule 3.15 hereto. Except as set forth in Schedule 3.15 hereto, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI Material Contract”) is a valid and binding agreement all of the Core MTS Business and is contracts so set forth are in full force and effect, effect and none there has not occurred under any of the Core MTS BusinessMaterial Contracts any alleged or actual breach or default, oror event which would (with the passage of time, notice or both) constitute a breach or default or would result in the termination of or acceleration of any performance under, or the right to terminate or accelerate performance (with the passage of time, notice or both) by the Acquired Companies, or to the knowledge of MCKCompany's Knowledge, by any other party thereto is in default or breach in to any respect under the terms of such MTI Material Contract, which remains unremedied as of the date of this Agreement, except for any such defaults or breaches those which in the aggregate, would not reasonably be expected, individually or expected to result in the aggregatea Company Material Adverse Effect. Except as set forth in Schedule 3.15 hereto, to be material the Company's Knowledge, as of the date of this Agreement, no Significant Vendor or Significant Customer of any Acquired Company has threatened to terminate or modify (in an manner adverse to such Acquired Company) its business relationship for reasons not directly related to the Core MTS Business, taken as a whole. True and complete copies impending announcement of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counselthis Agreement.
Appears in 1 contract
Sources: Agreement and Plan of Reorganization (SLM International Inc /De)
Material Contracts. (a) Section 2.11(a) of the Disclosure Schedule (with paragraph references corresponding to those set forth below) contains a true and complete list of each of the following Contracts or other arrangements (true and complete copies of which or, if none, reasonably complete and accurate written descriptions thereof, together with all amendments and supplements thereto and all waivers of any terms thereof, have been made available to the Buyer prior to the execution of this Agreement), relating to the Business to which either Seller is a party or by which any of the Purchased Assets is bound (collectively, the “Material Contracts”):
(i) None any credit agreement, loan agreement, letter of credit, repurchase agreement, mortgage, security agreement, guarantee, pledge agreement, trust indenture, 138358.00102/7150960v.7 promissory note or other document or arrangement relating to the Core MTS Business or any borrowing of its Subsidiaries is a party to or bound by:
(A) any agreement for the lease or sublease money (whether as lender or borrower) or for lines of real or personal property) providing for annual payments of $750,000 or morecredit;
(Bii) all guarantees of any agreement for the purchase of materials, supplies, goods, services, equipment Indebtedness or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016obligations to any Person, including any independent contractor agreementsagreement of guarantee, but excluding support, assumption or endorsement of, or any employment similar commitment with respect to, the obligations, Liabilities or Indebtedness of any other Person;
(iii) any Contract for the sale or purchase of any material assets, material property or material rights;
(iv) the Lease;
(v) any Contract that is not terminable by the applicable Seller upon thirty (30) days (or less) notice without penalty or obligation to make payments based on such termination and which requires payments by the applicable Seller in excess of $25,000 per annum (either alone or pursuant to a series of related contracts);
(vi) any Contract that expires, or may be renewed at the option of any Person other than the applicable Seller so as to expire, more than one (1) year after the date of this Agreement and which requires payments by the applicable Seller in excess of $25,000 per annum (either alone or pursuant to a series of related contracts);
(vii) all Contracts that limit or contain restrictions on the ability of any Seller to sell any Purchased Assets;
(viii) any Contract limiting or restraining any Seller from engaging or competing in any lines of business or geographical area or with any Person with respect to any business substantially similar to the Business;
(ix) any material License or other agreement pertaining to the Seller Intellectual Property (except agreements for commercially available, off-the-shelf software);
(x) all partnership, joint venture, shareholders’ or other similar Contracts;
(xi) all intercompany Contracts, including management and administration agreements and cost and tax allocation agreements;
(Cxii) any salesemployment, distribution severance, consulting, change of control or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016agreement;
(Dxiii) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS Business;
(E) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more all Contracts (other than (iemployment-related agreements) intercompany indebtedness between or among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entitya Seller, on the one hand, and MCK any current or any former officer, director, shareholder or Affiliate of its Affiliates (other than the MCK Contributed Entities)a Seller, on the other hand; provided that138358.00102/7150960v.7
(xiv) any document granting any power of attorney with respect to the affairs of a Seller as it relates to the Business;
(xv) without duplication of the any of the items above, any Contract requiring payments to or by a Seller of more than $25,000 in any year or $50,000 over the case life of clause any such Contract; and
(xvi) any other Contract which is material to the Business (collectively, the “Material Contracts”).
(b) Each Material Contract is in full force and effect and constitutes a legal, valid and binding agreement, enforceable in accordance with its terms, and to the Seller’s Knowledge, each other party thereto.
(c) Except as set forth in Section 2.11(c) of the Disclosure Schedule:
(i) neither Seller has violated or breached, or committed any default under, any Material Contract in any material respect to which it is a party, and, to the Seller’s Knowledge, no other Person has violated, breached, or committed any default under any such Material Contract in any material respect;
(ii) any such indebtedness shall be paid off in full at or prior to the Closing);
Seller’s Knowledge, no event has occurred, and no circumstance or condition exists, that (Gwith or without notice or lapse of time) any agreement that restrictswill, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of businessto, (iiA) sell, license result in a violation or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use breach of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)provisions of any Material Contract, (B) give any Person the right to declare a default or exercise any remedy under any Material Contract, (C) give any Person the right to accelerate the maturity or performance of any Material Contract, or (D) give any Person the right to cancel, terminate or modify any Material Contract;
(Hiii) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employmentSeller’s Knowledge, severance, retention or indemnification neither Seller has waived any of its material rights under any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care LawsMaterial Contract.
(iid) Each agreement required to be disclosed pursuant to this Except as set forth in Section 4.02(i2.11(d) (each, a “MTI Material Contract”) is a valid and binding agreement of the Core MTS Business and is in full force and effectDisclosure Schedule, and none neither Seller has guaranteed or otherwise agreed to insure or become liable for, or pledged any of the Core MTS BusinessPurchased Assets to secure, or, to the knowledge performance or payment of MCKany obligation or other Liability of, any other Person.
(e) Neither Seller has Knowledge of any basis upon which any party thereto is in default or breach in to any respect Material Contract may object to (i) the assignment to the Buyer of any right under the terms of such MTI Material Contract, except for or (ii) the delegation to or performance by the Buyer of any obligation under such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 1 contract
Material Contracts. (ia) None Except for this (1) Agreement, (2) any Standard Contract and (3) Company Employee Benefit Plans other than Company Employee Agreements required to be listed pursuant to Section 3.18(a)(ix), Section 3.18(a) of the Core MTS Business Company Disclosure Letter sets forth a true and complete list of each of the following types of Contracts that are in effect as of the Agreement Date and to which the Company or any of its the Company Subsidiaries is a party to or by which the Company or any of the Company Subsidiaries or any of their properties or assets is bound by:(each a “Company Material Contract”):
(i) 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 promulgated by the SEC, other than any such “material contract” that has been filed with any Available Company SEC Document;
(ii) any Contract containing any covenant, commitment or other obligation (A) limiting in any agreement material respect the right of the Company or any Company Subsidiary to (1) compete with any Person or engage in any line of business or in any geographic area, (2) obtain products or services from any Person or (3) set prices and terms for the provision, sale, lease or sublease license of its products, services or technologies with any Person, in the case of clause (whether of real 3), except for the prices and terms expressly set forth therein with respect to the products, services or personal property) providing for annual payments of $750,000 technologies provided, sold, leased or more;
licensed thereunder, (B) granting any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments of $3.0 million or more in MCK’s fiscal year 2016, including exclusive rights with respect to any independent contractor agreements, but excluding any employment agreements;
(C) any sales, distribution or other similar agreement providing for the sale of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016;
(D) any equity partnership, joint venture or other similar agreement or arrangement Company Intellectual Property that is material to the Core MTS BusinessCompany and the Company Subsidiaries, taken as a whole, or (C) otherwise prohibiting or limiting in any material respect the right of the Company or any Company Subsidiary to sell, distribute or manufacture any products or services (including sole source, single-source, exclusivity, minimum purchase or sale, “take or pay” and “most favored nations” provisions);
(Eiii) any agreement Contract with a related person (as defined in Item 404 of Regulation S-K of the Securities Act) that would be required to be disclosed in the Company SEC Reports but has not been disclosed;
(iv) any (A) IP Contract and (B) any Contract involving the acquisition, transfer or development of material Company Intellectual Property of the Company or any of the Company Subsidiaries (other than Contracts with current or former employees, vendors, service providers or independent contractors on the Company’s or Company Subsidiaries form agreements made available to Parent);
(v) any Contract that is a coexistence agreement, settlement agreement, a covenant not to sue or a similar agreement, in each case under which the Company or a Company Subsidiary is restricted in its right to use, enforce or register any Intellectual Property or Intellectual Property Rights;
(vi) any Contract (A) relating to the disposition or acquisition or disposition of any business (whether by merger, sale of stock, sale the Company after the Agreement Date of assets outside of the ordinary course of business, or otherwise(B) within pursuant to which the three years preceding Company will acquire any ownership interest in any other Person or other business enterprise outside of the date hereof involving aggregate consideration ordinary course of $250,000 or morebusiness;
(Fvii) any agreement Contract relating to indebtedness Indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations , with principal amount in excess of $1,500,000 or more 1,500,000;
(other than (iviii) intercompany indebtedness among any Contract under which the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK Company or any of its Affiliates Company Subsidiary has, directly or indirectly, made any loan, capital contribution to, or any other investment in, any Person (other than the MCK Contributed Entities)Company or any Company Subsidiary, on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, and other than those contained within customer agreements entered into investments in marketable securities or advances to Company Employees in the ordinary course of business consistent with past practicebusiness);
(Jix) any employment agreement with any Company Employee pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party applicable Company Employee receives annual cash compensation (including any contingent right to receive salary and target annual cash bonus) of $350,000 or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise)more;
(Kx) any agreement Contract requiring or otherwise involving the payment by or to the Company or any Company Subsidiary of more than an aggregate of $1,500,000 during the twelve (12) months ended September 30, 2024; and
(xi) any Contract relating to the employment, severance, retention or indemnification settlement of any service provider of the Core MTS Business with a base salary Legal Proceeding or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsinvestigation.
(iib) Each agreement required to be disclosed pursuant to this Section 4.02(i) (each, a “MTI of the Company Material Contract”) Contracts is a valid and binding agreement on the Company and each Company Subsidiary party thereto and, to the Knowledge of the Core MTS Business Company, each other party thereto and is in full force and effect, and none of the Core MTS Business, or, to the knowledge of MCK, any other party thereto is in default or breach in any respect under the terms of such MTI Material Contract, except for any such defaults failures to be valid and binding or breaches which to be in full force and effect that would not reasonably be expectednot, individually or in the aggregate, to be material have a Company Material Adverse Effect. There is no default under any Company Material Contract by the Company or any Company Subsidiary or, to the Core MTS BusinessKnowledge of the Company, taken as a whole. True and complete copies of each MTI Material Contractthe other parties thereto, and all amendments 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 Company Subsidiary or, to the Knowledge of the Company, the other parties thereto, in each case subject except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. The Company has made available to Parent true and complete copies of all Company Material Contracts as in effect as of the redaction of certain information, have been delivered to MCK or its outside counselAgreement Date.
Appears in 1 contract
Sources: Agreement and Plan of Merger (Poseida Therapeutics, Inc.)
Material Contracts. (ia) None Part 2.12 of the Core MTS Business Disclosure Schedule lists the following Contracts to which Seller is currently a party or is subject to in connection with the Solar Facility (“Material Contracts”):
(1) any Contract for the sale of Seller’s products or services to any Person for $100.00 or more;
(2) any Contract involving consideration in excess of $100.00 over any twelve (12) month period;
(3) any Contract (or group of related Contracts) under which it has created, incurred, assumed or guaranteed any Indebtedness;
(4) any Contract which prohibits Seller from developing and operating the Solar Facility or requiring it to exclusively sell or purchase to or from any Person;
(5) any Contract with any of its Subsidiaries is a party to Affiliates or bound by:the Owners (including Affiliates of Seller);
(A6) any agreement for the lease employment of any individual on a full-time, part-time, consulting or sublease (whether of real or personal property) other basis providing for an annual payments compensation in excess of $750,000 100.00 or moreproviding severance benefits or payments upon the sale of Seller;
(B7) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for annual payments Contract that cannot be terminated by Seller without liability in excess of $3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements100 upon less than sixty (60) days’ notice;
(C8) any Contract that governs any joint venture, partnership or other cooperative arrangement or any other relationship involving a sharing of profits;
(9) any sales, distribution Contract that would result in the merger with or other similar agreement providing for the sale of materials, supplies, goods, services, equipment into or other assets consolidation into another Person;
(10) any Contract that provides for annual payments the provision of $5.0 million or more in MCK’s fiscal year 2016material services to Seller by third party personnel;
(D11) any equity partnership, joint venture or other similar agreement or arrangement that is material to the Core MTS BusinessLicense Agreement;
(E12) any agreement Contract relating to any lease, lease guaranty, sublease or for the acquisition leasing, use or disposition occupancy of any business (whether by merger, sale of stock, sale of assets or otherwise) within the three years preceding the date hereof involving aggregate consideration of $250,000 or moreLeased Real Property;
(F13) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(G) any agreement Contract that restricts, prohibits or impairs (or purports to restrict, prohibit or impair), or has or would reasonably be expected to have the effect of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage in any line of business, (ii) sell, license or otherwise distribute services or products in any geographic area or (iii) compete with any Person (including, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights of first refusal or rights of first offer or (IV) any limits on the use of any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property);
(H) any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property Right;
(I) any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements was entered into in outside the ordinary course of business consistent with past practice;
(J) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification of any service provider of the Core MTS Business with a base salary Seller or base compensation in excess of $300,000 per year, other than those that can be terminated without liability is otherwise material to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 millionSeller; or
(N14) any agreement with commitment to do any Governmental Authority relating to corporate integrityof the foregoing described in clauses (1) through (13) or material amendment, deferred prosecution, modification or supplement in respect of any of the Core MTS Business’ or MCK’s material non-compliance with Health Care Lawsforegoing.
(iib) Each agreement required With respect to be disclosed pursuant to this Section 4.02(i) (each, a “MTI each Material Contract”) is a valid and binding agreement Contract listed in Part 2.12 of the Core MTS Business Disclosure Schedule: (A) the agreement is, with respect to the applicable Seller, legal, valid, binding, enforceable and is in full force and effecteffect in all material respects; (B) Seller is not in, and none of the Core MTS Business, orand, to the knowledge Knowledge of MCKSeller, any the other party thereto is in default not in, material breach or default, and no event has occurred which with notice or lapse of time would constitute a material breach in any respect or default, or permit termination, modification or acceleration under the terms agreement; and (C) Seller has not, and to the Knowledge of such MTI Seller the other party thereto has not, repudiated in writing any material provision of a Material Contract, except for any such defaults or breaches which would not reasonably be expected, individually or in the aggregate, to be material to the Core MTS Business, taken as a whole. True and complete copies of each MTI Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 1 contract
Material Contracts. (a) Section 4.07(a) of the Disclosure Schedules lists each of the following Contracts to which Company is a party (such Contracts, together with all Contracts concerning the occupancy, management or operation of any Real Property, the Real Property Leases and all Intellectual Property Agreements, being “Material Contracts”):
(i) None all Contracts (which are not Contracts suppliers, materialmen or vendors), which by their terms involve aggregate consideration in excess of the Core MTS Business or any of its Subsidiaries is a party to or bound by:
Two Hundred Fifty Thousand Dollars (A) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or more250,000);
(Bii) any agreement for the purchase all Contracts with suppliers, materialmen or vendors involving aggregate consideration in excess of materials, supplies, goods, services, equipment or other assets providing for annual payments of One Hundred Thousand Dollars ($3.0 million or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreements100,000);
(Ciii) any sales, distribution all Contracts that require the Company to purchase or other similar agreement providing for sell a stated portion of the sale requirements or outputs of materials, supplies, goods, services, equipment the Company or other assets that provides for annual payments of $5.0 million contain “take or more in MCK’s fiscal year 2016pay” provisions;
(Div) all Contracts (other than Contracts with customers) that provide for the indemnification of any equity partnershipPerson (other than customary contract indemnification clauses for breaches of contract, joint venture personal or property damages, breaches of law, gross negligence or willful misconduct) for or the assumption of any Tax, environmental or other similar agreement or arrangement that is material to the Core MTS BusinessLiability of any Person;
(Ev) any agreement relating all Contracts that relate to the acquisition or disposition of any business 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) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(Gvi) any agreement that restrictsall broker, prohibits distributor, dealer, manufacturer’s Representative, franchise, agency, sales promotion, market research, marketing consulting and advertising Contracts;
(vii) all employment agreements and Contracts with independent contractors or impairs consultants (or purports similar arrangements);
(viii) except for Contracts relating to restricttrade receivables, prohibit all Contracts relating to Indebtedness (including, without limitation, guarantees);
(ix) all Contracts with any Governmental Authority;
(x) all Contracts that limit or impair), or has or would reasonably be expected purport to have limit the effect of prohibiting, restricting or impairing, any material business practice ability of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) to conduct the following activities (i) engage compete in any line of business, (ii) sell, license business or otherwise distribute services with any Person or products in any geographic area or during any period of time;
(iiixi) compete with all joint venture, partnership or similar Contracts;
(xii) all Contracts for the sale of any of the assets or properties of the Company or for the grant to any Person (includingof any option, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights right of first refusal or rights of first offer preferential or (IV) any limits on the use of similar right to purchase any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)assets or properties of the Company;
(Hxiii) any material agreement all Contracts (excluding licenses A) providing for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not Company to be sued underthe exclusive or preferred provider of any product or service to any Person or that otherwise involves the granting by any Person to the Company of exclusive or preferred rights of any kind, (B) providing for any Intellectual Property RightPerson to be the exclusive or preferred provider of any product or service to the Company or that otherwise involves the granting by the Company to any Person of exclusive or preferred rights;
(Ixiv) any Contact containing a most favored nation clause;
(xv) each Contract with a Material Customer;
(xvi) each Contract with a Material Supplier;
(xvii) all powers of attorney with respect to the Company or any of its assets or properties;
(xviii) all collective bargaining agreements or Contracts with any Union;
(xix) any settlement, conciliation or similar agreement pursuant to which with any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, Governmental Authority (other than those contained within customer agreements entered into for duties and taxes in the ordinary course of business consistent with past practice;
(Jbusiness) any agreement or pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in Company will have outstanding obligations after the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating to the employment, severance, retention or indemnification date of any service provider of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 millionthis Agreement; or
(Nxx) any agreement with any Governmental Authority relating all other Contracts that are material to corporate integrity, deferred prosecution, the Company or the Core MTS Business’ or MCKCompany’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be operation of its business as presently conducted and not previously disclosed pursuant to this Section 4.02(i4.07.
(b) (each, a “MTI Each Material Contract”) Contract is a valid and binding agreement of on the Core MTS Business Company in accordance with its terms and is in full force and effect, and none . None of the Core MTS Business, or, to the knowledge of MCK, Company or any other party thereto is in breach of or default under (or is alleged to be in breach in of or default under), or has provided or received any respect under the terms notice of such MTI any intention to terminate, any Material Contract. No event or circumstance has occurred that, except for with notice or lapse of time or both, would constitute an event of default under any such defaults Material Contract or breaches which result in a termination thereof or would not reasonably be expected, individually cause or in permit the aggregate, to be material to acceleration or other changes of any right or obligation or the Core MTS Business, taken as a wholeloss of any benefit thereunder. True Complete and complete correct copies of each MTI Material Contract (including all modifications, amendments and supplements thereto and waivers thereunder) have been made available to Buyer. There are no material disputes pending or threatened under any Material Contract, and all amendments thereto, in each case subject to the redaction of certain information, have been delivered to MCK or its outside counsel.
Appears in 1 contract
Material Contracts. (a) Section 4.7(a) of the Disclosure Schedules lists each of the following Contracts (x) by which any of the Purchased Assets are bound or affected or (y) to which Seller is a party or by which it is bound in connection with the Business or the Purchased Assets (such Contracts, together with all Contracts concerning the occupancy, management or operation of any Real Property (including without limitation, brokerage contracts) listed or otherwise disclosed in Section 4.10(a) of the Disclosure Schedules and all Intellectual Property Agreements set forth in Section 4.11(b) of the Disclosure Schedules, being “Material Contracts”):
(i) None all Contracts involving aggregate consideration in excess of the Core MTS Business fifty thousand dollars ($50,000) and which, in each case, cannot be cancelled without penalty or any of its Subsidiaries is a party to or bound by:
without more than ninety (A90) any agreement for the lease or sublease (whether of real or personal property) providing for annual payments of $750,000 or moredays’ notice;
(Bii) any agreement for all Contracts that require Seller to purchase or sell a stated portion of the purchase requirements or outputs of materials, supplies, goods, services, equipment the Business or other assets providing for annual payments of $3.0 million that contain “take or more in MCK’s fiscal year 2016, including any independent contractor agreements, but excluding any employment agreementspay” provisions;
(Ciii) all Contracts that provide for the indemnification of any salesPerson or the assumption of any Tax, distribution environmental or other similar agreement providing for the sale Liability of materials, supplies, goods, services, equipment or other assets that provides for annual payments of $5.0 million or more in MCK’s fiscal year 2016any Person;
(Div) any equity partnership, joint venture or other similar agreement or arrangement all Contracts that is material to the Core MTS Business;
(E) any agreement relating relate to the acquisition or disposition of any business 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) within the three years preceding the date hereof involving aggregate consideration of $250,000 or more;
(F) any agreement relating to indebtedness for borrowed money, the deferred purchase price of property or capital leases (in either case, whether incurred, assumed, guaranteed or secured by any asset) involving payment obligations of $1,500,000 or more (other than (i) intercompany indebtedness among the MCK Contributed Entities and (ii) intercompany indebtedness among any the MCK Contributed Entity, on the one hand, and MCK or any of its Affiliates (other than the MCK Contributed Entities), on the other hand; provided that, in the case of clause (ii) any such indebtedness shall be paid off in full at or prior to the Closing);
(Gv) any agreement that restrictsall broker, prohibits distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting and advertising Contracts;
(vi) all employment agreements and Contracts with independent contractors or impairs consultants (or purports similar arrangements) and which are not cancellable without material penalty or without more than ninety (90) days’ notice;
(vii) except for Contracts relating to restricttrade payables, prohibit all Contracts relating to indebtedness (including, without limitation, guarantees);
(viii) all Contracts with any Governmental Authority (“Government Contracts”);
(ix) all Contracts that limit or impair), or has or would reasonably be expected purport to have limit the effect ability of prohibiting, restricting or impairing, any material business practice of the Core MTS Business (or the Company after the Closing), any material acquisition of property by the Core MTS Business (or the Company after the Closing) or limits the freedom, in any material respect, of the Core MTS Business (or the Company after the Closing) Seller to conduct the following activities (i) engage compete in any line of business, (ii) sell, license business or otherwise distribute services with any Person or products in any geographic area or during any period of time;
(iiix) compete with all joint venture, partnership or similar Contracts;
(xi) all Contracts for the sale of any of the Purchased Assets or for the grant to any Person (includingof any option, for the avoidance of doubt, any material agreement that includes (I) grants by the Core MTS Business of exclusive rights, exclusive territories, exclusive licenses or “most favored party” rights, (II) any non-competition or non-solicitation restrictions, (III) any rights right of first refusal or rights of first offer preferential or (IV) any limits on the use of similar right to purchase any of the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property)Purchased Assets;
(Hxii) all powers of attorney with respect to the Business or any material agreement (excluding licenses for commercial off the shelf computer software that are generally available on nondiscriminatory pricing terms) pursuant to which the Core MTS Business obtains the right to use, or a covenant not to be sued under, any Intellectual Property RightPurchased Asset;
(Ixiii) all collective bargaining agreements or Contracts with any agreement pursuant to which any Person is authorized to use, or receives a covenant not to be sued under, any material MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, other than those contained within customer agreements entered into in the ordinary course of business consistent with past practice;Union; and
(Jxiv) any agreement pursuant to which the Core MTS Business has provided or leased, or agreed to provide or lease, any source code containing or embodying any Software included in MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property to a third party (including any contingent right to receive or lease source code containing or embodying any Software included in the MCK Owned Intellectual Property and/or MCK Licensed Intellectual Property, whether pursuant to an escrow arrangement or otherwise);
(K) any agreement relating all other Contracts that are material to the employment, severance, retention Purchased Assets or indemnification of any service provider the operation of the Core MTS Business with a base salary or base compensation in excess of $300,000 per year, other than those that can be terminated without liability to the Core MTS Business;
(L) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents);
(M) any agreement with or for the benefit of MCK or any Affiliate of MCK with obligations that continue following the Closing (other than the Transaction Documents), other than agreements with MCK or any Affiliate of MCK entered into on arm’s length terms and in the ordinary course of business for the purchase or sale of materials, supplies, goods, services (excluding any employment agreements), equipment or other assets that are generally available for purchase by business entities in the healthcare information technology industry on substantially similar terms from non-Affiliated suppliers or providers and which provide for annual payments of less than $1.0 million; or
(N) any agreement with any Governmental Authority relating to corporate integrity, deferred prosecution, or the Core MTS Business’ or MCK’s material non-compliance with Health Care Laws.
(ii) Each agreement required to be not previously disclosed pursuant to this Section 4.02(i4.7.
(b) (each, a “MTI Each Material Contract”) Contract is a valid and binding agreement of the Core MTS Business on Seller in accordance with its terms and is in full force and effect, and none . None of the Core MTS Business, Seller or, to the knowledge of MCKSeller’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 respect under the terms material respect, or has provided or received any notice of such MTI any intention to terminate, any Material Contract. No event or circumstance has occurred that, except for with notice or lapse of time or both, would constitute an event of default under any such defaults Material Contract or breaches which result in a termination thereof or would not reasonably be expected, individually cause or in permit the aggregate, to be material to acceleration or other changes of any right or obligation or the Core MTS Business, taken as a wholeloss of any benefit thereunder other than those Material Contracts listed on Section 4.7(b) of the Disclosure Schedules. True Complete and complete correct copies of each MTI Material ContractContract (including all modifications, amendments and all amendments thereto, in each case subject to the redaction of certain information, supplements thereto and waivers thereunder) have been delivered made available to MCK or its outside counselBuyer. There are no material disputes pending or, to Seller’s Knowledge, threatened under any Contract included in the Purchased Assets.
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